A recent study has found that the share of illegal betting in Brazil's market decreased in the first half of 2026 when compared to earlier data published in June 2025.
The research estimates that between 38% and 44% of online bets during this period were made with illegal operators, down from the previous figure of 41% to 51% reported in the earlier study.
The findings are part of a report titled "Sizing and Combating the Illegal Betting Market in Brazil," produced by LCA Consultores and based on data from another study by the Locomotiva Institute, which was commissioned by the Brazilian Institute for Responsible Gaming (IBJR). The Locomotiva Institute's research was carried out in May 2026, gathering responses from 2,291 gamblers across Brazil.
In the three months leading up to the survey, it was noted that 53% of participants had placed bets on websites that did not require facial recognition, while 48% bet on domains that did not end with .bet.br, which is exclusively reserved for licensed operators. Additionally, 37% made deposits using credit cards, and 23% used cryptocurrencies—methods that are not permitted in the regulated market.
Carlos Lima, the executive president of the IBJR, stated that these statistics indicate that government actions aimed at diminishing illegal betting are beginning to yield results. "The numbers show that the regulations and measures adopted by the federal government to combat illegal platforms are beginning to produce concrete results," he explained. He described the observed reduction as a positive sign for the growth of the Brazilian regulated market, but he emphasized the need for ongoing efforts to combat clandestine operators and avert new regulations that could create imbalances favoring illegal firms.
Since the implementation of regulations on January 1, 2025, only licensed operators are permitted to function in the Brazilian market, requiring them to meet tax obligations and operational standards designed to protect consumers. In the initial year of this regulated environment, betting companies contributed BRL9.95 billion in taxes and legal dues, benefiting areas like sports, tourism, public safety, and education. Each platform also paid BRL30 million in concession fees, while regulated operators invested around BRL7.5 billion in capital, contributing approximately 15,500 jobs.
Eric Brasil, director of regulation and public policies at LCA Consultores, noted that the latest estimates reflect a reduction in the illegal market's size, along with enhanced clarity regarding its scope. "The results indicate not only a relative decrease in the size of the illegal market, but also less uncertainty about its magnitude," Brasil said. He emphasized the importance of continuing regulatory measures and enforcement actions.
The survey revealed that a significant portion of active bettors, around 51%, only utilized informal platforms, and 36% placed most of their bets on these platforms. Renato Meirelles, president of the Locomotiva Institute, acknowledged the slight decline in illegal betting but highlighted that a considerable number of Brazilian gamblers still engage with unlicensed markets. He expressed that there is almost unanimous recognition that stronger actions must be taken against illegal platforms, even among bettors using them.
Moreover, the survey indicated that most Brazilian bettors are aware of the dangers posed by unlawful operators. Approximately 77% partially or fully agreed that illegal sites do not adhere to rules for promoting responsible gambling, and thus they pose higher risks for consumers. Only 13% were neutral on this issue, while 10% expressed disagreement.
