Brazil’s illegal online betting market dropped during the first half of 2026, accounting for between 38% and 44% of total web wagers according to a study released by LCA Consultores. The new figures show a decline from a June 2025 study, which pegged the clandestine market share between 41% and 51%.
The study, titled “Sizing and Combating the Illegal Betting Market in Brazil,” relied on research conducted by the Locomotiva Institute at the request of the Brazilian Institute for Responsible Gaming (IBJR). Fieldwork took place in May 2026 and surveyed 2,291 gamblers across Brazil to measure the prevalence of unlicensed platforms.
Regulatory Measures Drive Market Shifts
Carlos Lima, executive president of the IBJR, stated that the data reflects a positive impact from federal government initiatives. According to Lima, regulations and measures adopted to combat illegal platforms are beginning to produce concrete results.
Federal regulations that went into effect on January 1, 2025, require operators to hold official licenses, pay taxes, meet operational standards, and implement bettor protection mechanisms. Licensed platforms also contribute BRL 30 million each in concession fees. In its inaugural year, the regulated market generated BRL 9.95 billion in taxes and legal allocations for sectors including sports, tourism, public safety, and education, alongside BRL 7.5 billion in share capital investments and roughly 15,500 jobs.
Eric Brasil, director of regulation and public policies at LCA Consultores, remarked that the data indicates both a smaller illegal market and improved transparency. Brasil stated that the findings show a relative decrease in the size of the illegal market and less uncertainty regarding its actual magnitude.
Unlicensed Bet Habits and Consumer Behavior
Despite the overall decline, Renato Meirelles, president of the Locomotiva Institute, highlighted that participation remains high. Meirelles noted that half of Brazilian bettors still operate in the unlicensed market.
Survey data indicates clear consumer habits among illicit gamblers:
- 53% of surveyed gamblers engaged with betting sites that did not require facial recognition in the three months prior to the survey.
- 48% placed bets on websites lacking the exclusive .bet.br domain reserved for licensed operators.
- 37% reported making deposits using credit cards.
- 23% used cryptocurrencies.
Neither credit cards nor cryptocurrencies are accepted within Brazil’s regulated betting market.
Informal platforms heavily dictate player routines. Roughly 51% of respondents stated they exclusively used informal sites, while 36% indicated those platforms accounted for the majority of their wagers. Another 8% placed nearly half their bets on informal sites, and 6% used them for minimal wagering.
Future Enforcement and Outlook
Industry stakeholders emphasize that maintaining enforcement is critical to continuing this progress. Carlos Lima noted the necessity of sustaining the fight against clandestine operators while ensuring future regulations avoid creating disparities that favor the illegal market. Renato Meirelles added that a growing consensus exists among bettors regarding the government’s responsibility to take stronger action against unlicensed platforms.
