Brazilian online casinos trim supplier list in post-regulation shift
Brazil’s online gambling market has undergone a seismic shift since its official regulation on 1 January 2025, transforming a sprawling grey market into a tightly controlled, player-focused industry. The immediate effect? A dramatic reduction in the number of active game suppliers.
According to the latest Vixio Brazil Operator-Supplier Game Matrix Report, the number of unique slot suppliers with integrations at licensed operators plummeted from 236 to 105 between December 2024 and April 2025. Live casino and crash game suppliers saw similar declines, falling from 35 to 10 and 39 to 21, respectively.
This attrition has been most pronounced among smaller studios. The number of slot suppliers integrated with just 1 to 5 of the thirteen selected operators dropped by 59 percent, from 208 to 86. Meanwhile, those with broader reach, dipped by a more modest 32 percent. Interestingly, the number of suppliers serving 10 to 13 of the operators actually doubled from 2 to 4, with Endorphina and Red Tiger joining Pragmatic Play and PG Soft in this exclusive group.
What’s behind this shake-up? New requirements around game certification, features, and help documentation, as well as operational costs and delays, have made it tough for smaller studios to keep pace. As one compliance head put it, “The primary challenge we encountered was navigating tight deadlines in conjunction with the regulatory changes that occurred. However, through effective strategic planning and organisation, we successfully maintained smooth operations with minimal disruption to our customers.”
New rules, new realities: Compliance and localisation
Brazil’s regulatory framework is among the most demanding in the world. Just ten weeks before the market’s launch, the federal gambling regulator introduced a rule requiring all online casino games to display a paytable and game rules on screen every time a player enters. A 90-day grace period was granted for recertification, but the message was clear: compliance is non-negotiable.
Live casino suppliers face their own hurdles. All communication with players, whether by text, audio, or through dealers, must be in Brazilian Portuguese. While full enforcement of this rule won’t begin until July, it’s already a significant compliance burden, particularly for smaller European and Asian studios previously offering English-language games.
For operators, the transition has meant moving from easy agreements with content aggregators to a regulated environment where only certified games are allowed. This has slowed the process of adding new titles and trimmed the once-vast libraries available to players.
“Adapting our compliance strategies to fit the market and understanding all the policies and requirements from the 120 minutes withdrawals to the liveness checks were tough, but the biggest challenges are explaining to the players why we are now doing this and that it’s aimed to protect them and have a safer environment for players and operators,” says Pedro Garcia, Brazil Country Manager at SkillOnNet.
Opportunities and optimism: The road ahead for Brazil’s iGaming market
Despite these challenges, there’s a strong sense of optimism among industry leaders. The new regulations are seen not as obstacles, but as foundations for growth. “For us, these regulations will not only ensure that our games are delivered in a secure and transparent environment, but they will also foster growth in the market. We see these regulations as a foundation for expanding our presence, offering players a more reliable and exciting experience while positioning ourselves for long-term success in Brazil,” says Steven Spartinos, CEO of Kiron Interactive.
Anna Izani, Head of Compliance at Gaming Corps, echoes this sentiment: “We are able to see these regulatory changes as opportunities for growth and innovation rather than challenges. We anticipate significant growth with our licenced partners in Brazil and through ensuring compliance with the Brazilian laws we not only uphold our commitment to responsible gambling but also foster trust and loyalty among our player base.”
Waiting for the dust to settle
The Brazilian market, with its vast population and appetite for online gaming, remains one of the most promising globally. While the number of suppliers has shrunk, those who remain are stronger, more compliant, and better positioned for sustainable growth. As the dust settles, Brazil’s experience is likely to serve as a benchmark for other Latin American jurisdictions looking to regulate online gambling.
In the words of Garcia, “A regulated market always grows more because players are confident. We know Brazil is a large market with tons of potential, and this aligns with our growth strategy focused on regulated markets. Our plans focus on growing in this market and achieving a respectable market share position like in any other country.”
