Most Bettors in the Southeast Report Betting on Illegal Platforms

Most Bettors in the Southeast Report Betting on Illegal Platforms

According to the Locomotiva Institute, 60% of bettors in the region used unlicensed websites; national tax losses exceed R$ 10.8 billion per year.

The illegal online betting market in Brazil, made up of unlicensed operators who operate outside the newly implemented regulations, represents a serious problem worth billions of reais in lost public revenue and a trap for uninformed bettors. This is highlighted in the unprecedented study “Off the Radar: Size and Socioeconomic Impacts of the Illegal Betting Market in Brazil,” conducted by consultancy LCA and supported by IBJR (Brazilian Institute for Responsible Gaming). The data is further explored by the study “Incidence of Illegal Betting in Brazil,” by the Locomotiva Institute, which maps bettor behavior and reveals the difficulty they have in identifying which platforms operate legally.

The Southeast ranks fourth in betting on platforms that operate outside Brazilian regulations. The Central-West leads, where 71% of bettors say they use illegal platforms, followed by the North (66%), Northeast (61%), and finally, the South region with 54%.

According to the survey, more than half of Southeast bettors (60%) admitted to using unlicensed sites. The situation worsens when looking at the brands highlighted in the research: 70% of bettors in the region said they had bet on at least one of the available illegal platforms.

Conducted between April and May 2025 with 2,000 adult bettors, the Locomotiva Institute’s survey served as the basis for the economic study developed by LCA. The study estimates that between 41% and 51% of the Brazilian betting market is still in an unregulated environment. The activity of these irregular platforms generated an alarming fiscal impact: between R$ 1.8 billion and R$ 2.7 billion in tax revenue was lost in just three months – potentially reaching 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 build up to 41,000 homes under the “Minha Casa, Minha Vida” program.

“The numbers are staggering and demonstrate the urgency of effectively fighting the illegal market. Paradoxically, just five months after agreeing on the operating conditions with legal operators, the government rewards illegal platforms with a tax increase for the regulated ones. This breaks trust and creates major legal uncertainty for the sector and for Brazil. Everyone ends up losing – operators, burdened with taxes; bettors, without the protection of formal market rules; and the government, which by stimulating illegality, will ultimately harm not just the market but its own tax revenue,” says Fernando Vieira, Executive President of IBJR.

The sector regulation, in effect since January 1, 2025, states that only licensed operators may legally operate in the country, with tax obligations, operational standards, and bettor protection mechanisms. Being licensees, regulated betting platforms must pay R$ 30 million to the federal government to operate. Even so, 61% of respondents admitted to having placed bets on irregular platforms this year — often without full awareness of the risks involved.

Vulnerable Consumer

Data from the Locomotiva Institute raises an alert about how difficult it is for consumers to identify which platforms operate legally:

• 78% find it difficult to distinguish legal sites from illegal ones;

• 72% say they are not always able to verify the platform’s legal status;

• 46% of respondents have already deposited money on a platform later identified as fake or irregular.

Additionally, 3 out of 4 bettors say they have used at least one of the main illegal platforms identified in 2025. The incidence is even higher among populations more exposed to the illegal market and without the protections provided by regulated platforms.
According to the Locomotiva survey, the tactics used by illegal operators include using names similar to those of legal brands, frequent domain changes, and unregulated advertising through digital influencers, with misleading promises of easy profits. Despite authorities’ efforts — over 11,000 irregular domains have already been deactivated — these sites continue to operate, often hosted on international servers and domains.

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

The Locomotiva survey also shows that 87% of bettors believe the government should take strong action against irregular betting platforms.

IBJR has promoted a series of initiatives to tackle this issue, such as awareness campaigns about scams and illegal practices, media monitoring of unlicensed site promotion, and consumer education efforts.

The data is more than just a diagnosis of the sector. It is an urgent call for coordinated action between authorities, licensed operators, and civil society, aiming 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 indicators 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 they do not, the platform is not authorized to operate in Brazil.

• Adopt a strict registration system, requiring facial recognition to prevent access by minors. This includes document submission and other checks to identify the bettor.

• Offer financial loss and playtime limits, along with AI mechanisms to detect risky behaviors and send alerts.

• Only allow transactions via PIX and debit from the registered account holder. Credit cards and cryptocurrencies are not accepted.

• Provide self-exclusion options for vulnerable players.

If in doubt, the betting sites approved to operate in Brazil are listed 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 online betting ecosystem that is ethical, sustainable, and responsible, always advocating for a regulated market.

Our work is based on two essential pillars: combating the illegal market and promoting responsible gaming. We believe that efficient regulation is key to driving the industry, strengthening the economy, and ensuring safety for both bettors and operators. That’s why we actively work to fight illegal bets, which operate outside the law, harm the industry, and put society at risk.

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

About the Locomotiva Institute

The Locomotiva Institute works to show that there are people and stories behind every number. We take a deep look at the population that lives, consumes, and dreams in Brazil so that our data has meaning and identity. With that, we turn research results into knowledge and strategy, expanding the possibilities for companies, institutions, and organizations. We help build a stronger connection between them and their audiences, generating indicators that foster public debate. Our work is to be the voice of the people and a beacon for the data that really matters.