Know Your Customer (KYC) compliance has become one of the biggest challenges for operators in Brazil since the country officially launched its regulated online gambling market. At SBC Summit Lisbon 2025, industry leaders agreed that localisation, trust, and third-party expertise are critical for ensuring a smooth KYC process and building player confidence.

Why KYC Is a Pain Point for Gambling Operators in Brazil

From 1 January 2025, all Brazilian players were required to provide detailed personal data, including facial recognition, before making their first deposit with licensed operators. This was a drastic shift from the pre-regulation period, when minimal information was needed to place bets.

According to Esportes Gaming Brasil CBO Hugo Baungartner, the sudden regulatory shift initially caused significant friction:

“In January, traffic went down because players were unfamiliar with the process. Month by month, we had to educate them that completing 100% of KYC was mandatory to open an account.”

This highlights a key lesson for operators: player education is just as vital as technical compliance.

Local Providers Lead the Way in Building Trust

The panel, which also included Stake compliance director Barbara Teles and Betboom compliance counsel Laura Beatriz de Souza Morganti, agreed that local KYC providers have proven more effective than international solutions.

Baungartner noted:

“Non-Brazilian tools were complicated to use. We opted for a trusted Brazilian third-party solution. Not all providers are trustworthy, so selecting the right partner is crucial.”

Teles added that outsourcing KYC in Brazil is essential:

“We are in the entertainment industry. We are not a KYC supplier. Trusting third-party experts is a better solution, especially in a market that’s only been regulated for nine months.”

Morganti echoed the sentiment:

“Our main service is the betting experience. Delegating the very technical parts to specialists allows us to focus on players.”

Education: A Two-Way Street

While educating players has been crucial to reducing resistance and building trust, operators themselves have also learned how to simplify KYC procedures.

Morganti explained:

“We are being educated too—understanding what is hardest for the client, and discovering new tools that make the process easier.”

This adaptive approach ensures operators not only remain compliant but also protect player experience, which is vital in a competitive market like Brazil.

Fraud Prevention: Staying Ahead of the Curve

Brazilian operators also face the challenge of fraudulent attempts to bypass KYC. As Morganti noted, “Brazilians are very creative,” which makes proactive fraud detection tools like proof of age and proof of likeness critical.

Teles highlighted the importance of learning from other regulated markets and Brazil’s upcoming self-exclusion scheme, due by the end of 2025.

“If we can share data on self-excluded players in a common database, everyone will be safer,” she said.

The Future of KYC in Brazil’s Gambling Industry

With Brazil now one of the largest emerging iGaming markets, KYC will continue to be a decisive factor in both compliance and player trust. The consensus among experts is clear:

1. Localisation matters – Brazilian providers understand cultural nuances.
2. Third-party expertise is key – operators should focus on entertainment, not compliance technology.
3. Education builds trust – players need to see KYC as a protection, not a barrier.
4. Innovation is essential – fraud prevention tools and shared self-exclusion systems will shape safer markets.

As Brazil’s gambling regulation evolves, successful operators will be those who balance compliance with customer experience, ensuring KYC is not just a regulatory burden but a driver of trust, safety, and sustainable growth.