diff --git a/browser/brave_rewards/rewards_service_factory.cc b/browser/brave_rewards/rewards_service_factory.cc
index 95bc67a36a9..0e6e2438fb5 100644
--- a/browser/brave_rewards/rewards_service_factory.cc
+++ b/browser/brave_rewards/rewards_service_factory.cc
@@ -43,19 +43,6 @@
 #include "brave/components/brave_rewards/browser/rewards_service_impl.h"
 #endif
 
-namespace {
-#if BUILDFLAG(BRAVE_REWARDS_ENABLED)
-void OverridePrefsForPrivateProfileUserPrefs(Profile* profile) {
-  if (brave::IsRegularProfile(profile))
-    return;
-
-  // rewards button should be hidden on guest and tor profile.
-  PrefService* pref_service = profile->GetPrefs();
-  pref_service->SetBoolean(brave_rewards::prefs::kHideButton, true);
-}
-#endif
-}  // namespace
-
 namespace brave_rewards {
 
 RewardsService* testing_service_;
@@ -90,18 +77,6 @@ RewardsServiceFactory::RewardsServiceFactory()
 #if BUILDFLAG(ENABLE_GREASELION)
   DependsOn(greaselion::GreaselionServiceFactory::GetInstance());
 #endif
-
-#if BUILDFLAG(BRAVE_REWARDS_ENABLED) && !defined(OS_ANDROID)
-  if (g_browser_process && g_browser_process->profile_manager())
-    g_browser_process->profile_manager()->AddObserver(this);
-#endif
-}
-
-RewardsServiceFactory::~RewardsServiceFactory() {
-#if BUILDFLAG(BRAVE_REWARDS_ENABLED) && !defined(OS_ANDROID)
-  if (g_browser_process && g_browser_process->profile_manager())
-    g_browser_process->profile_manager()->RemoveObserver(this);
-#endif
 }
 
 KeyedService* RewardsServiceFactory::BuildServiceInstanceFor(
@@ -147,10 +122,4 @@ bool RewardsServiceFactory::ServiceIsNULLWhileTesting() const {
   return false;
 }
 
-void RewardsServiceFactory::OnProfileAdded(Profile* profile) {
-#if BUILDFLAG(BRAVE_REWARDS_ENABLED)
-  OverridePrefsForPrivateProfileUserPrefs(profile);
-#endif
-}
-
 }  // namespace brave_rewards
diff --git a/browser/brave_rewards/rewards_service_factory.h b/browser/brave_rewards/rewards_service_factory.h
index 2ac311539bb..bc77ac4f61a 100644
--- a/browser/brave_rewards/rewards_service_factory.h
+++ b/browser/brave_rewards/rewards_service_factory.h
@@ -17,8 +17,7 @@ namespace brave_rewards {
 class RewardsService;
 
 // Singleton that owns all RewardsService and associates them with Profiles.
-class RewardsServiceFactory : public BrowserContextKeyedServiceFactory,
-                              public ProfileManagerObserver {
+class RewardsServiceFactory : public BrowserContextKeyedServiceFactory {
  public:
   RewardsServiceFactory(const RewardsServiceFactory&) = delete;
   RewardsServiceFactory& operator=(const RewardsServiceFactory&) = delete;
@@ -33,15 +32,12 @@ class RewardsServiceFactory : public BrowserContextKeyedServiceFactory,
   friend struct base::DefaultSingletonTraits<RewardsServiceFactory>;
 
   RewardsServiceFactory();
-  ~RewardsServiceFactory() override;
+  ~RewardsServiceFactory() override = default;
 
   // BrowserContextKeyedServiceFactory:
   KeyedService* BuildServiceInstanceFor(
       content::BrowserContext* context) const override;
   bool ServiceIsNULLWhileTesting() const override;
-
-  // ProfileManagerObserver:
-  void OnProfileAdded(Profile* profile) override;
 };
 
 }  // namespace brave_rewards
diff --git a/browser/ui/views/brave_actions/brave_actions_container.cc b/browser/ui/views/brave_actions/brave_actions_container.cc
index 34f315eaec2..fc658719975 100644
--- a/browser/ui/views/brave_actions/brave_actions_container.cc
+++ b/browser/ui/views/brave_actions/brave_actions_container.cc
@@ -13,6 +13,7 @@
 #include "base/one_shot_event.h"
 #include "brave/browser/brave_rewards/rewards_service_factory.h"
 #include "brave/browser/extensions/brave_component_loader.h"
+#include "brave/browser/profiles/profile_util.h"
 #include "brave/browser/ui/brave_actions/brave_action_view_controller.h"
 #include "brave/browser/ui/views/brave_actions/brave_action_view.h"
 #include "brave/browser/ui/views/brave_actions/brave_rewards_action_stub_view.h"
@@ -187,6 +188,10 @@ bool BraveActionsContainer::ShouldAddBraveRewardsAction() const {
     return false;
   }
 
+  if (!brave::IsRegularProfile(browser_->profile())) {
+    return false;
+  }
+
   const PrefService* prefs = browser_->profile()->GetPrefs();
   return !prefs->GetBoolean(brave_rewards::prefs::kHideButton);
 }