This figure headlines a new “Latin America Outlook Report” published by the regulatory and compliance intelligence agency for iGaming and Payments.
Regional developments in the 2020s have seen Latin America transition from a continent of emerging market opportunities, as the nations of Colombia, Panama, Peru, and Argentina (provinces/municipalities) have adopted regulatory frameworks.
As cited: “Long considered more of an emerging market in the global online gambling industry, a clear majority of countries in the Latin American region now either have regulatory regimes in place to govern online sports betting and/or casino games or are moving in that direction.”
In 2025, exponential growth in LatAm will be accelerated by the launch of Brazil’s Bets market. Expectations are at a fever pitch, with 114 applications submitted for federal online gambling licences.
Under the Bets framework, Vixio notes that Brazil is projected to transition from a grey market to a leading legal destination, with gross revenue estimated at $2.9 billion in 2025, accounting for 47% of Latin America’s regulated market.
Following this transition, Vixio anticipates Brazil’s GGR volume will reach $6.3 billion by 2028, representing over half of the region’s projected total revenue of $12.3bn.
Brazil’s strong estimates are maintained despite the market featuring a 12% general income tax on GGR and the looming threat of the “Goods and Services Tax (IBS)” and “Goods and Services Contribution (CBS),” which may increase the tax burden by up to 26.5% on licensed businesses.
Beyond Brazil, the report’s $12.3bn figure is underscored by: “Mexico’s market is forecast to exceed $2bn by 2028, compared to an estimated $1.3bn in 2024. The Colombian market is also forecast to cross the $1bn threshold, with Peru’s newly launched regulated market expected to generate $436m in 2025 and exceed $850m by 2028.”
Markets to watch see Mexico present significant commercial opportunities with its licenses tethered to land-based operators, despite facing recent regulatory challenges and legal disputes over online gaming restrictions.
Meanwhile, Peru emerges as a burgeoning competitive market, marked by the recent issuance of 118 licenses to 63 operators, signalling rapid growth and intense competition within its newly regulated framework.
Audiences are cautioned about changing regulatory dynamics, including Argentina’s proposed advertising bans, Brazil’s ongoing regulatory and Supreme Court challenges, and the anticipated introduction of new licensing and regulatory frameworks in Chile by 2025.
Dingnews.com 12/12/2024