Brazil's ban on online betting could lead other parts of Latin America to attract increased investment from the gaming industry, with Colombia and Peru best positioned to benefit.
Juan Camilo Carrasco, managing partner at the law firm Sora Lawyers, told NEXT.io that if the ban on online betting and casinos in Brazil remains in place, investment could be redirected to other markets in the region.
"Established markets like Colombia and Peru appear to be the prime candidates to absorb some of the growth the sector had originally projected for Brazil," Carrasco said.
"Latin America won't lose investment; it is more likely we will see investment redistributed toward jurisdictions that offer greater regulatory predictability."
Carrasco noted that any shift would depend on Latin American countries pursuing economic policies focused on providing a stable, predictable, and favorable environment for the industry.
Could Colombia and Peru benefit from Brazil's ban?
Colombia is among the leading candidates to benefit from this investment, having become the first country in Latin America to regulate online betting in 2016.
The market is viewed as one of the most stable in the region. Stakeholders have been encouraged by recent developments, including an April decision by Colombia's Constitutional Court to strike down the 19% VAT on online gambling that had previously been introduced by Gustavo Petro's government.
In June, the Council of State also suspended certain restrictions on online betting advertising that had been imposed by the regulator, Coljuegos.
"Regulation in Colombia hasn't changed, other than to add verticals and seek regulatory improvements," Carrasco said.
He added that there currently appear to be few prospects for abrupt regulatory change under President Abelardo de la Espriella, who has favored a pro-business, free-market approach. Peru’s regulated market, which launched in 2024, is another one investors are watching closely. The sector has seen strong growth against a backdrop of legal certainty and a thriving economy.
According to a 2025 study by Playtech, Peru has the highest gambling participation rate in Latin America. Carrasco described the market as an "attractive environment" for investors.
"After the Brazil 'gold rush,' companies might look for more stable markets in which to invest," he said.
Could there be a broader regional impact?
While Brazil faces litigation, uncertainty, and short-term restructuring, Carrasco believes that "all is not lost."
He said it would be necessary to see the outcome of Brazil's upcoming elections before drawing firmer conclusions. However, he described the situation as "unprecedented" and warned that operators would be wise to approach future investments with greater caution.
Juan Ignacio Juanena, COO of the Paraguay-based online casino AzarLatino, does not believe the interim measure—as it currently stands—will ultimately succeed.
"There is still a political and judicial path ahead, and different scenarios could emerge after the elections, ranging from maintaining a strict ban to rebuilding the model with tighter restrictions and controls," Juanena said.
He acknowledged that Brazil's regulatory framework needed "further improvement" but argued that abandoning the system developed so far would be a mistake.
"Discarding everything done to date seems like an imprudent and disrespectful decision—not only toward the companies and professionals in the sector but also toward the population itself," Juanena said.
"Gambling will always exist, whether regulated or not, but players need a government that protects them, not one that abandons them." Michele Stefanelli, Head of Account Management at Play'n GO—which operates in several Latin American markets—said that policymakers elsewhere in the region would be studying Brazil's experience. However, she cautioned against assuming that other countries would simply follow the same path.
"What Brazil demonstrates is how quickly trust can be lost if policymakers believe that regulation is not delivering the social and consumer protection outcomes they expected," she said. "That should be a concern for everyone in the regulated industry."
She stated that the lesson for other LatAm markets should be to focus on clear rules, responsible products, effective enforcement against illegal operators, and ongoing dialogue between governments and the industry.
"Sustainable investment follows trust"
Even if the ban is reversed, confidence across the region has been shaken.
Regarding the potential broader impact, Juanena said other countries are likely to watch the Brazilian case and potentially tighten rules around advertising, responsible gaming, consumer protection, and financial controls.
"Companies can adapt to high taxes or strict regulations, but they need predictability. When a country drastically changes a framework it only recently created, the reputational damage doesn't simply vanish just because the course is reversed," Juanena added.
Carrasco agreed that the uncertainty would likely cause long-term damage to the industry.
"Changing the rules so abruptly—particularly during an election period—sends an obvious political message and affects perceptions of the country's legal certainty," he said.
While much of the attention so far has focused on operators, suppliers are also suffering from the turmoil.
"For a supplier like Play'n GO, the immediate effect is obviously that our licensed operator partners are facing massive disruption, despite having invested significant time, money, and resources to comply with the framework presented to them," Stefanelli said.
Stefanelli added that the supplier remains interested in Brazil, provided the country establishes "a credible, sustainable, and nationally regulated market."
However, he emphasized that future investment decisions would have to reflect lessons learned from the current situation.
"Investment follows opportunity, but sustainable investment follows confidence," he said.
Source: Next.io
Dingnews.com 05/10/2026