The Brazilian Institute for Responsible Gaming (IBJR) views as positive Resolution No. 5,298 of the National Monetary Council (CMN), published on April 24, 2026, which establishes clear limits for the organization and operation of the derivatives market in the country. By preventing sports events, online games, and political or cultural themes from being used as underlying assets for financial products, the CMN strengthens legal certainty and prevents the financial system from being used to circumvent betting sector regulations.
The decision, announced by the Central Bank of Brazil, blocks regulatory loopholes exploited by companies attempting to enter the Brazilian market through the so-called “prediction market,” disguising the nature of their activities. IBJR reiterates that whenever a consumer assumes risk based on an uncertain outcome, it constitutes betting—regardless of the label, technology, or contractual structure used. Accepting otherwise would create an unacceptable competitive imbalance for operators that have complied with the rigorous regulatory process.
Allowing equivalent products to operate outside the betting framework would open the door to regulatory arbitrage, with well-known consequences: unfair competition, loss of tax revenue, risks to sports integrity, and, most importantly, weakened consumer protection. Without the safeguards established by Law No. 14,790/23, such financial products would bypass essential responsible gaming mechanisms, including monitoring of compulsive behavior and safeguards against excessive indebtedness.
Brazil has recently established its legal framework for fixed-odds betting. Replicating the same economic exposure through alternative means without complying with the same legal and tax obligations would not represent innovation, but rather regulatory circumvention. IBJR believes that innovation must coexist with rules and fairness, while regulatory arbitrage seeks to avoid them.