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Illegal Sites Gain Ground in the Betting Market in Brazil and Increase the Risks of Digital Frauds, According to Official Data and Experts.
The illegal sites have started to dominate a significant share of the betting market in Brazil, even after the regulation of the sector, and increase the risks of digital frauds against millions of bettors.
The scenario is now consolidating across the country, driven by regulatory loopholes, advances in technology, and the accelerated growth in the demand for online betting.
Currently, Brazil has more than 27.5 million bettors and ranks among the five largest global markets in financial volume. In 2025, the sector moved more than R$ 32 billion, which reinforces the interest of both legal companies and clandestine platforms.
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Illegal Sites Represent Four in Ten Platforms
Official data reveal that the presence of irregular platforms remains high. Information from the Ministry of Finance shows that, almost a year after regulation, only 79 of the 184 registered companies have permission to operate.
Thus, 105 companies operate irregularly in the online betting market. This number explains why four in ten sites accessible to Brazilian bettors operate outside the law.
Billion-Dollar Loss Affects Brazilian Economy
The operation of illegal sites causes direct impacts on the economy. According to the Brazilian Institute of Responsible Gaming, the clandestine activity generates an estimated annual loss of R$ 10.8 billion to public coffers.
On the other hand, the regulated market has already raised around R$ 9 billion in taxes this year alone. Therefore, experts warn that the advance of illegality compromises resources that could finance public policies.
Tax Increase Worries Legal Market
In addition to unfair competition, the legal sector shows concern about the gradual increase in the tax burden. The tax rate on bets will rise from 12% to 15% by 2028.
For Renato Meirelles from the Locomotiva Institute, “Brazilian authorities have made great strides in organizing the rules of the game.” However, he warns that “the illegal market is large and causes significant losses not only for consumers but for the entire Brazilian economy.”
Technology Fuels Digital Frauds
The expansion of the clandestine market also raises the number of digital frauds. Illegal platforms exploit security vulnerabilities, the absence of oversight, and the intensive use of technology to attract bettors.
Meanwhile, these sites often fail to pay out prizes, steal personal and financial data, and use opaque systems. Therefore, experts emphasize that the risk to consumers grows in direct proportion to the illegal market.
How to Identify Illegal Betting Sites
To reduce risks, authorities and experts advise bettors to check if the platform uses the “.bet.br” domain. This seal indicates that the site has official authorization to operate in Brazil.
Moreover, legal companies adopt strict digital security systems, responsible gaming policies, and data protection mechanisms. This way, consumers significantly reduce their exposure to fraud.
Betting Market Continues to Expand in Brazil
Despite the challenges, the betting market continues to grow rapidly in Brazil. The combination of popularity, ease of access, and technology keeps the sector in the spotlight.
However, experts warn that the balance between collection, competitiveness, and security will be decisive. Otherwise, the advance of illegal sites could compromise investments, revenue, and bettor trust.
Combating Illegality Requires Coordinated Action
Finally, analysts advocate for a joint effort between the government, legal companies, and regulatory bodies. The goal is to strengthen the regulated market and reduce the space for clandestine platforms.
Meanwhile, information remains the consumer’s main ally. Identifying trustworthy sites and avoiding illegal shortcuts becomes essential to protect data, money, and the Brazilian economy itself.
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