Latin America’s online gambling boom

The development of Latin America’s online gambling industry is intensifying. Rising rapidly from its status as an emerging market, Latin America is now a primary player on the global stage. The region, already witnessing an incredible transformation, will reach new heights in 2025. With regulatory frameworks growing at pace, ever-expanding player bases and operator interest thriving, this article, the first in a three-part series, explores the recent Vixio Regulatory Intelligence Latin America Online Gambling November 2024 Outlook.

Brazil’s bustling markets through to the closely controlled systems of Peru and Colombia, this diversity of varied approaches shows both the opportunities and challenges of gambling and setting up a gaming business in this spirited and dynamic part of the world. By exploring the region’s state of play and identifying the key drivers of growth, we can identify what is shaping the future in this region and consider the hurdles that remain. Analysts project Latin America to become a $12 billion (€10.9/£9.5 billion) market by 2028, so understanding the bigger picture will uncover the massive potential that this region offers.

The rise of regulation

Historically known as a mishmash of unregulated or semi-regulated markets, Latin America’s reputation painted it as being a challenging market for operators to manoeuvre. Now, the regulatory tide is shifting. Colombia, Peru and Argentina are examples of countries that have formed and embraced robust licencing systems, while others, such as Chile and Brazil, will introduce groundbreaking frameworks.

Colombia, as the first Latin American country to full regulate online gambling in 2016, stands out as a pioneer. A whole host of operators took advantage of this, offering everything from sports betting to online casinos. Nonetheless, Peru has followed suit, issuing 63 licences to operators under a recently launched regulatory regime. The effect is to not only legitimise its market, but this also generates a competitive environment where provides and players can benefit. Several operators have strengthened their presence in Latin America by securing supplier licenses in Peru.

With a province-led regulatory model, Argentina is unique in its decentralised oversight. The Buenos Aires province and city lead the way, with extensive online gambling options, including virtual events and sports betting. Although other provinces are following suit, it’s not yet as broad as Buenos Aires nor as sophisticated.

Other markets like Paraguay and Chile are considering legislation to liberalise its online gambling market. Paraguay intends to introduce competitive concessions for sports betting and casino games. Meanwhile, Chile’s senate debates a bill that would licence online casino games and sports betting by 2025.

Brazil, however, is the region’s sleeping giant. Experts project that its market will generate over $6 billion (€5.46/£4.74 billion) in gross gaming revenue (GGR) by 2028. This potential is stratospheric compared to its neighbours. In January 2025, Brazil launches its federal licencing regime. This will be a turning point for not just the country, but the wider region. As an example of the potential riches of this region, Betfair recently paid the BRL 30 million (USD $4.9/€4.46/£3.87 million) licensing fee to operate in Brazil.

Brazil’s bold move to reshape the game

Brazil is the market everyone is watching. Full stop. Although several other Latin American countries have taken substantial steps towards regulation, all eyes are on Brazil. Its plans for a federal licencing system for online sports betting and casinos games will not only transform the region, but it will also shape the journey of other countries as well. Operators and suppliers will have unprecedented opportunities. It’s the place to be in 2025.

Not everything has been smooth sailing, though. The Brazilian government has faced much scrutiny, including court challenges, political turmoil, rising concerns over unregulated markets, and the all-important gambling addiction debate. Whilst true that obstacles remain, January 2025 is almost here and promises to unlock a market that may rival some of the largest globally...[Read more]