A recent analysis has shown a decline in the share of illegal operators within Brazil's betting market during the first half of 2026. According to this study, the portion of online wagers placed with illegal operators is estimated to be between 38% and 44%, a decrease from the 41% to 51% range reported in a June 2025 survey.
The data comes from a report titled "Sizing and Combating the Illegal Betting Market in Brazil," conducted by LCA Consultores. This report utilized findings from the "Incidence of Illegal Betting in Brazil" research completed by the Locomotiva Institute, which was commissioned by the Brazilian Institute for Responsible Gaming (IBJR).
The Locomotiva Institute's research, conducted in May 2026, involved feedback from 2,291 gamblers across Brazil. Among those surveyed, 53% reported placing bets on websites that did not require facial recognition. Additionally, 48% used domains that do not end with .bet.br, a designation reserved for licensed operators. Notably, 37% of respondents funded their betting accounts with credit cards, while 23% utilized cryptocurrencies—both payment methods not accepted in the regulated market.
Carlos Lima, executive president of the IBJR, indicated that these statistics reflect the initial successes of governmental measures aimed at reducing illegal betting activities. "The numbers show that the regulations and measures adopted by the federal government to combat illegal platforms are beginning to produce concrete results," he stated. He emphasized that the observed decline is encouraging for the consolidation of Brazil's regulated market.
Lima added that ongoing efforts must continue to combat clandestine operators while ensuring that regulatory advancements provide legal certainty and predictability. This is essential to prevent new measures that apply solely to authorized operators from inadvertently making illegal options more appealing to consumers.
Since January 1, 2025, regulations have mandated that only licensed operators are permitted to provide betting services in Brazil. These operators must fulfill tax obligations, adhere to established operational standards, and implement measures to safeguard bettors. In the first year following the regulation's enactment, betting companies generated BRL9.95 billion in taxes and legal distributions, benefitting various sectors including sports, tourism, public safety, and education. Licensed platforms also paid BRL30 million each in concession fees, with an estimated BRL7.5 billion invested in share capital and the creation of approximately 15,500 jobs.
Eric Brasil, director of regulation and public policies at LCA Consultores, noted that the new estimates not only reflect a reduction in the illegal market but also offer greater clarity on 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 the magnitude of this market," Brasil explained. He stressed the importance of maintaining enforcement initiatives to counter illegal platforms.
The study revealed that approximately 51% of eligible bettors utilized these informal platforms, with 36% identifying them as their primary betting venues. While 8% stated these platforms represented half of their bets, 6% reported them as the least-used sites for placing bets.
Renato Meirelles, president of the Locomotiva Institute, remarked on the slight decline in illegal betting participation but cautioned that levels remain high, with around half of Brazilian bettors engaging with unlicensed operators. He pointed out that there is a growing consensus about the need to tackle this issue, even among those who gamble on illegal sites, who feel the government should take stronger action against them.
Another significant finding from the research was that a large majority of Brazilian bettors are aware of the risks associated with illegal operators. Seventy-seven percent either fully or partially agreed that illegal betting sites fail to comply with responsible gambling regulations, rendering them more perilous for users. The survey showed that 13% neither agreed nor disagreed, while 5% partially disagreed and another 5% strongly disagreed, reinforcing the necessity for the federal government to continue its fight against illegal platforms.
