Northeast registers the third highest national rate of illegal betting platform usage

Northeast registers the third highest national rate of illegal betting platform usage

The Locomotiva Institute reveals that 61% of bettors in the region use clandestine sites; national tax losses exceed R$ 10.8 billion annually

The illegal online betting market in Brazil, composed of unlicensed operators acting outside the scope of the recently implemented regulation, represents a serious problem costing billions of reais to public coffers and is a trap for uninformed bettors. This is the finding of the unprecedented study “Off the Radar: Sizing and Socioeconomic Impacts of the Illegal Betting Market in Brazil,” conducted by the consultancy LCA and supported by IBJR (Brazilian Institute of Responsible Gambling). The data is further detailed by the research “Incidence of Illegal Betting in Brazil,” from the Locomotiva Institute, which maps bettor behavior and reveals their difficulty in identifying which platforms operate legally.

The Northeast region ranks third nationally in the number of bets placed on platforms operating outside Brazilian regulations. According to a survey by the Locomotiva Institute, 61% of bettors from the Northeast say they use unlicensed sites — a rate surpassed only by the Center-West (71%) and North (66%) regions. Following are the Southeast (60%) and South (54%).

The situation in the Northeast is significant and concerning: besides the majority declaring that they bet on illegal platforms, 75% of respondents said they had already used at least one unlicensed brand prompted by the research.

Conducted between April and May 2025 with 2,000 adult bettors, the Locomotiva survey served as the basis for the economic study developed by LCA. The survey estimates that between 41% and 51% of the Brazilian betting market still operates in an unregulated environment. The activity of these irregular platforms caused an alarming fiscal impact: between R$ 1.8 billion and R$ 2.7 billion went uncollected in just three months — which could reach R$ 10.8 billion in a year.

For comparison, this amount would be enough to pay the annual salary of up to 184,000 basic education teachers or to build up to 41,000 houses under the “Minha Casa, Minha Vida” program.

“The numbers are staggering and demonstrate the urgency of an effective fight against the illegal market. Paradoxically, just five months after agreeing on operating conditions in the market with operators, the government rewards illegal ones with a tax increase on regulated operators. This breaks trust and causes huge legal uncertainty for the sector and for Brazil. Everyone loses — operators squeezed by taxes, bettors without the protection of formal market rules, and the government, which, by encouraging illegality, ends up harming not only the market but also tax revenues,” says Fernando Vieira, executive president of IBJR.

The sector’s regulation, effective since January 1, 2025, mandates that only licensed operators can legally operate in the country, with tax obligations, operational rules, and bettor protection mechanisms. As concessionaires, regulated bets must pay R$ 30 million to the federal government to operate. Still, 61% of respondents admitted to placing bets on irregular platforms this year — often without full awareness of the risks involved.

Vulnerable Consumer

Data from Instituto Locomotiva raise a red flag regarding consumers’ difficulty in identifying which platforms operate legally:

• 78% consider it difficult to distinguish legal from illegal sites;
• 72% say they are not always able to verify the legitimacy of the platforms;
• 46% of respondents have deposited money into a platform later identified as fake or irregular.

In addition, 3 out of 4 bettors say they have used at least one of the main illegal platforms mapped in 2025. The incidence is even higher among populations more exposed to the illegal market, without the protections provided by regulated platforms.

Still according to the Locomotiva survey, the tactics used by illegal operators include using names similar to those of licensed brands, frequent domain changes, and unregulated advertising by digital influencers, with misleading promises of easy profit. Despite efforts by authorities — who have already shut down over 11,000 irregular domains — the operation of these sites persists, often anchored on international servers and domains.

“Consumer confusion is exploited by these illegal operators. That’s why it is essential to maintain educational campaigns, reinforce clear communication about the risks, and ensure that regulatory agencies act firmly in oversight and in setting an example with penalties,” says Renato Meirelles, President of Instituto Locomotiva.

The Locomotiva survey also shows that 87% of bettors believe the government should act decisively against irregular betting platforms.

The IBJR has promoted several initiatives to address this reality, such as awareness campaigns about scams and illegal practices, media monitoring that exposes unlicensed websites, and consumer education initiatives.

The data represents more than just a sector diagnosis. It is an urgent call for coordinated action among authorities, licensed operators, and civil society to protect citizens, ensure market integrity, and guarantee that the socioeconomic benefits of regulated betting reach the Brazilian population.

How to know if a betting site is safe
When betting on an online platform, safety must be a priority. There are important signs that help consumers identify whether a site is trustworthy. For example, websites authorized by the Secretariat of Prizes and Betting (SPA):

• Must use the “.bet.br” domain. If not, the platform is not authorized to operate in Brazil.
• Must implement a strict registration system that requires facial recognition to prevent access by minors under 18, in addition to document submission and identity verification.
• Must offer limits on financial losses and playing time, and use AI mechanisms to detect risky bettor behavior and send alerts.
• Must allow transactions only via PIX and from the bank account of the registered holder. Credit cards and cryptocurrencies are not accepted.
• Must provide self-exclusion tools for vulnerable players.

In case of doubt, the list of betting sites approved to operate in Brazil is available on the Ministry of Finance website.

About IBJR
The Brazilian Institute for Responsible Gaming (IBJR) was founded in 2023 and brings together the main betting companies in Brazil and around the world. Our mission is to build an honest, sustainable, and responsible online betting ecosystem, always advocating for a regulated market.

Our work is based on two essential pillars: fighting the illegal market and promoting responsible gambling. We believe that efficient regulation is essential to boost the sector, strengthen the economy, and ensure safety for both bettors and operators. That’s why we actively work to combat illegal betting platforms, which operate outside the law, harm the industry, and put all of society at risk.

For more information about IBJR, visit: www.ibjr.org.br

About Instituto Locomotiva
Instituto Locomotiva works to show that there are people and stories behind every number. We take a deep look into the population that lives, consumes, and dreams in Brazil, so that our data has identity and meaning. In doing so, we transform research results into knowledge and strategy, expanding opportunities for companies, institutions, and organizations, helping them build identity with their audiences, and generating indicators capable of driving public debate. Our job is to be the voice of the population and a beacon for the data that truly matters.