In September 2025, at the SBC Summit Lisbon, industry experts underscored the critical need for localisation and trust in the Know Your Customer (KYC) process within Brazil’s newly regulated online gambling market. The stringent KYC requirements, although crucial for maintaining regulatory compliance, have initially posed significant challenges to operator growth in this burgeoning sector.
The panel, comprising Esportes Gaming Brasil’s CBO Hugo Baungartner, Stake’s compliance director Barbara Teles, and Betboom’s compliance counsel Laura Beatriz de Souza Morganti, reached a consensus: local KYC providers are invaluable for navigating Brazil’s regulatory landscape. Baungartner shared insights on the complexities faced by international tools, emphasizing the efficacy of Brazilian third-party solutions due to their superior understanding and trustworthy nature. He remarked on the necessity of selecting partners who are credible, noting that not all providers meet this standard.
Barbara Teles echoed this sentiment, asserting the importance of entrusting specialized third-party KYC solutions, especially given the industry’s entertainment focus. With just nine months of operating under the new regulations, she highlighted the industry’s steep learning curve. Teles emphasized that utilizing experts allows companies to maintain their primary focus on delivering an optimal betting experience, rather than diverting resources to manage the intricacies of KYC processes.
Education has emerged as an essential pillar for KYC success among gambling operators. The transition from a minimally regulated environment, where bettors provided scant information, to one requiring comprehensive personal data and facial recognition from January 1st, marked a significant shift. This new requirement initially resulted in customer confusion and a noteworthy downturn in user traffic. Baungartner elaborated on the hurdles faced, describing the initial friction as players adjusted to completing the full KYC process before making deposits. He stressed the ongoing efforts to communicate the necessity of these requirements to ensure compliance and user safety.
Laura Morganti added another layer of insight, noting the dual educational journey undertaken by both operators and customers. While operators educate their clientele on the importance of KYC, they are concurrently refining their own processes to alleviate customer burdens. This mutual learning process has been challenging yet beneficial, leading to the discovery of innovative tools that enhance user experience.
Anticipating and mitigating attempts to bypass KYC requirements is an ongoing challenge. Morganti highlighted the creative tactics sometimes employed by Brazilians to circumvent regulations, underlining the need for KYC providers to stay proactive against potential fraud. Teles concurred, advocating for operators to remain a step ahead by learning from international jurisdictions. She viewed Brazil’s anticipated self-exclusion scheme, set to launch by the end of 2025, as an opportunity to collaborate and share valuable data to enhance safety across the board.
The panel concluded with a forward-looking perspective, recognizing the constant emergence of new challenges within Brazil’s dynamic regulatory environment. Teles emphasized the potential for innovation and collaboration, suggesting that by sharing information on self-excluded players, operators can contribute to a safer betting environment. The overarching sentiment was clear: to thrive in Brazil’s regulated market, operators must leverage local expertise, embrace continuous learning, and foster trust with their user base.
4.2/5
