Latin America’s Set for iGaming Growth Boom by 2027

Latin America’s online gambling sector is poised for explosive growth, with projections indicating a sharp rise in revenue, from $1.56 billion in 2023 to over $7.86 billion by 2027. According to a recent report by Vixio, a regulatory intelligence platform, the rapid expansion of the market is driven by the implementation of regulatory frameworks in key countries like Brazil, Peru, and Chile. These frameworks are attracting global operators eager to tap into the region’s untapped potential.

Brazil, the largest market in the region, is expected to account for nearly half of Latin America’s total online gambling revenue by 2027. The country’s recent legislative developments have set the stage for this dominance. In December 2023, Brazil introduced a federal licensing system for both sports betting and online casinos, a significant milestone for the country’s gambling landscape. Although regulations are still being finalized, the Brazilian government’s betting secretariat plans to release 10 ordinances between April and July 2024 to further define operational standards. If the country can launch its licensing system by mid-2024, Brazil is forecasted to surpass even the combined revenue of other Latin American nations in the online gambling space.

iGaming Set for a big swoop

Peru is another emerging player in the region. The country launched its licensing regime for sports betting and online casinos in February 2024, and the response has been overwhelming. During the initial 30-day application window, 145 companies applied for licenses, signaling the immense interest from operators in the Peruvian market. By April 2024, five operators had already received licenses, and numerous service providers are registering to support the market. Peru’s regulatory environment is characterized by low taxes and streamlined processes, making it an attractive destination for online gambling operators. With projections estimating the market will generate $386 million in revenue by 2027, Peru is positioning itself as a key hub for online gambling in Latin America.

Chile is also on track to join the ranks of countries developing comprehensive online gambling regulations. New legislation is expected to pass in 2024, with a licensing framework potentially in place by the end of 2025. Meanwhile, Argentina’s market remains fragmented, with 16 of the country’s 24 provinces offering some form of regulation. However, regions like Buenos Aires, Córdoba, Mendoza, and Corrientes are leading the charge in providing fully licensed online gambling options.

The forecast for 2027 suggests that the Latin American online gambling market will grow more than five-fold, driven by new regulations and the entry of international operators. Brazil and Peru are expected to be the primary drivers of this growth, with Brazil potentially surpassing $4 billion in revenue if its regulations avoid overly restrictive policies. Peru’s competitive market, with its attractive tax structure and efficient regulatory framework, is set to continue drawing numerous operators.

The expansion of the online gambling industry in Latin America presents significant economic opportunities for the region. With Brazil and Peru leading the way, the emergence of robust regulatory frameworks in other countries like Chile and Mexico could shape the future of the sector. As international operators pour in to capitalize on this growth, Latin America is quickly becoming one of the world’s most dynamic and lucrative online gambling markets.

Latin America's online gambling industry is expected to grow more than five-fold by 2027, driven by the development of new licensing regimes and the entry of international operators.

The Coming Boom

The rapid growth of online gambling in Latin America presents both opportunities and challenges. From an economic perspective, the expansion of regulated markets is expected to bring substantial revenue not only to the operators but also to governments through taxes and job creation. Brazil, with its vast population and established gambling culture, is particularly well-positioned to lead this boom. However, while the prospect of billions in tax revenue is enticing, the challenge lies in ensuring that the regulatory environment remains balanced. Overly restrictive policies or high tax rates could potentially stifle the growth of the market and push operators into the unregulated sector.

On the other hand, the success of countries like Peru, which have adopted low-tax, streamlined approaches, serves as a model for other nations. The efficiency and transparency of Peru’s regulatory framework, coupled with its attractive tax environment, could help ensure sustainable growth and international investment. For global operators, entering the Latin American market presents an exciting opportunity, but they will need to navigate the differing regulatory landscapes and political dynamics across the region. The differing speeds of legislative implementation in Brazil, Peru, Chile, and Argentina highlight the complexity of the region, where each country has its own set of challenges and opportunities.

As the market grows, it will also be essential for countries to address social issues associated with gambling, such as addiction and consumer protection. With Brazil and Peru leading the charge in regulation, other Latin American countries must ensure that they do not compromise on responsible gaming standards in their pursuit of revenue. A comprehensive and unified approach to consumer protection will be key to the sustainable success of the industry, as it matures into a major economic sector in the coming years.