Thiago Garrides, CEO Cactus Gaming: The Invisible Cost of Regulation in Brazil

15 July 2026 www.zonadeazar.com With stricter rules and increased oversight, companies are now investing in artificial intelligence, fraud prevention, cyber security and compliance in order to operate in the regulated Brazilian market

The regulation of the Brazilian betting market has not merely changed the rules for operating in the country. It has quietly transformed the structure of companies operating in the sector. Whereas the focus used to be on platform development and customer acquisition, today a growing proportion of investment is directed towards areas that punters never see, such as anti-money laundering, cyber security, artificial intelligence, risk management, certifications and corporate governance.

This shift goes hand in hand with the maturing of the regulated Brazilian market. Since January 2025, when the new rules came into force, operators and technology providers have had to comply with a series of requirements relating to user identification (KYC), financial monitoring, data protection, responsible gambling, independent audits and systems certification, significantly increasing the level of complexity of their operations.

Regulatory developments continue at a rapid pace. Throughout 2025 and 2026, the Secretariat for Prizes and Betting (SPA), part of the Ministry of Finance, published new regulations aimed at strengthening oversight mechanisms, platform security and consumer protection. At the same time, the body has been expanding its monitoring of the entire sector chain, including companies responsible for developing the technological solutions used by operators.

The investments required to operate in the regulated market go far beyond simply obtaining a federal licence. In addition to the R$30 million licence fee – valid for five years and authorising up to three brands per business group – companies must maintain permanent monitoring structures, hold international certifications, undergo periodic audits, constantly update their systems, implement digital security protocols and employ highly specialised teams.

At the same time, the Federal Government has stepped up its fight against illegal operations. According to the Ministry of Finance, more than 39,000 unauthorised betting websites had already been blocked by April 2026. By June, this figure had exceeded 50,000 domains, demonstrating the progress made in enforcement and the efforts to strengthen the regulated environment and enhance consumer protection.

Against this backdrop, technology has come to play an even more strategic role. Solutions based on artificial intelligence monitor millions of events daily to identify atypical behaviour, prevent fraud, detect suspicious financial transactions and reinforce anti-money laundering mechanisms. Biometric authentication tools, geolocation and protection against cyber-attacks have also become part of the operational routine of licensed platforms.

As a company specialising in the development of technological infrastructure for the betting and iGaming market, Cactus Gaming monitors this transformation on a daily basis and develops solutions aligned with the requirements of the regulated environment, enabling operators to balance compliance, performance and user experience.

“There is a perception that a betting platform boils down to the interface the user accesses. In practice, this is merely the tip of an extremely complex structure. Before a bet is finalised, there are several layers of validation, monitoring and risk analysis operating simultaneously. Regulation has raised industry standards and meant that technology, security and compliance have moved from being support functions to becoming part of the product itself,” says Thiago Garrides, CEO of Cactus Gaming.

According to the executive, the sector is undergoing a transformation similar to that seen in the financial market in recent years, when investments in information security, governance and risk management came to be regarded as strategic factors for companies’ credibility.

“The industry’s next growth cycle will be determined less by the scale of marketing campaigns and far more by companies’ ability to develop secure, resilient operations that comply with regulatory requirements. Consumers may never see the full extent of this infrastructure, but it is this that ensures trust, transparency and sustainability for the market,” concludes Garrides.

With the potential to establish itself amongst the world’s largest regulated betting markets, Brazil is now entering a new phase of maturity. Whilst the first stage was marked by the race for licences, the next will be defined by companies’ ability to innovate without compromising on security, governance and compliance. Behind the scenes of these platforms, a new technology industry is taking shape, one that is set to define the sector’s direction in the coming years.

Edited by: @MaiaDigital www.zonadeazar.com