It is not surprising to see overall growth in the gambling industry all over the globe, but is Latin America among these leaders too? Probably, it is since the country can boast a whopping number of players that has already beaten a 260 million threshold and keeps growing incessantly.
According to Statista, the LatAm gaming revenue will grow from 2.26 billion in 2018 to 3.6 billion by 2023 and the largest gaming markets will be in Mexico, Brazil, and Argentina respectively. But is there space to thrive? Let’s find out from this article.
What has influenced online gambling in Latin America?
Experts continue to predict gradual growth to online gambling in the countries of South America and there are apparent reasons for that:
1. The pandemic.
Despite the fact that many terrestrial casinos had to close their doors to gamblers, online gaming platforms have seen a significant increase in the number of people looking for fun. Casino games have become one of the most efficient ways to entertain yourself without the necessity to leave home.
2. More casinos add Spanish and Portuguese to the supported languages.
Since the majority of online gambling destinations usually focus on English-speaking players or citizens of the exact country, currently, gamblers can see a step towards them. A bigger number of platforms have adapted their sites for Hispanic nationalities and it has led to a boost in their popularity too.
3. Tech availability.
It is not surprising to see an ascending curve in the number of smartphone users. In 2019, 500 million mobile subscriptions in Latin America were operated on smartphones and the number is forecast to reach 560 million by 2026. Furthermore, laptops, tablets, and consoles have become more accessible too. According to DFC Intelligence, despite the fact that smartphones are preferred the most for gaming, computers are still chosen by 48% and 39% of gamers prefer consoles.
4. Internet speeds are gaining pace.
Not only the number of providers keeps on growing in Latin America but also the speed of the Internet connection. Players get a smooth and more versatile gaming experience with access to live dealer games and new casino innovations.
5. Game diversity.
Constant growth in the number and variety of games encourages players to try new releases and enjoy gambling more actively. The appearance of new providers and game types only boosts interest in this way of entertainment.
6. Lower taxes on gaming accessories in Brazil.
Since the country takes the silver prize by the size of the iGaming market, the announcement about a reduction of the tax on industrial products made by the Ministry of Economy may only increase the revenue and popularize gaming to a bigger extent.
Overview of online casino regulations and revenue in LatAm
Being often called a land of promise for the gambling industry, players can see constant changes in the regulation of this field in the majority of countries. The regulatory status of online casino sites in South America varies depending on the country, but those states that have introduced favorable regulations of the gambling industry anticipate the constant growth of revenue. Let’s have a closer look at the countries separately.
Argentina
Argentina has introduced regulation on a province basis and allows offering all forms of gambling to players. In 2021, the government also increased the federal tax on online gambling to 5% and there was an increase in the number of licensed casinos too.
Brazil
On December 30, 2023, Law No. 14,790, which mainly regulates ‘fixed-odds betting’, was passed.
Chile
Despite ongoing efforts to legalize online gaming platforms, progress is being made as the bill regulating online gaming and betting has taken a significant step forward with its approval in the first stage by the Chamber of Deputies.
Colombia
Colombia became the first among Latin American countries to regulate online gambling in 2016. The statistics posted by the country show a constant growth in the gambling industry, and it reached over $200 million in 2020.
Perspectives of the mobile gaming market in Latin America
Experts predict that the mobile gaming market in Latin America will grow by 10.5% during the forecast period between 2021 and 2026. There is a significant increase in the number of players who prefer mobile gambling since over 60% of players access games on mobile gadgets nowadays. The main reason for that is a significant growth in the number of Internet connections since over 444 million people in Latin America will have access to the web. Furthermore, the Global System for Mobile Communication expects that Latin America will have 7% of 5G connection by 2025 too. It will improve players’ experience and increase the number of players looking for it.
Furthermore, the number of gaming companies operating in this region has also grown significantly. In fact, it has doubled within 5 years, so the selection of mobile games available to players has also increased.
Conclusion
As you can see, Latin America has a huge potential when it comes to the gambling industry, and it has not been used fully yet. With the constant growth of mobile users, a variety of casino games, operators offering services, Internet speed, and lots of other factors that contribute to its success, the iGaming industry will continue to thrive in the future too.
Read more: Best iGaming Aggregators
