Betano Regulatory Chief Reveals Black Market and KYC Challenges in Brazil

In a recent interview with iGaming Business, Ioannis Spanoudakis, the chief regulatory affairs officer at Betano owner Kaizen Gaming, highlighted the ongoing challenges faced by licensed operators in Brazil, particularly in relation to the black market and Know Your Customer (KYC) requirements.

Despite the excitement surrounding the launch of Brazil’s regulated online gambling sector earlier this year, the black market continues to pose a significant threat to licensed operators. Spanoudakis emphasized the need for increased enforcement to combat illegal operators and encourage players to migrate to the legal ecosystem.

One of the key hurdles faced by operators like Betano is the stringent KYC requirements introduced by the Secretariat of Prizes and Bets (SPA). While these requirements are essential for ensuring responsible gaming practices, they have also impacted the competitiveness of licensed operators against the black market, where players can access services without undergoing the same level of verification.

Spanoudakis expressed confidence in Brazil’s regulatory framework, noting that the delays in regulation allowed the country to learn from international best practices and establish a comprehensive regulatory framework. However, he also highlighted the importance of balanced regulation to prevent driving players towards illegal operators due to overly restrictive measures.

Despite the challenges, Spanoudakis remains optimistic about the future of the Brazilian market and the value of a strong regulatory environment in promoting long-term industry growth and consumer protection. With ongoing efforts to tackle the black market and enhance compliance measures, licensed operators like Betano are working towards a safer and more sustainable online gambling landscape in Brazil.