The Minister of Finance of Brazil, Dario Durigan, and the Director of the Office of the President, Miriam Berciol, jointly convened a press conference on Friday to declare that the projected market was illegal in the country. The National Monetary Commission of Brazil (CMN) adopted a resolution identifying the types of products allowed in the derivatives market. The resolution states that sports events, virtual online games, as well as real or virtual events of a political, electoral, social, cultural, recreational or any other nature, are not considered as fundamental assets of derivative contracts.
The National Telecommunications Authority of Brazil has begun to act by blocking 28 platforms that offer contracts for activities and will continue to act on other platforms that have emerged. At the meeting, Berciol explained that the confirmation of the expected legal status of the market was evidence that Brazil was continuing to improve its market regulation. “Now, we announce that Brazil will ban predictive markets”, she said, “We do not want to expose the Brazilian population to risks and economic losses”. Durigan highlighted the Government ‘ s position, stating that the issue had been reviewed and finding that investment in random events (e.g. weather conditions) was not in compliance with the relevant legal provisions for sports games and online games.
He warned: “No such market is regulated by law and no one is allowed to make a bet on whether it will rain tomorrow. In order to prevent the risks to the population posed by the uncontrolled growth of the platform, 28 platforms have been blocked and other emerging platforms will face the same fate.” The total ban on such products was reiterated by the Secretary of the National Consumer Authority, Ricardo Sen, because such markets were not covered by Act No. 14.790 or by a resolution of the National Monetary Council. He warned that illegal gambling posed a great risk to consumers. When asked whether companies such as Polymarket would be prevented from operating in Brazil, Régis Dudner stated that all platforms providing services that were not covered by the SPA or that did not comply with the CMN resolution would be blocked. This shows that Kalshi, who announced last month that he was working with XP International to launch a product in Brazil, is also being blocked.
He concluded that “as long as the company does not provide products not covered by the National Monetary Council, the company providing the derivatives will be protected by law”.