Brazil Shuts Down 27 Prediction Market Platforms

Brazil's government has shut down dozens of prediction market platforms and imposed stricter rules on derivatives trading to clamp down on products resembling unauthorized betting, Finance Minister Dario Durigan announced Friday in Brasilia.

The move targets platforms that allow users to wager on outcomes such as political events or cultural happenings, which officials say violate congressional betting regulations. Durigan stated that the telecommunications regulator Anatel had blocked access to 28 such platforms across Latin America's largest economy, though the Finance Ministry later revised the number to 27. By early Friday afternoon, websites for major operators including Polymarket and Kalshi were inaccessible to users in the country.

The restrictions stem from a resolution issued Thursday by the National Monetary Council, which limits derivatives contracts to those based on established economic and financial indicators, such as price indices, interest rates, and exchange rates. The council explicitly prohibits underlying assets tied to sports events, online gaming, or political, electoral, cultural, and social outcomes. Only authorized firms complying with the law and...