iGaming na América Latina: panorama regulamentar, análise de mercado, desafios e oportunidades

Latin America is a golden opportunity for iGaming operators. The region has a population of over 670 million people, with Brazil being the seventh most populous country on the planet. It also has a growing middle class, which means more people are having budgets for leisure, which include online gambling. Last, but not least, the legislation of many countries in the region is changing to accept iGaming. Brazil is, once again, an example, having changed ist regulations in 2023.

However, the very fact that the regulations are in constant change can make it hard for iGaming operators to enter the Latin American market. So, first of all, we will understand the current regulatory landscape of iGaming in the region.

Regulatory Landscape Of iGaming in Latin America

In Latin America, iGaming is legal in some countries, but illegal in others. Some are changing and adapting its regulations, while others are not. In this article, we will focus on three of the four most populous countries of the region: Brazil, Colombia and Argentina.

Brasil

Brazil first drafted a law regulating online gambling in 2018. In 2023, the country made more advances after President Lula da Silva enacted a comprehensive law on 30 December  which permits both online and land-based sports betting under Law No. 14790. 

Argentina

Argentina has a federation-like structure in which each of its 23 provinces and the city of Buenos Aires regulate iGaming independently from one another. The basic rule allows online gambling, which can be prohibited at a local level. As of now, online gambling is allowed, regulated and active in most provinces, while it is still a topic of discussion in a few locations. 

Colômbia

Colômbia pioneered the online gambling industry in Latin America by making it legal and licensing operators in 2016. Proper licensing and cooperation with operators lead to economic growth, and tax revenue from gambling funds have been contributing to the country’s healthcare system.

Licensing Requirements

The requirements to obtain a license for iGaming in Latin America varies from country to country. Mexico and Colombia have comprehensive and transparent frameworks, while Brazil’s are in development. Brazil recently required, for instance, that sports betting operators be located in the country rather than remotely.

Generally, to obtain a license for iGaming in Latin America, operators must have:

• Financial stability and solvency
• Proof of responsible gambling practices
• Player information and fund protection
• Anti-money laundering compliance
• Technical and operational compliance
• Tax and fee payments
• Local legal entity
• Compliance with country-specific regulations and licensing requirements
• Expert legal advice on country-specific licensing processes

Market Analysis

According to a study conducted by ResearchAndMarkets.com, the Latin American gambling market will grow at a Compound Annual Growth Rate (CAGR) of 18.4% between 2022 and 2028. Furthermore, according to Statista, Latin America’s online gambling market will grow exponentially to USD 3.4bn in 2025.

Nuvei, oh the other hand, provided detailed statistics on the number of daily visits to casino websites within a jurisdiction. The number one country in the world in this ranking is Brazil, with over 7.8 million visits per day. Mexico is number four on the list, after Nigeria and the United Kingdom, and Colombia is number eight.

Also according to Statista, the online Gross Gaming Revenue (GGR) of Colombia has been growing since 2018, peaking at roughly USD 300m in 2021. 

Challenges in the Latin American iGaming Market

One of the main challenges in the Latin American iGaming market is the payment processing. Many countries of the region have complex financial regulations which make it difficult both for players to make deposits and withdrawals from online casinos, and for operators to process payments efficiently and securely.

Currently, the three most popular payment systems in Latin America are PIX, Boleto and Pay4Fun. Pix is a government-developed payment system that was not particularly convenient for customers, so the Boleto system became the main entry point for players to secure payments in gambling in the region.

Most payments, however, are still processed through banks only on weekdays, what creates obstacles for operators. It could, for example, be a point of fraud from players when they gamble with funds that are not available in the account. Betting vouchers, which could be an alternative, can be sold offline and makes the gambling process close to being completely anonymous, what increases the risk of money laundering and other fraudulent schemes. 

Opportunities in the Latin American iGaming Market

Latin America may be a challenging region for iGaming at the moment, but it offers many opportunities for operators.

Mobile Gaming

In 2020, according to a study conducted by Statista, there were over 147 million mobile games in Latin America. This number is expected to increase 17% by 2025, which will account for almost 10% of all mobile gamers in the world.

Mobile gaming, therefore, is a great opportunity for operators. Investments in mobile-friendly games and platforms that can reach players on the go without keeping users tied to a computer should pay themselves out.

Desportos 

Online betting in esports is rapidly increasing in Latin America. With the popularity of games such as League of Legends and Dota 2 rising, there is a growing demand for esports betting and tournaments.

Crypto

As more and more people become interested in digital currencies, Latin America is already the world’s 7th largest cryptocurrency market, according to Chainalysis. We expect an increase of cryptocurrency players in the iGaming industry in the upcoming years, so operators have an opportunity to expand gaming offerings for this market.

In conclusion, Latin America will definitely be one of the main markets in the world of iGaming in the next decade. Operators must prepare themselves for the region, as each country has its own laws and regulations. While some challenges remain to be tackled, the opportunities are many and promise to forever change the world scenario of iGaming.