Brazil Bans 27 Prediction Platforms Including Polymarket and Kalshi to Curb Debt

Key Facts

Brazilian authorities have banned 27 prediction market platforms, including Polymarket and Kalshi, to protect users from gambling-related debt. While the new rules prohibit contracts tied to sports and politics, they provide exemptions for economic indicators and financial assets. In a strategic move following the ban, the domestic B3 exchange launched six new federally regulated event contracts, including bets on the price of Bitcoin. These new contracts leverage the legal exemption for financial assets, allowing regulated domestic trading despite the crackdown on global platforms. Analysts suggest this shift aims to localize the prediction market and ensure it operates within the official financial system's oversight. This development highlights Brazil's dual approach of tightening control over offshore entities while fostering a regulated domestic market for event-based derivatives.