Government Blocks Prediction Platforms

Government Decision and Participation of Bodies

The Brazilian government, through the Ministry of Finance, announced a drastic measure to block access to 28 platforms that operated prediction markets in the country. The decision, announced on April 23, was implemented with the support of the National Telecommunications Agency (Anatel), which notified more than 19 thousand internet providers to interrupt access to these domains. The action had the collaboration of the National Consumer Secretariat (Senacon) and the Attorney General’s Office of the National Treasury (PGFN).

These platforms were considered illegal for violating the Law No. 14,790/2023, which regulates betting in Brazil. The Minister of Finance, Dario Durigan, clarified that prediction markets do not have legal support in the country. According to him, these platforms present themselves as financial products, but in reality they function as fixed-odd bets without any economic-financial backing to justify their operation.

Efforts to Protect the Economy and Society

The Minister of the Civil House, Miriam Belchior, highlighted that the action has a preventive nature, aiming to prevent the consolidation of an uncontrolled betting market in Brazil and protect family income. Belchior highlighted that more than 50 countries have already adopted similar measures to restrict or ban these services. Since 2023, the Brazilian government has been working to establish clear limits in the sector, emphasizing that any economic activity must respect legal frameworks, especially when it involves financial risks for the population.

The minister reinforced that the government only allows operations that follow strict security and transparency rules. She cited examples of countries such as France, Germany and Italy, which have adopted similar restrictions on prediction markets.

Legislation and Permitted Modalities

The Secretary of Economic Reforms, Regis Dudena, explained that Brazilian legislation only authorizes betting on sporting events and online games. All other modalities are considered illegal. Dudena highlighted that the National Monetary Council (CMN) issued a resolution that limits derivatives to assets with an economic-financial substrate, such as indices, currencies and interest.

Events such as “it’s going to rain” or “celebrity death” cannot be subject to derivatives. The attempt to classify these events as financial products represents a distortion of the capital market and a clear violation of current regulations.

Consumer Protection and Associated Risks

The Secretary of Prizes and Bets at the Ministry of Finance, Daniele Cardoso, clarified that prediction markets reproduce the typical dynamics of fixed odds bets, involving risk, future event and pre-defined prize. Although these platforms try to differentiate themselves using financial market terminology, the structure is identical to traditional betting.

Cardoso reported that there are half a million self-exclusion requests on legal platforms, with 10% motivated by financial problems. This data demonstrates the importance of consumer protection mechanisms, which are absent on blocked prediction market platforms.

Blocking and Surveillance Efforts

Anatel advisor, Octavio Pieranti, detailed the technical blocking procedure, stating that the agency instructed internet service providers to block access to the identified platforms. The action is part of a coordinated effort between different federal government bodies to curb irregular operations in the betting sector.

The attorney general of the National Treasury, Luciana Brayner, highlighted that betting on electoral results was already prohibited by resolution of the Superior Electoral Court (TSE). The measure aims to protect the integrity of the electoral process and avoid perverse incentives for manipulation of democratic processes.

Impacts on the Financial Market

Government action does not affect legitimate financial market operations. Derivatives with economic-financial backing, such as contracts based on dollars and Ibovespa, remain regular. What was prohibited were contracts on events without an economic basis, which do not qualify as legitimate financial instruments.

Authorities emphasized that the measure does not represent any restriction on the traditional capital market, but establishes clear boundaries between legitimate financial products and disguised bets.

Collaboration and Public Communication

The Prizes and Bets Secretariat works in partnership with the National Advertising Self-Regulation Council (CONAR) and the Digital Council to remove profiles and content that promote illegal platforms. The coordinated action aims to curb the advertising of unauthorized services.

The government announced that it will publish studies and indicators on the social and economic impacts of betting markets, in cooperation with the Institute for Applied Economic Research (IPEA). This data aims to support public policies and improve sector regulation.