Illegal platforms accounted for an estimated 38% to 44% of online bets in Brazil in the first half of 2026, down from 41% to 51% in research released in June 2025, according to a new study by LCA Consultores using Locomotiva Institute data commissioned by the Brazilian Institute for Responsible Gaming (IBJR).
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, while 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.
LCA Consultores said the findings point to both a smaller illegal market and less uncertainty over its size, while indicating that enforcement efforts need to continue.
Brazil’s regulated betting framework took effect January 1, 2025, limiting 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 ($1.9 billion) in taxes and legal allocations during the first year of regulation, in addition to R$ 30 million ($5.8 million) in concession fees paid by each platform.
Regulated operators also invested about R$ 7.5 billion in share capital, according to the study “Overview of the fixed-odds betting market.”
Among gamblers in the illegal market, 51% were women and 49% men. Some 54% were aged 18 to 29, while 51% earned up to two minimum wages. About 51% used only platforms where informal practices occurred, while 36% said such platforms accounted for most of their bets. Another 8% placed about half their bets there and 6% used them for the smallest share of their wagering.
“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,” said Renato Meirelles, president of the Locomotiva Institute.
The survey also found that 77% of bettors fully or partially agreed that illegal sites do not comply with responsible gambling rules and are more dangerous. Another 13% were neutral, while 10% partially or strongly disagreed.
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.