Overview
Latin American Impact Investing Forum 2025 that follows is based on a systematic review of the Latin American gambling market, with an emphasis on real-money online gaming (iGaming). We present succinct projections of the sector's general mid-term trajectory beyond 2024 and explain significant current trends based on government numbers, industry reports, legislative moves, and public data.
In addition to providing an overview of the remainder of South and Central America's gaming scene, the report discusses the current condition of iGaming in the major LATAM markets, including Brazil, Mexico, Peru, Argentina, Colombia, and Chile. We look at important elements that affect industry success, such as the regulatory environment, market potential, and technical developments.
The White Paper may function as a complete reference for stakeholders wishing to comprehend or invest in Latin America's iGaming industry by offering a full study of these components.
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The Situation of iGaming in Latin America Right Now
With an emphasis on the largest markets—Brazil, Mexico, Peru, Argentina, Colombia, and Chile—we will outline and defend our appraisal on the state of the iGaming industry in Latin America. But we'll also keep tabs on and discuss significant shifts in the South and Latin American Impact Investing Forum 2025.
Not only do the six countries on the above list have the largest economies and populations, but they are also the most notable jurisdictions. All of them, including all real-money gambling verticals, have lately been completely regulated. All online gaming platforms will develop into a respectable source of entertainment for their citizens based on contextual regulations.
A brief explanation of the Caribbean's exclusion from our analysis. On the one hand, this was done since it is very difficult to create a succinct picture of the area due to the large number of jurisdictions and their approaches to gaming rules. There are still several colonies, both American and European.
Additionally, there is the infamous reputation of Caribbean states that license internet gaming to operators who thereafter sell their services in unregulated marketplaces. As a result, in a worldwide entertainment industry, several gaming platforms have taken advantage of legal loopholes to grant unfettered internet access to their services.
It is true that the majority of Caribbean gaming authorities have extensive expertise and carry out exacting licensing criteria, examinations, and processes. However, as most of the more important Latin American gaming countries have gained public attention after market liberalization, this research primarily attempts to evaluate domestic coverage.
The largest regulated gaming market is Brazil.
The significance and untapped potential of the Brazilian gaming sector have previously been thoroughly examined by us. We will highlight the most important findings, such as market numbers, user demographics, and the regulatory environment, in order to present the whole picture for the current study.
Given the fragmented US framework and the absence of liberalization in the key Asian countries, Brazil's gambling industry is not only the most significant in LATAM but also the largest regulated one internationally. The anticipated yearly revenue from gambling in Brazil is BRL 50 billion, or around $10 billion USD.
Brazil is still ranked fifth in the world if we take into account all gaming categories, including casual and free games. The number of players in real-money games alone has increased significantly, surpassing 100 million. Lotteries, sports betting, and casino games are important gambling verticals; sports betting and lotteries are the most popular.
Although Brazilian gamblers naturally represent a variety of demographics, we can nevertheless describe a typical player profile: an average age of 39, with a preponderance of men but also an increasing number of women. According to socioeconomic data, a sizable percentage of gamblers are from middle-class families. The majority of gamers gamble infrequently for fun, spending less than BRL 50 (~USD 10) a month on average.
In recent years, legislative revisions have brought about comprehensive regulation, and in 2024, licensing processes will begin. This has created the groundwork for a more open and secure gaming environment. By preventing unlawful gaming and protecting consumers, the regulatory framework seeks to improve the stability and legitimacy of the industry.
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Mexico: Development and Obstacles
The research team at ENV Media has also conducted a second analysis on the gambling industry in Mexico, looking at its recent development patterns and regulatory obstacles.
Real-money gambling generates comparable amounts of yearly turnover (around USD 10 billion) in Mexico, despite the country's smaller population than Brazil. With an estimated 80 million users, the industry is supported by most of the nation's adult population.
More legal reforms have recently been made with the goal of greatly improving government control and lowering reliance on physical gaming enterprises. Slot machines at physical places were outlawed by the end of 2023, impacting both new and existing installations. Existing concessions may continue for a maximum of 15 years, while new concessions have been suspended. Experts predict a 90% decline in gaming tax income if current regulations remain in place for the foreseeable future.
As anticipated, this policy has no effect on the internet market, which is forecast to increase by 70% over the next three years and generate up to USD 4.63 billion in sales. Due to recent legislative reforms, it is anticipated that the bulk of Mexican gamblers, who are young and tech-savvy, would increasingly use online platforms.
Peru: New Prospects
Online and physical gambling establishments are both accepted and subject to licenses in Peru. Along with traditional lotteries and slot machines, internet casinos and sports betting are important verticals, with an annual value of about USD 2.5 billion.
Once more, the population is primarily young (5 million estimated total), and it is well-represented in cities like Lima.
