LATAM is a growing and promising market for online gambling. Brazil is Latin America’s biggest gaming market with over 216 million residents, followed by Mexico and Colombia. The Brazilian government made an announcement on lower taxes on video gaming consoles, add-ons, and games. Sales in the new gaming market increased as a result of this decision.
Everyone knows how big the online gambling market in North America is. For example, Michigan’s online gaming income totaled $185.8 million in May 2023, an increase of 15.5% over 2022. But behind every successful online gaming market, there is a strong base of legislation and regulatory frameworks. Let’s look at the iGaming regulation in LATAM.
iGaming Regulation in LATAM
There are many rules governing online gambling in Latin America. Bolivian and Nicaraguan lawmakers do not distinguish between offline and internet gambling, whereas Argentina’s laws vary depending on the state.
Brazil, Colombiaб, and Mexico are among the Top 10 nations in the world for daily casino visits. Brazilians are known for their fervor for soccer, so it should not be surprising that they like placing bets on sporting events. The two biggest teams in Brazilian soccer, Corinthians and Flamengo, have more than 30 million fans each.
Brazilian legislators drafted a licensing scheme in the spring of 2022 to govern gambling. Operators must spend $4.4 million for a license that is good for a maximum of five years. Up to 31 traditional casino resorts, cruise ships, licensed riverboats, and gaming resorts in tourist zones were approved by the Brazilian Chamber of Deputies.
In research by Grupo Globo, 78% of the players admitted to playing blackjack and roulette at online casinos. Brazil’s ban on credit card payments for gaming transactions, however, complicates issues quite a bit. Bank transfers and APMs like Sodexo and Pix are officially prohibited to be used in gambling under Brazilian legislation. Moneygrator is a regional one-click multiple payment mechanism created specifically for casinos.
Mexico is the second-largest economy in Latin America, and despite having only half as many people as Brazil, the country’s gambling industry generates $300 million annually. Both sports betting and casino gambling are quite popular in the country. Currently, Mexico is home to hundreds of sports betting and casino operators, the bulk of which are affiliated with companies that have international operating licenses. Online business owners are required to get a SEGOB license and pay a 30% tax on their GGR revenues. Mexicans are permitted to bet online, but only via sites that are headquartered outside of Mexico due to the complicated prohibitions around casino gambling that change depending on the game.
The licensing process is structured on alliances with conventional “land-based” casinos. Both the conventional and online gambling industries, including online casinos, are governed by the Dirección General de Juegos y Sorteos and the Gaming Regulations of the Federal Law on Games and Raffles. The Directorate General of Games and Draws oversees the regulation of the casino industry in Mexico. The legislation permits bank transfers, CoDi, OXXO, and credit card payments.
In 2016, Colombia became the first nation in LATAM to regulate online gambling. Operators pay a flat tax of $175.000 and the gambling tax, which is 15% of gross online gaming revenue (GGR). Operators of online casinos often increase their selection of games to attract more players. To combine more than 7000 games from more than 100 authorized industry developers into one iGaming platform, many people utilize APIgrator.
Colombia is home to a regulated, open online gambling industry. Coljuegos has approved, regulated, and strictly supervised online casinos. Players at online casinos have the option of making payments using their digital wallets, credit and debit cards (Mastercard, Éxito, Visa, and Codensa), bank transfers (PSE), and cash (Efecty and Daviplata), in addition to other payment methods. Digital wallets are pretty common in Colombia, a nation that is rapidly digitizing its financial system.