BetConstruct AI VP: Brazil’s gambling ban creates lasting industry scars

Brazil Ban Creates Regulatory Uncertainty

Fabio Tiberia, Vice President of Latin America at BetConstruct AI, described the regulatory environment in Brazil as a “major period of uncertainty” following the issuance of Provisional Measure No. 1,394 on 25 September 2026. The measure, which prohibits the exploitation, offering, intermediation, and advertising of fixed-odds betting, covers both physical and online operations. It is currently in force and mandates the extinction of existing authorisations after a 30-day transition period.

While Tiberia acknowledged that the Provisional Measure may still be rejected, expire, or undergo substantial changes during the legislative process, he emphasized that the immediate impact on market confidence is already visible. “Even if the market comes back, the scar will remain,” Tiberia said in an interview with SBC News. He noted that operators, suppliers, and investors have witnessed how rapidly the regulatory framework can shift, creating significant uncertainty around long-term investment and planning.

Strategic Pivot to Neighboring Markets

Despite the regulatory headwinds in Brazil, BetConstruct AI maintains that the country remains strategically important to its operations. However, the company is actively expanding its footprint in other Latin American jurisdictions. Tiberia identified strong opportunities in Mexico, Argentina, Peru, and Venezuela for the current period, describing the company’s approach as a “360-degree” expansion strategy.

The company’s ability to navigate these diverse markets relies on a modular platform architecture. “Our biggest strength is modularity. We keep the same strong technological core and adapt the elements that really matter in each jurisdiction: KYC, payments, compliance, reporting, risk management and content,” Tiberia explained. He stressed that commercial success in the region depends less on pure technology and more on deep local expertise. “Today, commercial success comes from deep market knowledge and local expertise. You need to understand the player, the operator, the culture and the real dynamics of each country,” he said.

AI, Sportsbook, and the Retail Shift

BetConstruct AI is leveraging artificial intelligence to support personalization, real-time player analysis, risk management, and responsible gaming. The company’s product suite includes tools such as Betting Mate, Lucky Boost, Power Bank, and Sport Reel, designed to enhance engagement across sportsbook and casino verticals. Tiberia noted that while Europe is a more mature market, sportsbook continues to play a dominant role in player acquisition in Latin America, driven largely by the popularity of football.

Tiberia suggested that restrictive regulation may drive markets toward models that are easier to supervise and integrate within established physical networks. He pointed to Brazil’s strong retail culture, which features an extensive network of physical points of sale used for financial services and lotteries. “The future will probably not be exclusively online or exclusively physical. The strongest model may be one where technology and physical distribution work together,” he observed. “Technology can be global, but market knowledge and relationships are local.”

Looking ahead, Tiberia predicts a trend toward more regulation, deeper localization, increased use of AI, and greater consolidation in the region by 2027. He expects operators to increasingly seek partners that combine technology with real market expertise, rather than simply offering a wider range of products. The company’s position remains focused on compliance, adaptability, and the protection of its partners amidst the shifting regulatory landscape.

Looking for somewhere to play? Browse our current no deposit bonus listings, with verified codes and the full wagering terms for each offer.