Brazil's Ministry of Finance Orders Block on 27 Prediction Market Platforms Including Polymarket and Kalshi, Signaling Regulatory Crackdown

Brazil's Ministry of Finance has taken a firm stance against unregulated digital betting, ordering the blocking of 27 prediction market platforms, including Polymarket and Kalshi. The directive, announced on Friday, April 24, 2026, is a key enforcement step in Brazil's new betting regulatory framework, reclassifying popular prediction contracts as illegal gambling instead of regulated financial products. This measure represents a decisive shift in how South America's largest economy defines event-based contracts.

Prediction markets take the form of financial products but essentially operate similarly to betting. The government aims to prevent unregulated betting markets from taking root. — Regis Dudena, Secretary of Economic Reform in Brazil

The ban will be enforced by the National Telecommunications Agency (Anatel) by blocking the domains in accordance with Resolution No. 5.298 issued by the National Monetary Council (CMN). Deputy Finance Minister Dario Durigan stated that these platforms failed to comply with federal regulations and that the contracts offered were not recognized as appropriate financial instruments. The regulations are set to officially take effect in early May 2026.

Strict Compliance Requirements Under Law No. 14.790/2023

To operate legally in Brazil, platforms must meet strict legal requirements that have been fully implemented since 2025. Law No. 14.790/2023, enacted after the legalization of betting activities in 2019, establishes financial and structural barriers that foreign platforms must adhere to in order to enter the Brazilian market. Brazilian authorities maintain that strong national intervention is necessary to prevent indiscriminate market proliferation.

• Mandatory establishment of headquarters in Brazil and appointment of a local legal representative
• Payment of a high operating license fee amounting to 30 million reais (BRL)
• License renewal every five years and continuous validation
• Prohibition of contracts linked to non-financial outcomes such as sports results and elections

This regulatory tightening comes amidst the explosive growth of the global prediction market. Monthly trading volume in the global prediction market grew rapidly from approximately $1.2 billion in early 2025 to over $21 billion as of January 2026. This massive market, with over 800,000 unique wallets participating monthly, has entered a new phase of facing regulation in emerging markets like Brazil.

Kalshi, a global market leader, stated it is currently reviewing the Brazilian government's resolution, while Polymarket has not yet issued an official response to the blocking order. Brazil's action sends a strong warning to platforms seeking to expand internationally without local licenses and is expected to serve as an important precedent for regulatory directions in other countries.