Brazil bans prediction markets, blocks illegal platforms
The Brazilian Ministry of Finance has taken a strong measure against so-called prediction markets by ordering the blocking of 28 platforms that were operating irregularly in the country. The decision, formally announced last Thursday, April 23, 2026, was implemented by the National Telecommunications Agency (Anatel), which notified more than 19,000 internet service providers to immediately interrupt access to these domains. This coordinated action was supported by the National Consumer Secretariat (Senacon) and the Attorney General of the National Treasury (PGFN), reaffirming the State's stance against products that violate Law No. 14,790/2023.
The lack of legal basis for prediction markets in Brazilian legislation
According to authorities from the Ministry of Finance, these platforms do not have a valid legal framework in the national territory. Dario Durigan, executive secretary of the portfolio, explained that prediction markets do not comply with betting regulations or the asset limits for derivatives defined by the Securities Commission. For the Government, these tools try to present themselves as innovative financial products, but in practice, they function as disguised fixed-odds bets that lack real economic backing.
Since the beginning of control operations in 2025, the Brazilian Executive has intensified its surveillance, achieving the blocking of approximately 39,000 domains linked to illegal gambling and the removal of hundreds of influencer profiles that promoted these prohibited services. The Minister of the Civil House, Miriam Belchior, emphasized that this measure has a fundamental preventive nature to prevent an unsupervised market from consolidating, sending a clear message about the obligation to comply with the rules established by the State.
Associated risks and the distinction from the traditional financial market
The official concern lies not only in the lack of licenses but also in the social and democratic risks that these markets represent. The Secretary of Economic Reforms, Regis Dudena, warned that attempting to classify climatic events or the death of public figures as financial derivatives severely distorts the capital market and violates current regulations. Likewise, the Attorney General of the Treasury recalled that bets on electoral results were already prohibited and warned about the perverse incentives that can affect democratic integrity.
Authorities also identified various dangers for users, such as over-indebtedness, the complete absence of responsible gambling mechanisms, and the possibility that these structures could be used for money laundering maneuvers. It is important to note that these restrictions do not affect legitimate financial derivatives based on currencies, indices, or interest rates, which continue to operate normally under the supervision of the competent bodies.
Institutional support and the defense of fair competition
The Brazilian Institute of Responsible Gambling (IBJR) has expressed its full support for the Ministry of Finance's resolution, arguing that this type of measure strengthens the legal certainty of the entire sector. The organization pointed out that the fact that a consumer assumes a risk conditioned on an uncertain outcome constitutes a bet by definition, and therefore these platforms must be subject to the same rules of transparency, taxation, and user protection as other authorized operators.
Allowing prediction markets to operate outside the legal framework would generate unfair competitive asymmetries compared to regulated companies and leave citizens unprotected against compulsive behaviors. With this offensive, the Government of Brazil reaffirms that betting in the country is exclusively limited to real sports events and authorized online gambling, thus guaranteeing a safe and duly supervised entertainment environment for all participants.
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