Brazil’s illegal betting market appears to be shrinking, although unlicensed platforms still hold a significant share of online wagering. A new study found that illegal operators accounted for an estimated 38% to 44% of online bets during the first half of 2026. The figure represents a decline from the 41% to 51% share recorded in research published in June 2025.
The findings come from the “Sizing and Combating the Illegal Betting Market in Brazil” study by LCA Consultores. The research draws on data from the Locomotiva Institute’s “Incidence of Illegal Betting in Brazil” study, commissioned by the Brazilian Institute for Responsible Gaming (IBJR).
The Locomotiva Institute surveyed 2,291 gamblers across Brazil in May 2026. The results provide further insight into how bettors interact with unlicensed platforms despite the country’s regulated betting framework.
Illegal Betting Practices Remain Common
The research found that illegal betting remains widespread among Brazilian bettors. In the three months before the survey, 53% of respondents placed bets on platforms that did not require facial recognition.
Meanwhile, 48% used domains that did not end in .bet.br, a domain reserved for licensed betting operators. Additionally, 37% deposited funds through credit cards, while 23% used cryptocurrencies. Neither payment method is permitted in Brazil’s regulated betting market.
Therefore, although the illegal market’s overall share has declined, these figures suggest that unlicensed platforms continue to attract a substantial portion of Brazilian bettors.
Government Measures Show Early Results
Carlos Lima, executive president of the IBJR, said the latest figures indicate that government measures against illegal betting are beginning to produce results.
According to Lima, the decline highlights progress in consolidating Brazil’s regulated betting market. However, he also stressed the need for continued enforcement and greater regulatory predictability.
The regulated framework took effect on January 1, 2025, allowing only licensed operators to legally offer betting services in Brazil. These operators must meet tax obligations, comply with operational requirements, and implement measures designed to protect bettors.
The regulated market has already generated significant economic contributions. During its first year, betting companies contributed BRL9.95 billion in taxes and legal allocations to areas including sports, tourism, public safety, and education. In addition, each platform paid BRL30 million in concession fees.
According to the study “Overview of the Fixed-Odds Betting Market,” regulated operators also invested approximately BRL7.5 billion in share capital and generated an estimated 15,500 direct and indirect jobs.
Regulation Brings Greater Market Clarity
Eric Brasil, director of regulation and public policies at LCA Consultores, said the latest estimates point to two developments: a smaller illegal market and greater certainty about its actual size.
The findings suggest that regulation and enforcement measures have reduced the relative share of illegal operators. Nevertheless, Brasil emphasized that authorities must continue enforcement efforts to maintain this progress.
The research also examined how frequently bettors used platforms associated with informal practices. Approximately 51% of bettors used only these types of platforms, while 36% said they placed most of their bets on them.
For another 8% of respondents, these platforms accounted for around half of their betting activity. Meanwhile, 6% said they placed only a small share of their bets on such platforms.
Half of Brazilian Bettors Still Use Illegal Platforms
Despite the decline, the illegal market remains substantial. Renato Meirelles, president of the Locomotiva Institute, described the reduction as positive but warned that unlicensed betting still reaches around half of Brazilian bettors.
At the same time, the research identified broad support for stronger action against illegal operators. Even bettors who use clandestine platforms largely recognise the need to address the issue.
This presents an important opportunity for Brazil’s regulated market. As enforcement improves and consumers become more aware of licensing requirements, licensed operators may gain greater visibility and trust among bettors.
Bettors Recognise Risks of Illegal Operators
The study also found that most Brazilian bettors understand the risks associated with unlicensed platforms. 77% of respondents fully or partially agreed that illegal betting sites do not follow responsible gambling rules and regulations, making them potentially more dangerous for consumers.
Meanwhile, 13% neither agreed nor disagreed. Another 5% partially disagreed, while a further 5% strongly disagreed.
Overall, the findings indicate that Brazil’s efforts to combat illegal betting may be gaining momentum. However, the continued presence of unlicensed platforms shows that enforcement remains an important priority.
As Brazil’s regulated betting market develops, authorities and licensed operators will need to maintain strong compliance standards while continuing to reduce the appeal and reach of clandestine platforms.
