iGaming Opportunities in the Top 4 Destinations in Latin America

The prospects for the development of the gaming business in Argentina, Brazil, Peru, and Colombia inspires numerous entrepreneurs to find out more about these countries. The proper theoretical background provides a solid foundation for the casino creation strategy.

2WinPower offers an extensive guide on the iGaming business opportunities in these 4 destinations. We propose to find out more about the local regulations, software support, advertising peculiarities, and potential prospects.

Argentina

The social background of the country is amazingly favourable for the development of the iGaming business. It is the fourth-largest state in Latin America. Its economic growth is rated as second in the region, with the total number of inhabitants reaching almost 45 million.

From the technological point of view, Argentina has decent mobile coverage — 81% of all population have viable broadband subscriptions. Furthermore, the total Internet spread around the country is 74%, which is above average in the Latin American region.

Argentinian regulation peculiarities:

• online gambling is controlled on the provincial level;
• in total, there are 23 districts, with 8 of them having established iGaming regulations;
• 3 provinces (Buenos Aires, Mendoza, Córdoba) bear 70% of the total market share;
• the registration process is based on case-by-case licensing.

Sports betting (particularly football) is the most beloved activity in Argentina. On average, almost 40% of the locals have wagered on sports events at least once in their lives.

Online casino establishments are also popular in the region. Slots and video bingo are the 2 most played types of gambling here. Live gaming occupies a particular niche in the entertainment business in Argentina. After the closure of ground facilities, numerous punters required a viable alternative. Online games with real dealers became a revelation for millions of Argentinians.

The variety of payment processors in Argentina is abundant. It comprises globally-renowned services (MasterCard, Maestro, Visa) and locally-operating brands.

Top 3 preferred payment gateways in the country:

1. Rapi Pago.
2. Pago Facil.
3. Cobro Express.

Brazil

The country is considered a sleeping giant of the iGaming business in Latin America. With a total population of 211 million people, Brazil is the largest grey online gambling market worldwide. The local government is currently on the finish line of legalising the industry. As for now, operators enter the region with offshore licences.

The technical capabilities of the country are impressive. Almost 90% of all residents have access to mobile phones. The spread of the Internet connection is 70% and counting.

Brazilian regulation peculiarities:

• the approval of legal gaming is expected to be completed in the last quarter of 2021;
• fantasy leagues are not considered gambling activities and are allowed in the country;
• the implementation of tax restructuring in 2018 made the local market more appealing to investors and acted as a formidable preparation for the iGaming legalisation.

If an entrepreneur wants to start an online gambling business in Brazil, he needs to resort to offshore jurisdictions that offer licensing services. The local government does not restrict such activity.

Top 7 popular registration destinations for operating in Brazil:

1. Malta.
2. Curacao.
3. The Isle of Man.
4. Alderney.
5. Gibraltar.
6. Kahnawake.
7. Belize.

Sports betting occupies the largest share of the sphere. Football and horse racing are the 2 most popular activities that punters wager on. The percentage of bettors in the country is lower than in Argentina (18%) but is still high considering the local population.

Apart from fantasy leagues, authoritative bodies do not prohibit lottery and poker on the Internet. At the same time, these activities are strictly monitored by the corresponding commissions.

The advertising features of the state embrace the following aspects of iGaming:

Top 3 preferred payment gateways in the country:

• Pix.
• Boleto Bancario.
• Local credit and debit cards.

Colombia

The country has the fourth-greatest economy in Latin America, with a population of 50 million people. Colombia was the first state on the continent to install online gambling regulations in 2016. Since then, the increase in internet betting showed a 303% jump in 5 years. The iGaming sphere in Colombia is a priority for the local government. It represents 1.5% of the country’s GDP.

Technological characteristics of the market are less favourable than in Argentina and Brazil, but they are still above average. Almost 60% of the population have mobile broadband subscriptions in Colombia. 64% of locals are connected to the Internet and ready to enjoy iGaming entertainment.

Colombian regulation peculiarities:

• the country became the first in Latin America to establish online gambling legislation according to the Law 643/2001 in 2016;
• Coljuegos is the main controlling body in Colombia, accepting, reviewing, and granting operational licences;
• the registration process is based on the European, when a single permit provides approval for all gambling activities;
• all unauthorised and illegal websites are quickly tracked and blocked from the Colombian iGaming market.

The most popular activities:

Colombia is another country that has almost all of its bets (90%) centre around football. Other disciplines are much less popular, losing even to foreign soccer tournaments.

Top 3 preferred payment gateways in the country:

1. PSE.
2. Baloto.
3. Efecty.

Peru

The smallest country by population (33 million), this iGaming destination has big potential for development. 66% of inhabitants are connected to the mobile network; 55% of residents have access to the Internet. Regardless of small numbers, Peru is constantly developing in terms of technological and informational support.

Peruvian regulation peculiarities:

• online casinos are controlled, while sweepstakes and betting businesses are not;
• the local regulatory body is Dirección General de Juegos de Casinos y Máquinas Tragamonedas;
• there is still a final word to be said on the bills that are aimed to legalise online gambling and bookmakers’ activities.

The majority of Latin American countries are fond of football and everything related to it. Peru is another excellent confirmation of this. Almost 88% of all betting activities are made on football events. Horse racing is the second most popular sport, with hardly 6% of wagering propositions.

18% of all Peruvians have been engaged in betting at least once per their life. Another statistical research, carried out in 2019, showed that a whopping number of daily bets — 150,000. The average image of a Peruvian bookmakers’ visitor is a man, aged 20–45.

Top 3 preferred payment gateways in the country:

1. Pago Efectivo.
2. Visa.
3. MasterCard.

The Main Things about the iGaming Business in the Latin American Region

The possibility to launch a legal gambling platform is advantageous. Doing this in one of the most rapidly progressing destinations in the world is even better. Brazil, Argentina, Peru, and Colombia are excellent countries for organising an online casino or a web betting venue in Latin America.

An operator who plans to settle down in this region should keep in mind:

• gaming portals require a country-to-country approach and must have their advancement be based on the local culture and demographics;
• the social level of the audience in Latin America pushes players to deposit small but regularly;
• for beneficial retention of visitors, the RTP levels in local casino venues are higher than in Europe;
• the huge popularity of betting drives the market, but such emerging trends as social gaming and live casinos are slowly but steadily gaining increased recognition.

Contact our customer support team to discover order information and inquire about more details on the iGaming business in Latin America.