For years, international operators have serviced Brazilian players without an official framework. Now, with clear regulations in place, the country is set to become one of the most significant regulated markets in the world.
However, while the potential is undeniable, the transition hasn’t been seamless. Licensing hurdles, taxation complexities, and new compliance measures have forced operators and suppliers to adapt rapidly. At the same time, emerging opportunities in payments, content localisation, and player engagement are shaping the future of Brazil’s booming iGaming sector.
The reality of regulation: A complex but necessary step
With more precise rules in place, Brazil’s iGaming market now offers greater structure and security, yet the transition hasn’t come without challenges. Operators must navigate strict licensing requirements, while variations in tax policies and tight restrictions on promotions and bonuses add further complexity.
Tamas Kusztos sees the potential in this dynamic market but highlights the hurdles businesses face, particularly the impact of taxation on both operators and players: "Operators are facing strict licensing requirements impacting their speed to market, whilst varied state regulations and substantial player tax on winnings have created an element of uncertainty regarding sustainable operations."
This concern has only grown with Brazil’s recent introduction of a 15% tax on bettors' net winnings, which applies to amounts above a set exemption threshold. While aimed at supporting the regulated market, some worry it could push players toward unregulated markets, undermining the industry’s long-term sustainability.
Meanwhile, the ban on credit cards has forced operators to rethink their payment strategies, shifting the focus toward alternative local payment methods like Pix, a necessary adjustment in an increasingly fragmented market, adds Kusztos.
Beyond licensing and payments, compliance is reshaping how operators do business. Manu Gambhir points out that adapting to Brazil’s regulatory framework is more than just a technological shift, and companies must also overhaul their internal structures: "Meeting compliance requirements is not easy. It’s not just about implementing new technology; it also requires creating new roles and workflows within the organisation. Product development and innovation have to move through the compliance lens."
Another significant focus has been geolocation, an essential requirement under Brazil’s new regulations. While necessary for ensuring compliance, some operators are still running solutions that don’t fully meet the published requirements, says Gambhir: "As operators become more sophisticated, many are approaching enterprise-grade solutions to ensure they are compliant and can focus on business growth drivers."
On top of its compliance role, Gambhir adds that geolocation is proving to be a valuable tool for fraud prevention and personalised marketing: “Fraud prevention and personalised marketing are two additional use cases we see from our more sophisticated clients."
Local certification has been one of the biggest hurdles for suppliers, as Maximiliano Ramos explains: "The most important challenge to face is related to local certification and being able to comply with the requirements that this process demands." The certification process is rigorous, but Ramos believes it is an essential step toward ensuring integrity and maintaining industry trust.
Opportunities in a newly regulated market
Despite the challenges, regulation has unlocked significant opportunities for operators and suppliers looking to establish themselves in this rapidly evolving market. The newly structured environment isn’t just about compliance; it’s paving the way for investment, innovation, and deeper player engagement. With a set structure in place, businesses now have the foundation to invest in long-term strategies like localisation, payments, and engagement solutions.
For Tamas Kusztos, this shift is already having a direct impact, with more players gravitating toward licensed brands. "The newly formed regulated environment is encouraging more of Brazil’s population to engage in gambling, and players from the pre-regulated market are increasingly attracted to licensed operators." As offshore brands become less appealing, regulated companies have a greater chance to capture market share and build trust with players.
The potential for industry-wide innovation is vast, and Manu Gambhir highlights how regulation is accelerating the adoption of new technologies. “The new regulatory environment in Brazil has opened up a significant market opportunity. Operators now have a clear framework that legitimises their offerings, paving the way for expansion into one of the fastest-growing regions in iGaming.”
He explains that this has allowed service providers like Xpoint to introduce advanced geolocation and compliance solutions tailored to Brazil’s specific requirements, helping operators stay compliant and enhance user experiences and fraud prevention measures.
On the other hand, the shift also creates a more transparent and structured space for businesses to expand confidently. Maximiliano Ramos believes this will be one of the key benefits of regulation, explaining: "A regulated sector symbolises trust, transparency, and security for all parties involved, but above all for users. Companies will have a more transparent environment to operate, bettors will be more protected, and the government will have clear guidelines to control." While businesses still face an adaptation period, he remains optimistic that this transition will ultimately benefit everyone.
