Three months into Brazil’s regulated iGaming market, the industry is still finding its rhythm. For operators and suppliers, the transition has been a mix of challenges and opportunities, with new regulations bringing structure but also driving companies to reevaluate how they operate. While compliance hurdles and taxation policies have added complexity, Brazil’s potential remains undeniable.
In a 2-part SiGMA News Exclusive, industry experts Tamas Kusztos, CCO at Playson; Ihor Zarechnyi, CCO at Evoplay; Maximiliano Ramos, Partnership Manager LatAm at EEZE; and Manu Gambhir, CEO at Xpoint share their insights on the most significant challenges, emerging opportunities and the future of iGaming in Brazil.
With SiGMA Americas kicking off next week in São Paulo, this first part highlights the experts’ thoughts on the challenges and opportunities of operating in Brazil.
Tackling compliance, licensing, and taxation in Brazil
As Brazil’s iGaming industry undergoes significant transformation, understanding the challenges companies face reveals the broader impact of regulation on the industry.
What are the biggest challenges companies are facing in Brazil, and how have compliance, licensing, and taxation changed the way providers work with operators?
Tamas Kusztos: Adhering to Brazil’s evolving regulatory framework requires constant monitoring and adaptation. Operators must navigate licensing requirements that cover responsible gaming, fair play, and tax obligations to stay compliant, and they rely on providers to remain up to date with any changes. Providers must also be aware of strict advertising rules and Brazilian player preferences when developing content.
Another key challenge is the variation in state regulations, which has created some uncertainty around long-term sustainability. Additionally, tight restrictions on promotions and bonuses are affecting player acquisition strategies, and the ban on credit cards has forced operators to integrate alternative payment methods like Pix. These factors, combined with market fragmentation, make for a tricky landscape to navigate.
Ihor Zarechnyi: Brazil’s shift to a regulated environment has fundamentally changed how providers and operators collaborate. Trust and compliance are now at the centre of every business relationship. As regulations roll out, geolocation tools and KYC solutions will play a crucial role in ensuring compliance and maintaining security.
Meanwhile, AI-driven solutions for real-time customisation will likely set market leaders apart. In the end, those who can master compliance, streamline payments, and maintain strong player engagement will be the ones driving Brazil’s iGaming evolution forward.
Maximiliano Ramos: January 1st marked the beginning of a new era for betting in Brazil. With the new regulation, we expect a more orderly market with clear rules and effective supervision. However, the biggest challenge so far has been meeting the strict local certification requirements. The process is demanding, and companies must fully comply before they can legally operate.
From a provider’s perspective, regulation means ensuring smooth compliance with new requirements, such as responsible gaming measures, advertising restrictions, and financial reporting obligations. While it creates new challenges, it also builds a more secure and structured industry.
Manu Gambhir: A regulatory environment creates material benefits for operators, governments, and the public, but it also comes with additional requirements. Meeting compliance is not just about implementing new technology; it requires creating new roles, restructuring workflows, and ensuring product development aligns with regulations.
As Brazil’s regulatory framework is still new, all stakeholders are learning. Many operators still use geolocation solutions that do not fully meet requirements. As they become more sophisticated, they are turning to enterprise-grade solutions like Xpoint to ensure compliance while focusing on business growth.
Beyond compliance, geolocation is increasingly used for fraud prevention and personalised marketing, and we expect it to play an even bigger role in security and engagement strategies.
Regulation reshapes Brazil’s iGaming industry
Addressing regulatory changes allows companies to refine their strategies, ensuring compliance while fostering innovation; companies can better position themselves to adapt, innovate, and thrive in a structured yet competitive market.
Despite the challenges, regulation brings new opportunities. What’s changed for operators and suppliers now that the market is structured?
Tamas Kusztos: 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.
Operators are now prioritising engagement tools and captivating, localised content, which in turn has increased demand for product innovation. This opens up opportunities to create content tailored to Brazilian audiences and attract new player segments.
Brazil’s unique payment ecosystem, including the widespread adoption of Pix, also presents a chance for operators to create frictionless customer experiences. Since credit cards are now banned, players who previously faced payment issues have a more reliable way to transact, reducing unnecessary churn.
Ihor Zarechnyi: The regulation of Brazil’s iGaming market has brought much-needed clarity and stability, which, as I always say, enhances trust and reliability for both operators and service providers. As the regulations get stricter, operators must stay agile and adapt quickly, which could mean some consolidation in the market. Those who focus on compliance and solid strategy are the ones who will come out on top.
Maximiliano Ramos: A regulated sector symbolises trust, transparency, and security for all parties involved, but above all, for users. Companies will have a more transparent environment in which to operate, bettors will be more protected, and the government will have clear guidelines to control.
Naturally, there will be a period of adaptation for everyone as the new rules come into effect, but we are hopeful that this process will go as smoothly as possible and that it will benefit everyone.
Manu Gambhir: The evolving regulatory landscape in Brazil has created significant market opportunities for operators. They now benefit from a well-defined framework that legitimises their offerings, facilitating expansion in one of the fastest-growing regions of the iGaming industry.
For service providers like us, it creates the opportunity to deploy advanced geolocation and compliance solutions tailored to local requirements. This not only helps ensure a safe and regulated wagering environment but also allows operators to differentiate themselves by offering enhanced user experiences and robust fraud prevention. Ultimately, the market’s evolution is setting the stage for innovative partnerships and product development that could transform how gaming is delivered in Brazil.
Adapting to Brazil’s regulatory shift
In Brazil’s complex compliance landscape, operators and providers face challenges and opportunities within a growing market. The dynamic nature of these changes fosters innovation, potentially ushering in a new era for iGaming in Latin America. However, taxation remains a sensitive issue; additional levies could adversely impact the competitiveness of some operators and providers, similar to the transformation observed in markets like Colombia.
The industry’s trajectory increasingly emphasises collaboration, geolocation strategies, personalised marketing, KYC solutions, and fraud prevention measures. These approaches are essential for adapting to compliance demands while maintaining a focus on customer experience and market competitiveness.
In the next segment of this discussion, experts will explore key technological innovations critical for long-term success in Brazil’s iGaming sector. Additionally, they will analyse lessons from other regulated markets that could be applied to Brazil’s current context and explore the trends likely to shape the country’s iGaming landscape over the next 12–18 months.
Discover the world’s iGaming community at BiS SiGMA Americas, April 7-10, 2025. Connect with industry leaders in São Paulo, explore high-value opportunities, and experience the future of gaming in Brazil.
Source: SiGMA News
