Andrea Carvalho (Entain): Digital Identity and the Future of KYC in Regulated Markets

The EUDI Wallet could transform identity verification in regulated markets, facilitating more agile and secure KYC processes for operators and players. Andrea Carvalho, Director of Legal Affairs, Compliance, and Anti-Money Laundering at Entain, argues that this technology enhances security and privacy but does not replace essential mechanisms such as continuous monitoring and risk assessment.

EUDI Wallet and the Simplification of KYC for Betting Operators

During the SBC Summit 2026, Andrea Carvalho will participate in the panel "EUDI Wallets & Digital Identity: A New Era for KYC — or Just New Complexity?", moderated by Jochen Biewer (Chevron Group), alongside Yainnis Stavroulas (Novibet) and Jean-Michel Azzorpadi (blockchain architect). The discussion will analyze whether a European digital identity can reduce the operational burden faced by regulated operators or generate new stages of complexity.

Carvalho notes that the EUDI Wallet enables customers to share reliable digital credentials issued by public authorities, facilitating faster and more accurate identity verifications. "The EUDI Wallet has the potential to significantly simplify customer identity verification, a key component of KYC," Carvalho states.

As she explains, while identity validation can be accelerated, regulatory obligations include risk analysis, compliance with Anti-Money Laundering (AML), and enhanced due diligence, which remain fundamental processes beyond mere identification.

Selectivity in Data Disclosure and Regulatory Requirements

One of the pillars of the EUDI Wallet is selective data disclosure, allowing users to verify specific attributes (like being over 18) without providing unnecessary information. Carvalho asserts that this approach aligns with data minimization required by the European framework and helps to enhance privacy and trust.

"These objectives are complementary. The greatest virtue of the EUDI Wallet is to validate attributes without excessive exposure of personal data. The compliance process must focus on obtaining the appropriate information for each regulatory requirement at the right moment," Carvalho affirms.

However, she insists that operators are still required to gather additional data when mandated by law, and the selectivity of the EUDI Wallet does not exempt them from meeting AML, KYC, and responsible gaming standards.

Challenges of Harmonization and Interoperability in Europe

The stated purpose of the EUDI Wallet is to create a common and interoperable framework for digital identity in Europe. Carvalho warns about the risk that differences in implementation timelines, technological maturity levels, or technical standards among member states may maintain operational fragmentation for international stakeholders.

"Establishing common European principles is already a step forward from the current landscape. Interoperability and coherent enforcement will be essential for the initiative to reach its full potential," she asserts. Fragmentation may slow benefits, but the overall directional thrust is valued positively.

Risk-Based Approach and Instant Onboarding

Eliminating friction in player onboarding is a challenge for operators who must meet multiple controls. Carvalho suggests that not all regulatory requirements should focus on the beginning of the process. A dynamic, risk-based approach allows for instant verification of identity, while other controls are triggered based on the profile and behavior of the customer.

"Technology can reduce friction, but proportionality in controls remains essential to balance consumer protection with an efficient onboarding experience," Carvalho emphasizes.

This model helps focus resources on higher-risk cases and streamlines onboarding for most legitimate users.

Lessons for Brazil and Other Regulated Markets on Digital Identity

Although her responsibilities focus on Portugal and Europe, Carvalho acknowledges that Brazil has made progress in digital identity and authentication. She observes that attribute-based verification, driven by the EUDI Wallet, could play a relevant role as Brazil's regulatory framework evolves.

She confirms that allowing the validation of specific attributes without requiring the presentation of complete documents enhances the user experience and improves protection through efficient data management. Nonetheless, she warns: any adoption must stem from existing legislation and technology, without directly copying European models, prioritizing security, privacy, and trust.

Attribute Verification and Privacy: The Brazilian Case

Carvalho considers that attribute verification gives users greater control and enables regulated companies to obtain only the essential information needed to comply with regulations. Examples may include verifying age or prior verification by a trusted authority. For its development, she specifies, an appropriate legal framework, good governance, and robust security standards will be required.

The Role of Digital Wallets Against Fraud and the Need for Continuous Monitoring

Carvalho acknowledges that trusted digital identities significantly reduce risks associated with document fraud and identity theft. However, she highlights that financial crimes evolve and require constant monitoring. Effective control includes a combination of digital identity, transactional monitoring, behavioral analysis, and fraud detection mechanisms throughout the business relationship.

A trusted digital wallet is an additional layer of protection, but it does not replace the processes of continuous supervision against financial crimes.

Implications for Operators in the Digital Transformation Process

The adoption of solutions like the EUDI Wallet in regulated markets does not eliminate key obligations but streamlines identification and can improve the user experience. Jurisdictional differences will continue to pace the change, and operators must prioritize both technological adaptation and regulatory compliance to protect consumers and the sector.

This approach was part of a series of interviews conducted by SBC Notícias Brasil with speakers from the SBC Summit 2026, exploring regulatory perspectives, technological integration, and player protection in the iGaming sector.