Illegal Operators Control 60% of the Online Betting Market in Brazil
Size of the Illegal Betting Market
According to the head of the Brazilian Institute for Responsible Gaming (IBJR), André Gelfi, illegal operators control about 60% of Brazil’s online betting market. This generates approximately $175 million in monthly gross gaming revenue (GGR).
Brazil launched its regulated online betting market on January 1, 2025. However, the issue of the illegal sector remains relevant. Licensed operators face competition from companies that do not comply with strict regulatory requirements.
Main Threats of the Illegal Market
- Opaque transactions – the use of the Pix payment system allows financial control to be bypassed.
- Tax evasion – unlicensed companies do not pay taxes, creating unfair conditions for legal operators.
- Financial damage – preliminary estimates indicate that the illegal sector generates around BRL 25 billion (approximately $5 billion) per year.
Combating Illegal Operators
IBJR, representing 75% of the market, including Bet365, Entain, and Flutter, is working in collaboration with:
- Secretariat for Betting and Prizes (SPA)
- Federal Revenue Service
- Central Bank of Brazil
Key Countermeasures
| Method | Description |
|---|---|
| Website Blocking | Over 12,000 illegal platforms have already been shut down. |
| Payment Restrictions | IBJR proposes banning the use of Pix for illegal betting. |
Regulatory Outlook
André Gelfi believes that strengthening control will help bring the market out of the shadows and make Brazil one of the leading regulated gambling markets in the world. However, additional measures are needed, including monitoring financial transactions and active cooperation between government agencies and operators.