The prediction market platform Kalshi from the United States announced this Monday that, through strategic cooperation with Brazilian broker XP Internacional, it has officially launched prediction market products in Brazil. This marks Kalshi's first landing in a market outside the United States and also introduces Brazil's first prediction market operator. In plain terms, it means that Americans have brought the concept of prediction markets to Brazil, even faster than the local exchanges. Initially, the cooperation will focus on financial and economic events, and Brazilian investors can trade through the international investment accounts of XP's subsidiary Clear Corretora. Want to know the latest developments in the global prediction markets? Follow the official PASA website continuously.
Getting ahead of B3: Entering Brazil first
In February this year, the Brazilian Securities and Exchange Commission approved the securities exchange operator B3 to become the country's first prediction market operator, originally planned to launch at the end of March. However, Kalshi, through its cooperation with XP, successfully got ahead and landed in Brazil first. Kalshi's co-founder Luana Lopes Lara, who is Brazilian, had revealed in December last year that the company was targeting the Brazilian market, and now her plan has come to fruition, making her extremely excited.
Regulatory grey area: Opportunities and challenges coexist
Brazil currently lacks a formal regulatory framework for prediction markets, while licensed gambling operators have faced strict regulations since the legal market opened in January last year, including the need to establish headquarters in Brazil, comply with strict KYC and certification requirements, and a license fee of up to 30 million reais and heavy taxes. Legal experts point out that prediction markets in Brazil are in a "regulatory grey area," not belonging to iGaming nor within the fixed odds betting framework, meaning there are both risks and opportunities, and it could even compete with the regulated gambling industry. This uncertainty provides space for those willing to take risks, while also potentially steering consumers away from the regulated iGaming industry.
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This article is from "PASA-Global iGaming Leaders," a gambling industry news channel: https://t.me/pasa_news
Original in-depth gambling channel: https://t.me/gamblingdeep
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PASA Matrix: @pasa002_bot
PASA official website: https://www.pasa.news
