Infingame: Brazil needs to rethink the regulation of betting and iGaming

Games Magazine Brazil - As we approach the end of the year, which emerging trends in the iGaming space are you most excited about and how is Infingame preparing to capitalize on these changing trends?
Pavel Fedyushin - Among the most prominent trends in the industry, it is, of course, important to talk about licenses and regulation. Many countries in Europe continue to adopt their own regulated frameworks, as it is more profitable for the state to grant a handful of licenses than to receive nothing in terms of tax contributions from companies operating in an unregulated market.

However, given the size of the audience in some European countries, it is often not financially viable for small and medium-sized operators to enter these new territories. I foresee that many markets in Europe will increasingly be determined and divided among large monopolistic players due to this impact of regulation – instead of the common acceptance of MGA licenses we had previously.

Is there any other market that you believe will be a major focus for the industry in 2025? If so, why?
Of course, one market that is on everyone's lips is Brazil. For many, there seems to be a lot of excitement. But for me, the way Brazil has approached its legislation is totally unsustainable.

The first companies that applied for licenses in Brazil are large American and European entities – as a result, small and medium-sized operators are being forced out of the market due to harsh entry conditions.

The licenses cost between €5-6 million per year for five years, meaning an operator must have a minimum of €30-40 million to spend in the market. Add to this a 25% tax on withdrawals of funds from abroad, and this makes the market completely unviable.

As regulations still await formal introduction, it is also difficult for iGaming brands to plan their market entry strategy. There have already been several changes in the legislation – many brands will feel reluctant to make solid plans until the formal regulations are introduced, running the risk of non-compliance.

How do you see the licensing system structure for operating betting and iGaming in the Brazilian market?
The licensing structure may also pose potential challenges in the future. Each license allows three different brands – this means that if your brand has one-third of the license, you depend on the other two companies to comply with the regulations. If one brand is non-compliant, it puts the license at risk for everyone.

I believe the Brazilian government should increase the entry barriers after a few years of operating the regulated market, giving everyone a chance to adapt to the new realities. With lower taxes in the first years, or even a lower license cost, this gives everyone a chance to enter the regulated market – this could be increased in proportion to the market growth. But, as it stands, everything is being done all at once, and chaotically.

We have already gone through this with the Ukrainian market. Large companies operating in the market are in no hurry to adapt to the new regulations because the transition to a new license is lengthy, expensive, and complicated. All this increases the risks of developing a gray business, as the entry conditions are complex and there is no predictability.

In such a competitive sector, how important is flexibility and scalability to meet the needs of the modern player?
What sets us apart from other aggregators is that we implement some of the best technologies available in the market. This is a very important priority for me – my IT experience has taught me how important technology is to give you an edge over the competition. This approach gives us a huge advantage over the competition.

Many aggregators in the market (I won't name names!) have relied on technology that is 10-15 years old – but this technology is no longer sufficient to meet the needs of the modern player. It is an expensive matter for platforms to renew their technical capabilities, so they rely on crutches to integrate new functionalities. As a result, we see many "Frankenstein" models – where it may seem like it works, but deep down, stability and performance suffer.

And how have they approached these needs to help the industry? What solutions do they offer?
Infingame has invested significant time and resources in developing our new Axis platform. It operates faster, scales more easily, has broader functionality, and is more operator and provider-friendly.

We understand that modern game aggregators must provide not just game aggregation, but also create added value for their clients. On our platform, we do this in several ways; we offer a variety of player engagement and gamification features, giving operators the tools they need to boost engagement and retention with their players.

The code of our new platform is simpler and much faster too. We have removed all and any crutches and replaced them with a stellar internal architecture that allows our partners to access a range of games quickly and affordably, while giving us the opportunity to update our platform much more easily.

How does Infingame analyze and decide to enter a specific market?
Our focus on a handful of markets has also put us in a unique position to deliver more local and personalized products to our partners. We don't just enter a new market – we make sure we study it well, understand the local nuances, and prepare the best possible offer.

You can't enter all markets at once, nor should you. It's important to understand the legal, financial, and cultural dynamics – all of this has an impact on engagement strategies. We take all this into account when working with our partners in Latin America.

Source: Exclusive GMB