Government losing billions as illegal market spirals out of control in Brazil
Three out of four Brazilians who bet online in 2025 used illegal platforms. The information was outlined in a survey conducted by Instituto Locomotiva, carried out between April and May of this year with 2,000 interviews. The study also shows that 77% of those who bet on illegal platforms this year spent most or all of their wagering money on the illegal market.
The survey also revealed that 73% of bettors admitted to using at least one of the major unauthorized brands. Additionally, 46% have deposited money on sites that they later discovered to be fake or irregular. The majority (78%) report difficulties in identifying whether a platform is legal, and 72% admit they do not always check the necessary information to ensure the service’s legality.
Financed by the Brazilian Institute of Responsible Gaming (IBJR) the study was presented on Thursday, June 12, at an event at the IBJR headquarters in São Paulo. Attendees included Fernando Vieira, Executive President of the IBJR; Carlos Manuel Baigorri, President of Brazil’s National Telecommunications Agency; Giovanni Rocco, National Secretary of Sports Betting at the Ministry of Sports; and federal deputy Caio Viana, Chairman of the Sports Betting Regulation Sub-Committee.
The survey served as the basis for an economic study by consulting firm LCA, which estimates that between 41% and 51% of the betting market in Brazil operates illegally. In just the quarter between February and April 2025, the illegal market generated between R$ 6.6 billion and R$ 9.9 billion. Over the course of a year, this volume could reach R$ 40 billion, equivalent to the regulated market, estimated at R$ 38 billion.
Tax evasion caused by illegal platforms could reach as much as R$ 10.8 billion annually. In just three months, the federal government lost out on tax revenue ranging from R$ 1.8 billion to R$ 2.7 billion, according to estimates from the LCA.
Fernando Vieira told Máquina do Esporte: “We already had an idea of the size of this problem within the IBJR, but the survey sheds light on this issue. By bringing light to the matter, we can plan how to confront this illegal market,” he stated.
The IBJR president also criticized the provisional measure (MP) published on Wednesday (June 11) by the Federal Government, which raises the tax rate on GGR. The executive also referred to the bill, approved in the Senate and currently being discussed in the House of Representatives, which aims to restrict betting advertisements.
“It’s useless to keep tightening taxes and restricting advertising for the regulated sector without providing the conditions for it to attract more bettors. Otherwise, it will lead to the opposite effect. More people will shift to the informal market,” he said.
