Study conducted by LCA and Instituto Locomotiva at the request of IBJR estimates that the incidence of betting on illegal platforms ranges from 38% to 44%, reinforcing the results of measures adopted by the Federal Government to combat the illegal market
São Paulo, August 11, 2026 – The new study “Sizing and Combating the Illegal Betting Market in Brazil”, conducted by LCA Consultores and based on data from the “Incidence of Illegal Betting in Brazil” survey by Instituto Locomotiva, commissioned by the Brazilian Institute for Responsible Gaming (IBJR), reveals that the illegal market’s share of the betting sector fell in the first half of 2026 compared to the previous survey, released in June 2025. The current estimate is that between 38% and 44% of online betting takes place on illegal platforms, compared with 41% to 51% in the previous survey.
The Instituto Locomotiva survey was conducted nationwide in Brazil in May 2026, with responses from 2,291 bettors. In the three months prior to the survey, 53% of respondents had placed bets on websites that did not require facial recognition, 48% had bet on websites with domains other than .bet.br, 37% had made deposits on platforms using credit cards, and 23% had used cryptocurrencies — payment methods not permitted in the regulated market.
“The figures show that regulation and the measures adopted by the Federal Government to combat illegal platforms are beginning to produce concrete results. The reduction observed is a positive sign of the consolidation of Brazil’s regulated market. The challenge now is to maintain this progress by strengthening efforts to combat illegal operators and ensuring that regulatory developments take place with legal certainty and predictability, avoiding new measures applicable exclusively to authorized operators that could create asymmetries, make the illegal market more attractive to consumers, and ultimately drive bettors toward illegal platforms,” emphasizes Carlos Lima, CEO of IBJR.
The sector’s regulation, in effect since January 1, 2025, establishes that only licensed operators may legally operate in the country, subject to tax obligations, operational requirements, and bettor protection mechanisms. In the first year of the regulated market, data from the Ministry of Finance show that betting operators contributed R$9.95 billion in taxes and legally mandated allocations, benefiting areas such as sports, tourism, public security, and education. Each platform also paid R$30 million in licensing 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 15,500 direct and indirect jobs generated.
“The estimates of illegal operators’ share of betting consumption indicate not only a relative decline in the size of the illegal market, but also less uncertainty regarding its magnitude, signaling important progress resulting from regulation and measures to combat illegal platforms. At the same time, the results reinforce the importance of continuing this work through ongoing enforcement initiatives,” says Eric Brasil, Director of Regulation and Public Policy at LCA Consultores.
According to the “Incidence of Illegal Betting in Brazil” survey, among bettors eligible to access the illegal market, 51% are women and 49% are men. The largest age group is between 18 and 29 years old (54%), while 51% earn up to two minimum wages. Platforms where any of the informal practices identified in the survey took place account for a significant share of their betting activity: approximately 51% use only these types of platforms; 36% say these are the platforms where they place most of their bets; for 8%, they account for approximately half of their betting activity; and 6% say they are where they place the smallest share of their bets.
“The study reveals a slight reduction in the share of illegal betting, but it remains at high levels, with half of Brazilian bettors participating in the unlicensed market. The positive aspect is that there is almost a consensus that this problem needs to be addressed: even those who gamble on illegal websites believe it is the country’s responsibility to take stronger action against them,” says Renato Meirelles, President of Instituto Locomotiva.
Risks and enforcement
One relevant finding from the survey is that the vast majority of Brazilian bettors recognize the risks associated with illegal operators. Overall, 77% fully or partially agree that illegal betting platforms do not comply with rules and standards designed to promote responsible gaming and are therefore more dangerous for bettors. 13% neither agree nor disagree, 5% partially disagree, and 5% completely disagree. These figures demonstrate the importance of the Federal Government’s ongoing efforts to combat illegal platforms.
How to identify authorized platforms
When betting on an online platform, it is important to check whether the website is authorized to operate in Brazil. Several factors can help consumers identify authorized operators. Regulated operators:
- Must use the “.bet.br” domain. If they do not, the platform is not authorized to operate throughout Brazil.
- Use a strict registration system that requires facial recognition to prevent access by individuals under 18. This also includes the submission of identification documents and other verification procedures to identify the bettor.
- Offer tools for setting time and financial loss limits.
- Allow transactions only via PIX and debit from the account holder’s bank account, and do not accept credit cards or cryptocurrencies.
- Offer self-exclusion mechanisms for vulnerable players.
If consumers still have questions, IBJR provides the www.betalert.com.br website, where they can check whether a betting platform is regulated by the Federal Government.
About IBJR
The Brazilian Institute for Responsible Gaming (IBJR) was founded in 2023 and brings together leading betting companies from Brazil and around the world. Its mission is to build an online betting ecosystem that is ethical, sustainable, and responsible, while consistently advocating for a regulated market.
The Institute’s work is based on two essential pillars: combating the illegal market and promoting responsible gaming. We believe that effective regulation is fundamental to driving the sector’s growth, strengthening the economy, and ensuring safety for both bettors and operators. For this reason, we actively work to combat illegal betting operators, which operate outside the law, undermine the industry, and put society as a whole at risk.
IBJR’s members include 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). Its associate members are Better Collective, Clever Advertising, OKTO, and ÚNICO.
About LCA
LCA is a consulting firm specializing in public policy and regulatory impact studies. It develops applied economic analyses for businesses and industries, supporting leading companies across various sectors, investors, regulators, and public 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. The firm has exported its services to more than 25 countries and has received several awards for excellence across more than 450 projects annually.
About Instituto Locomotiva
Founded in 2016, Instituto Locomotiva was created to transform data into strategies and actions that enable companies, public institutions, and third-sector organizations to engage with an increasingly informed and demanding population. The Institute conducts research and studies using a range of methodologies, standing alongside citizens and consumers to give voice to their demands.
IBJR Press Office – InPress Porter Novelli
Gustavo Criscuolo
Vanilson Oliveira