Brazil Estimates Illegal Betting Accounts for Up to 51% of the Market
Brazil.- June 23, 2026 – www.zonadeazar.com The Brazilian Government has revealed that illegal betting platforms still account for between 41% and 51% of the country’s betting activity. The estimate highlights growing concerns regarding tax revenue losses, consumer protection and the overall integrity of the regulated market.
Overview
Despite the progress achieved through the regulation of Brazil’s online betting and gaming sector, federal authorities estimate that a substantial share of gambling activity continues to take place through unlicensed operators.
According to official figures, illegal betting currently represents between 41% and 51% of the total market, underscoring the challenges facing the country as it seeks to establish a fully regulated ecosystem.
The estimate was disclosed as part of a broader government effort to combat unauthorized operators and strengthen the regulated market.
Details
As part of this strategy, President Luiz Inácio Lula da Silva signed a decree expanding the government’s powers to act against illegal gambling operations.
The measure allows authorities to freeze financial assets linked to unlicensed operators while strengthening website blocking mechanisms and other enforcement actions aimed at preventing illegal operators from targeting Brazilian consumers.
Officials believe that the volume of betting activity conducted outside the regulated framework results in significant losses for the State, weakens responsible gambling policies and complicates regulatory oversight.
Since the launch of the regulated market, Brazil has intensified enforcement efforts through the Secretariat of Prizes and Betting (SPA), the body responsible for supervising the sector under the Ministry of Finance.
Context
Brazil has become one of the world’s largest betting markets and a major investment destination for international operators.
However, the transition to a fully regulated environment remains challenging due to the long-standing presence of offshore operators that served Brazilian customers before the new regulatory framework was introduced.
The continued existence of illegal operators not only affects tax collection but also exposes consumers to risks, as these platforms are not required to comply with standards related to security, anti-money laundering controls, data protection and responsible gambling.
Several industry stakeholders have noted that reducing the illegal market will be one of the key factors determining the long-term success of Brazil’s regulatory model.
Statements
Brazilian authorities have emphasized that their primary objective is to accelerate the migration of players toward licensed operators while reinforcing compliance and enforcement mechanisms.
The Government considers the fight against illegal betting platforms a strategic priority to ensure the sustainability of the regulated market and provide greater protection for consumers.
Next Steps
Authorities expect the new regulatory tools to increase pressure on illegal operators and gradually reduce their market share.
The Government will continue working alongside regulatory agencies, financial institutions and digital service providers to identify and block unauthorized operations, promoting a safer and more transparent betting environment.
Industry operators, regulators and investors will closely monitor the impact of these measures, as Brazil continues to emerge as one of the most important iGaming markets globally.
Source: Reuters
More information: www.zonadeazar.com
Edited by: @_fonta
