Brazil tightens enforcement and blocks predictive betting platforms outside regulatory framework

Brazil’s Ministry of Finance has moved forward in its crackdown on unregulated operations by ordering the blocking of at least 27 prediction market platforms, in an action carried out by the National Telecommunications Agency (Anatel). The measure marks a new chapter in the consolidation of the country’s betting regulatory framework, with a focus on consumer protection and the integrity of the financial system.

So-called prediction platforms operate as markets where users stake money on a wide range of future events — from entertainment outcomes to political and social scenarios. However, according to the government, this type of operation does not fall within the legally permitted categories in Brazil, which currently restrict betting to real sports events and properly regulated online gaming.

According to the Executive Secretary of the Ministry of Finance, Dario Durigan, the growth of this segment took place during a period of limited regulatory oversight, particularly between 2018 and 2022. “The government’s conclusion is clear: prediction markets are neither legal nor regulated in Brazil,” he stated.

The decision is based on a resolution by the National Monetary Council (CMN), which aims to eliminate legal loopholes used by these platforms. Many of them operated under the logic of financial derivatives — contracts based on the probability of events occurring — without adequate financial backing, which heightened regulatory concerns.

From the perspective of the gambling industry, the move reinforces Brazil’s strategy to build a more structured and controlled environment, especially following recent progress in the regulation of sports betting and iGaming. The exclusion of prediction platforms highlights the government’s intention to prevent the expansion of hybrid models that fall outside sector-specific oversight.

Chief of Staff Minister Miriam Belchior emphasized that the measure also aims to prevent the emergence of a new betting niche outside state control. “If this market were to consolidate without rules, it could pose significant risks to the Brazilian population,” she said.

Another key aspect of the decision relates to the economic protection of users. The government links this type of activity to rising indebtedness, particularly at a time when public policies are focused on reducing the financial burden on households and small businesses.

For international operators and stakeholders, the Brazilian case underscores the importance of understanding local regulatory boundaries, especially in emerging markets where betting legislation is still evolving. The message is clear: only models aligned with specific regulations — such as licensed sports betting — will have a place in the country’s formal ecosystem.