Krakens Cove

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“I don’t think the successful studio of the future necessarily has hundreds of people,” he says. “It could be a relatively small group of extremely talented people with great ideas, strong brands and a very good understanding of players, supported by technology that does much of the heavy lifting.”

That would also shift the basis on which studios compete. If sophisticated development capabilities become accessible to a wider range of creators, scale alone becomes less of an advantage.

“It becomes less about how many developers you employ and much more about how creative you are and how well you understand the player,” Curwen says.

What is Krakens Cove?

The deal follows hot on the heels of Evoplay Entertainment’s recent launch with leading platform provider EveryMatrix.

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What is Krakens Cove?

What the president didn’t address is the tax revenue from betting.

In 2025, Brazil collected almost BRL10 billion ($1.97 billion) in tax revenue from the licensed sector. In the first seven months of this year alone, BRL8.7 billion generated by the activity was delivered to public coffers. The Federal Revenue Service itself estimates that the sector should reach BRL16 billion in revenue during 2026.

Besides revenue collection, another concern is legal and economic. Companies have paid over BRL2.5 billion for licences since the sector’s regulation. Certainly, the end of the activity would lead to litigation to recover the amounts paid and compensation for investments made. Furthermore, the revenue from betting is already included in the Annual Budget Law and the Budget Guidelines Law, which define the priorities for federal government spending.