Center-West Leads National Use of Illegal Betting Platforms

Center-West Leads National Use of Illegal Betting Platforms

Survey by the Locomotiva Institute shows that 71% of bettors in the region resorted to sites without licenses to operate in Brazil; national tax losses exceed R$10.8 billion per year

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

The Center-West region leads the national ranking of bets placed on platforms operating outside Brazilian regulation. According to a survey by the Locomotiva Institute, 71% of local bettors state that they use unlicensed sites — the highest rate in the country. The second place is occupied by the North region, with 66%, followed by the Northeast (61%), Southeast (60%), and South (54%).

The scenario is even more alarming when observing the use of illegal brands prompted in the survey: 82% of Center-West bettors reported having placed bets on at least one of the platforms presented.

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 one year.

For comparison purposes, 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 homes under the “Minha Casa, Minha Vida” program.

“The numbers are staggering and demonstrate the urgency of effective combat against the illegal market. Paradoxically, just five months after agreeing on the market operation conditions with operators, the government rewards illegal operators with a tax increase on regulated ones. This breaks trust and creates enormous legal insecurity for the sector and for Brazil. Everyone ends up losing — operators suffocated by taxes, bettors without protection under formal market rules, and the government, which, by stimulating illegality, ends up harming not only the market but also tax revenue,” says Fernando Vieira, executive president of IBJR.

The sector’s regulation, in effect since January 1, 2025, stipulates that only licensed operators may 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.