Brazil blocks prediction platforms, tightens rules to curb 'bet-like' products

• Telecoms regulator Anatel shut down 27 prediction market platforms, with major sites like Polymarket and Kalshi going offline by Friday afternoon
• The National Monetary Council now permits only derivatives tied to pre-defined economic and financial benchmarks (price indices, interest rates, exchange rates), effectively barring instruments linked to sports, gaming, or political outcomes
• The Lula administration, which has already regulated and taxed online betting firms, cited concerns that gambling proliferation has worsened household debt levels in Brazil

Summary

Brazil has shut down prediction market platforms and imposed strict new regulations on derivatives trading to prevent "bet-like" financial products from operating in the country. Finance Minister Dario Durigan announced that telecoms regulator Anatel blocked 27 prediction market platforms on April 24, 2026, including major operators like Polymarket and Kalshi, whose websites went offline Friday afternoon.

The National Monetary Council issued new rules Thursday restricting derivatives trading to contracts tied exclusively to established economic and financial benchmarks—such as price indices, interest rates, and exchange rates. The regulations explicitly ban derivatives linked to sports events, online gaming, political outcomes, electoral results, and cultural or social events.

Key Rationale: Government officials argued that prediction markets were circumventing Brazil's betting laws by presenting themselves as financial products while functioning as gambling platforms. Economic reforms secretary Regis Dudena stated these products carried "potentially very destructive features of gambling" despite being marketed as securities. Brazilian law currently permits betting only on real-world sports events and online games.

Policy Context: President Luiz Inacio Lula da Silva's administration has been actively regulating the betting sector after years of uncontrolled operation. The government has expressed concern that gambling proliferation is contributing to increased household debt among Brazilian citizens.

Presidential chief of staff Miriam Belchior emphasized the crackdown aims to prevent establishing another unregulated betting market. Only authorized firms complying with relevant laws and secondary regulations will be permitted to trade approved derivatives going forward.

The action represents Latin America's largest economy taking a firm regulatory stance against emerging financial-gambling hybrid products.