Published on: April 27, 2026, 02:38h.

Updated on: April 27, 2026, 02:38h.

• The Brazilian government contests that prediction markets closely imitate gambling and threaten the regulated igaming sector
• Brazil’s regulated online igaming sector officially commenced on January 1, 2025
• The market achieved $7 billion in gross gaming revenue during its inaugural year

The Brazilian government has initiated measures to impede prediction market operations within its borders, enhancing derivatives regulations to limit what Finance Minister Dario Durigan described as “bet-like” offerings that compete with the regulated igaming landscape.

Closure of Prominent Platforms

According to Reuters, notable prediction market platforms such as Polymarket, Fanatics Markets, and Kalshi ceased operations by Friday afternoon, enforced by Brazil’s telecommunications authority, Anatel. This action followed a directive from the Finance Ministry, leading to the shutdown of 27 platforms in total.

Authorities determined that these prediction markets operated outside the legal framework of the country, rendering them illegal. The Finance Minister stated that the National Monetary Council had revised the definitions surrounding which underlying assets are permitted in derivatives trading. Contracts based on sports events, political outcomes, and other non-economic indicators are now prohibited.

The council has restricted derivative contracts to those related to economic metrics, facilitated by authorized firms compliant with existing laws. Valid contracts now include interest rates, inflation, exchange rates, and commodity prices.

Concerns Over Unregulated Gambling

Ultimately, the Brazilian government concluded that prediction markets attempted to position themselves as financial instruments while essentially resembling gambling.

A government spokesperson told Reuters that this initiative aims to prevent the establishment of an unregulated betting market that competes with licensed operators.

“As we strive to reduce debt levels for families, small enterprises, and students, we must also avert new forms of financial distress,” remarked Durigan during a news conference on Friday.

The legally regulated online betting sector in Brazil commenced on January 1, 2025, issuing licenses to a select number of operators.

A Major Global Market

Brazil not only stands as the largest economy in Latin America but also ranks among the top ten largest economies globally.

In its first year, the regulated Brazilian igaming market generated around $7 billion in gross gaming revenue from licensed entities, solidifying its position as one of the leading igaming markets globally.

In the United States, legal disputes are ongoing between federal regulators and states concerning access to prediction markets. Companies like Polymarket have been facilitating billions of dollars in trading activity within the U.S. market.