One year in, Brazil’s online gambling regulations provide model for region

One of the defining features of the 2020s so far is the explosion of legal sports betting. For years, gambling meant bookies or casinos; now your phone is both, with identity verification possible through selfie biometrics and other mobile methods. 

Nations continue to implement regulatory schemes for online gambling, while others reflect on what’s been accomplished thus far. Whether or not the regulation and legalization of e-betting has been a net positive is up for debate – notably in Brazil, which is preparing to mark one year of regulated online betting.

A piece in iGaming Business focuses on the country’s anniversary of its new gambling regulations, which require mandatory biometric verification via selfie for users of online betting, casino and cryptocurrency platforms. The regulated market, it notes, opened on January 1, 2025 with 14 operators on full licences. There are now over 80 operating in Brazil with federal authorization.

The relative success of Brazil’s policy depends on who’s weighing in. Hugo Baungartner is the CBO of Esportes Gaming Brasil. He celebrates significant investment in the sector’s technology, compliance and people, and says that both identity verification and online gambling in Brazil overall is “clearly moving towards a more mature and professional phase.”

Friction has eased as users come to trust verification

Not, however, without some friction. Regulated gambling comes with Know Your Customer (KYC) protocols, and finding the right solution for the right use case is no simple task. Baungartner says “friction was concentrated in the first two or three months.”

“But that’s how any KYC system evolves. Players gradually understood that verification exists to protect them.” And the technology is refined as the sector matures: “Verification processes are getting faster, smoother and more intuitive every day.” 

That said, consistency remains an issue. Operators have interpreted the Secretariat of Prizes and Bets’ (SPA) requirements in different ways – some in the interest of commercial advantage.

Standardization is a gradual process for any industry and technology, and Brazil’s online gambling operators are likely to converge slowly toward biometric verification products that are measurably proven in terms of compliance, user experience and the bottom line. 

Nearly half of Brazil’s online gambling market is still illegal operators

Meanwhile, the black market continues to be an issue. Current estimates say illegal operators hold between 41 percent and 51 percent of the total online gambling market. There is frustration among some industry players, who believe the problem should have been addressed a long time ago. “We have been talking about fighting the illegal market for years,” says Udo Seckelmann, head of gambling and crypto at the law firm Bichara e Motta Advogados. “We’re trying to run against time to combat it right now.” 

That raises the question of enforcement. In 2025, Brazil’s national telecommunications agency, Anatel, blocked the IPs of more than 18,000 illegal betting sites. But both Seckelmann and Baungartner think the government needs to go further in cracking down on illegal operators – specifically, enabling payment service providers (PSPs), which must be authorized by Brazil’s Central Bank, to block illegal transfers and transactions. 

“As long as unlicensed operators can process payments or move money, they will continue to operate,” Baungartner says. Only in working more closely with the payment and financial ecosystem will the regulatory apparatus be able to implement truly effective measures. 

There is acknowledgement that the goal is not perfection: even mature, long-regulated markets like the UK still sees a small percentage of illegal activity. This, Baungartner says, is the realistic goal. Moreover, Brazil will have to address the issue of deepfakes, which have exploded in the wake of Brazil’s regulated online gambling gold rush.  

Come together: operators to merge as market takes shape

The Brazilian market is expected to consolidate, with some predicting around a dozen entities left standing once the dust settles. It is estimated that three brands, Betano, Superbet and Bet365, have a combined 47 percent market share. Esportes da Sorte, the flagship brand of Esportes Gaming Brasil, is also a player, named among the top five operators in the country. 

Baungartner says consolidation will lead to a “more professional ecosystem, better-capitalised operators and greater long-term stability.” He says that in year two of regulation, the sector should focus on tackling illegal operators and establishing a dedicated B2B regulatory framework for better oversight of suppliers. 

Finally, Baungarter’s take on the regulatory project is refreshingly pragmatic. “If someone considers this overregulation, I’m comfortable with that,” he says, “because strong rules are what build trust and long-term sustainability.”

ANDP ramping up in preparation for online age assurance law

Brazil’s National Data Protection Agency (ANPD) has published new documents outlining its priorities for 2026, and an update of its regulatory agenda, as it takes on new responsibilities related to the development and implementation of the country’s incoming age verification and online safety law. The agency says it expects to pursue further regulation related to age assurance and child online safety under the Digital Statute of Children and Adolescents (Digital ECA). 

Indeed, age verification mechanisms are a top priority in the fresh regulatory agenda, and the protection of children and adolescents in the digital environment makes the agency’s Priority Themes Map for the coming year. 

The Digital ECA comes into force on March 17, 2026. 

Buenos Aires makes face biometrics for online gambling mandatory

While Brazil has led the charge, Latin America is a hotspot for online gambling regulation in general, with Buenos Aries’ government introducing mandatory biometric identification via face biometrics for authorized gaming and sports betting platforms. The scheme is, in fact, driven by concerns about underage gambling, and as such counts as an age assurance requirement. 

Yogonet quotes Buenos Aires Minister of Government Carlos Bianco, who says the seven authorized online gambling platforms in Buenos Aires province “will be required to implement biometric identification systems and identity verification across all sites.”

The minister has given platforms 60 days to “implement and regularize” biometric identity verification systems. 

Article Topics

age verification  |  ANPD  |  biometrics  |  Brazil  |  gambling  |  identity verification  |  KYC  |  legislation  |  regulation  |  selfie biometrics