It’s hard to overlook the fact that online gambling has been growing across the globe. A recent analysis projects the market to be worth $90 billion by 2023, compared to the $30 billion of 2019.
That is a triple rise. There are differences in legal provisions between countries. Even so, the growth of digital casinos seems to be uniform.
USA and Canada have today the most flexible rules in this industry. Citizens of these nations enjoy casino games on their mobile phones from anywhere.
Amidst this growth is one region that is attracting a lot of attention, South America. As a neighbor to the US and Canada, recent legislation changes in this region have seen it adapt to technological changes.
South America carries more than 427 people. 75% of this population is of legal gambling age. This makes this area a huge potential market for online casinos.
It was not until recently that South America began to emerge as a region to watch for the next big thing in mobile casinos. And it can only get higher and higher.
Many experts think this region will rival the US and Europe. And all stakes are in its favor.
Even the laws around gambling are still a major stumbling block; there is a huge difference from a few years ago. Perhaps they realize that changes are inevitable.
Here is how the Latin American online gambling realm looks like in 2021 and beyond.
Argentina
Argentina has a population of about 45 million. It’s the fourth largest country and the second biggest economy here.
Every province has its regulations on gambling. This means operators can only serve residents of their provinces.
Today, the country has one of the biggest online gambling platforms. It’s estimated to generate $2.4 billion every year.
The 2020 crisis that affected the world saw Argentina impose a 2 to 5% tax on online gambling. This is not inclusive of the provincial and city taxes.
Buenos Aires province, for instance, cuts 25% of operators’ revenue. 10% tax is also applied on GGR in the city of Buenos Aires.
Despite everything, the market has kept expanding. The Buenos Aires regulatory authority, for instance, opened 2021 with more partnerships. Domestic companies are working with international investors like William Hill and Bet365.
Brazil
Brazil is the most popular country in Latin America. Most consider it a sleeping giant, but one that has woken up.
Any form of gambling is still not allowed. But, a special commission in 2016 developed specific laws that were passed in 2018. It’s only a matter of time before they are implemented.
The public was involved in the legislation process. It compiled over 2000 suggestions from different companies. Privatization of sports betting is recommended.
Many have been anticipating the time these laws would come into effect, which is 2021.
Brazil has a population of 200 million people. 63% of them have access to mobile technology. It’s the country with the most extensive land-based and sports betting industry.
A provider will have to pay $560 00 for a sports betting license, with a monthly fee of $3700 for brick ‘n’ mortar service providers. Those who operate online only pay a $5600 monthly fee. And if you want to run both retail and online, a monthly fee of $8400 is applicable.
All eyes in the iGaming industry are set on the situation in Brazil. And they have a good reason for this. Only five years of being regulated and the sports betting market is projected to be worth more than $1billion.
No other market has grown this rapidly. We are yet to see more from Brazil.
Chile
The beginning of 2021 came with major changes in the Chilean gambling space. The Ministry of Finance had earlier announced the introduction of a new bill to regulate digital gambling. Before that, even licensed land casinos could not provide their services online.
These new regulations seek to increase revenues and player safety. More changes have happened recently that have affected this industry.
In 2020, regulatory authorities announced that renewal applications would change. It would be as per the financial valuation. Before this, it was based on the current licensing situations.
Renewing licenses is no longer through the tender process. Instead, license holders must meet certain requirements.
Foreign investors were not happy with this arrangement, though. So, the Chilean Casino Association broke off the negotiations towards the end of 2020.
If online gambling is allowed, casino en Chile might become the largest market for operators in South America. It has all the right tools to create an excellent online gambling market.
Colombia
Colombia is known across the globe as one of the biggest markets. It has a population of more than 50 million. It’s considered the fourth-largest economy here, with more than 50% of people able to access mobile services.
The country presents a great potential for online gambling. It was the first Latin American nation to regulate online gambling in 2016. It has been growing steadily ever since.
In 2019, the gaming and betting revenue grew by 106% to reach $19.6 compared to 2018. And by 2020, its net NGR was projected to hit $200 million.
Online gambling is picking up today, especially after the outbreak.
Other countries
Costa Rica is the most attractive country for the iGaming industry. The government has tolerated gambling providers, with no tax on internet gambling revenues. More than 450 related companies operate from here.
In The Dominican Republic, all types of gambling are regulated by the government. Online gambling license costs about $230,000 and another $2,000 administrative fee.
Land-based and online gambling is prohibited in Ecuador. Yet, there has been a call for changing this situation, which would majorly increase the country’s revenue.
With a population of over 120 million, Mexico is another market where online gambling has taken roots. Over 60% of her people have access to mobile technology. New and expanding online casinos have always found Mexico a perfect place to pitch their tent.
It’s no wonder they have the best pronosticos de futbol sites.
Conclusion
South American digital gambling markets are creating a serious rivalry for giants like the US, Canada, and Europe. The surging saturation of current is one of the reasons for this growth.
Regulating this sector is expected to increase revenue. Well, as a home to millions of gamblers, we are yet to see the best of South America’s betting realm.
Also Read: Present And Future Of Digital Gambling: The Evolution Of Online Casinos