The clandestine betting market in Brazil reached alarming dimensions during 2025, generating 14 billion Brazilian reais, equivalent to approximately $2.4 billion. The data, revealed exclusively by Apuesta Legal through its Betting Panel in Brazil, expose the magnitude of a problem that challenges the federal government’s regulatory efforts and represents millions in lost tax revenue.
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Betting Panel in Brazil monitors the clandestine sector
Apuesta Legal launched its Betting Panel in Brazil this week, a monitoring tool that will track the Brazilian betting market monthly, both legal and illegal. This initiative arises from the need to accurately measure the scope of clandestine operations that continue to proliferate despite enforcement efforts.
The data released by this panel reveal that the illegal betting market not only maintains a significant presence but has also experienced exponential growth over the past year.
Comparison with established economic sectors
The magnitude of the clandestine betting market’s turnover becomes more evident when compared to other consolidated sectors of the Brazilian economy. According to Apuesta Legal’s analysis, the revenue generated by illegal betting companies during 2025 surpassed the total turnover of the toy industry in Brazil.
Furthermore, the amount collected by clandestine operators equaled the total turnover of Brazilian e-commerce during Black Friday 2025, one of the most important commercial dates of the year in the digital retail sector.
Government budget versus illegal market
A particularly revealing comparison places the 14 billion reais of the illegal market against the budget available for government institutions. The amount invoiced by the clandestine betting sector represents almost four times the budget available to the Ministry of Environment during 2025, highlighting the enormous volume of resources that escape state oversight and taxation.
150% growth in illegal betting companies
Efforts to combat the clandestine market face an increasingly complex challenge. According to a report published by the Secretariat of Prizes and Bets of the Ministry of Finance (SPA-MF), more than 25,000 illegal sites were blocked throughout 2025.
However, these blockages have not managed to curb the proliferation of new clandestine platforms. According to Apuesta Legal data, the number of illegal betting companies was around 10,000 as of January 2024. By the end of 2025, this figure had reached approximately 25,000 clandestine operators, representing a 150% increase in just twelve months.
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More than half of bets operate illegally
The Brazilian Institute of Responsible Gaming (IBJR) estimates that 51% of online bets in Brazil currently operate illegally. This figure reveals that, despite the advances in sector regulation implemented in recent years, more than half of the market continues to operate outside the established legal framework.
This situation creates multiple problems: loss of tax revenue for the state, absence of protections for bettors, lack of controls on money laundering, and difficulty in implementing responsible gaming policies to protect vulnerable populations.
Regulated market versus clandestine market in 2025
Comparative data between the regulated and clandestine markets during 2025 show unequal competition. While legal betting companies must comply with tax obligations, licenses, anti-money laundering controls, and responsible gaming policies, illegal operators function without these restrictions, allowing them to offer seemingly more attractive conditions to users.
This unfair competitive advantage of the clandestine market not only affects state revenue but also harms operators who have chosen to regularize and comply with all legal requirements.
Challenges for 2026
The fight against the illegal betting market is shaping up to be a renewed priority for 2026. Brazilian authorities will need to implement more effective strategies that combine technological blockages, pursuit of financial flows, public awareness campaigns about the risks of using illegal platforms, and international collaboration to track operators working from abroad.
The Secretariat of Prizes and Bets of the Ministry of Finance faces the challenge of making regulation an effective tool not only to organize the sector but also to make the legal market competitive against clandestine alternatives.
