Brazil’s regulated betting sector represents only a small fraction of household spending, but illegal operators continue to pose a significant risk to consumers and public finances, according to the Brazilian Institute for Responsible Gaming (IBJR).
In a statement, the IBJR said that the effectiveness of financial protection measures under the federal government’s Desenrola 2.0 program “depends, fundamentally, on a rigorous crackdown on the illegal betting market.” The institute cited data from LCA Consultoria showing that, in 2025, bets placed on licensed platforms accounted for just 0.46% of household consumption—“an extremely small share within the Brazilian household budget.”
The organization argued that this finding reinforces that “the main factor driving household indebtedness in Brazil remains the high cost of credit,” rather than regulated betting activity.
Desenrola 2.0 is the government’s latest initiative aimed at tackling high levels of consumer debt, building on the original Desenrola program launched in 2023. The scheme is designed to facilitate debt renegotiation, expand access to credit, and introduce safeguards to prevent over-indebtedness among Brazilian consumers. As part of the broader policy discussion, concerns have emerged among policymakers about the role of online betting in household finances, prompting debate over whether stricter controls on the sector are needed.
Against this backdrop, the IBJR warned that restricting access to licensed operators could have unintended consequences. “Restrictions on access to the regulated sector may encourage migration to clandestine platforms,” the statement said, noting that illegal operators already handle around R$40 billion annually while operating “without any oversight or consumer protection mechanisms.”
The institute described combating the illegal market as “the most urgent step” to prevent unlicensed operators—“often associated with organized crime”—from exploiting regulatory gaps and targeting vulnerable users. The risk is expected to increase with the approach of the World Cup, a period that typically drives higher volumes of sports betting.
The IBJR also highlighted the fiscal impact of illegal activity, warning of a potential loss of R$10.8 billion in tax revenue if betting shifts to the underground market.
To address these risks, the organization called for coordinated action between public authorities and the private sector. It advocated for policies that combine financial education, stronger responsible gambling measures, and “a strategic offensive against illegal websites,” ensuring that betting as entertainment takes place “within a safe, transparent and properly regulated ecosystem.”
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Brazil’s regulated betting sector represents only a small fraction of household spending, but illegal operators continue to pose a significant risk to consumers and public finances, according to the Brazilian Institute for Responsible Gaming (IBJR). In a statement, the IBJR said that the effectiveness of financial protection measures under the federal government’s Desenrola 2.0 program…
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