The fixed-odds betting and online gaming sector, regulated since the beginning of the year, still suffers from the operation and promotion of illegal betting platforms. These may account for around 50% of the market, according to a recent study conducted by LCA Consultores in partnership with Instituto Locomotiva. To combat these clandestine operations, the government has stepped up measures targeting digital environments.
The most recent of these was an extrajudicial notification sent by the Attorney General’s Office (AGU) to Meta, the owner of Instagram and Facebook, requiring the company to remove illegal advertising published by unauthorized betting and gaming profiles operating in Brazil. According to the agency, there were “hundreds of results” of irregular betting ads in Meta’s paid ads library.
Another digital measure took place in July, when the Ministry of Finance’s Secretariat of Prizes and Betting (SPA/MF) and Brazil’s Digital Council signed an agreement to fight illegality in the fixed-odds betting market. The initiative aims to foster cooperative action to prevent, detect, and take down content related to betting that is not in compliance with national legislation.
Previously, the National Telecommunications Agency (Anatel) had also been called on to take down illegal domains. By the end of June, the agency reported that more than 15,500 requests had been filed to block irregular betting platforms. However, it also admitted the difficulty of handling the high demand, since many illegal operators can quickly create new domains once their previous page is shut down.
Amid these recent attempts to tighten the clampdown on the illegal market, industry experts emphasize that one of the most effective measures would be to target the financial system. Igor Sá, CMO and COO of HiperBet, stresses this alternative as an efficient way to hinder illegal operations and believes that the process of undermining the financial operations of fintechs servicing irregular sites would be feasible in the medium to long term.
“In recent years, we have seen the growth of fintechs created solely to operate from sites located abroad, without regulation. And today I see the only effective way to close this path as the Central Bank intervening in the operations of fintechs that cannot prove they are legally operating with betting companies or any other legitimate activity. Still, I believe this could only happen in the medium to long term, given the large number of fintechs licensed by the Central Bank in recent years,” he said.
“Without financial means, illegal operations lose their ability to function, which protects players, serious companies, and the entire ecosystem. Regulation was a milestone long awaited, and it is unacceptable to allow this progress to be undermined by illegal practices,” said João Fraga, CEO of Paag, a techfin hub providing technology solutions for the betting industry.
“That is why it is essential that all payment facilitators partner only with regulated betting companies that follow market best practices, as we do at Paag,” he added.
Vinicius Nogueira, CEO of BETesporte, a company with Zico as its ambassador, added: “We know that fighting the illegal market is not an easy task, because it requires great effort, investment, and technology on the part of supervisory bodies. Still, it is a job that must be carried out and constantly improved.”
“It is crucial to confront those operating illegally, because their activity harms not only operators and the government but, above all, the safety of the public, who are left at the mercy of platforms that ignore regulations.”
Illegal platforms cause billions in losses to government coffers
According to a study conducted by LCA Consultores in partnership with Instituto Locomotiva, with the support of the Brazilian Institute for Responsible Gaming (IBJR) between April and May this year, Brazil is still estimated to lose R$ 10.8 billion (US$2bn) annually due to failures in combating the illegal betting market.
The survey also shows that 61% of respondents admitted to having placed bets on irregular platforms this year—often without being aware of the risks involved.
“The sports betting sector contributes significantly to the country’s budget, as it drives the national economy, generates jobs, and pays taxes. Regulating the sector is important for the growth of the local economy and has a very positive impact for the federal government,” said Alex Rose, CEO of InPlaySoft, an international company directly involved in the creation and development of platforms for casino and sports betting operators.
“What cannot happen is for tax rates to be set too high, as this will end up pushing people toward illegal operators,” he added.
“In addition to defrauding public coffers, these platforms put bettors at risk, with no security or data protection guarantees,” commented Bernardo Cavalcanti Freire, legal advisor to ANJL and partner at Betlaw.
The study also found that 78% of respondents find it difficult to distinguish legal sites from illegal ones, and 72% said they cannot always verify the legitimacy of platforms. Furthermore, 73% of bettors reported using at least one of the illegal platforms mapped in 2025.
“For the first time, we have consolidated data that reveals the real impact of tax collection in the regulated betting market—over R$ 3 billion (US$550m) in just the first five months of the year. This marks a turning point and shows that we are dealing with a sector that must be treated with seriousness and strategy. Still, these numbers could be even more significant if there were more effective crackdowns on the illegal market, which drains revenue and undermines fair competition,” explained Fellipe Fraga, CBO of EstrelaBet.
“Instead of raising taxes, the focus should be on effective oversight that encourages responsible operators, protects consumers, and combats practices such as match-fixing,” he emphasized.
“The blocking of clandestine sites represents an important step forward in consumer protection, anti-money laundering efforts, and in recognizing companies that comply with regulations. This measure strengthens the credibility of the sector and demonstrates the country’s commitment to a more transparent and trustworthy betting industry,” added Talita Lacerda, COO of Grupo Ana Gaming, which manages the brands 7K, Cassino, and Vera.
Finally, responsible gaming advocate and digital influencer Daniel Fortune stressed that, in addition to combating illegal betting, it is also essential to ensure player safety. “The betting market is already a consolidated reality in Brazil, and the numbers confirm it. With the growth of online betting, it becomes even more urgent to promote a culture of education, awareness, and support for players.”
Source: GMB
