Regulated gambling may only have launched in Brazil at the start of 2025, but digital payment provider OKTO has been ready and waiting in the country for several years. Four months into the new era of regulation, Leonardo Chaves is delighted with how things are going.

“The outlook is positive,” he says. “But only for those willing to adapt and operate with a local mindset. We are entering a maturity phase where compliance is no longer a differentiator, but a basic requirement. The most common mistake we still see is underestimating how unique Brazil is – both culturally and operationally. Global models don’t work here without proper adaptation.”

A key strategy OKTO adopted to maintain its market position in Brazil was to stay ahead of the curve when it comes to payment technology and the banking tools of the future.

Chaves explains: “One mistake that some providers have made is clinging to outdated payment flows, ignoring the latest in pay tech.

“The technology is available, the regulatory framework allows it, and forward-thinking operators are already embracing open banking, biometric authentication and automated orchestration. This is the stack that OKTO provides.”

Brazil, with its population of 220 million and estimated GDP of $5.6 trillion for 2025 (according to World Economics) is clearly a key market for the gambling industry. But more than that, it is setting benchmarks for the rest of the LatAm region. As Chaves puts it, Brazil “is now Latin America’s regulatory testbed – and what succeeds here will set the tone for the region.”

Significant improvements

As 2025 continues, OKTO’s focus is shifting from the launch onto education around payment orchestration, the automation of processes and collaborating closely with the region’s regulators and operators.

To get to this stage, OKTO has helped its clients in Brazil achieve significant improvements on the acceptance rates of deposits. According to Chaves, its “proprietary payment platform engine, which adapts in real-time based on issuer profile, payment method, user behaviour and risk, empowered operators to regain and exceed pre-regulation performance.

“Partners using OKTO’s unified platform reported a 25% increase in acceptance rates during the first months of 2025 compared to January 2025 after the migration to the new era, achieving the pre-regulation success rates of over 90% – a result fuelled by our direct Pix integrations, local banking network and issuer-level optimisation. It’s the result of our API structure directly connected with the Brazilian Central Bank enabling superior transaction approval rates and faster settlement timeframes.”

This impact, by a payment provider, on the nascent regulated gambling market in Brazil, is no mean feat.

The importance of native partners

The reasons behind the need to improve deposit acceptance rates are interesting. With the regulation coming in and changing the rules for making deposits very quickly, not all operators were fully prepared.

Chaves explains: “The drop in acceptance rates were a direct result of the swift application of regulatory requirements, which severely impacted outdated or unlicensed payment setups.

“A lot of operators continued using foreign providers or were unable to transition to Brazilian financial institutions in time. As regulators tightened enforcement, these channels were either blocked or heavily restricted.

“Initial regulation enforcement hit acceptance rates hard – some operators saw drops as high as 30-40%, especially those relying on foreign PSPs or unlicensed infrastructure. The fallout was pronounced across all betting verticals, particularly among global brands unable to pivot to local frameworks.”

The key takeaway from this is that in Brazil’s newly regulated market, success depends on being licensed and integrated with Brazilian-native partners. That is exactly what OKTO can offer via OKTO Bank, thanks to its experience in the country prior to the regulated market launch.

A stabilising force

Of course, it’s not all smooth sailing, even when you’ve positioned yourself well in the market. The major pain points for operators in Brazil are varied and complicated.

Chaves says: “Enhanced KYC requirements, mandatory local financial integrations, and complex data migration demands created significant friction, especially for international entrants unfamiliar with Brazil’s regulatory pace.”

The way regulation was brought into Brazil after many years of offshore operators and non-regulated gambling domination meant complex technical and procedural shifts were required; and for operators that meant changing tact from scaling at speed to focusing on compliance with their business models.

As Chaves puts it: “OKTO, having already embedded itself within Brazil’s financial ecosystem, became a stabilising force during this transition. We offer ready-made, compliant solutions to fast-track operational continuity for our partners while product innovation lies in our offering, meeting all the new demands of KYC and player acquisition via streamlined payments.”

Playing catch-up

As with all the major nations where gambling is now legal, compliance is key to any operator becoming a success, with payment partners a huge part of that. But from what Chaves has seen in Brazil, familiarising themselves with the country and its culture ahead of time was crucial for OKTO.

He elaborates: “Brazil’s regulatory framework, launched at the start of the year, has confirmed what OKTO has long championed: local-first infrastructure is not just a competitive edge, but a necessity.

“As a proactive payment services provider with deep roots in the market, OKTO had already prepared for the transition of its operations and data infrastructure through OKTO BANK – our fully compliant, Brazil-based entity – well before the regulatory deadline.

“This foresight enabled us to seamlessly support operators with unmatched agility and security. We did this on time, and efficiently. The market now clearly differentiates between providers that came prepared and those who are now playing catch-up.”

OKTO’s meticulous preparation ahead of the launch of Brazil’s regulated market has solidified trust among both operators and regulators in the Latin American region.

Data migration problems

Another problem that reared its head in Brazil with the regulated market launch was data migration. Many operators suffered data losses which resulted in lost customers. Chaves can explain exactly what happened. “Massive customer attrition during the regulatory rollout stemmed from poor migration strategies and a lack of local infrastructure,” he says.

“Overnight data transfers to Brazilian-approved environments created vulnerabilities for underprepared operators, many of whom relied on rushed or outsourced solutions.

“While exact figures vary, the cost in lost customers and failed onboarding has been significant across the sector.

“OKTO tackled this by combining intelligent migration planning, local infrastructure and experience-led advisory, minimising the disruption for our partners.”

OKTO has positioned itself as a solution to help operators overcome losses such as these. But how exactly do their partners benefit from this?

Chaves says: “OKTO doesn’t just process payments for our partners. We unlock value through data. By leveraging behavioural and transactional insights, our platform helps operators rebuild user trust, optimise payment flows and drive retention.

“Our unified payments ecosystem delivers an over 92% transaction success rate in deposits and over 99% in withdrawals, ensuring both reliability and superior user experience – metrics that speak louder than promises.”

Clearly OKTO, like the regulated gambling market in Brazil itself, is here to stay. With their regional know-how and innovative payment technology, they are pioneering the way for payment providers in this truly unique igaming landscape.

To reinforce its long-term commitment, OKTO is now laying the groundwork for its next phase of innovation. The company is actively investing in new products to improve UX, AI-powered risk management, and new customer engagement tools tailored to the evolving needs of the Brazilian market. With plans to expand its local partnerships and co-develop solutions with operators, OKTO aims to remain at the forefront of payment innovation not just in Brazil, but across Latin America.