Illegal Betting Operators Surpass Legal Market in Brazil, Study Warns of Rising Threat to Revenue and Integrity

A new study by international gaming consultancy Yield Sec has revealed that unlicensed gambling operators now control a majority share of Brazil’s online betting market, posing a growing threat to both revenue and sports integrity.

According to the report, illegal platforms account for 51% of total market activity, generating an estimated BRL 18.1 billion ($3.17 billion), while licensed operators hold 49%, with around BRL 17.4 billion in revenue. The findings highlight a concerning trend in Brazil’s fast-evolving gaming sector, where regulatory progress has struggled to keep pace with illicit competition.

The consultancy warned that the expansion of unlicensed betting sites could have serious implications for Brazil’s football sponsorship market, which has become heavily reliant on gambling partnerships. Currently, every Série A football club has at least one betting sponsor, with nearly 90% of teams featuring operators as main shirt sponsors.

Yield Sec noted that the proliferation of unregulated operators threatens not only sponsorship income but also the integrity of Brazilian sport, since illegal platforms are not bound by the same monitoring, transparency, and reporting standards as their licensed counterparts.

In the first half of 2025, the study found that 167 licensed betting operators were officially registered in Brazil, compared to more than 2,300 unregulated ones operating without oversight. The consultancy described the current stage of Brazil’s gambling market as “strong but fragile,” stressing that without stronger enforcement measures, up to three-quarters of the market could become illegal by 2026.

Authorities have stepped up their response to the crisis, with the Ministry of Finance’s Secretariat of Prizes and Bets working alongside the telecom regulator Anatel to identify and block access to illegal betting websites and payment networks. However, experts warn that the fight against unlicensed gambling remains an uphill battle.

“If you don’t eliminate crime, they’ll find a way to occupy your market,” one analyst told Yield Sec, underscoring the need for continued government vigilance.

The report further cautioned that if the illegal market share surpasses 60%, the consequences could be severe, leading to a sharp rise in sponsorship cancellations. It predicted that up to half of all current partnerships could disappear if the illegal share climbs to 75%, potentially triggering a wider financial crisis within Brazil’s sports and entertainment sectors. 

By fLEXI tEAM