Latin America: By 2026, iGaming Revenue Will Reach USD 4.4 Billion
18 May, 2023
In the upcoming years, Colombia, Brazil, and Mexico will produce the greatest revenue in the industry, according to research by business intelligence company VIXIO GamblingCompliance. Other governments that will make regulatory strides will join them, making this a desirable place for private investment on a global scale.
Latin America Online Outlook 2022
There are plenty of gambling opportunities to find in America, both in its North and South parts. Even the global pandemic wasn’t able to stop the gambling juggernauts like Las Vegas and New Jersey. One can just take a look at BetMGM’s impressive growth with a 28% market share and Q1 revenue of over $470 million and see how the market is flourishing. But, Latin America isn’t trailing the competition. A new report titled “Latin America Online Outlook 2022” was released by VIXIO GamblingCompliance, a business that offers insightful data that enables businesses to remain abreast of legislative developments. Additionally, it provides a prediction for regulated markets on the continent up until 2026 and provides information on Brazil’s upcoming sports betting market.
Currently, LatAm is a strategically significant region for international operators and suppliers in the iGaming industry looking for expansion opportunities in recently regulated markets. Following Colombia’s example, several nations are putting in place legal frameworks for online gambling goods, including Panama, Peru, Chile, Brazil, and different provinces in Argentina. Major European-based operators are either pursuing licenses or collaborating with local operators in these jurisdictions.
The recently revised Latin American Online Data Dashboard’s legislative assumptions are used by VIXIO GamblingCompliance to project that local iGaming income in 11 Latin American nations would total USD 4.4 billion by 2026.
LAOO 2022 Country Breakdown
Here’s a research breakdown of the three most notable players in the gambling market of Latin America.
Brazil
Online fixed-odds sportsbooks became allowed in Brazil as a lottery game in December 2018 thanks to Law No. 13756/2018, which also regulated the creation of a competitive market through a license or concession system by the Ministry of Economy. The Federal Government’s monopoly on lottery games was overturned in a major Supreme Court ruling in September 2020, giving the 26 Brazilian states and the Federal District of Brasilia a new road for legalizing online lottery games, including sportsbooks.
Colombia
Under Law 643/2001 and Acuerdo 4/2016, Colombia became the first nation in Latin America to regulate iGaming and put in place a system of open licensing akin to that in the EU. Additionally, Colombia was the first nation in the region to implement ISP-blocking of illegal gambling websites. The gaming regulator Coljuegos continually assesses its operations, proposing discussions on new gaming products and industry best practices, to ensure a responsible and alluring market for operators and customers.
Mexico
The Federal Gaming and Raffles Law from 1947 and a 2004 decree both govern gambling in Mexico. Despite the absence of clear rules, legal interpretations allow licensed land-based casinos to run iGaming websites and sportsbooks. The National Congress has not made any progress on legislation for a new legislative framework since 2014. Although the regulator, SEGOB, held a series of roundtable discussions in March 2021 on what a new legal framework should include, the ruling political party has nonetheless declared its intention to introduce new legislation.
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