Brazil Blocks Polymarket, Kalshi and Dozens of Prediction Market Sites in Betting Crackdown

Brazil has moved to block access to prediction market platforms including Polymarket and Kalshi, widening its enforcement against what authorities describe as illegal online betting. Finance Minister Dario Durigan said 27 platforms were shut out, while other reports put the total at 28. The clampdown follows a new federal resolution that bans event-based prediction contracts tied to elections, sports, entertainment and other real-world outcomes not linked to financial benchmarks. Users in Brazil reported losing access to Polymarket and Kalshi after the order took effect. Durigan said the sites were operating outside betting rules approved by Congress and were not regulated in the country. Officials framed the action as consumer protection aimed at curbing household debt and limiting social harm associated with online gambling losses. President Luiz Inacio Lula da Silva has previously pointed to rising financial stress on families alongside the rapid spread of digital betting. Chief of Staff Miriam Belchior said the measures are intended to protect income, prevent financial losses and reduce exposure to risky financial behavior. Under the new framework, Banco Central do Brasil prohibited derivatives whose value depends on sporting events, virtual gaming, political outcomes or other real-world events not tied to economic or financial benchmarks. The ban strikes at the core structure of prediction markets, where traders buy contracts on whether an event occurs. Markets linked to elections, sports results, social events and entertainment outcomes are now barred. Some products tied to recognized financial data may still be permitted if cleared by the securities regulator CVM. The decision also lands as Brazil’s exchange operator B3 expands its listed derivatives offering. B3 has confirmed six new contracts launching on April 27 tied to the Ibovespa stock index, the Brazilian real and Bitcoin. The exchange had also explored event-based markets, including election-linked products, but the new rules explicitly prohibit contracts tied to political or electoral outcomes. The restriction carries added weight ahead of Brazil’s October presidential election, where early polling showed President Lula and Senator Flavio Bolsonaro in a close race. Brazil joins a growing list of jurisdictions taking action against prediction markets. Polymarket has already faced restrictions or bans in France, Portugal, Belgium, Italy, Singapore, Australia and the UK. Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice. Coin Edition is not responsible for losses resulting from the use of any content, products or services referenced. Readers should exercise caution before taking action related to any company mentioned.