Leadstar Media CEO argues Brazil betting restrictions risk illegal-market growth
Regulation2 min read
An interview with Leadstar Media CEO Eskil Kvarnström argues that restrictions on betting in Brazil may redirect consumers to unlicensed operators rather than eliminate demand. The Bet Legal panel, maintained by Iron Security in partnership with ANJL, mapped 710 unauthorised betting sites two days after MP 1.394 was announced, up from 295; LegitBet had confirmed more than 34 thousand suspected sites by the end of October.
Brazilian betting restrictions risk driving customers towards unlicensed operators, Leadstar Media chief executive Eskil Kvarnström said in an interview.
Unauthorised betting sites mapped by the Bet Legal panel rose from 295 to 710 in the two days after MP 1.394 was announced, a 141% increase. The panel is maintained by Iron Security in partnership with ANJL. LegitBet's monitoring had identified more than 34 thousand confirmed suspected sites by the end of October, averaging nearly 300 new sites daily.
Between 38% and 44% of bets took place outside Brazil's regulated market in the first half of 2026, according to a study by LCA Consultores for IBJR. By 6 October, the government had referred 13,241 sites for blocking.
Kvarnström said migration to illegal operators could deprive customers of protection tools, reduce compliant companies' competitiveness and cost the government revenue. He said restrictions on affiliate marketing, such as a planned ban in Finland, could make licensed operators harder to find.
In India, a CUTS International survey in the Delhi region found offshore platform use rose from 68.3% to 82% after the country banned games played for money in August 2025. The KSA said illegal-market revenue exceeded licensed revenue in the Netherlands in the first half of 2025, after tighter rules and tax increases. In Germany, a study commissioned by the GGL estimated illegal-market revenue at €547m in 2024, up 17%. Kvarnström said restrictions on online casino products and players had made the regulated offer less attractive.
Sweden has player-set deposit limits, national self-exclusion through Spelpaus and a 22% tax on gross revenue. Kvarnström said Sweden had established a relatively stable regulatory environment since introducing licensing in 2019. H2 Gambling Capital data put channelisation in Sweden at 72%, down from about 90% in 2022.