The adherence of more than 120 iGaming operators in Brazil to a single KYC solution is no coincidence. It is a market-driven movement, fueled by a central challenge: aligning strict compliance with the high conversion rates the sector demands.
A generic KYC can cause significant harm to operations — from missed opportunities to customers abandoning the process, higher chargeback rates, and compliance becoming a problem instead of a solution.
The hidden costs of generic KYC in the Brazilian market
Global systems generally work the same way, building adaptable solutions for multiple locations and regulations, but not designed specifically for each. In many places, this approach may work fine — but not in Brazil.
The Brazilian CPF has its own rules, documents have unique formats, and databases require constant updates, something these generic solutions do not handle efficiently.
Ultimately, the result is a conversion rate below 70% and a slow, friction-filled verification process. For those who receive thousands of signups every day, the loss translates into a
The end result: conversion rates below 70% and slow, friction-filled verification. For operators processing thousands of registrations daily, this translates into an almost unsustainable CAC.
The advantages of a KYC built by Brazilians, for Brazilians
For the local market, an adaptable solution alone is not enough. A platform developed for Brazil’s complexities must essentially include:
* Constant updates to Brazilian databases such as CPF, lists of politically exposed persons (PEP), and anti-money laundering (AML) compliance.
* Optimized analysis of regional variations in official documents and their formats.
* Study and understanding of Brazilian user behavior.
* Full compliance with local regulations (LGPD, SPA, and others).
Understanding every detail, solving each user pain point, and knowing the nuances of regulation becomes a competitive edge when results include:
* KYC conversion rates above 85%.
* Verification completed in under 30 seconds.
* Response times of 200 milliseconds.
Such metrics directly improve the acquisition funnel and revenue generation. By keeping verification numbers constant and raising conversion from 70% to 85%, the revenue gain is about 21%.
* Revenue growth ˜ (new conversion rate – old conversion rate) ÷ old conversion rate × 100% ? (85% – 70%) ÷ 70% × 100% ˜ 21%.
In addition, a verification process lasting less than 30 seconds drastically reduces churn during onboarding, ultimately increasing LTV.
Another critical point is system latency. A 200-millisecond response ensures low waiting time, high availability (uptime of 99.9% or more), and scalability to handle demand spikes without harming the user experience.
Technologies designed for local needs
To achieve such measurable results, a combination of technologies tailored to market demands is required. All must work under a single principle: ensuring compliance and blocking sophisticated fraud while delivering a smooth, low-friction, and fully responsive user experience.
To meet this challenge, Legitimuz has developed an integrated set of technologies:
* An advanced OCR system that extracts data with high accuracy, even from low-quality, poorly lit, or blurred images — common issues in documents captured with limited devices.
* Full support for physical and digital documents, including RG and CNH.
* Facial biometric authentication with passive liveness detection, capable of catching sophisticated fraud such as deepfakes or static photos.
* Integrated risk analysis and anti-money laundering (AML) prevention, cross-referencing multiple national databases in real time to detect suspicious behavior and ensure strict compliance.
* Advanced geolocation with intelligent monitoring to block VPN, proxy, or manipulated device (root/jailbreak) connections.
Market leadership: 67% of regulated operators already use the Brazilian solution
Today, 2 out of every 3 regulated betting platforms in Brazil use Legitimuz — a 100% Brazilian solution built for the local market — to ensure operational efficiency.
This market share proves how much the industry already values a solution that truly works: fast, secure, and capable of boosting conversion while meeting all regulatory guidelines.
With a base of tens of millions of verified users and coverage across the country’s main operators, Legitimuz is setting a new market standard that is authentically Brazilian.
Want to understand how a specialized KYC approach can impact your operation? Request a full diagnosis of your platform and see how to operate with greater security and efficiency.
Source: Legitimuz
