More than half of bettors in Brazil’s Southern region reported using illegal betting platforms

More than half of bettors in Brazil’s Southern region reported using illegal betting platforms

According to Instituto Locomotiva, 54% of bettors used clandestine sites; national tax losses exceed R$ 10.8 billion per year

The illegal online betting market in Brazil, comprised of unlicensed operators acting outside the newly implemented regulation, represents a serious multi-billion real problem for public finances and a trap for uninformed bettors. This is what the unprecedented study “Off the Radar: Sizing and Socioeconomic Impacts of the Illegal Betting Market in Brazil” reveals, conducted by consultancy LCA and supported by IBJR (Brazilian Institute for Responsible Gaming). The data is expanded by the survey “Incidence of Illegal Betting in Brazil,” by Instituto Locomotiva, which maps bettor behavior and reveals their difficulty in identifying which platforms operate legally.

The Southern region shows the lowest rate of bets placed on platforms operating outside Brazilian regulations, but it still reveals a concerning scenario. According to the Locomotiva survey, 54% of Southern bettors say they use unlicensed websites. This figure places the region last in the national ranking, behind the Central-West (71%), North (66%), Northeast (61%), and Southeast (60%).

The number becomes even more significant when considering the illegal brands prompted by the survey — among Southern bettors, 69% reported having bet on at least one of the available clandestine sites.

Conducted between April and May 2025 with 2,000 adult bettors, the Instituto Locomotiva survey served as the basis for the economic study prepared 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 tax impact: between R$ 1.8 billion and R$ 2.7 billion were not collected in just three months — which could total up to R$ 10.8 billion in one year.

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

“These numbers are staggering and demonstrate the urgency of effectively combating the illegal market. Paradoxically, just five months after setting the operating conditions with legal operators, the government rewards illegals with a tax increase for the regulated ones. This results in a breakdown of trust and significant legal uncertainty for the sector and for Brazil. Everyone loses — operators are further burdened with taxes, bettors are left unprotected by formal market rules, and the government, by encouraging illegality, will end up harming not only the market but also its own revenue,” says Fernando Vieira, Executive President of IBJR.

The sector’s regulation, in force since January 1, 2025, establishes that only licensed operators may legally operate in the country, with tax obligations, operational standards, and bettor protection mechanisms. As concessionaires, regulated betting companies must pay R$ 30 million to the federal government to operate. Even so, 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 warning about the difficulty consumers face in identifying which platforms are legal:

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

Additionally, 3 out of 4 bettors claim to 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.

Also according to the Locomotiva survey, the tactics used by illegal operators include using names similar to licensed brands, frequent domain changes, and unregulated advertising via digital influencers with misleading promises of easy profits. Despite efforts by authorities — who have already deactivated over 11,000 irregular domains — these sites continue to operate, often supported by 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 bodies act firmly in inspection and exemplary punishment of violators,” emphasizes Renato Meirelles, President of Instituto Locomotiva.

The Locomotiva survey also shows that 87% of bettors believe that public authorities should take decisive action against irregular betting platforms.

IBJR has promoted a series of initiatives to confront this reality, such as awareness campaigns about scams and illegal practices, media monitoring of outlets that promote unlicensed websites, and consumer education actions.

The data represent more than just a sector diagnosis. They are 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 should be the top priority. There are key aspects that help consumers identify whether a site is trustworthy. For example, sites authorized by the Secretariat of Prizes and Betting (SPA):

• Must use the “.bet.br” domain. If it does not, the platform is not authorized to operate in Brazil.
• Must implement a strict registration system requiring facial recognition to prevent access by minors under 18. It also requires submission of documents and identity verification.
• Must offer financial loss and playtime limits, along with AI mechanisms to detect risky bettor behavior and send alerts.
• Only allow transactions via PIX and from the account holder’s own bank account. They do not accept credit cards or cryptocurrencies.
• Must offer self-exclusion mechanisms for vulnerable players.

And in case of doubt, the list of betting sites approved for operation 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 leading 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: combating 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 tackle 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 numbers carry stories and identity. With this, we turn research results into knowledge and strategy, expanding the possibilities for companies, institutions, and organizations, helping them connect with their audiences and creating indicators capable of driving public debate. Our job is to be the voice of the people and a beacon for the data that truly matters.