Brazil's Legal Gambling Launch Not Stopping Illegal Segment
Brazil's regulated betting industry has been operating since this past January, but a large majority of bettors aren't yet on board. A new study shows that more than half of the market is still controlled by unlicensed operators.
LISTEN TO THIS ARTICLE:Figures released by the Brazilian Institute of Responsible Gaming (IBJR) show that 51% of betting activity in the country continues to take place outside the legal framework. The organization has warned that this situation not only exposes players to fraud but also deprives the government of vital tax revenues that could be directed toward public services.
Related: Brazil's National Betting System Gains MomentumTo confront the problem, IBJR has launched a national awareness campaign titled "No More Goats in the Room." The campaign uses the image of a goat as a metaphor for a problem that is visible but often ignored.
According to IBJR, illegal betting represents such an issue in Brazilian society, where many are aware of its presence but few openly address the risks. The campaign is designed to make the dangers of the black market part of a broader national discussion and to encourage players to choose government-approved platforms carrying the .bet.br domain.
The initiative is running across television, radio, billboards and social media channels through the end of the year. The organization has emphasized that bettors who turn to illegal sites face multiple risks.
Players lack protection in cases of fraud, funds may be lost without recourse, and unregulated operations offer no contribution to public finances. The message being spread is that regulated operators are subject to oversight, contribute tax revenue and apply stronger consumer protection standards.
IBJR has underlined that licensed operators in Brazil are required to implement robust identification measures, including ID verification and facial recognition. In addition, licensed firms must apply anti-fraud monitoring systems. Illegal platforms, in contrast, often provide access to minors, expose users to untraceable losses and can serve as channels for money laundering. These risks are central to the arguments being advanced through the campaign.
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Brazil's legal betting market was officially launched on January 1 after several years of legislative debate and policy development. The regulatory framework includes provisions on licensing, payment systems, player protection and sports integrity.
However, despite the establishment of a formal legal market, unlicensed offshore operators continue to attract Brazilian customers. Many of these companies make use of social media influencers and other aggressive marketing practices to reach audiences without regulatory oversight.
The Secretariat of Prizes and Bets has been issuing licences since the start of the year, but IBJR has stressed that stronger enforcement and awareness are needed to reduce the illegal segment. By putting the issue in front of the public, the Institute hopes to push players toward safer choices and limit the reach of offshore companies that do not comply with national rules.
The campaign was developed by agency We, which designed creative material to show how illegal gambling can enter daily life in unexpected ways. Executive Creative Director Carlos Schleder said the goal was to make the issue visible in relatable contexts.
Fellow Director Kleyton Mourão emphasized that avoiding discussion only prolongs the problem. He added that this initiative marks the first time the subject of illegal gambling has been brought to the national stage with such focus.
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