Brazil’s regulated market is entering a new phase, as the government opened a B2B licensing consultation for sports betting and igaming suppliers. After operators, the spotlight switches to the hidden engine of the ecosystem: the providers and suppliers that make igaming work.
So, platforms, game studios, aggregators, data suppliers, KYC and biometrics vendors, geolocation, risk management and the core betting systems themselves. Regulation is no longer just about who takes the bet. It is about who enables it.
An ordinance from the Ministry of Finance sets out the framework for recognising the operational capacity of suppliers that serve authorised fixed-odds operators, creating a formal regime for those that provide critical services in the Brazilian market.
This is not bureaucracy for its own sake. It is a channelisation strategy. If the government can tighten the supply chain, it becomes harder for illegal operators to access the same infrastructure that powers the regulated market. The result is a cleaner ecosystem, stronger consumer safeguards and better long-term stability for operators that chose the licensed path.
What is changing?
The scope is broad and practical. The regime applies to suppliers of five core categories: betting systems, betting platforms, online game providers (including aggregators and live studios), customer identification services (including biometrics and geolocation) and sports betting data providers.
Once the transition period ends, operators will only be able to contract these services from suppliers recognised for the specific service type and officially published by the regulator. In other words, Brazil is building a whitelist approach for critical infrastructure.
Why is this good news?
This supplier regime is a structural upgrade for three reasons. First, it raises the baseline of integrity. Suppliers must demonstrate legal standing, probity, fiscal and labour regularity, and technical qualifications to be recognised. This pushes the ecosystem toward professional standards that serious international groups already follow.
Second, it strengthens oversight without breaking the operator model. Suppliers must provide information upon request, keep registrations updated and maintain records such as contracts and payment reports for multi-year periods. This increases transparency around the supply chain and reduces irregular activity.
Third, it directly supports player protection and responsible gambling. When KYC, biometrics and geolocation providers fall under a licence regime, it becomes easier to enforce age verification, location controls, fraud prevention and risk-based monitoring at scale.
That is how a regulated market wins the channelisation battle. Not only by policing the operator, but by professionalising infrastructure that touches the player. If you are an international supplier planning to serve Brazil, treat this as a checklist:
Establish a Brazilian legal presence: Suppliers will be expected to constitute a Brazilian legal entity with headquarters and administration in Brazil.
Map your service classification and avoid relabelling: Changing contract wording won’t alter how the regulator sees your product. If you provide a service, you’ll be treated as that category even if the contract calls it “marketing tech”, “engagement”, “analytics” or “consulting”. Classify your offering by what it actually does and align your stance and contracts to the right category.
Build an evidence pack for probity and compliance: Expect structured documentation on legal standing, ownership chain and group structure, reputation and background checks, and tax and labour regularity. International groups should prepare translations and legalisation of foreign documents early.
Plan for operational segregation if you are in an operator group: If the supplier is in the same organisation as an authorised operator, additional duties may apply: financial and operational segregation, non-discriminatory treatment and governance mechanisms to prevent conflicts of interest.
Get ahead of the transition timeline: The process typically starts with supplier registration and evolves into formal recognition, with different opening windows by service type. The message is straightforward: if you wait until the window opens, you are already late.
What is the likely impact?
For operators, this should reduce long-term risk. Vendor due diligence becomes more standardised. Regulators can act faster against weak links. And the supply chain becomes an ally in compliance rather than an unmanaged exposure.
For customers, the benefits are tangible. Better identification tooling, stronger fraud prevention, tighter control regarding underage access and more reliable enforcement of responsible gambling measures. When the infrastructure is regulated, protections become harder to bypass.
For the illegal market, it is a pressure increase. If suppliers must serve only authorised operators in Brazil and keep auditable records, access to high-quality infrastructure becomes harder for unlicensed actors.
Brazil is not just regulating betting – it is regulating the rails. And that is how you build a safer, more trusted market that can scale with confidence.
Elvis Lourenço is a C-level executive and strategic adviser with extensive experience in igaming and sports betting. He is the managing partner at EX7 Partners, a consulting firm specialising in strategy, product advisory, solutions, technical expertise and training for complex and regulated markets.
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The post What to expect from Brazil’s B2B licence regime first appeared on EGR Intel.
Local expert and industry adviser Elvis Lourenço lays out what suppliers need to know as Brazil’s government opens a consultation into regulatory requirements for B2B firms
The post What to expect from Brazil’s B2B licence regime first appeared on EGR Intel.