New Study Shows Brazil’s Illegal Betting Share Falls to 38%-44% in First Half of 2026

Brazil’s illegal betting share has contracted. Illegal platforms accounted for an estimated 38% to 44% of online bets in the first half of 2026. This is down from the 41% to 51% range in research released in June 2025.

The results come from a study by LCA Consultores using Locomotiva Institute data and commissioned by the Brazilian Institute for Responsible Gaming (IBJR). According to reporting by Yogonet International, the findings indicate a smaller illegal market with less uncertainty over its size. LCA Consultores stated that enforcement efforts need to continue.

Bettor Survey Reveals Usage Patterns and Attitudes

The Locomotiva Institute surveyed 2,291 gamblers across Brazil in May 2026. In the three months before the survey, 53% had used sites that did not require facial recognition. 48% had bet on sites using .bet.br domains. Another 37% deposited funds by credit card and 23% used cryptocurrencies, both prohibited payment methods in the regulated market.

Among gamblers in the illegal market, 51% were women and 49% men. 54% were aged 18 to 29, while 51% earned up to two minimum wages. The survey found that 77% of bettors fully or partially agreed that illegal sites do not comply with responsible gambling rules and are more dangerous.

Renato Meirelles, president of the Locomotiva Institute, said: “The study reveals a slight reduction in the participation of illegal betting, but still at high levels, with half of Brazilian bettors operating in the unlicensed market. The positive data is that there is almost a consensus that this problem needs to be addressed: even those who gamble on clandestine sites believe it is the country’s duty to combat them more forcefully.”

Regulated Market Results and Enforcement Requirements

Brazil’s regulated betting framework took effect January 1, 2025. It limits legal operations to licensed companies subject to tax, operating, and bettor-protection requirements. Ministry of Finance data cited in the study shows betting companies contributed R$ 9.95 billion ($1.9 billion) in taxes and legal allocations during the first year. Each platform paid R$ 30 million ($5.8 million) in concession fees. Regulated operators also invested about R$ 7.5 billion in share capital.

Authorized operators must use .bet.br domains, require facial recognition and identity checks, provide time and financial-loss limits and self-exclusion mechanisms, and accept payments only through PIX or debit from the account holder’s account. The data show progress alongside the need for sustained enforcement to address the remaining illegal activity.

Reporting: Yogonet International

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