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. In this exclusive article for GMB, the main insights about the iGaming sector in this new moment of the country are presented.
On January 1, 2025, Brazil inaugurated a new chapter in its iGaming sector with the implementation of a comprehensive regulatory framework according to Law 14.790/2023. This historic legislation introduces rigorous supervision 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 gaming 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.
Furthermore, 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 a 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 holding 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
BMM Testlabs, the original and world-leading game testing laboratory in compliance and product testing services, has announced its official accreditation to test systems and games in the Brazilian state of Maranhão. The company is now authorized in all Brazilian jurisdictions that have regulated online fixed-odds betting at the state level.
This new accreditation allows BMM Testlabs to test fixed-odds betting systems and lottery platforms for the Maranhão market.
Issued by Maranhão Partnerships SA (MAPA/LOTEMA), the authorization allows BMM Testlabs to collaborate with lottery operators in the state to ensure compliance and quality standards in the gaming and lottery industry, through comprehensive product compliance testing for Maranhão standards.
In addition, the Brazilian Secretariat of Prizes and Betting has authorized, at the federal level, BMM Testlabs to test betting systems, live game studios, and online games used by fixed-odds betting operators.
The company is now authorized in all Brazilian jurisdictions that have regulated online fixed-odds betting at the state level.
Marzia Turrini, President of iGaming & Cybersecurity at BMM Testlabs, stated: “We are excited and deeply honored that the official lottery of the State of Maranhão has entrusted BMM Testlabs with the responsibility to test products for the new online fixed-odds betting program, knowing that we will do so with the highest levels of impartiality, technical expertise, transparency, efficiency, and above all, integrity.”
With the accreditation in Maranhão, BMM Testlabs consolidates its position as the leading independent testing laboratory in Brazil. BMM Testlabs is accredited in all jurisdictions that have authorized fixed-odds betting for online games and sports betting.
BMM Testlabs brings 44 years of global leadership in product compliance in regulated markets, being trusted by manufacturers, suppliers, developers, and regulators of games, systems, and lotteries worldwide.
In addition to product compliance testing, BMM Testlabs provides comprehensive cybersecurity protection solutions. Through its sister company, RG24seven Virtual Training, BMM also offers virtual compliance training on responsible gaming, anti-money laundering, and other important topics – presented by industry experts and available in English, Spanish, and Portuguese.
More information about BMM's commitment, services, and support in the Brazilian market is available at the BMM Testlabs Brazil Hub: https://brazil.bmm.com/.
BMM Testlabs
BMM is the world's oldest and most experienced private gaming certification laboratory. Since 1981, the company has provided professional technical services and regulatory compliance for the gaming industry.
BMM has over four decades of experience in testing and certifying a wide range of products, including Class III, Class II, VLT, AWP, HHR, online/iGaming, sports betting, social, pari-mutuel, and lottery games.
BMM established the BMM Innovation Group (BIG) in 2019 to provide advanced technology and protection services focused on cybersecurity (BIG Cyber) and virtual training (RG24seven Virtual Training) for the global gaming industry.
The company employs over 600 people in 16 global locations and holds over 700 licenses to serve clients worldwide. BMM's global headquarters is located in Las Vegas (USA), with offices in Argentina, Australia (Melbourne and Sydney), Brazil, Canada, India, Italy, Macau, Romania, Peru, Poland, Singapore, Slovenia, South Africa, and Spain.
More information about BMM Testlabs at bmm.com.
Source: GMB
The president of Lottopar, Daniel Romanowski, accompanied by the Director of Operations, Fabio Veiga, is in Barcelona for a series of agendas with companies in the sector and also participating in the ICE Barcelona fair, the world's largest event in the lottery and betting sector. The first commitment in the Iberian country was with the technology company BMM Test Labs Spain, one of the testing and certification laboratories accredited by Lottopar.
The visit took place at the company's headquarters, in the Barcelona region, where they were received by directors of BMM Test Labs, Francesco Bianchi, VP of government relations and compliance; Jasna Drnda Radovanovic, director of licenses and regulation; and Juliano Campelo Prestes, licensing and regulation specialist.
During the visit, the directors of Lottopar got to know the facilities and also how the certification processes of lottery operations, games, and bets are carried out.
“We were able to see up close that the security, transparency, and curbing of fraud in betting and gaming is only possible because of the work of these laboratories. That's why we were the first lottery institution in Brazil to accredit these laboratories, so that in Paraná the games are safe, fair, and free of fraud,” highlighted the president, Daniel Romanowski.
The director of the laboratory recognizes the work developed by Lottopar as fundamental for the overall growth of the market in South America.
“You from Paraná were pioneers in accrediting these laboratories, enabling other states in Brazil and other places in South America to also copy the model adopted by you. This contributes to an increasingly secure market,” stated Jasna Drnda Radovanovic, director of licenses and regulation.
Source: GMB
