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Treasury and CVM discuss prediction-market rules in Brazil

Regulation

Brazil's Ministry of Treasury and the Securities and Exchange Commission (CVM) have begun technical discussions on regulating prediction markets. The Prizes and Betting Secretariat is studying how to distinguish sports-related prediction contracts from fixed-odds bets and financial derivatives; the Brazilian Institute of Responsible Gaming has called for the platforms to face the same rules as betting operators, and the Secretariat said it is analysing the issue.

The regulatory boundary will determine whether sports prediction contracts fall under betting or financial-market rules.

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Regulation

Masto says sports prediction markets are gambling and criticises CFTC directive

Nevada senator Catherine Cortez Masto said sports prediction markets constitute gambling and criticised a CFTC directive on access to federally regulated exchanges. The directive gave exchanges 30 days to comply or explain why they could not, a requirement that the coverage says complicates operators’ responses to state court orders.

Federally regulated exchanges have 30 days to lift restrictions based on traders’ residence within the United States or explain why they cannot, under an order issued last week by the CFTC. The order added compliance difficulties for prediction market operators facing court-ordered access limits in states including Michigan, Nevada and Washington.

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