Brazil’s illegal betting market appears to be shrinking, with unlicensed platforms accounting for an estimated 38% to 44% of online bets during the first half of 2026. The figure marks a decline from the 41% to 51% share recorded in research published in June 2025.
The latest findings come from LCA Consultores, which used data from the Locomotiva Institute’s research commissioned by the Brazilian Institute for Responsible Gaming (IBJR). The results suggest that Brazil’s enforcement measures are starting to reduce the size of the illegal market. However, unlicensed operators still account for a substantial share of betting activity.
Survey Highlights Continued Use of Illegal Platforms
The Locomotiva Institute surveyed 2,291 gamblers across Brazil in May 2026. The research examined betting practices during the three months before the survey and identified several indicators associated with unlicensed platforms.
Around 53% of respondents had used sites that did not require facial recognition. Meanwhile, 48% had bet on domains other than .bet.br, the domain reserved for authorised operators in Brazil.
In addition, 37% deposited funds through credit cards, while 23% used cryptocurrencies. Both payment methods are prohibited under Brazil’s regulated betting framework.
These figures indicate that, despite tighter controls, illegal platforms continue to attract a significant number of Brazilian bettors.
Regulation Has Reduced the Illegal Market
LCA Consultores said the findings point to both a smaller illegal market and greater certainty about its overall size. Nevertheless, the research also highlights the need for continued enforcement against unlicensed operators.
Brazil’s regulated betting framework took effect on January 1, 2025. Under the system, only licensed companies can legally offer fixed-odds betting, while operators must meet tax, operational, and consumer protection requirements.
The regulated market has already generated significant economic contributions. According to Ministry of Finance data cited in the study, betting companies contributed R$9.95 billion ($1.9 billion) in taxes and legal allocations during the first year of regulation.
Furthermore, each platform paid R$30 million ($5.8 million) in concession fees. Regulated operators also invested approximately R$7.5 billion in share capital, according to the study Overview of the Fixed-Odds Betting Market.
Illegal Betting Still Reaches a Broad Audience
The study also examined the demographic profile of bettors using platforms associated with informal practices. Among this group, 51% were women and 49% were men, while 54% were aged between 18 and 29.
In terms of income, 51% earned up to two minimum wages, indicating that illegal betting reaches a broad section of Brazil’s consumer base.
Around 51% of these bettors used only platforms associated with informal practices. Another 36% said these platforms accounted for most of their bets.
Meanwhile, 8% placed around half of their bets on such platforms, while 6% said they used them for the smallest share of their wagering activity.
Renato Meirelles, president of the Locomotiva Institute, said the study shows a slight reduction in illegal betting but warned that its share remains high. He also noted broad support for stronger action against unlicensed operators, including among people who use clandestine betting sites.
Bettors Recognise Risks of Illegal Operators
The survey also found that most bettors recognise the consumer protection risks associated with illegal platforms.
77% of respondents fully or partially agreed that illegal betting sites do not comply with responsible gambling rules and are therefore more dangerous for bettors. Another 13% remained neutral, while 10% partially or strongly disagreed.
The results highlight a gap between consumer awareness and actual betting behaviour. Although most respondents recognise the risks associated with illegal operators, a substantial proportion continues to use them.
Licensed Operators Face Stricter Requirements
Brazil’s regulated operators must meet several requirements designed to strengthen consumer protection and prevent illegal activity.
Authorised operators must use .bet.br domains, conduct facial recognition and identity checks, provide time and financial-loss limits, and offer self-exclusion mechanisms. They must also restrict payments to PIX or debit transactions from the account holder’s own account.
As Brazil’s regulated betting market continues to mature, these requirements give licensed operators a clearer framework while increasing the barriers facing unlicensed platforms.
Overall, the decline in illegal betting’s market share represents progress for Brazil’s regulatory system. However, with unlicensed platforms still accounting for up to 44% of online bets, continued enforcement, consumer education, and stronger monitoring will remain essential to further reduce the illegal market.
