A recent study indicates that the share of the illegal betting market in Brazil declined in the first half of 2026, compared to earlier research conducted in June 2025. This analysis suggests that between 38% and 44% of online bets were made through illegal betting operators, a decrease from the previous estimate that placed these numbers between 41% and 51%.
The study, titled "Sizing and Combating the Illegal Betting Market in Brazil," was carried out by LCA Consultores using data from the "Incidence of Illegal Betting in Brazil" research commissioned by the Brazilian Institute for Responsible Gaming (IBJR) and conducted by the Locomotiva Institute in May 2026 with insights from 2,291 gamblers across the country.
According to the survey, 53% of respondents had placed bets on sites that do not require facial recognition in the three months prior to the study. Additionally, 48% used domains that do not end with .bet.br, a designation reserved for licensed operators. The methods of payment varied, with 37% of participants making deposits via credit card and 23% using cryptocurrencies, both of which are not permitted in the regulated market.
Carlos Lima, executive president of the IBJR, stated that these new figures suggest the government's initiatives to reduce illegal betting are beginning to show results. "The regulations and measures adopted by the federal government to combat illegal platforms are starting to produce concrete outcomes," Lima remarked. "This observed reduction is a positive sign for the consolidation of the Brazilian regulated market."
Lima emphasized the need for ongoing efforts to strengthen the fight against clandestine operators, emphasizing that regulatory changes should ensure legal certainty and predictability, preventing advantages for illegal markets that lure consumers away from licensed platforms.
Since January 1, 2025, only licensed operators can legally engage in betting within the country. These operators must meet tax obligations, adhere to operational standards, and employ mechanisms designed to protect bettors. In their first year of operation within this regulated framework, betting companies generated BRL9.95 billion in taxes and contributions, benefiting sectors such as sports, tourism, public safety, and education. Furthermore, each platform paid about BRL30 million in concession fees and invested around BRL7.5 billion in share capital, leading to an estimated 15,500 direct and indirect jobs.
Eric Brasil, LCA Consultores' director of regulation and public policies, acknowledged the favorable estimates indicating a contraction in the illegal market and a clearer understanding of its scope. "The decrease in illegal operators' gambling consumption indicates not only a relative reduction in the illegal market but also a better grasp of its size," Brasil explained, underscoring the significance of continued enforcement against illegal platforms.
The study showed that approximately 51% of respondents utilize illegal platforms, with 36% indicating they placed most of their bets on such sites. Renato Meirelles, president of the Locomotiva Institute, noted that while illegal betting participation has slightly decreased, it remains high, with about half of Brazilian bettors engaged in unauthorized markets. He pointed out that there is widespread agreement on the need to address this issue, even among those who gamble on illegal sites.
The research also highlighted that 77% of Brazilian bettors perceive clandestine operators as risky, agreeing that illegal sites do not promote responsible gambling practices. This awareness signals the crucial nature of the government's campaign against such platforms, as evidenced by the responses where 13% remained neutral, while 5% partially or fully disagreed with the risks associated with illegal betting.
