The opening of Brazil’s regulated online sports betting and casino market is fast approaching and as a result, legislators are developing laws and ordinances that will make up the core of the country’s regulatory framework.

On the latest episode of iGaming Daily, supported by Optimove, Isadora Marcante, Senior Journalist at SBC Noticias Brasil, was joined by Sportingtech’s Head of Technical Compliance, Antoinette Caruana, to explore how operators can navigate and comply with Brazil’s rules.

Law ordinance 722 requires operators to perform know-your-customer (KYC) protocols, such as facial recognition, at the beginning of the player registration process.  

Antoinette explained that this process differs from how Brazilian players are currently processed on gaming websites when KYC is performed after a player is registered.

She said: “Going forward, all of the [KYC] processes have to be performed during the registration. In the background there are tools that will do verification of the data against whether a person is politically exposed, is on a prohibited list or is a sports person or referee who cannot play certain products.

“In the meantime, we also need to kick off a face recognition process. Essentially, you provide your ID details and we confirm that the ID you have matches the ID and the details that you’ve given us.

“This does not only provide more safeguarding from an AML perspective but also for the players to make sure that no one can steal their identity because it’s going to be very hard for anyone to steal your identity if you have to perform face ID against that registration.”

Beyond the customer acquisition process, integrating responsible gambling tools is an essential consideration for all operators. 

Antoinette explained that in the new market, licensed operators will be required to not only monitor customers accounts but also place blocks on players who they determine are displaying problematic gambling behaviours.

Although some operators may feel that the rules surrounding player monitoring can cause friction during the onboarding process for players, Antoinette emphasised the importance of the tools for the health of the industry as a whole.

“When you protect players you’re also protecting your business,” she explained. 

“If you have many players that end up bankrupt or even worse, it’s a bad reputation for the industry and the company. So essentially, this is also a very good step forward for gambling in Brazil in terms of reputation towards the industry.”