According to data obtained by the IBJR (Brazilian Institute of Responsible Gambling), illegal gambling in Brazil represents approximately 60% of the betting market. The gross revenue of these unlicensed bookmakers amounts to more than R$1 billion per month in Brazil.

“Our main challenge is precisely to formalise our betting market where there is an uncontrolled and untaxed economic activity, which makes it very difficult to develop a sustainable market,” said André Gelfi, director of the IBJR. 

The regulated online gambling market in Brazil came into force on 1 January 2025. ‘Although we see informality at absolutely unsustainable levels, we understand that the regulation, as a framework, is modern and makes the competitive market viable,’ Gelfi said.

He also pointed out that the gambling industry turns over a total of usd $4.33 billion a year and clarified that ‘at the institute, we work with a pre-regulation figure".

SURVEILLANCE

The federal government has been blocking illegal gambling sites in an attempt to curb irregularities. As of February 2025, it has taken down 11,555 domains. ‘It's not enough on its own, but it's a measure that has value,’ said Gelfi. He adds that restricting advertising to licensed companies is a good measure to make it more difficult to promote illegal gambling. He also said there is a need to intensify the monitoring of financial transactions: "The heart of our activity is Pix. If financial institutions have effective monitoring of who is doing Pix, through which CNPJ, we can quell this informality". 

ABOUT IBJR

The Brazilian Responsible Gaming Institute was created in March 2023. It is a trade association representing the main operators in the online gaming and sports betting market.

The organisation represents approximately 75% of the sector. It claims to aim to ‘assist in the discussions and development of the Brazilian online gambling market, based on a better understanding of the dynamics of the gambling sector’.

The IBJR is formed by:

Bet365;
Betsson Group;
Entain;
Flutter;
Kaizen Gaming;
KTO Group;
BetMGM;
Novibet; and
Skill OnNet.
 

By Houldine Nascimento