Study Finds Most Brazilian Bettors Still Using Unlicensed Gambling Sites in 2025

Despite new regulations and enforcement efforts, a large share of Brazilian bettors continue to use unauthorized gambling platforms, according to a new national survey.

Good to know

• 73% of bettors in Brazil used illegal sites in early 2025.
• Nearly 80% found it hard to tell if a platform was government-approved.
• Illegal betting caused an estimated $486 million in lost tax revenue in just three months.

A survey conducted between April and May 2025 by Instituto Locomotiva, on behalf of IBJR and LCA Consultoria, found that nearly three-quarters of bettors in Brazil had placed bets with unlicensed platforms. The findings highlight major challenges in controlling the country’s growing online betting market.

Many bettors engaged in activities that fall outside current regulations. 62% used sites without facial recognition, 44% funded accounts with banned credit card payments, and 28% used cryptocurrency, which is not allowed.

IBJR and LCA estimate that unlicensed platforms make up between 41% and 51% of Brazil’s online betting market. The loss in tax revenue from this unregulated activity could reach up to R$10.8 billion ($1.8 billion) annually.

In response, the Brazilian government raised the tax rate on legal betting operators from 12% to 18% on June 11. However, IBJR president Fernando Vieira warned the increase might backfire. “The higher tax could render much of the already legalized betting market unviable,” he said, adding that total tax pressure could climb to nearly 50% with the upcoming Selective Tax.

Need for education and stricter enforcement

The study also found that many users struggle to identify legal platforms. Only those using “.bet.br” domains with facial recognition, Pix or debit-only deposits, loss limits, and self-exclusion tools are authorized under current SPA rules.

Renato Meirelles of Instituto Locomotiva stressed that “consumer confusion is exploited by these illegal operators” and called for clear public messaging, stricter oversight, and tougher penalties.

Since January 2025, authorities have taken down more than 11,000 illegal domains. Yet illegal operators remain active, especially among lower-income and less-educated users who are more vulnerable to scams and loss.

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