Brazil's illegal gambling boom leaves regulators struggling to keep up

Unregulated sites lure bettors with irresistible offers, but hidden risks abound. Can Brazil's overstretched watchdog turn the tide before it's too late?

, and Administrator

2026 February 5 . 1:30 PM

1 min read

The image shows a poster advertising the Estoril Casino in Portugal. It features a vibrant array of... — The image shows a poster advertising the Estoril Casino in Portugal. It features a vibrant array of flowers, leaves, and text, as well as a few people, buildings, and a body of water in the background.

Brazil's illegal gambling boom leaves regulators struggling to keep up

Brazil's gambling market is facing a growing challenge as illegal operators now dominate the industry. According to recent figures, black market platforms control 55% of the country's betting activity. Many consumers struggle to tell the difference between legal and illegal sites, leaving them vulnerable to risks.

In early 2023, licensed gambling platforms held 55% of Brazil's market share. By February 2026, that figure had dropped to 45%. Meanwhile, illegal operators have expanded their reach, offering better odds and promotions without regulatory oversight or tax burdens.

The Secretariat of Prizes and Betting (SPA), Brazil's gambling regulator, has limited resources to tackle the issue. Over the past year, it identified and shut down 1,628 illegal platforms. However, the process is slow and involves multiple agencies, allowing black market sites to reappear under new domains.

A survey revealed that 72% of Brazilian gamblers cannot distinguish between legal and illegal operators. These unregulated platforms often fail to protect users or pay out large wins. Their adaptability and lack of compliance make them difficult to eradicate.

Thousands of offshore gambling websites continue to operate clandestinely in Brazil. Without stricter enforcement, the black market's influence is likely to grow further.

The SPA's efforts have removed over 1,600 illegal sites in the past year. Yet, the black market remains strong, controlling more than half of Brazil's gambling activity. Consumers face ongoing risks as long as unlicensed operators continue to outmanoeuvre regulators.