Following Brazilian President Lula da Silva’s decree to ban licensed online gambling, market analysis has revealed a dramatic and rapid rise in illegal operators across the country.
The numbers paint a stark picture of what happens when a regulated market is abruptly shut down, with unlicensed platforms moving quickly to fill the void left behind.
SBC Noticias Brasil reported that illegal iGaming operators had climbed to 575 on 26 September, compared to just 331 recorded the day prior to Lula’s announcement.
That single-day jump of 244 illegal operators represents a 74% increase in fewer than 24 hours, underlining just how fast unregulated platforms can mobilise in a disrupted market.
The picture looks even more alarming when tracked over a longer period leading up to the announcement, with the growth curve accelerating at a pace that has stunned industry observers.
Bet Legal recorded just 102 illegal platforms on 21 September, meaning the number more than tripled to 331 within four days, before surging again to 575 by the following Saturday.
That trajectory suggests the illegal market was already gaining momentum before Lula’s provisional measure, with the decree appearing to dramatically accelerate an existing trend.
The figures represent a near-100% increase over the course of a single week, a staggering outcome that critics argue was entirely foreseeable given the nature of the ban.
One industry commentator captured the frustration bluntly, stating: “Observe the behavior of the curve after the MP (provisional measure). Innocence, bad faith, ignorance of the market? The illegal gang is lying down and rolling. Almost 700 illegal sites in the last 48 hours.”
The comment reflects widespread concern among iGaming professionals that banning licensed operators does not eliminate gambling demand, but simply redirects players toward platforms with no consumer protections or regulatory oversight.
Brazil had been in the process of establishing a regulated online gambling framework, making the sudden reversal through a provisional measure all the more disruptive to the market’s legal foundations.
The rapid proliferation of illegal sites raises serious questions about enforcement capacity, with Brazilian authorities now facing the challenge of monitoring a black market that has nearly doubled in size within days.