Payments have been one of the most immediate areas of transformation, with operators and providers adjusting to new restrictions and evolving transaction methods. Ihor Zarechnyi sees this as a key factor in the industry’s long-term success, noting: "Brazil’s iGaming market is evolving rapidly, and its long-term success will depend on adopting smart technology and innovative solutions. One area I see as particularly important is payments, as fast and secure transactions are critical for business.”
Alongside payments, player engagement remains a top priority in a market driven by social and entertainment-focused players. Zarechnyi believes that the key to retention lies in personalisation, explaining: "When it comes to player engagement, I don’t see it as a major challenge since Brazilian players are highly social and entertainment-driven. Personalised bonuses, tournaments, and loyalty systems will help keep them engaged."
Real-time insights are set to redefine engagement strategies, with personalisation extending beyond promotions to customer support. Maximiliano Ramos highlights the growing focus on tailored player experiences, explaining: "Personalisation is not limited to promotional content, but will also extend to customer support, ensuring that each player feels that their concerns are addressed in a unique and thoughtful way."
This shift reflects a broader industry trend where data-driven engagement is becoming key to retention and player satisfaction, ensuring that interactions feel more responsive and individualised.
As competition intensifies, marketing strategies are shifting toward influencer marketing and community-driven branding. Platforms like Twitch and YouTube are emerging as key acquisition channels, with operators leveraging local influencers to build brand loyalty. "In the end, I truly believe the market will reward those who build strong connections with both local partners and players," says Zarechnyi.
At the same time, content diversification is shaping the sector's future. While sports betting remains dominant, operators are expanding their focus and introducing new gaming verticals, such as slots, table games, crash mechanics, and skill-based formats. "We’ll see more slots, table games, and newer mechanics like instant, crash, and skill-based games making their mark," Zarechnyi explains.
Localisation is also a crucial strategy for success. Kusztos points out that operators are prioritising engagement tools and localised content, spotlighting an increased demand for product innovation. He sees this as a huge opportunity to create content tailored to Brazilian audiences, which will help attract new player segments. Zarechnyi agrees, adding: "Localised content will be huge — games that tap into Brazilian culture, like sports-themed titles, will be particularly popular."
With offshore competition diminishing, regulated operators focusing on tailored content, strong payment solutions, and engagement-driven experiences will set themselves apart in what is shaping up to be one of the most promising regulated markets in Latin America.
Brazil’s biggest priorities: Compliance, innovation, and player experience
While Brazil’s newly regulated market offers enormous opportunities, it also presents key challenges that require ongoing adaptation. Compliance, technology, and player protection have emerged as the most significant priorities as businesses work to balance operational growth with strict regulatory requirements.
With responsible gaming at the heart of Brazil’s framework, new player protection measures are changing how operators verify and monitor customer activity. Maximiliano Ramos emphasises how the country’s new requirements are impacting both businesses and user experiences: "Licensed companies must monitor bettors' addiction risk profiles, pathological gambling disorders, and other problems associated with online gambling. All companies must implement facial identification, which will impact both technology and user experience."
However, Ramos also warns that overly complex requirements could unintentionally push players towards unlicensed platforms. "We hope that these impositions help the user trust in the transparency of the process and do not end up being an impediment to playing on licensed platforms. Otherwise, it could generate a negative effect, where players turn to unauthorised brands."
From a technological standpoint, businesses are investing heavily in solutions that simplify compliance while also enhancing operational efficiency. The integration of advanced geolocation tools, AI-powered fraud detection, and omnichannel customer service solutions is allowing businesses to meet strict regulatory requirements without compromising user experience.
Adding to this, Kusztos spotlights the role of AML and KYC protocols, alongside AI-powered monitoring and tokenisation, in fraud prevention and ensuring only Brazilian players have access to licensed platforms. He also notes that suppliers must be ready to adapt, with engaging mechanics like tournaments and jackpots playing a key role in product innovation.
Manu Gambhir sees compliance playing a growing role in how operators structure their business strategies, stating: "In Brazil, the top priority is creating a healthy industry dynamic that balances the requirements of all stakeholders - the public, government, and industry. Payments and engagement platforms remain vitally important, but compliance platforms, with geolocation at the core, are now essential”.
Apart from that, personalisation is also becoming a defining factor in player engagement. Maximiliano Ramos believes that data-driven insights will reshape customer interactions, stating: "With the increasing use of analytics data, companies will be able to understand player behaviour and preferences better. This will allow them to create tailored experiences where each interaction is adapted to the specific needs of the client."
