Prediction market operator Kalshi is seeking to reverse Brazil’s decision to block platforms offering event-based contracts, according to Co-Founder Luana Lopes Lara.
Speaking in an interview to a local outlet, the Brazilian entrepreneur said the company intends to engage with authorities to explain its business model following restrictions imposed by the Ministry of Finance in April.
Brazilian regulators determined that platforms such as Kalshi were offering products comparable to sports betting without complying with the requirements imposed on licensed betting operators, including licensing fees and anti-money laundering obligations.
Lara argued that prediction markets operate under a different model from traditional sportsbooks.
“Kalshi doesn't make money when people lose — that's a huge difference,” she said.
According to Lara, Kalshi generates revenue by charging transaction fees when users buy and sell contracts tied to the outcome of future events. She compared the model to financial exchanges and futures markets rather than traditional gambling operators.
The executive also confirmed that Kalshi remains interested in establishing a local presence in Brazil despite the current regulatory restrictions.
“We’re going to work with the Government to try to explain what we do, because I think it’s more of an educational gap than anything else,” she said.
While declining to comment on potential legal action, Lara said the company’s priority is maintaining a constructive dialogue with Brazilian authorities.
The comments come as regulators continue scrutinizing prediction market platforms. Brazil has blocked access to operators including Kalshi and Polymarket, arguing that such products fall outside the country’s regulated betting framework.
The company has since expanded rapidly and is now valued at approximately $22bn.
Around 70% of Kalshi users access the platform primarily as an information tool rather than to trade contracts, according to the company
