Brazil Battles Expanding Black Market as 25 Million Bettors Continue Using Illegal Platforms

The minister revealed that an estimated 25.2 million people are still wagering with unauthorized operators, highlighting the scale of the challenge facing regulators more than a year after Brazil launched its regulated betting market.

“We are talking about illegal betting representing something between 41% and 51% of the market operating legally. It is a significant number. We have already blocked more than 40,000 websites. There are 25.2 million Brazilians betting on these platforms,” Lima e Silva said.

Authorities have intensified efforts to combat unlicensed operators, with the Justice Minister warning that the sector has become increasingly attractive to organized crime groups.

Finance Minister Dario Durigan provided further insight into the illegal ecosystem, revealing that just 350 individuals operating through 37 financial institutions were linked to more than 40,000 betting websites and applications already blocked by regulators.

The comments come in the wake of Operation Lucky Tale, a federal investigation targeting an alleged illegal betting network that authorities believe may have moved billions of reais through unauthorized gambling operations.

The figures underline the significant challenge facing Brazilian regulators as they seek to shift consumers toward licensed operators while dismantling the financial and technological infrastructure supporting the black market. Alongside enforcement actions, authorities have also expanded consumer protection initiatives aimed at promoting safer gambling practices within the regulated sector.