The Brazilian iGaming market is undergoing rapid growth.  But with rapid growth comes growing pains, seen in the form of new regulations, rising cybersecurity threats, and misleading influencer marketing. As Brazil tries to catch up with its booming industry, find out what these changes mean for operators and players alike.

Cybersecurity as a Competitive Edge

In Latin America, and especially in Brazil, cybersecurity has transformed from a mere compliance checkbox into a strategic differentiator between iGaming platforms.  Meeting regulatory requirements is the bare minimum.  To create a truly great experience for players, operators should focus on creating a reliable and secure experience.  

Brazil’s digital payment boom has seen rapid growth in both innovation and fraud. Criminals deploy a variety of sophisticated attacks.  From social engineering phishing campaigns to large-scale DDoS attacks and malware aimed at compromising sensitive user data, fraudsters have a way of getting through weak verification systems.

Meeting regulatory standards for anti-money laundering (AML) and Know Your Customer (KYC) regulations means you’re compliant, but it doesn’t mean you’re providing a great experience for your players. To truly lead in the industry, operators need to embed security into the user experience: creating seamless, trustworthy, and efficient authentication that doesn’t feel bureaucratic.

By positioning security as a value-add rather than an obstacle, iGaming platforms can foster customer trust, engagement, and sustainable growth.

Influencers Under Fire in Brazil’s Regulatory Reckoning

The second digital threat to Brazil’s iGaming industry doesn’t come in the form of a fraudulent identity or malware attack but rather a well-curated social media presence promoting a lavish lifestyle.  In August 2025, police in Rio de Janeiro arrested fifteen digital influencers for promoting illegal online gambling.  

Brazilian authorities have moved to suppress illegal betting operations. These illegal sites are unregulated and often promise quick wins and easy money.  The worst of these operations are phantom sites, which never pay users at all.  

At the heart of the crackdown: influencers.  Influencers are paid to showcase their fancy lifestyles and attribute it to winnings from these sites to persuade their millions of followers to visit and participate in these illegal sites. 

KYC Friction: The Reputation Problem in Brazil

Brazil’s strict Know Your Customer (KYC) regulations are often blamed for the underperformance of the country’s regulated platforms compared to their illegal counterparts. .

Brazilian KYC is rigorous. It typically requires:

• Confirmation of name, CPF (tax ID), and date of birth via government databases,
• Submission of a valid photo ID, such as a national ID card (e.g., RG or CIN), and
• A biometric selfie check to verify identity.

Though logical, this high-friction onboarding process discourages many potential users. Taking photos of documents and selfies on mobile devices of a quality that is acceptable can feel cumbersome, particularly when non-regulated platforms offer easier access, often with minimal or no KYC requirements..

Slow KYC directly impacts user acquisition. Research shows that delays in verification can reduce conversion rates, fuel abandonment, and waste marketing spend.  This, coupled with the enticement of a quick buck (or in this case, real) from influencers and lackluster cybersecurity experience regulated operators are providing, it’s no wonder that Brazil’s regulated iGaming industry is struggling to beat out its illegal counterpart. 

Streamline Compliance in Brazil with Integrity

Brazil’s iGaming market is at a pivotal moment. As regulation ramps up, operators must contend with evolving cyber threats, influencer-driven controversies, and the fine balance between compliance and user experience. By turning cybersecurity into a competitive edge, refining influencer strategies, and overhauling KYC processes, licensed iGaming platforms can not only survive but thrive in Brazil’s dynamic and high-potential landscape.

Aristotle offers one of the lowest friction KYC processes in the market. To learn how Aristotle Integrity can help you operate successfully in one of largest iGaming markets, click the FREE DEMO box in the upper right corner of this page to see how Integrity can work for you.