Illegal betting market grew 150%, moved R$14bn in 2025
A report from 'Aposta Legal' reveals that the clandestine operation billed more than the State collected in taxes. Despite the Secretariat of Prizes and Bets (SPA) and Anatel blocking more than 25,000 domains, the lack of financial control in the first half of the year allowed the black market to flourish.
The first year of regulated market in Brazil leaves a bittersweet conclusion: the formal sector is an economic giant, but its illegal shadow is growing at a dizzying pace. According to the study "Painel das Bets no Brasil" by the consultancy Aposta Legal, the clandestine market collected nearly R$ 14 billion (USD 2.7 billion) in 2025, registering a year-on-year growth of 150% in the number of operating platforms.
This business volume places illegal gambling above entire industries such as the toy industry and even surpasses the turnover of Brazilian e-commerce during Black Friday. The most worrying figure for the Ministry of Finance is that the black market brought more money into its coffers than the State managed to collect in taxes from legal operators (R$ 9.95 billion).
The challenge of the "Channeling Rate"
The report highlights Brazil's difficulties in reaching an optimal channeling rate (the percentage of players betting on legal sites). While the regulated market generated a GGR (Gross Gaming Revenue) of R$ 37 billion with 79 authorized operators and 25.2 million users, a huge portion of liquidity escaped to offshore operators.
Experts point out that the tax burden of 12% on GGR for companies and the tax on players' winnings (IRPF) have functioned as unintended incentives for users to seek better odds on unlicensed .com sites, evading the regulations of Law 14.790/23.
Anatel Blockades vs. VPN and Mirrors
The 150% growth of the illegal sector occurred despite an unprecedented state offensive. The Secretariat of Prizes and Bets (SPA), in coordination with the National Telecommunications Agency (Anatel), executed blocking orders against more than 25,000 websites during the year.
However, the persistence of these figures demonstrates the limitations of traditional DNS blocking. Illegal operators have managed to circumvent restrictions by constantly creating "mirror sites" and users employing VPNs. Therefore, for 2026, the focus of the Central Bank of Brazil (BCB) will shift from web blocking to transactional blocking, preventing the instant payment system Pix from processing operations towards unauthorized CNPJs in the Betting Management System (Sigap).
Key data of the regulated market in 2025
Despite the leakage to the illegal market, the formal market showed its strength:
- Gross Revenue (GGR): R$ 37 billion (USD 7.01 billion).
- License fees: The government collected R$ 2.5 billion from authorization fees (R$ 30 million per license).
- Supervision Fee: R$ 95.5 million collected to finance sector oversight.
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