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 strict oversight by the Ministry of Finance to ensure market stability, transparency and consumer protection. Through the Betting Management System (Sigap), the government now monitors bettor 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 licensed online betting and casino operators to verify email accounts or, in some cases, ask players to upload a copy of their ID.
Now, at the heart of the new regulation is the requirement that players voluntarily migrate to regulated platforms. This process is anchored by a robust Know Your Customer (KYC) protocol, which includes:
- Identity verification and facial recognition, to prevent underage gambling and unauthorized use of the account.
- Geolocation, to confirm that players are accessing the platform from within authorized jurisdictions.
- Linking a valid bank account to ensure secure deposits and withdrawals guaranteed to the player’s Individual Taxpayer Registry (CPF).
The result is a system designed to mitigate fraud and increase 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 and KYC process safer for consumers?
A key focus of the regulation is to eliminate illegal operators that have long been a threat to 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, providing opportunities for unlicensed operators and offering bettors safer and more transparent options.
Furthermore, the regulation places responsible gaming at the forefront, obliging Betsa to implement tools such as:
- Deposit limits and alerts: promoting responsible gaming.
- Monitoring betting patterns: comparing bets with declared returns to identify risks.
However, initial technical issues during the migration phase highlighted the need for simplification. Data from Google Trends shows a growing interest in licensed companies and spikes in searches for “unverified 'Bets'”, revealing some confusion among players.
However, 92% of Brazilian players support government regulation, according to ENV Media research.
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, KTO, which has been operating in Brazil since 2018, stands out for being one of the first to obtain a definitive license.
The company has 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 definitive license was granted in 2024.
The 52 operators that have provisional licenses are awaiting compliance with documentation requirements. The government gives platforms 30 days, renewable once, to resolve issues such as system certificates. However, if you fail to meet these criteria you risk losing your licence, although you can appeal administratively.
From implementing secure KYC measures to offering seamless registration, some of the leading betting sites are clearly explaining what consumers need to do to migrate or create their account following the new government guidelines.
Future prospects
The Ministry of Finance is expected to release a formal report later this year analyzing the effectiveness of current measures, but the regulatory framework could evolve further. With R$20 billion (US$ 3.3bn) in monthly bets expected by 2024, tighter financial controls and additional safeguards for vulnerable populations could strengthen the market.
By balancing strict compliance measures with consumer-centric policies, Brazil’s regulatory update lays 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
Education Researcher at ENV Media
Source: Exclusive GMB
