Illegal Betting Market Share Falls in Brazil During First Half of 2026

The share of Brazil’s online betting activity taking place through illegal operators declined during the first half of 2026, although unlicensed platforms continue to represent a substantial portion of the country’s betting market.

A new study, “Sizing and Combating the Illegal Betting Market in Brazil,” estimates that between 38% and 44% of online bets were placed with illegal operators during the first six months of 2026. This represents a decline from the 41% to 51% range recorded in research published in June 2025.

The study was prepared by LCA Consultores, drawing on findings from the “Incidence of Illegal Betting in Brazil” survey conducted by the Locomotiva Institute for the Brazilian Institute for Responsible Gaming (IBJR).

The Locomotiva Institute research was carried out across Brazil in May 2026, involving 2,291 bettors.

The findings show that illegal and informal betting practices remain widespread. During the three months preceding the survey, 53% of respondents said they had placed bets on websites that did not require facial recognition. Meanwhile, 48% had placed bets on domains that did not end in .bet.br, the domain designation available only to licensed operators.

The research also found that 37% of respondents had deposited money using credit cards, while 23% had used cryptocurrencies. Neither payment method is permitted in Brazil’s regulated betting market.

Government measures beginning to show results

Carlos Lima, executive president of the IBJR, said the latest figures suggest that measures introduced by the federal government to combat illegal betting are beginning to produce measurable 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 said. “The observed reduction is a positive sign of the consolidation of the Brazilian regulated market.

“The challenge now is to continue this progress, strengthening the fight against clandestine operators and ensuring that regulatory evolution occurs with legal certainty and predictability, preventing new measures applicable exclusively to authorised operators from creating asymmetries that make the illegal market more attractive to consumers and end up directing bettors to clandestine platforms.”

Brazil’s betting regulations came into force on 1 January 2025, establishing that only licensed operators can legally provide betting services in the country. Licensed companies are required to meet tax obligations, comply with operational requirements and implement measures designed to protect bettors.

During the first year of the regulated market, betting companies contributed BRL9.95 billion in taxes and legal allocations. These funds supported sectors including sports, tourism, public safety and education.

In addition, each licensed platform paid BRL30 million in concession fees. According to the study “Overview of the fixed-odds betting market,” regulated operators invested approximately BRL7.5 billion in share capital and generated an estimated 15,500 direct and indirect jobs.

Regulation brings greater clarity

Eric Brasil, director of regulation and public policies at LCA Consultores, said the latest research points not only to a reduction in illegal betting but also to a clearer understanding of the scale of the unlicensed sector.

“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 outlined.

He added:

“The estimate signals important progress resulting from regulation and measures to combat illegal platforms. At the same time, the results reinforce the importance of maintaining the evolution of this work, with the continuity of enforcement initiatives.”

Despite the decline, informal platforms continue to account for a considerable proportion of betting activity among people eligible to gamble.

Around 51% of bettors said they used only this type of platform, while 36% reported that illegal platforms were where they placed the majority of their bets. A further 8% said these platforms accounted for approximately half of their betting activity, while 6% said they used them for the smallest share of their bets.

Renato Meirelles, president of the Locomotiva Institute, described the reduction as encouraging but stressed that illegal betting remains widespread.

“The study reveals a slight reduction in the participation of illegal betting,” said Renato Meirelles, president of the Locomotiva Institute. “But it is still 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.”

Bettors recognise the risks of illegal operators

The study also highlighted a strong awareness among Brazilian bettors of the risks associated with clandestine betting websites.

Overall, 77% of respondents either fully or partially agreed that illegal betting sites fail to comply with rules and regulations designed to promote responsible gambling. These respondents consequently recognised such platforms as being more dangerous for bettors.

Another 13% neither agreed nor disagreed with the statement, while 5% partially disagreed and a further 5% strongly disagreed.

The findings indicate that, despite the decline in the illegal market’s estimated share, unlicensed betting remains a significant challenge for Brazil’s regulated gambling sector.

The research also points to broad recognition among bettors of the risks associated with clandestine operators, reinforcing the importance of continued government enforcement and efforts to strengthen the regulated market.

By fLEXI tEAM