On January 1, 2025, Brazil officially entered a new era for its iGaming and bet industry with the implementation of Law 14.790/2023. This legislation marked a significant shift by establishing a robust regulatory framework under the Ministry of Finance. The new rules aim to ensure market transparency, protect consumers, and foster stability in a sector projected to generate R$20 billion (US$3.3 billion) in monthly bets.

.bet.br Domains and Licensing

Central to the regulation is the introduction of the .bet.br domain, a hallmark of licensed operators in Brazil. Only platforms that meet stringent criteria under the new law can use this domain, ensuring consumer trust and financial security. This is coupled with the government’s Betting Management System (SIGAP), which monitors bettor registrations and financial flows in real time, making compliance non-negotiable.

Out of 66 operators expected to be licensed by the end of 2024, only 14 received definitive licenses, including KTO, which has stood out for its proactive approach to compliance and commitment with responsible gambling.

KTO Bet Commitment With Responsible Gambling

KTO is one of the biggest platforms in Brazil and a founder of the Brazilian Institute of Responsible Gambling. They became the seventh licensed betting operator under the new regulatory regime. Its early adoption of advanced security protocols, such as identity verification via facial recognition, placed the company ahead of many competitors, showcasing its readiness to adapt to a stricter regulatory landscape.

To align with the law’s requirements, KTO bet br has taken several steps:

• Enhanced KYC Protocols: KTO uses geolocation and bank account linkage to guarantee secure transactions tied to the player’s Individual Taxpayer Registry. These measures not only mitigate fraud but also ensure that all transactions remain within the bounds of Brazil’s legal framework.
• Commitment to Responsible Gaming: The company has implemented tools to promote safer gaming practices, including deposit limits, real-time betting pattern monitoring, and alerts designed to help players maintain control.
• Consumer Education: KTO has invested in educating its users about the migration to licensed platforms. This includes clear instructions on registration, ensuring players understand the importance of the new system and the benefits of compliance.

With its strong adherence to regulatory requirements and focus on user protection, KTO has set an example for other operators navigating Brazil’s evolving gaming market.

A Modernized and Secure Process

One of the most significant changes introduced by Brazilian law is the modernized registration process. Bets now require players to migrate to regulated platforms through a comprehensive Know Your Customer (KYC) protocol. This process includes:

• Identity Verification and Facial Recognition: To prevent underage gambling and unauthorized account use.
• Geolocation: Ensuring access only within approved jurisdictions.
• Bank Account Integration: Linking a valid bank account to the player’s CPF for secure transactions.

While the new system has been well-received, with 92% of Brazilian players supporting government regulation, according to ENV Media, its rollout hasn’t been without challenges. Technical issues during the migration phase have caused some confusion, as seen in spikes of online searches for unlicensed platforms. Nonetheless, the long-term benefits are expected to outweigh these initial hurdles.

With immense potential, Brazil is emerging as one of the world’s largest betting markets, much like the rapidly growing African scene. Recent statistics reveal that 86% of Brazil’s population has internet access, and over 89 million Brazilians identify as gamers. Similarly, Africa’s success in iGaming is driven by widespread internet penetration and a youthful population, paving the way for the industry to become one of the largest.

Brazil has much to learn from established markets and plenty to share with emerging, less regulated ones. The newly implemented laws are expected to drive economic and technological growth, ushering in a new era for the gaming industry.

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