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Brazil study reveals illegal betting market share fell in H1 2026

Our write-up of a story first reported by iGaming Business

Brazil study reveals illegal betting market share fell in H1 2026

Illegal betting platforms accounted for 38–44% of online wagers in Brazil during the first half of 2026, down from 41–51% a year earlier, according to a study by LCA Consultores and Locomotiva Institute.

The survey polled 2,291 players in May 2026. In the three months prior, 53% of respondents had placed bets on sites with no facial verification. 48% used domains other than .bet.br, the zone reserved for licensed operators. 37% deposited by bank card and 23% by cryptocurrency, both prohibited in the regulated sector.

Brazil's betting regulation took effect on 1 January 2025. In the first year, licensed operators paid BRL 9.95 billion in taxes and levies allocated to sport, tourism, security and education. Each platform paid a BRL 30 million concession fee. Licensed companies invested around BRL 7.5 billion in statutory capital and created roughly 15,500 jobs.

Carlos Lima, executive president of the Brazilian Institute for Responsible Gaming (IBJR), said the drop in illegal market share reflects state enforcement. 'The figures show regulation is starting to deliver concrete results,' he said. 'The task now is to keep fighting underground operators and prevent an asymmetry that would make the illegal market more attractive to players.'

The study found 77% of Brazilian bettors recognise the risks of unlicensed sites, which do not follow responsible gaming rules and pose greater danger to users. Yet 51% of those surveyed use only unlicensed platforms, and another 36% place most of their bets there.

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