The Brazilian Government has ordered the blocking of Polymarket, one of the largest prediction markets in the world, for failing to comply with federal gambling laws.
The Minister of Finance, Dario Durigan, has explained that a total of 28 platforms have been blocked for offering what, under current regulations, is considered “illegal betting”.
“The prediction market violates the law passed by the National Congress. Therefore, the product offered by these platforms cannot be regularized” and will be blocked due to “general non-compliance” with the legislation, Durigan stated at a press conference.
It should be noted that Brazil legalized online betting in 2018 and approved the regulatory framework governing the activity in 2023. Current legislation allows only two scenarios: sports betting and gambling games.
In recent months, prediction markets have been the center of attention, and on both sides of the Atlantic the debate over how to regulate them continues. Polymarket and Kalshi, the leading platforms in this segment, accounted for more than 97.5% of the global market last year, according to Metahub Research.
Meanwhile, the Brazilian president, Luiz Inácio Lula da Silva, promises to take “very serious” measures to curb the proliferation of online betting houses.
Brazil has so far blocked more than 39,000 illegal websites in collaboration with the National Telecommunications Agency (Anatel) and has removed 203 apps that were operating outside federal regulation.
It is estimated that illegal operations represent more than 40% of the online betting market in the country.