New data in Brazil adds urgency to call to reglate illegal gambling platforms
New data emerging from Brazil underscores a critical rise in illegal online gambling, making stronger regulation more urgent. A survey by Instituto Locomotiva found 61% of Brazilian bettors have used unlicensed platforms, while 78% struggle to identify which sites are regulated. Another industry study estimates that illicit operators account for 41–51% of total betting market revenue—amounting to BRL 26–40 billion annually—with up to BRL 10.8 billion in unpaid taxes .
The findings reveal a fragmented legal framework: although Brazil launched legal sports betting in January 2025 under Law No. 14.790, enforcement is lagging. Heavy taxation—up from 12% to 18%—may further drive bettors into the underground market . Trade groups advocate for bolstered enforcement, better public awareness, financial monitoring, and technical certification to distinguish lawful operators . Without decisive regulatory action, the legal sector risks losing out to unregulated platforms, leading to missed tax revenue and increased consumer risk.