Meanwhile, as Ihor Zarechnyi points out, with over 80% of Brazilian players using mobile devices, mobile-first gaming remains a top priority. The market is seeing greater demand for fast-loading, lightweight mechanics and optimised interfaces, ensuring seamless gaming experiences across all devices.
Navigating regulation together
The country’s shift into a fully regulated market has also transformed the relationship between operators and providers, introducing new levels of collaboration. With strict oversight now in place, the way suppliers and operators work together has fundamentally changed, requiring a higher degree of flexibility, adaptation, and strategic alignment, as all our participants agree.
Providers must now demonstrate a deep understanding of regulated environments, with compliance, data security, and technical integration at the core of every partnership. "Vendor selection, evaluation, and testing have all changed," explains Manu Gambhir.
This regulatory shift has also forced operators to be more selective about their technology partners, choosing vendors that can offer long-term compliance solutions rather than just standard services.
"For operators that operate in multiple jurisdictions, vendors must demonstrate the ability to adapt their systems to comply with all applicable regulations, while giving operators a consistent experience," Gambhir adds. "This is complex and requires sophisticated organisations with teams that span legal, compliance, technology, and business. It’s all part of the Brazilian market ‘levelling up’”.
For service providers, adapting to Brazil’s market means proactively supporting operators in managing their compliance obligations. Maximiliano Ramos sees the certification process as a significant achievement for providers, noting: "Obtaining certification for the Brazilian market is an important milestone for any company since it determines that it complies with all regulatory standards and guarantees the integrity of the industry."
Simultaneously, strict advertising rules and content regulations have added another layer of complexity to operator-provider relationships. Tamas Kusztos highlights the importance of working closely with operators to ensure localised content meets compliance requirements, stating: "Providers must be aware of strict advertising rules when focusing on localised content. Brazilian player preferences must be considered, as well as which games are compliant with local regulations."
As the market evolves, it is essential for providers to remain agile and help operators tackle emerging regulatory challenges to achieve long-term success. Open collaboration between operators and suppliers will not only ensure compliance but also encourage innovation, allowing companies to stay competitive in what is expected to become one of the most dynamic markets in the world.
What’s next for Brazil’s iGaming market?
With the dust settling on regulation, the industry is now asking: What comes next? While Brazil’s market has its own complexities, it’s not the first to undergo this transition. There’s a lot to learn from other regulated markets.
For Manu Gambhir, the key to success lies in understanding Brazil’s unique regulatory and technological challenges. "Brazil presents a unique set of challenges compared to more mature markets," he notes. "The country’s vast geographic diversity and evolving regulatory framework require a high degree of flexibility and localised solutions."
He highlights that technology must be designed to handle local variations in network quality, population density, and regulatory interpretation, a challenge operators will need to consider as they refine their market strategies.Tamas Kusztos adds: “The industry must also be ready to expect the unexpected with the country’s regulation bound to experience learning curves, as seen in Colombia when its market was refined post-regulation”.
Other jurisdictions have taught us the importance of balancing compliance with business growth. Maximiliano Ramos emphasises that local knowledge and efficient resource management will be crucial to long-term success.
"Understanding and learning the Brazilian idiosyncrasy is the most important factor, as is understanding the country's government culture. The territory is very extensive, and another great challenge is to manage resources as efficiently as possible," he says.
As operators and suppliers adjust to greater regulatory enforcement, the focus will be on tailoring content and business strategies to meet local demands. "More B2Bs and B2Cs operators should also be expected to set up on-site companies due to tax limitations, with licences for suppliers also anticipated” Kusztos says.
In addition to gaming content, regulatory clarity is expected to improve over the following months, driving greater confidence among operators and suppliers. Gambhir predicts that as enforcement becomes more rigorous, geolocation systems will be strongly pushed to meet every aspect of the regulatory framework. Additionally, operators will seek integration between geolocation data, payments, and fraud prevention solutions to create a more holistic compliance framework.
As all participants agreed, data-driven decision-making will also be crucial in shaping the market. Companies that can harness real-time insights, refine player engagement strategies, and adapt to shifting regulations will lead Brazil’s next growth phase.
Ultimately, success in Brazil’s iGaming market won’t just be about compliance or innovation alone; it will be about who can balance both while staying ahead of emerging trends. Those who adapt quickly, prioritise localisation and leverage innovative data-driven strategies will drive the market’s future forward.
Source: GMB
