Around the world of online gambling, we have been witnessing a trend – liberalization coupled with tight regulation. While many governments remain staunchly opposed to the idea, the fact is that authorities have been wildly unsuccessful at stopping illegal gambling. Perhaps the most rapidly liberalizing untapped region is that of Latin America, where competition is little and demand is high. Today, we are going to be breaking down the particularities of the region and the moves their governments have made.

Background in gambling

Latin America is a large swathe of the Western hemisphere. Compared to its Northern neighbors, it has been relatively permissive of online gambling and people had traditionally bet most of their money on online games like poker, blackjack, and slots. As the availability of on-demand sports rose, however, especially as people gained the ability to stream them on cell phones and place bets on websites, people started to most often prefer sports betting, first and foremost – soccer.

However, more innovative gaming genres have taken the nation by storm as well, including:

In light of highly differing regulation systems, enforcement approaches, and moral attitudes to gambling, the international community has not been able to act cohesively to prevent people from breaking gambling laws. People are able to use VPNs, cryptocurrency, and offshore markets to operate in more favorable and lenient gambling jurisdictions and little has been able to prevent them.

Despite state governments’ regulatory ambivalence toward iGaming in USA, Latin America has had a profound influence on its gambling platforms with Las Vegas-style casinos and resorts in places like Mexico, the Dominican Republic, and Colombia. The market has been a big magnet for US-based companies, platforms, and technologies, as Latin American markets have long since been for other US industries.

Popular forms of betting in Latin America vary by region:

  • Baseball is big in countries like Mexico, Venezuela, and Puerto Rico
  • Basketball is growing in popularity
  • Cockfighting is legal and bet on in Colombia and Venezuela

Comparing Central & South America to Europe

Compared to Europe, Latin America does not have near the same level of market saturation of online operators. This is great news for companies that would like to enter the market. However, many have voiced concerns regarding nations’ qualifications in properly regulating these markets. Some people are complaining that the data provided on markets in Central and South America are very vague and unreliable and that they do not have a serious ongoing effort to fight addiction.

Key countries

It seems that every big market in Latin America is bound for Legalization. There are several newly liberalized markets that are worth the most attention and consideration for online casinos looking to enter the markets:

Colombia

The nation has tended to be somewhat of a gambling trendsetter in Latin America, and in 2016 it was the first such nation to legalize iGaming, establishing a comprehensive regulatory framework. Doing so has made it a highly transparent and untapped territory.

Brazil

This is undoubtedly the biggest development in Latin America with its population of 216 million. Though it previously operated as a grey market, the nation just formally opened up iGaming in December 2023. The country has a well-known, deep-rooted passion for sports.

International brands have heavily invested in sponsorships with Brazilian football clubs, amplifying their reach among enthusiastic bettors. Gambling behemoth Flutter has entered the market, and 71 companies have been granted a license, upon paying the required 6-million-dollar launch fee. It’s pursuing stringent regulation and has banned any advertising of gambling.

Mexico

Another one of the first countries to take the plunge, Mexico has established a stable, structured environment for operators. Its proximity with the United States has no doubt facilitated investments, as has been the case in other fields. Boxing and baseball are quite popular in the country in addition to football, rendering the total iGaming market worth well over a billion dollars.

Argentina

Online gambling is huge here, especially in Buenos Aires, even though the nation has to legalize iGaming on a province-by-province basis like USA and Canada. So far, 15 of the 24 have legalized online gambling, which represents about 85% of the country. The nation has a big economy with 46 million people.

Peru

This is one of the biggest regulated gambling markets soon on the road to becoming a billion dollar industry around 2030. It just licensed over 63 operators.

Other nations

There are also many nations where gambling is offered, but these substantially differ in their regulations. Many of these have legalized gambling while others have no legal stance on it. Still others have banned it, limited engagement in it, or legalized it only for foreign citizens.

Chile

The nation is watching to see how things work out in Brazil. Right now, though there is no support for iGaming in any of the three branches. The Supreme Court has ordered access be blocked to international betting sites.

Panama

This nation has long been in favor of gambling and legalized it back in 1947, after which it soon developed a regulatory body.

Curacao

This nation’s market has no value because gambling within the specific island is illegal, however, it issues one of the most popular international licenses which allows online casinos to operate in a large range of countries.

Costa Rica

Locals only have limited options to gamble but the nation allows foreign operators to provide gambling to other foreign citizens, thus rendering the country an attractive destination for investments and operators to establish themselves.

Belize

The nation offers a lot of offshore companies to set up for a minimal fee.

Ecuador

The nation is a legislative grey area with no law for or against gambling, but sports betting advertising is banned.

Regulation systems

There are a few different formats that Latin American countries adhere to for regulating gambling, taking advantage of its benefits, and protecting players from abuse.

National licensing

Some nations, like Colombia, issue licenses at the national level. There, it is regulated by the Colombian Gambling Regulatory Authority or Coljuegos. This authority issues all the licenses and a separate fee must be paid to enter the market legally, as well as complying with Colombia’s individual consumer protection standards and responsible gambling regulations.

International licensing & acceptance

Some nations are willing to accept particular licenses from foreign nations that meet their established criteria. This is the most convenient licensing method for operators as they do not have to continually stay updated on additional states’ and nations’ changing gambling laws or pay an additional fee to operate there. The most popular licensing bodies are Curacao and Malta. A lot of Latin American countries accept them.

Then there are some nations like Peru and Mexico which do not require obtaining a gambling license from them but if the company already has a gambling license from a reputable enough country, they will allow it to operate in their market.

Local and regional regulation

This is the approach that Argentina has taken for example, allowing the individual provinces to handle their own licensing and regulation. The Buenos Aires regulatory body which issues licenses for the region is Instituto Provincial de Loteria y Casinos. USA and Canada handle licensing in the same way.

 

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