LATAM Countries Play Positive Tune to Online Casino Laws

Latin America is enjoying an iGaming boom, with online casinos and sports betting increasing participation and revenue. With Brazil accepting casino brands and Argentina hiking its gambling tax in 2021 in preparation for legalization, a favorable shift is taking place across the continent. As several well-known companies become available in the region, new online casinos in LATAM will provide better options for gamers. A regulated market provides greater protection and authority to the player.

Reliable casinos offer competitive welcome bonuses, customer help, and legal protection. No less important is the choice of game providers and the diversity and quality of games, as government-licensed providers can offer a wholesome iGaming experience.

Considering the Market Numbers

The sports-loving LATAM is presently home to more than 670 million people, which is projected to rise to 750 million people by 2056. Compounded by the growing trend in smartphone adoption and faster internet, Latin America is a natural place for iGaming to solidify as a legal and licensed industry. Despite strides being made, the road ahead for opening new online casinos in LATAM is not so direct. Some countries have made progress in certain aspects but with no substantial changes, as in pioneering Colombia and Costa Rica, which lifted their iGaming markets out of the legal “grey area.”

LATAM iGaming Disruptors and Enablers

The COVID-19 pandemic elicited a few important takeaways for national governments in Central and South America – that people are turning to digital entertainment and that even during times of lowered economic activity, the digital economy can continue to take place unabated by restrictions to movement or rising prices.

With the expansion of iGaming, it didn’t take long for national governments to realize they were losing tax revenue. Namely, countries without a legal ban on online sports betting and online casinos couldn’t tax the providers of services working out of foreign locations. For example, the Brazilian Ministry of Finance estimates that up to US$1.4 bn per year is lost in tax revenue because of the dated legal framework. Similar reasons have inspired change in the respective online gambling laws of Argentina, Peru, Mexico, Chile, and a few other nations.

Internet Penetration Leads to Increase in iGaming Activity

The Spanish and Portuguese-speaking region of the southern hemisphere has experienced a notable increase in internet use. Presently, the number of internet users is estimated to be upward of 533 million, including the Caribbean region. While in 2017, the share of internet users was 57%, by the end of 2022, the number grew to 68.80%. iGaming operators and governments are measuring the potential of their interest as 275 million people have yet to adopt data internet on their mobile devices.

Overview of National iGaming Regulation Updates

Generally speaking, most LATAM countries have enacted or are planning to enact laws for regulating the online casino market. Some of the notable cases are listed below.

Colombia

The country is a continental pioneer when it comes to online gambling regulation. With three successive laws and technical specifications updates, the national regulator Coljuegos has been actively issuing licenses for country-wide online gambling since 2016.

Mexico

An outdated gambling law from 1947 created chaos in the online gambling market in Mexico. Operators from abroad could provide their services within the existing grey zone. The government, not being able to tax these companies, took to selectively blocking online casinos. Legislative updates now permit companies to register as providers of online gambling services, even though Mexico still hasn’t defined what “gambling” is in its legislature.

Peru

In 2022 the government of Peru published a draft bill for regulating online sports and games of chance. Importantly, it set the basis for tax collection and redistribution of revenues. The bill’s passing into law was followed by competition and disagreement between factions within the industry. Furthermore, there is lots of room for improvement as only 70% of the urban population has internet access, compared to only 40% of the rural population.

Argentina

The country’s provincial system of governance leaves it up to each administrative unit to allow or disallow online casino gambling. The second-biggest LATAM economy favors domestic operators, which have partnered with international companies like 888 and William Hill. However, its residents can access online casinos from abroad. So, extensive gambling regulation is unlikely to happen as different states will adapt to the circumstances at their own pace.

Conclusion

Latin America is witnessing a surge in the iGaming industry, marked by the establishment of new online casinos and countries adopting regulations to legalize and tax the industry. With a growing population and increasing internet penetration, the region presents a natural opportunity for iGaming to flourish. Most LATAM countries have entered the world of online casinos and sports betting, with foreign companies acquiring licenses to provide their services, except in places like Bolivia and Nicaragua where the grey zone still prevails. The biggest economies in the region, Brazil, Argentina, and Peru, have embraced the industry, and other countries are weighing the benefits of national legislation. Although challenges like varying regulatory frameworks and limited internet access in some areas exist, the potential for continued growth is high.

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Adam Regan

Deputy Editor

Features and account management. 3 years media experience. Previously covered features for online and print editions.

Email Adam@MarkMeets.com