Kalshi, Polymarket Offer Brazil Election Bets Despite Ban; Volumes Surge

Foreign prediction platforms Kalshi and Polymarket are offering contracts on Brazil's 2026 presidential election despite domestic regulatory restrictions, with Polymarket volume exceeding $147M. The legality of these contracts in Brazil is challenged, as the SPA concluded in April that such contracts are not permitted. This highlights regulatory arbitrage and growing retail interest in election-based derivatives.