Traveling in Latin America22 June, 2021
Emerging markets will dominate the non gamstop uk sites debate in 2021, and one of them – the Latin American region – has spawned many new opportunities. Read on to learn about regulations and revenues from Mexico to Brazil and take a look at the huge potential of this market. Latin America has a promising future. Markets that have already decided to regulate online casinos and sportsbooks are seeing steady growth, and countries that are brewing positive changes in legislation are predicted to expect the same in the near future. Online gambling policies vary widely across the continent. Some countries, such as Ecuador and Brazil, currently prohibit all forms of online and traditional gambling other than the government lottery. In other countries, there is no official permission or restriction. Bolivia and Nicaragua, on the other hand, mention online gambling in the legislation governing the gambling industry in general. In Argentina, the decisions to allow or prohibit online gambling are made by each province separately. Countries actively working towards reform include Bolivia, Mexico and Brazil. In the last two, legislation is pending. Colombia, meanwhile, is updating its legal regulations to better adapt to the new, digital age. Brazil has been called the dormant giant of Latin America, but many other markets offer tempting conditions for iGaming operators. Below we offer an analysis of the market of South American countries at the beginning of 2021.
With a population of 45 million, Argentina is the fourth largest country and the second largest economy. Mobile phone penetration rate is high at 66%. Gambling is regulated at the provincial level, and legal operators can only offer services to residents of the province in which they are authorized. Where the market is open, operators are allowed to offer all possible forms of bets. Argentina’s online gambling and betting sector is projected to generate $ 2.4 billion in annual revenues. In an attempt to tackle the crisis in 2020, the government recently announced a federal tax increase on online gambling, from 2% to 5%. This tax is separate from local taxes that are imposed by cities and provinces. For example, in the province of Buenos Aires, the tax on gross gaming income is 25%, while in the city itself it is only 10%. The country also regulates advertising for gambling – it cannot target minors and cannot contain deception or misleading. Only licensed operators can advertise their services in the country. IPLyC – the regulator of the province of Buenos Aires – kicked off 2021 by launching licensing for a series of partnerships between local companies and foreign operators.
All forms of gambling have been banned in Bolivia since 2002, creating a vacuum that illegal operators non uk registered gambling sites have filled. Perhaps due to the dominance of the black market, attempts to introduce sound regulation into the country’s legislation have not yet progressed far. Regulations must first be enacted at the federal level before they can be considered at the local government level. At the moment, online gambling is not regulated and licenses are not issued.
Brazil is the largest and most populous country in Latin America, often referred to as the sleeping giant – and it is high time for it to wake up. So far, most types of gambling are prohibited, however, in 2016 a special commission was formed to develop regulations for the sports betting market. Gambling legislation was eventually passed in 2018, but its implementation was delayed. The legislative process included consultations open to the public, which brought 2000 proposals from 600 hundred gambling companies. For now, it looks like sports betting will be privatized, the lottery will be run by local governments, and jockey clubs will continue to offer horse racing bets. The long-awaited regulations are expected to take effect by mid-2021. Once that happens, Brazil will be the largest market for land-based and online sports betting on the continent. With a population of 200 million, approximately 63% of whom have access to mobile technology, and a national love of football, Brazil is a dream come true for bookmakers looking to expand and enter the South American market. The license fee for sportsbooks will be R $ 3 million ($ 560,000), with a separate monthly payment of R $ 20,000 ($ 3,700) for land-based bookmakers. Sportsbooks that operate exclusively online will pay a fee of 30,000 reais ($ 5,600), while companies offering all kinds of sports betting will pay 45,000 ($ 8,400). The entire iGaming industry has been closely monitoring the situation in Brazil – and for a reason: according to experts, the sports betting market will reach $ 1 billion within five years after the regulations come into force.
Without the help of experts, a business can end as soon as it starts. Our experienced team of specialists can help you select the right target market and business administrative structure, as well as obtain a license.
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