Why 96.5% of companies in Brazil operate without license?

by Andrea
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The gambling in Brazil officially left the shadows in 2025, when the law that legalizes online bets and establishes a licensing model came into force. Apparently an open market should have led to the rapid emergence of a transparent and regulated sector. However, reality has been much more complicated: of the 2,200 registered companies that provide gambling services, only 3.5% have licenses.

This situation raises legitimate issues – why do companies prefer to operate in shadows, what risks this entails for players and how the biggest brands, such as, guarantee the legality of their activities? In this article, we will analyze the scale of the problem and the possible solutions.

Legal market vs. gray sector

According to official data from the Ministry of Finance of Brazil, in June 2025, there were about 2,200 registered companies in the country that directly or indirectly provides online gambling and gambling services. However, according to the Igaming Brasil report, less than 80 companies obtained an official license. The reasons for this disparity are multiple:

  • Complicated bureaucratic procedure to obtain a license.
  • High demands of infrastructure and IT audits.
  • Unequal legal structures between states.
  • Desire to avoid taxes and operational restrictions.
  • Lack of mass inspections and poor supervision.

At the same time, unlicensed companies continue to operate disguised as aggregators, marketing agencies or international hubs with access from Brazil.

Pixbet is one of the few brands that has officially obtained a license since legalization. The company has been authorized until 2030 and is actively involved in promoting the principles of the responsible game. This generates players’ confidence and allows her not to be afraid of regulatory changes.

Risks and implications for players

At first glance, unlicensed platforms may seem more flexible – simplified registration, fewer requirements, tempting bonuses. But external simplicity hides serious threats to the player’s security, honesty and psycho -emotional state. An unlicensed platform is an unparalleled area where only the user is responsible.

A player who chooses an unlicensed platform exposes himself to a series of risks:

  1. There is no guarantee of payments. Illegal casinos are not linked to obligations with users. In case of late payment or blockage of the account, the player may not resort to protection in the court or with the regulatory body.
  2. Vulnerability of data. Personal data and bank information can be used improperly or publicly made available.
  3. False probabilities and games. Without an external audit, illegal platforms can manipulate algorithms – reducing probabilities or simulating live games.
  4. There is no way to control gambling addiction. Licensed casinos have limits, automatic disconnections and reminders. In the “gray” sector there is no such mechanisms, which is especially dangerous for vulnerable categories of players.

Thus, saving time or wanting to avoid registration can become serious losses. The responsible game begins with choosing a safe and licensed platform, such as Pixbet, where the player gets fair conditions and protection of his rights.

According to Gambling Insider, “illegal operators not only evade taxes, but also undermine confidence throughout the industry and increase gambling addiction among young people.”

What is the difference between a licensed casino and a “clandestine” casino?

The legalization of gambling divides the market into two categories: licensed casinos and illegal establishments. Understanding the difference between the two is important to both players and the state.

Parameter Legal casino (license) A doubtful website without license
Award payments Money comes quickly and constantly. In debatable cases, the regulator will intervene. He can simply not pay. The site can close without explanation.
Personal data protection The information is encrypted and stored by law. No one will tell you where your identity and card were.
GAMES INTEGRITY The algorithms are verified by independent auditors. Everything is transparent. It was not possible to check – it can be an adjusted result.
Responsible game There are time limits, budget boundaries and a “pause” button. There is nothing. You can play for hours, even if you are already at a disadvantage.
Taxes and Transparency Pay Taxes – Part of your bets goes to medicine, sports and culture. They do not pay a penny for the state. Only profit for owners.
Customer support You can write to the support, there is a chat and even a direct line. Often there is no answer at all. Or bots instead of people.
Reputation and stability License, history, public data. It can be a “one day” website. Today the site is there, tomorrow is not.
Legal protection of the player If there is a dispute, you can file a complaint and get help. No one will help – you will not even know where the company is registered.

As can be seen in comparative analysis, licensed casinos offer more transparency and protection. On the other hand, the clandestine sector has higher risks, ranging from financial to social.

Why a license is still good for business

At first glance, it may seem that obtaining a license only makes the operator’s life difficult. But in the long run it is protection, stability and a competitive advantage. Advantages of licensed operators:

  • Access to legal payment gateways.
  • Ability to climb and enter markets.
  • Loyalty of the main participants and partners.
  • The right to participate in sector bids and alliances.
  • Blocking protection and domain sanctions.

Pixbet is an exemplary example of how to develop within the legal structure. Not only did the company get a license, but also supports digital self -regulation tools, integration with financial systems and collaborations with national advertising platforms. This model can become a reference for the rest of the market.

What the market is saying

It estimates that the legal segment of gambling in Brazil will be $ 4.7 billion in 2025. However, at least another $ 9-11 billion undergo illegal platforms. This means that almost 70% of the market is out of government control.

In addition, a G2E Latin America analyst pointed out: “Without effective supervision and a clear licensing model, even leading brands will be forced to operate on the edge. The market requires stability, not double patterns.”

Conclusion

Brazil is taking steps towards a transparent gambling market, but reality is short of expectations. Only 3.5% of companies are licensed, which means thousands of players are exposed to risks every day.

Pixbet shows that it is possible to play according to the rules and, in addition, is profitable. The state needs to simplify the license model and strengthen control. Only then will the parallel sector cease to be the norm.

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