A recent study has shown a decline in the share of the illegal betting market within Brazil's gambling sector during the first half of 2026, compared to findings from a June 2025 report.
The study estimates that between 38% and 44% of online bets were made with unlicensed operators in the first half of 2026, a drop from the previous estimate of 41% to 51%.
Titled "Sizing and Combating the Illegal Betting Market in Brazil," the research was conducted by LCA Consultores. It utilized data from the "Incidence of Illegal Betting in Brazil" study carried out by the Locomotiva Institute, commissioned by the Brazilian Institute for Responsible Gaming (IBJR).
The Locomotiva Institute surveyed 2,291 gamblers across Brazil in May 2026. The data indicated that 53% of respondents had placed bets on sites without facial recognition requirements in the preceding three months. Additionally, 48% wagered on websites not registered with the .bet.br domain, which is exclusively for licensed operators. Among the respondents, 37% used credit cards for deposits, while 23% opted for cryptocurrencies, which are not accepted within the regulated market.
Carlos Lima, the IBJR’s executive president, remarked that the latest findings suggest the effectiveness of government initiatives aimed at reducing illegal betting. He stated, "The numbers show that the regulations and measures adopted by the federal government to combat illegal platforms are beginning to produce concrete results. The observed reduction is a positive sign of the consolidation of the Brazilian regulated market."
Lima emphasized the need to continue advancing these efforts, warning that new regulations limited to authorized operators must not create unfair advantages that could entice consumers back to illegal betting sites.
The regulatory measures that took effect on January 1, 2025, permit only licensed operators to conduct business in Brazil, enforcing compliance with tax obligations, operational standards, and protection for bettors. In the initial year of the regulated market, betting companies generated BRL9.95 billion through taxes and legal allocations benefiting sports, tourism, public safety, and education. Additionally, each platform paid BRL30 million in concession fees and contributed approximately BRL7.5 billion in share capital, leading to the creation of around 15,500 direct and indirect jobs in the sector.
Eric Brasil, LCA Consultores' director for regulation and public policies, noted that the new estimates not only indicate a decrease in the illegal market's size but also improve clarity regarding its scale. He stated, "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 the magnitude of this market. This points to significant progress due to regulation and action against illegal platforms."
In total, approximately 51% of participants reported using informal betting platforms, with 36% placing the majority of their bets there. Six percent indicated that these platforms accounted for their least amount of betting activity.
Renato Meirelles, president of the Locomotiva Institute, highlighted the need for continued efforts against unlicensed betting, despite the noted reduction. He asserted, "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. There's a nearly unanimous belief among bettors, even those using illegal sites, that the government should take stronger action against them."
The research also unveiled that a significant majority of Brazilian bettors recognize the dangers posed by illegal betting sites. Seventy-seven percent either fully or partially agreed that these platforms do not adhere to regulations meant for responsible gambling, which increases risks for users. Meanwhile, 13% remained neutral, while the remaining respondents either disagreed partially or fully with this assessment. The findings underscore the importance of the government's ongoing fight against illegal betting platforms.