In the last several years, the regulatory environment has changed significantly, including all gaming verticals since 2022 and concluding the licensing process in 2024. In order to preserve market integrity and consumer protection, the new all-encompassing strategy guarantees improved control of both domestic and foreign businesses.
In addition to 144 service providers and seven international labs for game certification, 145 submissions from both local and foreign operators completed Peru's first round of license applications. A total of 184 applications have been received for ongoing efforts to legalize technology platforms and game genres, demonstrating an active engagement with the new regulatory requirements.
An Overview of the Gambling Market in Argentina
Argentina's decentralized system of gambling regulation, in which each province oversees its own laws, sets it apart from other Latin American countries.
With the passage of Provincial Law 15.079 in March 2019, Buenos Aires Province became one of the first to regulate online gambling following the termination of the National Lottery monopoly in 2018. Provinces like Corrientes, Mendoza, and Santa Fe have accelerated their online gaming frameworks as a result of this strategy, especially during the epidemic. The provision of legal gaming establishments was thought to be the sensible response to the rising worry about an increase in illicit betting operations.
As of right now, the capital city of Buenos Aires and 17 of the 23 provinces have implemented gaming regulations of some kind.
Player Base and Economic Impact
Despite these legislative improvements, Argentina's gambling sector continues to develop dramatically. According to current estimates, there are over 8 million active players and turnovers of about USD 2.5 billion yearly. Even higher estimates are given by other market research, which put it at USD 3.36 in 2019 and now at USD 4 billion.
Unquestionably, the industry has witnessed a considerable rise in revenue—reportedly 80% more than in prior years. According to thorough industry research, the online gambling business alone may be valued at USD 1.39 billion by the end of 2024.
Notably, an increasing variety of gaming alternatives and heightened internet participation have contributed to the about 25.87% penetration rate of gambling among adults.
Social Aspects and Taxation
The Federal Administration of Public Revenues (AFIP) has imposed a progressive tax on all gaming activities as part of recent legislation changes. For domestic licensed operators, the fee is 2.5%; for offshore operators, it is 15%.
This tax plan seeks to strike a balance between market expansion and social obligations by encouraging responsible gaming and discouraging underage gambling, in addition to other taxes imposed by provincial and municipal governments on operators' gross gaming revenue (GGR).
Player Preferences and Gaming Culture
With a variety of options in sports betting, casinos, and other betting venues, real-money gambling is well-liked in Argentina. According to 2022 surveys, the majority of adults bet on sports, and internet sites are growing in popularity (seen as the preferable option by 70% of active players).
According to reports, 47.3% of all gamers wager on sports, with lottery (41.8%), online slots (29.1%), and card games (18.2%) following closely after. 27.3% of gamblers still visit physical gaming machines, indicating that Argentinians have a wide range of gaming preferences. Even though these proportions probably overlap, they sum up to the above-mentioned 25% adult market penetration.
Remarkably, due to increased female engagement and regulatory exposure, 44% of the market tried sports betting for the first time in the previous year. Growing legalization and public awareness efforts encouraging safe and lawful betting are factors supporting this development.
An Overview of Colombian Gambling
The government monopoly that oversees the Colombian gambling sector was created by the constitution and is governed by Law 643, which was passed in 2001. Colombia became a leader in Latin American gaming control because to this law. The rule was then modified in 2016 with an emphasis on online gaming and improving consumer safety in digital settings.
The national gambling regulator, Coljuegos, is in charge of monitoring and carrying out the regulations pertaining to responsible gaming. Comprising representatives from the Finance and Social Ministries, as well as governors, municipalities, and health worker groups, the National Council of Games of Luck and Chance provides guidance on socio-economic matters, formulates policy, and offers recommendations on the operational needs of gambling enterprises.
In 2019, the industry was still growing, with 20 national and about 360 local betting providers, 15 lotteries, and more over 2600 gaming locations. Even though there are just 17 operators providing internet services, 35% of the market's revenue comes from them alone.
Coljuegos aggressively works to restrict unlicensed operators' websites in an effort to promote responsible and lawful gaming. Online games that are permitted must have a minimum payout rate (RTP) of 83%, and the regulator randomly assesses them depending on how they operated the year before.
Operators are also have to pay taxes equal to 15% of their net gaming earnings, a yearly charge based on the 811 legal minimum salary per month, and 1% of Coljuegos' exploitation rights.
Market Size and Current Trends
The gambling industry in Colombia generated over COP 6.9 billion (just over USD 2 billion) in revenue in 2019. The gaming industry has continued to expand by 2022, particularly in the internet market. The national statistics office DANE reports that gaming outperformed several established businesses, accounting for around 1.7% of the GDP.
Coljuegos stated license payments alone brought in over COP 796 billion (USD 210 million), an 18% increase over the previous year. According to government estimates, the industry's total market value is USD 5.57 billion, or 80% of the entertainment industry as a whole.
