How do you assess the first year of Brazil’s regulated market?
Alexandre Tauszig – For many companies in this sector, especially technology platforms and related providers, 2025 was a very positive year and, at the same time, quite challenging. We are talking about the first year of effective operation of the regulated market in Brazil, but it is important to note that this regulation is still in the process of formation and maturation. The foundations were very well built, with solid principles, but throughout the year it was natural for new ordinances, circulars, and technical guidelines to be issued to clarify interpretations and adjust the practical application of the rules.
We began to live with a duality. On one side, several serious and professional companies trying to establish themselves in a highly competitive market; on the other, a large number of “companies” seeking loopholes to continue operating in what we used to call the offshore (unregulated) market, which has now become an illegal market.
NGX, in turn, chose to operate fully within the regulation. This brought us more work and even more challenges, but on the other hand, it offers us longevity. The fact that we have a 100% Brazilian DNA made a big difference. It made it easier for us to understand the demands of the Secretariat of Prizes and Betting (SPA) and to respond quickly to each new guideline.
We have a strong in-house development team, which allowed us to adapt systems and processes swiftly whenever necessary. In fact, we were the first platform to successfully implement automatic communication with SIGAP, which was an important milestone in this first year of regulation.
As a platform, what were the main challenges this year?
Everyone had to choose a side. There was no longer any room to sit on the fence. Without a doubt, the biggest challenge was making tough decisions during a period of deep market transition. Still in 2024, when the first ordinances began to emerge, Brazil was operating largely in a gray area, with many players working offshore. We made a very clear decision: to be a company 100% compliant with the regulation, without seeking shortcuts or loopholes.
This choice came at a short-term cost. At the beginning of 2025, we faced an abrupt drop in revenue, something that happened to many, if not all, serious companies in the sector. We went from around 80 clients (in September 2024) to fewer than ten in a short period of time. In addition, there was the challenge of platform certification, which began as early as June 2024, at a time when the rules were still being written and the laboratories were operating at full capacity. It was a difficult period, but a necessary one.
We started 2025 with a “short blanket.” With much lower revenue than expected, we had to expand the development team, consolidate a multilingual 24/7 support team, improve the platform, integrate new suppliers, and continue maintaining the high standard of service our operators expect. The first half of the year was clearly a period of adjustment, especially financially. The second half, however, brought more breathing room, stability, and space to plan more clearly the growth we aim to sustain in 2026.
Throughout the year, NGX grew in terms of clients and scale. How did that happen?
After this more turbulent period, the scenario began to stabilize. Once the platform was certified and fully compliant with the requirements of the Secretariat of Prizes and Betting, we began to reap the benefits of this strategy. Our technological expertise and speed of adaptation led to consistent growth in our client base throughout 2025.
An important milestone was the contract with Lottu, the third brand of Esportes Gaming Brasil, which carried significant commercial and institutional weight. Another very symbolic moment was NGX being announced as the winner of the Industry Rising Star 2025 category at the SiGMA Awards 2025, one of the most important awards in the iGaming and betting technology sector. This international recognition ended up functioning as a seal of validation.
After that, more operators naturally began to approach us. Today, I can say that major market brands are “courting” NGX. This growth was not only in numbers, but especially in positioning and consolidation.
How does NGX view the role of the Secretariat of Prizes and Betting (SPA) and Brazilian legislators in the regulated market? And what do you expect for 2026?
Our view of the SPA’s performance is quite positive. We see very serious, technical, and committed work. The Secretariat has acted with a clear focus on security, responsibility, and integrity, raising the standard of the Brazilian market. It is natural that, in a new environment, not everything works perfectly in practice right away, and we understand that the maturation process is part of any modern regulation. The work of the Secretary of Prizes and Betting at the Ministry of Finance, Regis Dudena, and the entire SPA team has been consistent, and we always collaborate actively.
On the other hand, when we look at the legislative field, we do have some concerns. Many of the discussions that reach the media and the plenary are focused on increasing the tax burden on regulated gaming. There is a real risk that excessive taxation could make legal operations unviable for many operators, which ultimately encourages the illegal market. While the SPA works to combat illegal gambling, disproportionate tax increases push in the opposite direction.
For 2026, we expect the SPA to continue advancing toward building one of the most modern and comprehensive regulatory frameworks in the world and, within its scope, to keep supporting the fight against illegal gambling. We also hope that legislators will be able to view the sector with greater balance, understanding that the gaming market is serious, relevant, and requires a sustainable tax policy. In addition, we strongly believe in the importance of public education and awareness campaigns about what is legal and illegal gambling in Brazil.
Beyond the direct social benefits generated by tax revenues, what initiatives can the sector take for society, and what has NGX been doing?
Education is the key word. The sector is still new in Brazil and carries many prejudices and a lot of misinformation. Anything that contributes to education, safety, and responsibility is essential, as are initiatives to combat gambling addiction. If companies in the sector want to be viewed differently by society, they need to invest more in actions that show that gaming has always been part of Brazilian daily life. Informing, clarifying, and educating are essential steps to building a more mature, responsible, and socially accepted market.
At NGX, we actively seek to contribute in this direction. One example is Minuto NGX, a series of short videos in which we discuss topics relevant to the betting ecosystem, going far beyond technology and delivering information in an accessible way. We also support several Brazilian football federations—in Rio Grande do Sul, Paraná, and Pará—by providing them with access to Sportradar integrity reports, which strengthens the fight against match-fixing. In addition, we support the Bettor Support Institute (IAA), a non-profit organization dedicated to awareness and responsible gambling. We understand that this commitment must be collective and continuous.
What should the market expect for 2026?
We expect an even stronger 2026. Naturally, the men will be separated from the boys—the professionals from the amateurs. The companies that will survive, whether domestic or international, will be those able to adapt to the new national landscape. From a technological standpoint, it will become increasingly crucial to speak the language of the country, understand local culture, have teams in Brazil—not only for language reasons, but for the ability to quickly interpret and respond to regulations—and, above all, to be agile. Everything points to 2026 being a year with fewer operators and fewer providers, but with a much higher level of professionalism.
As for NGX, our expectation is to continue expanding, win more clients, strengthen our leadership and prominence in the Brazilian market, and increase our presence at major national events with highly visible booths. We want to keep growing sustainably and actively contribute to strengthening Brazil’s regulated market.
Source: NGX
