Brazilian Institute for Responsible Gaming has warned that Brazil’s illegal betting market could undermine the federal government’s Desenrola 2.0 debt relief initiative unless authorities intensify enforcement against unlicensed operators.
According to the institute, regulated betting accounted for only 0.46% of Brazilian household consumption in 2025, indicating that licensed betting plays a minimal role in broader household indebtedness. Instead, the IBJR emphasized that high credit costs remain the primary driver of consumer debt.
Focus Shifts Toward Illegal Operators
The IBJR argued that the real threat lies in Brazil’s extensive illegal betting ecosystem, which is estimated to process around R$40 billion annually outside regulatory oversight.
These unlicensed platforms:
- Operate without consumer protections
- Avoid tax obligations
- Increase financial risks for vulnerable consumers
- May be linked to organized crime networks
The institute stressed that weakening the regulated sector could unintentionally push consumers toward illegal alternatives.
Desenrola 2.0 Depends on Stronger Enforcement
Desenrola 2.0, designed to expand debt renegotiation and improve financial stability, may face reduced effectiveness if illegal betting platforms continue to exploit regulatory loopholes.
IBJR stated that:
- Consumer debt solutions require illegal market suppression
- Licensed operators provide safer, monitored environments
- Restricting regulated platforms may accelerate black-market migration
Fiscal Risks for Brazil
Beyond consumer protection concerns, the institute highlighted major tax implications.
If betting activity shifts further underground, Brazil could lose approximately:
- R$10.8 billion in potential tax revenue
This loss could directly impact public funding and weaken the long-term sustainability of gambling regulation.
World Cup Raises Urgency
With the 2026 FIFA World Cup approaching, Brazil faces heightened pressure to contain illegal betting expansion during a period traditionally associated with surging wagering volumes.
The IBJR warned that without decisive action:
- Illegal operators could capture increased market share
- Financial harms could rise
- Regulatory credibility could weaken
Recommended Strategic Response
The organization called for a multi-pronged national strategy combining:
- Financial education
- Responsible gambling protections
- Aggressive website blocking
- Stronger enforcement against illegal operators
- Public-private regulatory cooperation
Protecting Regulation Through Market Integrity
IBJR’s position reinforces a growing industry narrative: Brazil’s regulated betting framework can only succeed if authorities aggressively reduce illegal competition.
Rather than focusing solely on tighter restrictions for licensed operators, the institute argues that preserving consumer safety, fiscal gains, and financial reform goals will depend on ensuring betting activity remains inside a transparent, compliant ecosystem.
