By Michael Bolcerek, President

The underperformance of regulated Brazilian iGaming and sportsbook markets compared to non-regulated sites raises the question: why haven’t they met the expectations of operators and players? A prevalent explanation, particularly from SBC Brazil and SiGMA Brazil, is that the strict KYC requirements are “driving traffic away from operators.” While this might seem like an oversimplification, it warrants closer inspection.

The legal framework for Brazilian gambling necessitates the following customer onboarding procedures:

• Confirmation of name, CPF, and date of birth through government databases.
• Submission of a verified copy of a National ID document (typically the RG).
• Biometric verification of the individual, usually compared against the submitted ID.

While these steps appear logical, their implementation creates friction. Potential players must physically access their ID, photograph it, and take a self-verification image, a selfie. This contrasts sharply with the often minimal requirements of non-regulated sites, where even a CPF might not be necessary. This disparity in ease of use is a significant factor pushing users towards unregulated platforms.

Data Verification of Name, CPF, and DOB

Leveraging player data and cross-referencing it with official government records offers a sound basis for verifying identity and age. Although data security is a concern, this approach, when integrated with other security protocols, plays a crucial role in preventing access for prohibited individuals.

Verified Copy of a National ID Document (Registro Geral or RG document)

While the Brazilian RG is a widely held identification document, the need for users to physically handle and photograph it introduces an additional layer of complexity to the onboarding process.

Ages of Identity Documents

A further challenge arises from the nature of the RG document itself. Unlike more durable forms of identification such as driver’s licenses or passports, which are renewed more frequently, the RG is typically a paper document prone to wear and tear over its potentially long lifespan of ten or fifteen years or more. Consequently, the document verification process faces a significant failure rate, often exceeding 50% with a typical pass rate of only around 45%.

Moreover, the infrequent renewal of these paper-based IDs means that the photograph on a ten-year-old document is often significantly different from the player’s current appearance. This discrepancy complicates biometric checks, where a recent selfie is compared against an outdated image, frequently leading to verification failure.

Processing Speeds

The sheer volume of data involved also presents a considerable hurdle. Considering that a document photo and a selfie can each be around 1.2 MB, onboarding just one million players would necessitate processing 2.4 terabytes of information. This massive data load, coupled with the complex algorithms required for verification, creates a substantial processing challenge, even with robust cloud storage and processing capabilities. Furthermore, with an estimated 50% of documents requiring manual review, the scalability of the current process for large volumes of users becomes questionable.

The KYC Solution for Brazil

What if a verification system could process over 70% of players without requiring them to physically produce their ID for a photograph and a selfie?

Imagine if the only requirement was for the user to take a live selfie, and their face could be matched against a facial database linked to an existing, verified government document. This streamlined approach would offer a competitive advantage over non-regulated gambling sites. The ability to simply submit a selfie and fulfill all Brazilian KYC requirements – this is precisely what Aristotle Integrity is offering.

• ✅ Lower friction
• ✅ Higher pass rates
• ✅ Faster processing
• ✅ Full compliance with Brazil’s KYC requirements

DM us for more information or reach out to [email protected].