Brazil Monetary Council Blocks Kalshi Sports, Politics Trading

Kalshi and several other prediction market platforms have been blocked from operating in Brazil following a regulatory crackdown by the country’s National Monetary Council. A total of 27 sites were blocked for offering illegal betting, Finance Minister Dario Durigan announced at a Friday news conference in Brasilia. The minister framed the action as part of a broader effort to protect Brazilian savings and address rising household debt levels linked to online gambling. Prediction markets have surged in popularity recently, allowing users to trade on sporting events, election outcomes, and economic data releases. The move against Kalshi betting and similar platforms reflects growing regulatory concerns about unregulated gambling’s social impact on the Brazilian population.

Brazil Blocks 27 Betting Sites Including Kalshi and Polymarket

The National Monetary Council issued Resolution CMN No. 5,298 on April 23, establishing new restrictions for Brazil’s derivatives market. Gabriel Muricca Galípolo, president of the Central Bank of Brazil, signed the resolution. The regulation prohibits derivative contracts whose underlying assets relate to sporting events, online games, and events of a political, electoral, social, cultural, or entertainment nature.

Finance Minister Dario Durigan initially reported 28 platforms were blocked before the Finance Ministry revised the figure to 27 firms. The discrepancy reflected ongoing enforcement actions as authorities identified additional platforms attempting to operate in the country.

Economic reforms secretary Regis Dudena stated Brazilian law previously defined only two types of events as eligible for betting: real-world sports events and online games. “This product that was being presented as a security carried the potentially very destructive features of gambling,” Dudena said. Officials determined that Kalshi betting and similar platforms disguised gambling products as financial instruments.

Miriam Belchior, chief of staff of the presidency, explained the government’s position. “Now, we are announcing that prediction markets will not be allowed in Brazil,” she said. “We do not want to expose Brazilians to risks and financial losses”.

Brazil launched its regulated online betting market in January 2025. Since then, authorities have blocked 39,000 unlicensed betting sites.

How Are Prediction Market Platforms Responding to the Ban?

A Kalshi spokesperson confirmed the company is reviewing Resolution No. 5,298 but declined to provide further details on its response strategy. Polymarket did not respond to requests for comment on the ban.

Both platforms became inaccessible to Brazilian users shortly after the announcement. Major internet service providers blocked the domains, rendering Polymarket and Kalshi betting operations dark across the country. One researcher based in Brazil confirmed the platforms were unavailable.

The timing proved particularly problematic for Kalshi. The platform, co-founded by a Brazilian, had announced expansion plans to Latin America’s largest nation just months earlier. In January, Kalshi secured access to Brazil through a partnership with XP Inc., positioning its services as investment products for Brazilian consumers.

The partnership drew immediate complaints. The Secretariat of Prizes and Betting received multiple objections from licensed operators urging regulatory intervention to block Kalshi’s entry.

Despite the setback, a regulatory gap remains. The Brazilian Securities and Exchange Commission is monitoring prediction markets, but authorities have not established a formal regulatory timeline for the sector. The window for platforms to operate in Brazil’s gray zone appears to be closing as the National Monetary Council restricts event-based derivatives. Kalshi’s entry exposed a regulatory fault line as authorities moved to close gaps between financial markets and the Bets Law framework.

Where Else Have Prediction Markets Faced Regulatory Scrutiny?

Regulatory pressure extends far beyond Brazil’s borders. The Netherlands Gambling Authority ordered Polymarket’s Dutch affiliate, Adventure One, to cease operations immediately or face penalties up to €820,000. Officials stated prediction market wagers violate Dutch law, even for licensed gambling operators.

European enforcement accelerated in early 2026. Portugal’s gambling regulator banned the platform for lacking authorization and offering prohibited political betting. Hungary and France imposed similar restrictions, with France limiting users to view-only access. Polymarket now blocks access in 33 countries, including Germany, Italy, Belgium, and Poland.

Argentina became the 34th nation to ban Polymarket after a Buenos Aires court ordered internet service providers to block the platform. The case followed unusual trading activity around Argentina’s February inflation data, raising concerns about insider information.

United States jurisdictions present the most complex battleground. At least 20 federal lawsuits dispute whether platforms like Kalshi and Polymarket operate as federally regulated exchanges or state-licensed gambling operations. Massachusetts secured a preliminary injunction blocking Kalshi from offering sports contracts without state licensing. Nevada courts similarly blocked both platforms.

Arizona Attorney General filed criminal charges against Kalshi in March 2026, marking the first state-level criminal prosecution of a CFTC-regulated platform. The Commodity Futures Trading Commission responded by suing Arizona, Connecticut, and Illinois, asserting exclusive federal jurisdiction.