Additionally, the industry offers a large number of job prospects. Academic studies emphasize these socio-economic benefits, and the business plays a crucial role in using tax revenues to pay health and social services.
Market Insights and Penetration
Since the epidemic, the popularity of online gambling has significantly increased; in 2023, 9.5 million unique users visited 776.6 million betting websites. The fastest-growing market was online casinos, which were followed by sports betting, poker, and Latin American Impact Investing Forum 2025.
About 20 million Colombian adults are active gamblers, or about 55% of the country's adult population. With 65.7% of gamblers, sports betting is the most popular. Online slots (22.9%) and lotteries (44.3%) are next in line. Physical gambling machines in front of them are still preferred by a sizable portion of real money players (21.4%).
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A Brief Overview of the Gambling Market in Chile
Chile's real-money gambling business has been generating record figures lately, much like its LATAM counterparts. Revenue increased 9.1% year over year to CLP 513.68 billion (about USD 530 million) in 2023.
A 12% rise in casino patrons, or 7.1 million persons, helped to sustain this gain. It was determined that the typical gamer spent USD 80 every session.
According to the Superintendency of Casino Games (SCJ), the industry generated USD 670 million in revenue in 2019 and contributed USD 210.2 million in net taxes, which includes VAT and levies exclusive to gambling. With 83.2% of total earnings, slot machines were the most popular game, followed by card games and roulette.
As casino performance started to decline in the last several years, there has been a discernible trend toward online platforms, notwithstanding the land-based venues' occasional success.
Increased legalization and regulation of online casinos and sports betting is expected to drive a 6.9% growth in Chile's overall gambling sector between 2020 and 2026. In the meanwhile, it is predicted that Chilean offshore casino revenue would increase by at least 10% a year, with the potential to reach USD 170 million annually. With 900 internet bookmakers already operating, this expansion is still mostly untaxed and poorly regulated.
Without being able to completely determine the impact that international online rivals have on the local market, the total of the aforementioned numbers puts the market at least USD 840 million. Additionally, the economic spillovers from supporting economic activity and creating jobs are not included in these figures.
Market Share and Participant Population
Based on these estimations, there are almost 7 million players out of the 15.4 million adults in the population, which indicates a high market penetration rate of 45%. Although this number is still up for controversy, Polla Chilena reported in the early 2010s that about 60% of people played games for real money. It's interesting to note that in those reports, women make up the vast majority of slot players.
The average annual revenue per player (ARPU), based on estimates along these lines, would be around USD 120. However, we anticipate that repeat gamers would probably increase the user base and lower the ARPU according to the government projections mentioned above.
Unquestionably, there is a strong gambling culture in Chile, especially in relation to sports, with football being the most popular sport among fans. Given that 11 of the 16 Chilean first division football clubs are sponsored by online betting sites, the industry's significance is obvious.
Increased disposable income, foreign investments, and the popularity of mobile games have all contributed to the expansion of Chile's online betting industry. Additionally, the business is benefiting from local initiatives to encourage responsible gaming.
However, because of the lengthy wait for returns, some significant international companies are thinking about leaving the market. Others hold off on committing to a long-term presence until final regulatory decisions are made.
Historical Background and Regulatory Developments
Prior to 1990, horse racing were the sole permitted gambling activity in Chile. When Polla Chilena started offering fixed odds betting in 2008, the scenario changed. Over 2000 betting terminals were subsequently installed throughout Chile by the monopolist operator, which is the only land-based sportsbook in the nation.
Since the introduction of 5G networks, Chile's gambling culture has flourished thanks to technical improvements. 90% of people in the nation have access to the internet, which has aided in the development of remote gambling.
The goal of recent legislation is to create a regulated and competitive online gambling industry. Chile's Chamber of Deputies adopted a law filed in March 2022 in December 2023, and the Senate is now reviewing it.
The measure expands regulatory control to many current national authorities and imposes strict criteria on operators, including as their creation as closed businesses and a set of technological, financial, and advertising norms. Additionally, operators must grant the SCJ and the Internal Revenue Service remote access to their systems.
With a 20% online GGR and 3% extra levies (2% designated for sports and 1% for responsible gaming activities), the tax structure is essentially the same as Spain's licensing scheme. The tax rate on player wins is 15%.
The Supreme Court delayed grey-market operators' chances of becoming registered and licensed by imposing a 12-month "cooling-off period" on them in late 2023. The action is perceived as a clear attempt to safeguard state-owned companies throughout the changeover.
This is clearly a topic of controversy since it prevents the Federal Gambling Bill from being quickly modified. The three main Chilean operators, Loteria Concepción, Polla Chilena, and Teletrak Chile, are engaging in monopolistic tactics that are making market liberalization more difficult by erecting obstacles and pursuing legal action against international competitors.
It is hoped that by the end of 2024 or the beginning of 2025, Chile would have a temporary operating system.
Similar Regulatory Features in the Gambling Markets of Latin America