Regulatory changes and the implementation of the Brazilian market for sports betting and online gaming have led researchers Maria Paula Nascimento, Svilen Madjov, and Simone do Vale from ENV Media to delve into the topic. For them, relevant points are the stability of the segment, transparency, and consumer protection. This exclusive article for GMB presents the main insights about the iGaming sector in this new moment for the country.
On January 1, 2025, Brazil inaugurated a new chapter in its iGaming sector with the implementation of a comprehensive regulatory framework under Law 14.790/2023. This historic legislation introduces rigorous oversight by the Ministry of Finance to ensure market stability, transparency, and consumer protection. Through the Betting Management System (Sigap), the government now monitors bettors' registrations and financial flows in real time, ensuring compliance and accountability.
Migration and modernized registration process - a new standard
Before the implementation of the full registration process required by Law 14.790, sanctioned in December 2023, it was enough for online betting and casino operators now licensed to verify email accounts or, in some cases, ask players to upload a copy of their identity.
Now, at the heart of the new regulation is the requirement for players to voluntarily migrate to regulated platforms. This process is anchored by a robust Know Your Customer (KYC) protocol, which includes:
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Identity verification and facial recognition, to prevent gambling by minors and unauthorized account use.
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Geolocation, to confirm that players are accessing the platform from within authorized jurisdictions.
- Linking of a valid bank account, to ensure secure deposits and withdrawals linked to the Individual Taxpayer Registry (CPF) of the player.
The result is a system designed to mitigate fraud and enhance security, ensuring that bets pay taxes in the country and that players are protected from illegal platforms that lack legal certification or financial security.
Why is the new registration process and KYC safer for consumers?
One of the main focuses of the regulation is to eliminate illegal operators that have long harmed the iGaming market. The government, with the support of the National Telecommunications Agency (Anatel), began blocking unlicensed sites in October 2024.
In addition, financial institutions now restrict payments to companies operating outside the regulated ".bet.br" domain, reducing opportunities for unlicensed operators and offering bettors safer and more transparent options.
Moreover, the regulation puts responsible gaming at the forefront, requiring bets to implement tools such as:
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Deposit limits and alerts: promoting responsible gaming.
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Monitoring of betting patterns: comparing bets with declared income to identify risks.
However, initial technical issues during the migration phase highlighted the need for simplification. Google Trends data shows growing interest in licensed companies and spikes in searches for "bets without verification", revealing some confusion among players.
Source: Google Trends
However, 92% of Brazilian players support government regulation, according to an ENV Media survey.
Source: ENV Media
Leading the regulatory transition
Of the 66 operators that were supposed to be licensed by December 31, 2024, only 14 received definitive licenses.
Among these 14 operators, the KTO, bet operating in Brazil since 2018, stands out as one of the first to obtain the definitive license.
The bet implemented high standards of security and data protection, adopting measures such as identity verification by facial recognition. These measures were already in place even before the grant of the definitive license in 2024.
The 52 operators with provisional licenses are awaiting compliance with documentation requirements. The government gives platforms 30 days, renewable once, to resolve issues such as system certificates. However, those that do not meet these criteria risk losing their licenses, although they may appeal administratively.
From the implementation of secure KYC measures to the offer of ongoing registration, some of the main betting sites clearly explain what consumers need to do to migrate or create their account following the new government guidelines.
Future perspectives
The Ministry of Finance is expected to release a formal report at the end of this year analyzing the effectiveness of the current measures, but the regulatory framework may evolve further. With R$ 20 billion in monthly bets estimated for 2024, tighter financial controls and additional safeguards for vulnerable populations may come to strengthen the market.
By balancing rigorous compliance measures with consumer-centered policies, Brazil's regulatory update establishes a solid foundation for a safer and more transparent iGaming market. With industry leaders setting the standard, Brazil is positioning itself as a global model for responsible and transparent gaming.
Maria Paula Nascimento
Research Manager at ENV Media
Svilen Madjov
Head of Research at ENV Media
Simone do Vale
Educational Researcher at ENV Media
Source: Exclusive GMB
