Brazil bans Polymarket and Kalshi for "illegal gambling".

The Brazilian government has blocked access to Polymarket and Kalshi as part of a crackdown on prediction market platforms that it believes do not comply with federal gambling laws. Finance Minister Durigan stated that a total of 27 websites were blocked for providing "illegal gambling." He said the move aims to protect the savings of Brazilians and address the problem of rising household debt. The resolution prohibits trading in derivatives related to sports events, online gambling, and "political, electoral, social, cultural or entertainment activities, whether real or virtual," but allows the securities regulator CVM to approve certain contracts at its discretion. Durigan characterized this as part of a broader effort aiming to protect the savings of Brazilians and address the issue of rising household debt, with President Lula partially attributing the issue to online gambling. "We have always advocated for strengthening law enforcement and strict regulation, which will continue to advance so that we can contain the negative externalities and social harms that unregulated gambling brings to the Brazilian people," Durigan said.