Technology has transformed how we have fun, and the online betting market is one of the most emblematic examples of this change. However, alongside the rapid growth of the sector come shared responsibilities: it is essential to ensure that the digital environment is safe, secure, and trustworthy for both bettors and society as a whole.
With the regulation of fixed-odds betting in Brazil, in force since January 1, 2025, the sector has been definitively split into two groups: the legal, authorized by public authorities, and the illegal, which operates outside the rules, increasing consumer vulnerability.
Only companies that meet the new legal requirements—such as obtaining a license from the Secretariat of Prizes and Betting (SPA), implementing Responsible Gaming measures, preventing money laundering, ensuring the integrity of competitions, and paying taxes—are authorized to accept bets from Brazilians.
According to a study by Instituto Locomotiva, commissioned by the Brazilian Institute for Responsible Gaming (IBJR), 61% of bettors have placed bets at least once on illegal platforms—an alarming figure that reflects both the difficulty of distinguishing authorized from unauthorized sites and the appeal of the conveniences offered by the black market.
Only 46% of bettors say they can tell whether a site is legal, while 78% acknowledge that it is difficult for the average user to know this information. The situation is even more critical among younger age groups (18 to 29) and lower-income segments, increasing consumer vulnerability.
Although the regulatory framework introduced requirements such as KYC (Know Your Customer), age verification, spending limits, and the obligation for companies to be based in Brazil, the illegal market operates with a business model that easily bypasses these rules, increasing risks for bettors—such as non-payment, match-fixing, personal data leaks, fraud, money laundering, and lack of legal protection for consumers.
It is also important to highlight the prohibition of payments in cryptocurrencies, as licensed platforms are only allowed to use four methods for deposits and withdrawals: Pix, TED, debit card, and prepaid card.
Within this new reality, simply complying with the rules is the bare minimum—it is necessary to go further, with a compliance and governance model and partnerships with the communities involved.
At BetMGM, for example, we have already implemented a set of measures that reflect the brand’s commitment: KYC to prevent fraud and ensure that our players are of legal age; control tools such as bet limits, self-exclusion, transaction history, and specific alerts to help players evaluate their behavior; and close collaboration with public authorities and SPA enforcement actions, which have already taken down thousands of illegal domains and assisted platforms in complying with the rules.
In addition, one of the key players in creating a safe environment has been the IBJR itself, one of the main entities representing betting companies and civil society before public authorities. The IBJR shares a mature, consistent, and proactive vision for betting regulation, helping to strengthen sector rules and raise consumer awareness, while supporting the business model of companies committed to operating legally.
We still have a long road ahead. The market’s illegality rate remains high — between 41% and 51% —representing a loss of R$ 7.2 billion (US$1.35bn) to R$ 10.8 billion (US$2bn) per year in tax revenue. These resources are not being directed to education, health, social assistance, and other priority areas for society.
This is why fighting illegal platforms is a multi-sector pact that must involve companies, regulators, civil society, banks, payment providers, the media, and bettors themselves. Only then will we be able to increase trust, improve tax collection efficiency, and—most importantly—ensure consumer safety, for people who just want to have fun.
Alessandra Lewit
Chief of Staff at BetMGM. An executive focused on results with extensive experience in business development, digital transformation, agile methods, and innovation, she served as business owner of Cartola Express. At Globo, she led the transformation office for the UmaSóGlobo program, promoting revenue-generating ideas and implementing the ecosystems & partnerships area.
