(AsiaGameHub) – Brazilian authorities have prohibited 27 platforms that function under “prediction market” models, having concluded they were essentially providing betting services without a license.
The Ministry of Finance issued the prohibition after an investigation found these firms were marketing their services as investment or derivative products tied to wagering, barring them from conducting business in Brazil.
These banned platforms allowed users to place bets on a wide array of real-world events, such as: future elections; economic patterns; sports results; TV show outcomes; and developments in international relations.
This ban aligns with a recent resolution from the National Monetary Council on April 24, which limited derivatives trading to economic and financial indicators overseen by the Securities and Exchange Commission.
Officials added that these organizations’ business models are “operating at the fringes of the finance industry” and fail to meet the standards required for a licensed betting operation or a regulated financial institution.
Additionally, authorities raised concerns about the potential for customers to accumulate excessive debt.
The prohibition applies to both domestic and international firms named in the announcement, such as Kalshi and Polymarket. Consequently, Brazilian consumers will face limited access to these companies’ services.
For all the affected companies, this ruling significantly shifts Brazil’s previous approach to new betting-like models, compelling them to either adhere to local regulations or exit the Brazilian market.
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