A recent study has highlighted a decrease in the illegal betting market's share within Brazil's betting sector during the first half of 2026. The findings indicate that between 38% and 44% of all online bets were placed with illegal operators, which is a decline from the previous estimate of 41% to 51% reported in June 2025.
Conducted by LCA Consultores, the study titled "Sizing and Combating the Illegal Betting Market in Brazil" draws from the “Incidence of Illegal Betting in Brazil” research carried out by the Locomotiva Institute at the behest of the Brazilian Institute for Responsible Gaming (IBJR).
The Locomotiva Institute conducted its research in May 2026, gathering responses from 2,291 gamblers across Brazil. It was revealed that in the three months before the survey, 53% of participants placed bets on platforms that did not require facial recognition. Additionally, 48% utilized websites that did not end with the .bet.br domain, which is exclusive to licensed entities. The survey also found that 37% of respondents deposited funds via credit cards and 23% via cryptocurrencies, both of which are not accepted in the regulated market.
Carlos Lima, the executive president of the IBJR, remarked that the latest findings suggest government initiatives aimed at reducing illegal betting are starting to yield results. He commented, "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."
He also highlighted the importance of continuing this momentum, emphasizing the need to strengthen the fight against clandestine operators while ensuring that regulatory developments are clear and predictable. Lima warned against creating conditions that might inadvertently make the illegal market more attractive to bettors.
Since the regulation came into force on January 1, 2025, only licensed operators are permitted to function legally within Brazil, adhering to tax obligations, operational standards, and bettor protection measures. In its first year of the regulated market, betting companies paid BRL9.95 billion in taxes and legal allocations, benefiting sectors like sports, tourism, public safety, and education. Each licensed operator also contributed BRL30 million in concession fees, and research labeled "Overview of the fixed-odds betting market" estimated that regulated operators invested about BRL7.5 billion in share capital, creating around 15,500 direct and indirect jobs.
Eric Brasil, the director of regulation and public policies at LCA Consultores, pointed out that the new estimates reveal not just a smaller illegal market, but also an improved understanding of its scope. "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 said.
He stressed that these results signify significant progress resulting from regulatory efforts and prompt enforcement initiatives. The survey uncovered that among bettors, approximately 51% exclusively utilized informal platforms, with 36% placing most of their bets there.
Renato Meirelles, president of the Locomotiva Institute, stated, "The study reveals a slight reduction in the participation of illegal betting, but it remains at high levels, with half of Brazilian bettors operating in the unlicensed market. The positive data is that there is almost a consensus that this problem needs to be addressed. Even those who gamble on clandestine sites believe it is the country’s duty to combat them more forcefully."
The research also illustrated that most Brazilian bettors are aware of the dangers posed by illegal operators. Seventy-seven percent of respondents acknowledged that illegal betting sites likely do not follow responsible gambling regulations. This awareness underscores the significance of ongoing federal initiatives against these illegal platforms, which were reinforced by the study findings.
Overall, while the decline in the illegal betting market participation is noted, the figures still indicate a substantial ongoing challenge for regulators.
