Sixty per cent of Brazil’s betting market dominated by illegal operators says IBJR
Despite the introduction of online betting regulations, Brazil continues to grapple with significant irregularities within the sector according to André Gelfi, founder and director of the Brazilian Institute of Responsible Gaming (IBJR).
According to Gelfi it is estimated that around 60% of the betting market is dominated by unlicensed, illegal betting, generating more than R$ 1 billion every month.
“Our main challenge is precisely the formalization of our betting market. There is unmonitored, untaxed economic activity happening in this market, which significantly hinders the development of a sustainable market,” Gelfi stated in an interview with the Poder360 website.
According to Gelfi, the betting industry as a whole—legal and illegal—generates around R$ 25 billion annually in Brazil. Nonetheless, the progress of regulation is seen as a promising step. “Despite witnessing levels of informality that are absolutely unsustainable, we understand that regulation, as a framework, is modern and enables a competitive market,” he said.
To combat the operations of illegal gambling, the federal government has intensified blocking actions. As of February, this year, 11,555 domains of illegal betting houses have been shut down. Gelfi said that this measure is important but inadequate on its own. He argued that combating informality must also involve controlling advertising and tracking financial transactions.
“The heart of our activity is Pix (a digital payment system in Brazil). If financial entities have effective monitoring of who is using Pix, under which CNPJ (National Register of Legal Entities), we can suffocate this informality,” stated the IBJR director.
He also emphasized the importance of restricting the promotion of betting to duly licensed companies as a way to reduce the visibility and reach of clandestine platforms.
The Brazilian Institute of Responsible Gaming (IBJR) was founded in March 2023 and brings together leading international betting companies: Bet365, Betsson Group, Entain, Flutter, Kaizen Gaming, KTO Group, BetMGM, Novibet, and Skill OnNet. The IBJR’s mission is to assist in discussions and the development of the Brazilian online betting market, promoting greater awareness of the dynamics within the gaming sector.
