A recent study indicates a decline in the share of illegal betting within Brazil's gambling market during the first half of 2026, compared to previous findings. The report suggests that between 38% and 44% of online bets were made with illegal operators, a decrease from the 41%-51% range reported in June 2025.
Conducted by LCA Consultores, the study dubbed "Sizing and Combating the Illegal Betting Market in Brazil" utilized data from the "Incidence of Illegal Betting in Brazil" research carried out by the Locomotiva Institute for the Brazilian Institute for Responsible Gaming (IBJR). The Locomotiva research took place in May 2026, gathering insights from 2,291 gamblers across Brazil.
In the three months leading up to the survey, over half of the respondents—53%—reported placing bets with sites that did not require facial recognition. Additionally, 48% used websites with extensions other than .bet.br, which is exclusive to licensed operators. Among these, 37% made deposits using credit cards, while 23% utilized cryptocurrencies, both methods that are not permitted under the regulated market guidelines.
Carlos Lima, executive president of IBJR, expressed optimism regarding the latest findings, noting that government actions to reduce illegal betting are beginning to show effectiveness. He stated, "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 importance of continuing to combat clandestine operations while ensuring that regulatory changes do not create a competitive disadvantage for licensed operators. The regulation introduced on January 1, 2025, mandates that only licensed entities can operate legally, requiring compliance with tax obligations, operational standards, and mechanisms to protect bettors.
In its inaugural year, the regulated betting market generated BRL9.95 billion in tax contributions, benefiting sectors such as sports, tourism, public safety, and education. Each operator also contributed BRL30 million in concession fees. Furthermore, according to the study "Overview of the Fixed-Odds Betting Market," regulated operators invested around BRL7.5 billion, which helped create an estimated 15,500 jobs, both direct and indirect.
Eric Brasil, director of regulation and public policies at LCA Consultores, highlighted that the latest figures reflect both a diminishment of the illegal market and greater precision regarding its scale. "The results indicate not only a relative decrease in the size of the illegal market but also less uncertainty about its magnitude," Brasil stated. He noted that recent regulations have significantly contributed to this progress and stressed the importance of ongoing enforcement.
Interestingly, a notable 51% of respondents exclusively used illegal platforms for betting, with 36% indicating that these sites accounted for the majority of their wagers. While 8% reported these platforms represented about half their betting activity, 6% claimed they were the least frequented.
Renato Meirelles, president of the Locomotiva Institute, acknowledged the slight reduction in illegal betting participation but remarked on its still concerning levels, with half of Brazilian bettors still engaging in unlicensed market activities. He pointed out that there is a consensus on the need to address the issue, stating, "Even those who gamble on clandestine sites believe it is the country's duty to combat them more forcefully."
The research findings also revealed that a significant majority of Brazilian bettors are aware of the risks posed by illegal operators. A total of 77% either fully or partially acknowledged that illegal betting sites do not comply with responsible gambling regulations and are therefore more hazardous for bettors. The survey showed that 13% were neutral on the issue, while 10% disagreed to some extent, underscoring the urgency of the government's efforts against illegal platforms.
