Brazil blocks prediction platform, deems it illegal for betting

Brazil’s decision to block prediction market platforms such as “Kalshi” and “Polymarket” is an escalating step in a regulatory campaign against such services, which authorities believe are akin to illegal gambling.

The decision comes after Ofcom shut down around 27 platforms after a government review concluded the services breached gambling regulatory laws.

In fact, the websites of some of the most prominent of these platforms have ceased operating within the country.

The authorities believe that these platforms rely on contracts based on predictions of future events (yes or no), which makes them interfere with traditional gambling activities, despite their presentation as financial products.

The new rules also emphasize that financial derivatives are limited to economic indicators such as prices, interest and currencies, while excluding any contracts related to political, sports or social events.

Through these measures, the government seeks to prevent the spread of an unregulated gambling market, especially since the digital gambling industry has continued to expand in the country since the launch of a new legal framework in 2025.

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