Study reveals that the illegal market share in the betting sector fell in the first half of 2026 compared to 2025.
The new study “ Sizing and Combating the Illegal Betting Market in Brazil ”, conducted by LCA Consultores and using data from the research “ Incidence of Illegal Betting in Brazil ”, by the Locomotiva Institute at the request of the Brazilian Institute for Responsible Gaming (IBJR), reveals that the participation of the illegal market in the betting sector fell in the first half of 2026 compared to the previous research, released in June 2025. The current estimate is that between 38% and 44% of online bets occur on clandestine platforms, compared to 41% to 51% in the previous survey.
The Locomotiva Institute's research was conducted in May 2026 throughout Brazil, with responses from 2.291 gamblers. In the three months prior to the survey, 53% of respondents placed bets on sites that did not require facial recognition, 48% placed bets on sites with a domain name ending in .bet.br, 37% made deposits on platforms via credit card, and 23% via cryptocurrencies, methods not accepted in the regulated market.
“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. 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 authorized operators from creating asymmetries that make the illegal market more attractive to consumers and end up directing bettors to clandestine platforms,” emphasizes Carlos Lima, executive president of IBJR.
The regulation of the sector, in effect since January 1, 2025, stipulates that only licensed operators can legally operate in the country, with tax obligations, operational standards, and mechanisms to protect bettors. In the first year of the regulated market, data from the Ministry of Finance shows that betting companies contributed R$ 9,95 billion in taxes and legal allocations, benefiting areas such as sports, tourism, public safety, and education, in addition to each platform collecting R$ 30 million in concession fees. According to the study "Overview of the fixed-odds betting market," regulated operators invested approximately R$ 7,5 billion in share capital, with an estimated generation of 15,5 direct and indirect jobs.
“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, signaling important advances 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,” says Eric Brasil, Director of Regulation and Public Policies at LCA Consultores.
According to the research "Incidence of illegal betting in Brazil," among those eligible for the illegal market, 51% are women and 49% are men; the largest share is in the 18-29 age range (54%) and earns up to two minimum wages (51%). The platforms where some of the informal practices were carried out represent a large part of their participation in the betting market: approximately 51% only use this type of platform; 36% say that they are where they place most of their bets; for 8% they are related to approximately half of their bets; and 6% say they are where they place the fewest bets.
“The study reveals a slight reduction in the participation of illegal betting, but 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,” says Renato Meirelles, president of the Locomotiva Institute.
Risks and combat
A relevant finding observed in the research is that the vast majority of Brazilian bettors recognize the risks of clandestine operators. Of the total, 77% fully or partially agree that illegal betting sites do not comply with rules and regulations to promote responsible gambling, and are therefore more dangerous for bettors; 13% neither agree nor disagree; 5% partially disagree; and 5% strongly disagree. These numbers demonstrate the importance of the fight against illegal platforms that the Federal Government has been undertaking.
How to identify authorized platforms
When betting on an online platform, it's important to verify if the site is authorized to operate in Brazil. Several points can help consumers make this identification. Regulated operators include:
⇒ They must use the “.bet.br” domain. If they do not, the platform is not authorized to operate throughout Brazil.
⇒ They adopt a strict registration system, which requires facial recognition to prevent access by minors under 18 years of age. In addition to the submission of documents and other checks that identify the bettor.
⇒ They offer tools for time limits and financial losses.
⇒ They only allow transactions via PIX and debit from the account holder's account, not accepting credit cards or cryptocurrencies.
⇒ They offer self-exclusion mechanisms for vulnerable players.
If the public still has doubts, IBJR provides the website www.betalert.com.br so that people can check whether a particular bet is regulated by the Federal Government or not.
Regarding LCA
LCA is a consulting firm specializing in public policy and regulatory impact studies. It develops applied economics analyses for businesses and sectors, assisting leading companies in various segments, investors, regulators, and policymakers. With a team of economists with strong academic and professional backgrounds, LCA is recognized for building long-term partnerships based on quality, flexibility, and senior-level service, having exported its services to more than 25 countries and won numerous awards for excellence in over 450 projects annually.
LCA – IBJR – Illegal betting market
About the Locomotive Institute
Founded in 2016, the Locomotiva Institute was created to transform data into strategies and actions so that companies, public institutions, and third-sector organizations can engage with an increasingly informed and demanding population. The institute develops research and studies using various methodologies, standing alongside citizens and consumers to give voice to their demands.
Locomotive – IBJR – Illegal Market Research
About IBJR
The Brazilian Institute for Responsible Gaming (IBJR) was founded in 2023 and brings together the leading betting companies in Brazil and around the world. Its mission is to build an ethical, sustainable, and responsible online betting ecosystem, always advocating for a regulated market.
The organization's work is based on two essential pillars: combating the illegal gambling market and promoting responsible gambling. We believe that efficient regulation is fundamental to boosting the sector, strengthening the economy, and ensuring safety for both bettors and operators. Therefore, we actively work to confront illegal betting operations, which operate outside the law, harm the industry, and endanger society as a whole.
The IBJR has the following operators among its members: A2FBR, bet365, BandBet, BetBoom, BetMGM, Betsson Group, Digiplus (BingoPlus), Entain (Sportingbet and Betboo), Flutter Brazil (Betfair and BetNacional), Kaizen Gaming (Betano), KTO Group, Novibet, Skill on Net (Bacana Play and PlayUzu), and Todos Querem Jogar (Bet do Milhão), and its associates: Better Collective, Clever Advertising, OKTO, and ÚNICO.
Betting: 77% of bettors admit to irregular conduct in Brazil.
