Companies in the sports betting sector asked the Ministry of Finance that blocks the operation in Brazil of prediction market platforms, such as Polymarket and Kalshi. The request was presented to the Secretariat of Prizes and Bets, the body responsible for regulating the betting market in the country, according to a report from Folha de S.Paulo.
The companies claim that these platforms operate in a similar way to betting, but without complying with the requirements of Brazilian regulation. Since the regulation of the sector, companies interested in operating in the country have needed to obtain federal authorization and pay a million dollar grant to explore the service.
So-called prediction markets work as a type of exchange where users buy or sell contracts based on the probability of certain events occurring. Among the topics negotiated are electoral results, economic indicators, political decisions or sporting events.
For representatives of the betting sector, these operations could constitute a form of disguised betting, which would create unfair competition with companies licensed in Brazil. The argument is that foreign platforms are able to offer the service without complying with local taxation, inspection and consumer protection rules.
Another point raised by the companies is that Brazilian users can access these platforms over the internet and carry out transactions using international cards or cryptocurrencies, sending funds directly to accounts abroad.
The debate over the legality of these services still involves possible powers of other regulatory bodies. In addition to the Prizes and Bets Secretariat, the Securities and Exchange Commission can analyze the topic, as part of the operations can be interpreted as trading in financial derivatives.
In a note sent to the press, the Prizes and Betting Secretariat stated that it follows the topic technically and that prediction markets are part of ongoing preliminary studies. The ministry also stated that, to date, there are no Brazilian companies authorized to operate in this segment.
Fonte: Gaming365 – Brasil
