Latin America’s online gambling industry is set to experience unprecedented growth, with gross revenue expected to exceed $7.86 billion by 2027. According to a recently published report by regulatory intelligence technology platform, Vixio, this represents a dramatic increase from the estimated $1.56 billion recorded in 2023. Brazil, Peru, and several other nations in the region are implementing regulatory frameworks to capitalize on the sector’s potential, attracting significant interest from global operators.

Latin America’s online gambling market prepares for rapid expansion:

The comprehensive report from Vixio, Latin America Online Gambling Outlook (pdf), highlights trends, forecasts, and policy updates shaping the region’s emerging market. It also provides an in-depth analysis of legislative progress and licensing structures in key countries like Brazil, Peru, and Chile.

Brazil’s online gambling sector is poised to dominate the Latin American market, accounting for approximately half of the region’s projected revenues by 2027, as reported by European Gaming. The country’s December 2023 legislation created a federal licensing framework for both sports betting and online casinos, marking a significant milestone.

Although regulations are still being finalized, Brazil’s recently established betting secretariat has announced plans to release 10 ordinances between April and July 2024. These regulations are critical to defining operational standards and ensuring compliance within the industry. If Brazil successfully launches its licensing system by mid-2024, the country is expected to lead the region’s online gambling market, surpassing even the combined revenues of other Latin American nations.

Peru: a model for streamlined licensing:

Peru has emerged as another key player in the region, implementing its licensing regime for sports betting and online casinos in February 2024. The regulatory process has attracted substantial interest, with 145 companies applying for licenses during the initial 30-day window, according to Peru’s Ministry of Foreign Commerce and Tourism (Mincetur).

As of April 2024, five operators, including Betano, DoradoBet, and RetaBet, have already received licenses, while 180 service providers and eight certification labs are registered to support the market. The low-tax environment and efficient regulatory procedures make Peru an attractive destination for operators, with projections suggesting the market will generate $386 million in revenue by 2027.

Peru’s approach has been notably less contentious compared to other countries like Brazil and Chile, making it a benchmark for streamlined regulatory processes in Latin America.

Chile is anticipated to follow suit with new online gambling legislation expected to pass later in 2024. If implemented on schedule, the country could establish its licensing framework by the end of 2025. In Argentina, online gambling remains fragmented, with 16 of the country’s 24 provinces offering some form of regulation. Buenos Aires, Córdoba, Mendoza, and Corrientes are among the regions leading the charge in providing fully licensed online gambling options.

Outlook for 2027:

The regulated online gambling industry across Latin America is forecasted to grow more than five-fold by 2027, driven by the development of new licensing regimes and the entry of international operators. While Brazil and Peru are expected to lead this growth, markets like Chile and Mexico are also positioned to play significant roles in shaping the industry’s future.

Brazil’s contribution to the regional total could exceed $4 billion if its regulatory framework avoids restrictive policies. Meanwhile, Peru’s competitive market, bolstered by low taxes and streamlined processes, is set to attract numerous operators, solidifying its place as a key hub for online gambling in Latin America.