A recent study indicates a decline in the illegal betting market share within Brazil’s betting sector during the first half of 2026, in comparison to findings from June 2025. The research estimates that illegal operators accounted for 38% to 44% of online bets in early 2026, a reduction from the previous range of 41% to 51% reported earlier.
The study, titled "Sizing and Combating the Illegal Betting Market in Brazil," was conducted by LCA Consultores, utilizing data from the "Incidence of Illegal Betting in Brazil" research performed by the Locomotiva Institute for the Brazilian Institute for Responsible Gaming (IBJR). This survey, which gathered responses from 2,291 gamblers across Brazil, was carried out in May 2026.
In the three months leading up to the survey, 53% of participants admitted to betting on platforms that did not require facial recognition. Additionally, 48% reported using domains that do not end with .bet.br, a designation reserved for licensed operators. The findings revealed that 37% of bettors funded their accounts with credit cards and 23% with cryptocurrencies, methods not accepted by regulated markets.
Carlos Lima, executive president of the IBJR, commented on the results, stating that government initiatives to reduce illegal betting appear to be effective. "The numbers show that the regulations and measures adopted by the federal government to combat illegal platforms are beginning to produce concrete results," Lima noted. He emphasized the need to continue this momentum, urging for stronger enforcement against clandestine operators to ensure that regulations evolve with legal clarity and consistency, preventing consumers from migrating back to illegal platforms.
Since January 1, 2025, only licensed operators are permitted to offer betting services in Brazil, and they must fulfill tax obligations and operational standards designed to protect bettors. In its first year, the regulated market generated BRL9.95 billion in tax revenue and contributions to various sectors such as sports, tourism, public safety, and education. Each licensed platform paid BRL30 million in concession fees, aligning with the estimated BRL7.5 billion investment in share capital by regulated operators, which reportedly created around 15,500 direct and indirect jobs.
Eric Brasil, who oversees regulation and public policies at LCA Consultores, remarked that the latest figures not only reflect a decrease in the illegal market but also present clearer insights into its scale. "The results of the estimate of illegal operators' participation indicate not only a relative decrease in the size of the illegal market but also less uncertainty about its magnitude," Brasil stated. "This suggests notable progress from ongoing regulatory measures and enforcement actions against illegal platforms."
Despite the reported decline, Renato Meirelles, president of the Locomotiva Institute, highlighted that half of Brazilian bettors still engage with unlicensed markets. He noted, "The study reveals a slight reduction in the participation of illegal betting, but it remains at high levels." Meirelles emphasized the importance of addressing this issue, noting a general consensus among bettors on the need for stronger action against illegal betting.
The research also showed that most Brazilian bettors are aware of the dangers posed by unlicensed operators. A significant 77% agreed that illegal betting sites fail to comply with responsible gaming regulations, thus posing a greater risk to bettors. Only a small fraction, 13%, remained undecided on this issue. These findings underscore the critical role of governmental efforts in combating illegal betting platforms.
