IBJR Warns That Combating Illegal Betting Market Is Key to Desenrola 2.0 Success

The Brazilian Institute for Responsible Gaming (IBJR) released a press release on Friday (May 8) stating that the success of the federal government’s Desenrola 2.0 financial protection policy will significantly depend on the implementation of more effective measures against the illegal betting market.

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In accordance with the IBJR, too many restrictions can lead consumers to the unregulated betting market, which will harm their interests due to the lack of regulation of operations.

As noted by the IBJR, legal betting operations account for only 0.46% of the total consumption of Brazilian families, as indicated in a study by LCA Consultoria. Using these figures, the organization argued that legal betting has a rather negligible effect on the family budget in contrast to the overall financial burden, including high interest rates for loans.

“In 2025, betting on licensed platforms amounted to just 0.46% of household consumption in the country, a negligible part of the Brazilian household budget, as the LCA Consultoria report shows. This means that the main reason for the indebtedness of Brazilians is the high cost of credit“, said the institute in the statement.

The Concern about Migration to Unregulated Platforms

The IBJR also warned that limiting users’ access to the services provided by legal betting operators would motivate them to use unregulated platforms, which annually process about BRL 40 billion in betting operations.

In addition, the organization stressed that these platforms are not subject to any oversight and do not have any guarantees for protecting consumers. In addition, there is evidence of cooperation between illegal operators and organized crime groups.

“Striking at the illegal market is the main priority to avoid unlicensed platforms — often related to organized crime — using the restrictions imposed to lure vulnerable consumers“, said the organization in its statement.

According to the organization, the problem is even more pressing before the FIFA World Cup period, which is accompanied by increased interest in sports betting.

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Lost Revenue Due to the Underground Betting Market

As the IBJR estimates, Brazil will lose about BRL 10.8 billion in tax revenues if betting is transferred from legal operators to illegal ones during major sporting events such as the World Cup.

In addition, the growth of the underground betting market will negatively affect efforts to protect consumers and the effectiveness of financial policy measures, including Desenrola 2.0.

“The real protection of consumers and the integrity of Desenrola 2.0 rely on joint efforts by the government and the private sector“, noted the organization in its statement.

IBJR Calls for Unified Policies

Along with law enforcement measures, the IBJR also supported the implementation of comprehensive policies, including financial literacy, responsible gambling campaigns, and actions to counter the activities of websites with illegal betting operations.

“As an institute, we aim to ensure that betting entertainment exclusively takes place in a safe and controlled environment“, said the organization in its statement.

Established in 2023, the IBJR is a representative body of some of the largest betting operators working in Brazil and abroad. According to the institute, it aims to help create a sustainable, regulated, and responsible online betting market in the country.

The organization’s primary goals include fighting the illegal betting market and implementing responsible gambling practices. Among the current members of the association are companies such as bet365, BetMGM, Betsson Group, Entain, Flutter Brazil, Kaizen Gaming, Novibet, KTO Group, and others.

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Source: BNL Data