A recent study has reported a decline in the share of the illegal betting market in Brazil during the first half of 2026 compared to earlier findings. The analysis indicates that between 38% and 44% of online bets were made with illegal operators in this period, down from a previous range of 41% to 51% as documented in a June 2025 study.
The study, titled "Sizing and Combating the Illegal Betting Market in Brazil," was executed by LCA Consultores and relied on data from the Locomotiva Institute, which was tasked with conducting research on the prevalence of illegal betting at the request of the Brazilian Institute for Responsible Gaming (IBJR). The Locomotiva Institute's survey took place in May 2026 and included responses from 2,291 gamblers across Brazil.
Among the gamblers surveyed, 53% engaged with betting sites that did not require facial recognition in the three months leading up to the survey. Furthermore, 48% placed bets on websites with domain endings other than .bet.br, which is exclusively reserved for licensed operators. Of the total respondents, 37% reported making deposits via credit card, while 23% used cryptocurrencies, both of which are not accepted in the regulated betting market.
Carlos Lima, the executive president of the IBJR, commented on the findings, stating that the data reflects a positive impact of government initiatives aimed at reducing illegal betting. "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 in the fight against clandestine operators while also ensuring that future regulations do not create disparities that might favor the illegal market.
The regulations that came into effect on January 1, 2025, mandate that only licensed operators can legally conduct business within the country, requiring them to fulfill tax obligations, adhere to operational standards, and implement mechanisms for bettor protection. In its inaugural year, the regulated betting market generated BRL9.95 billion in taxes and legal allocations, benefiting sectors such as sports, tourism, public safety, and education. Licensed platforms also contribute BRL30 million each in concession fees. According to the "Overview of the Fixed-Odds Betting Market" study, regulated operators invested around BRL7.5 billion in share capital, creating approximately 15,500 jobs, both directly and indirectly.
Eric Brasil, director of regulation and public policies at LCA Consultores, remarked that the latest data indicates a smaller illegal market and improved transparency regarding its scale. "The results of the estimate of illegal operators’ participation in gambling consumption indicate not only a relative decrease in the size of the illegal market, but also less uncertainty about its magnitude," Brasil stated. He pointed out the importance of sustaining enforcement initiatives to continue this progress.
The informal platforms employed by bettors significantly influenced market participation, with around 51% of respondents stating they exclusively used such sites. About 36% indicated that these platforms accounted for the majority of their betting, while 8% said they placed nearly half their bets on these sites, and 6% reported that they used informal platforms for the least amount of their betting.
Renato Meirelles, president of the Locomotiva Institute, highlighted the study's findings, noting, "The study reveals a slight reduction in the participation of illegal betting, but it is still at high levels, with half of Brazilian bettors operating in the unlicensed market."
He also underscored a growing consensus on the need to combat illegal betting, with many bettors agreeing that it is the government's responsibility to take stronger action against such platforms.
A noteworthy insight from the research is that a significant majority of Brazilian bettors are aware of the risks associated with clandestine operators. According to the study, 77% either fully or partially agreed that illegal betting sites lack the regulations necessary to promote responsible gambling, acknowledging that these sites pose greater dangers to bettors. Conversely, 13% of respondents neither agreed nor disagreed, while only 5% partially disagreed and another 5% strongly disagreed. These findings reaffirm the importance of ongoing efforts by the federal government to tackle illegal betting activities.
