Brazil: IBJR warns illegal betting market could undermine Desenrola 2.0 protections

The Brazilian Institute for Responsible Gaming has warned that Brazil’s Desenrola 2.0 program could fall short of its financial protection objectives unless authorities take stronger action against unlicensed betting operators.

In a statement released Friday, May 8, the IBJR said financial education, responsible gaming measures, and enforcement against clandestine websites should be treated as connected parts of public policy. 

"The Brazilian Institute for Responsible Gaming (IBJR) warns that the effectiveness of financial protection measures in Desenrola 2.0 fundamentally depends on a rigorous fight against the illegal betting market," the statement reads.

The institute argued that protecting consumers under Desenrola 2.0 will require coordinated action between the government and the private sector, particularly as Brazil seeks to keep betting activity within licensed and monitored channels.

The warning comes ahead of the football World Cup, a period in which sports betting activity traditionally increases. According to the institute, Brazil could lose R$ 10.8 billion in revenue if betting consumption shifts toward illegal operators during that period.

The IBJR said restrictions imposed on the regulated sector may have the unintended effect of pushing users toward clandestine platforms, which it said generate about R$ 40 billion per year. These websites operate without regulatory oversight or consumer protection mechanisms, and the institute said many have links to organized crime.

The organization described action against the illegal market as urgent, saying unlicensed operators could use any restrictions on regulated platforms to attract vulnerable audiences.

The institute also cited a study by LCA Consultoria, which found that bets placed on licensed platforms represented 0.46% of Brazilian household consumption in 2025. The IBJR said the figure showed that regulated betting accounted for a small share of household budgets, while high credit costs remained the main factor contributing to household debt.

Founded in 2023, the IBJR brings together betting operators and industry-related companies active in Brazil. Its stated areas of work include combating illegal gambling and promoting responsible gaming in support of a regulated market.