Brazil Sees Illegal Betting Market Share Decline
Brazil.- 13 August 2026 | www.zonadeazar.com Brazil’s illegal online betting market declined during the first half of 2026, although unlicensed operators still account for a significant proportion of overall activity.
A new study estimates that between 38% and 44% of online bets were placed with illegal operators, down from the 41%-51% range identified by previous research published in 2025.
Study Details
The analysis was produced by LCA Consultores using data from the “Incidence of Illegal Betting in Brazil” study carried out by the Locomotiva Institute on behalf of the Brazilian Institute for Responsible Gaming (IBJR).
The research was conducted across Brazil in May 2026 and included responses from 2,291 bettors.
During the three months before the survey, 53% of respondents said they had used platforms that did not require facial recognition.
A further 48% had placed bets through domains that did not end in .bet.br, the domain extension reserved for licensed operators in Brazil’s regulated market.
Payment Methods and Illegal-Market Indicators
The study also identified behaviour associated with platforms operating outside the regulated system.
Some 37% of respondents said they had deposited funds using credit cards, while 23% reported using cryptocurrencies.
Neither payment method is accepted for deposits within Brazil’s regulated betting market.
Among consumers using platforms with informal or illegal characteristics, approximately 51% said they used only these types of sites, while 36% said they placed most of their bets through them.
Regulatory Impact
Brazil’s regulated betting market officially launched on 1 January 2025, establishing that only licensed operators can legally provide betting services in the country.
Authorised companies must comply with tax obligations, operational standards and specific player-protection requirements.
During the first year of regulation, betting companies contributed BRL9.95 billion in taxes and statutory allocations.
Each authorised platform also paid BRL30 million in concession fees.
Separate research cited in the study estimates that regulated operators invested approximately BRL7.5 billion in share capital, supporting around 15,500 direct and indirect jobs.
Statements
Carlos Lima, Executive President of the IBJR, said the latest figures indicate that measures adopted by the Federal Government against illegal platforms are beginning to produce concrete results.
He described the reduction as a positive sign of consolidation for the regulated market, while warning against creating new regulatory asymmetries that could make clandestine operators more attractive to consumers.
Eric Brasil, Director of Regulation and Public Policies at LCA Consultores, said the new estimates point both to a relatively smaller illegal market and greater certainty over its actual size.
Renato Meirelles, President of the Locomotiva Institute, noted that illegal participation had fallen slightly but remains at high levels.
Risks of the Illegal Market
The study also found that most Brazilian bettors recognise the risks associated with unlicensed operators.
Some 77% of respondents fully or partially agreed that illegal betting sites fail to follow responsible gambling rules and regulations and are therefore more dangerous for consumers.
Next Steps or Impact
The findings suggest that blocking measures, enforcement and the consolidation of Brazil’s regulated market are starting to reduce the relative weight of illegal platforms.
However, an illegal share estimated at as much as 44% demonstrates that channelisation towards licensed operators remains one of the country’s main challenges.
Continued enforcement, combined with competitive and predictable rules for authorised operators, will be critical to reducing offshore activity further.
Editó: @fonta
