New data in Brazil adds urgency to call to reglate illegal gambling platforms

Brazil’s Institute of Responsible Gaming shared new data showing that the Central West region uses illegal betting platforms more than anywhere else.

A series of reports from Brazil’s Institute of Responsible Gaming has offered insight into betting behaviors, tracking the gambling habits of different regions across the country. The illegal online betting market is a serious problem for Brazil, made up of unlicensed operators whose operations cost the public billions of reais, as well as being a risk to uninformed gamers.

The Central-West region sees the most activity with these illegal betting, with a survey by the Locomotiva Institute showing 71% of local bettors report using unlicensed sites – the highest rate in the country. That’s followed by the North region at 66%, the Northeast at 61%, the Southeast at 60%, and the South at 54%.

Even in the Southeast and the South, which have the lowest numbers of illegal gamblers, well over half of bettors are doing so through illegal means. When looking at the use of illegal brands in the survey, 82% of bettors in the Midwest reported having already placed bets on at least one of the platforms available.

With data taken from 2,000 adult bettors between April and May 2025 with 2,000 adult bettors, the Locomotiva Institute’s survey estimates that between 41% and 51% of the Brazilian betting market remains unregulated.

As well as increasing the risk of gambling-related harm through unregulated debts, the activity of these irregular platforms has also created an alarming fiscal impact, with between R$1.8 billion ($330,000 USD) and R$2.7 billion ($490,000 USD) said to be lost in just three months. That’s estimated to reach R$10.8 billion ($1.9 million USD) in a year.

“The numbers are staggering and demonstrate the urgency of effectively combating the illegal market,” said Fernando Vieira, executive president of the IBJR. “Paradoxically, just five months after agreeing on market operating conditions with operators, the government presents illegal operators with an increased tax burden for regulated operators. This leads to a loss of trust and enormous legal uncertainty for the sector and for Brazil.

“Everyone ends up losing: the operators most suffocated by taxes, the gambler without the protection of the formal market rules, and the government, which, by encouraging illegal activity, will end up harming not only the market but also its own revenue.”

Made into legal effect on January 1, 2025, a fresh slate of industry regulations states that only licensed operators can legally operate in the country, with tax obligations, operational standards, and bettor protection mechanisms. However, the number of active bettors using illegal platforms shows that this isn’t having the desired effect.

Indeed, 78% of people find it difficult to tell the difference between legal and illegal platforms,while 46% of respondents in the survey said that they have deposited money into a platform later identified as fake or irregular.

“Consumer confusion is exploited by these illegal operators,” explained Renato Meirelles, president of the Locomotiva Institute. “Therefore, it is essential to maintain educational campaigns, reinforce clear communication about the risks, and ensure that regulatory agencies act firmly in monitoring and punishing violators.”

The studies are paired with an urgent call for coordinated action from Brazilian authorities, licensed operators, and civil society to halt the use of illegal gambling platforms. Already, proposed tax hikes seek to address the widespread issues in the country.

Featured image: Flickr, licensed under CC BY-SA 2.0

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