Brazil’s Attorney General’s Office (AGU) is considering possible measures against prediction market platform Polymarket over markets linked to the country’s 2026 presidential election, according to JOTA.
The AGU is seeking information from the Ministry of Finance before deciding what action may be appropriate. The review follows a complaint concerning Polymarket’s election-related contracts and comes several months after Brazilian authorities moved to block prediction-market platforms.
AGU Reviews Polymarket Markets
No formal action against Polymarket has been announced. According to JOTA, the AGU and National Telecommunications Agency (Anatel) are in contact with the Ministry of Finance, while the Superior Electoral Court (TSE) has shared material related to the complaint with the AGU.
The review adds another layer to Brazil’s ongoing regulatory dispute over prediction markets and whether contracts based on political or other non-financial events fall within the country’s betting or financial rules.
Brazil Restricts Non-Financial Contracts
In April, Brazil’s Ministry of Finance asked Anatel to block 27 prediction-market platforms, including Polymarket and Kalshi, after authorities concluded that their products did not comply with the country’s betting framework.
The government’s position followed Resolution No. 5,298 of the National Monetary Council (CMN), which restricts the offering and trading of certain derivatives linked to sporting, political, electoral, social, cultural and entertainment events, subject to provisions covering recognised economic or financial benchmarks.
Brazilian authorities have argued that contracts based on non-financial events can reproduce characteristics of fixed-odds betting rather than functioning as conventional financial products.
Prediction Markets Challenge Restrictions
The Secretariat of Prizes and Betting has also stated that no prediction-market operator has received authorisation to operate in Brazil.
Prediction-market companies have challenged the government’s approach. Kalshi co-founder Luana Lopes Lara said in June that the company intended to seek the reversal of the block, arguing that restrictions could affect tax revenue and consumer protection.
For Polymarket and other prediction-market operators, the AGU review could provide another indication of how Brazilian authorities intend to apply existing betting and financial rules to election-related contracts during the 2026 electoral cycle.
