Kalshi Expands to Brazil with Brokerage Firm XP

Bloomberg has reported that Kalshi is now expanding further afield in Brazil, following an interview with company co-founder Luana Lopes Lara and the media outlet. 

Kalshi Delivers on Promise to Expand Further Globally 

The partnership is part of the company’s broader expansion strategy that will rely on established financial partners overseas rather than seek to gain a foothold on its own, Lara said. 

То deliver on this, Kalshi is teaming up with the local brokerage firm, XP, which already has more than 4.8 million active users. Before Kalshi launches full-scale, its products will be cloated with Clear Corretora, an XP subsidiary, as the companies test the waters.

Brazil currently does not regulate prediction markets, nor does it prohibit them outright. Lara has previously commented that she was determined to bring Kalshi’s product offer to her native Brazil, leveraging the power of these disruptive products and offering consumers another worthwhile option. 

Brazil’s Expansion Does Not Settle Things at Home for Kalshi

Kalshi is unlikely to run into any immediate legal challenges in Brazil, but the company has faced fierce pushback in the United States with the Gambling Is Not Investing trade group and another association, Better Markets, both criticizing the prediction market vertical – especially the one involving trades on sports – as a clever way to dodge demanding gambling regulation. 

Kalshi also has to deal with multiple state-led lawsuits filed against the company by gambling regulators and sometimes attorneys general. The latest state to target Kalshi is Michigan, with AG Dana Nessel not mincing her words and calling the platform gambling.

The CFTC, the federal regulator that oversees financial products such as prediction markets, is out of its depth, argue critics, who say that the watchdog is ill-equipped to regulate what essentially amounts to gambling.