Brazil’s illegal betting boom now controls 55% of the market

A shadowy surge: Brazil’s gamblers flock to offshore sites, unaware of the risks. Can regulators turn the tide against this unchecked expansion?

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2025 December 28 . 4:16 AM

1 min read

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Brazil’s illegal betting boom now controls 55% of the market

Illegal gambling now dominates Brazil’s betting market, holding a 55% share. This shift comes as the legal sector’s presence has shrunk from 55% to 45% in just over a year. Authorities face growing challenges in regulating an adaptable black market that continues to expand.

Thousands of offshore websites operate illegally in Brazil, offering sports betting and games of chance. These platforms often avoid paying out large wins by quickly setting up new domains. With no regulatory oversight, they can also provide better odds and more promotions than licensed operators.

The Secretariat of Prizes and Betting (SPA) struggles to monitor and shut down these sites due to limited resources. The process involves multiple agencies, slowing enforcement efforts. Meanwhile, 72% of local gamblers admit they cannot tell the difference between legal and illegal platforms. Black market operators exploit gaps in regulation, avoiding taxes and compliance costs. Their flexibility allows them to adjust quickly, maintaining a strong hold on the market despite crackdown attempts.

Illegal gambling now controls more than half of Brazil’s betting industry. Consumers remain vulnerable to unregulated sites, while authorities work with constrained tools to curb their growth. The gap between legal and illegal operators continues to widen, leaving gamblers at risk of unfair practices.