Numbers don’t lie. For Latin America’s online gambling industry, the data points to extraordinary growth, fierce competition and untapped potential. Forecasts predict the region’s regulated markets will generate an astonishing $12 billion (€11.04 billion / £9.36 billion) in gross gaming revenue (GGR) in 2028. This is up from just $2.5 billion (€2.3 billion / £1.95 billion) in 2024.

Although Brazil, Peru and Colombia lead the charge, every country in the region is contributing to this narrative.

In the final article of this series exploring the recent Latin America Online Gambling November 2024 Outlook, we deep dive into the numbers. By analysing market size, operator dynamics and studying the ripple effects of regulation across Latin America, operators and investors will find themselves better positioned in this booming market.

Brazil’s economic dominance

Brazil currently dominates the discussion about Latin America’s gambling landscape. Recently, Brazil reached a significant milestone. Out of 114 companies that applied for licences to work in the regulated online betting market in Brazil, 71 received authorisation to pay the R$30 million (USD $6 million/ €5.4 million / £4.8 million​) concession fee to operate.

Experts expect the region’s largest market in Brazil to become one of the world’s top three gambling markets by 2025. Brazil’s growth is driven by its transition from being an unregulated grey market to a fully licenced and federally controlled system. Buoyed by a population and potential player pool of 200 million, combined with the country’s powerful and fanatic sports culture, this creates a perfect storm for sports betting operators. Football is the dominating sport, but others such as basketball and volleyball are also gaining traction amongst bettors.

The sports betting market in Brazil is witnessing a surge of interest from major global operators such as Bet365 and Betano. Through local sponsorships and innovative features, these companies can dominate market share. The increasing popularity of micro-betting, where players wager on specific in-game events such as corner kicks or individual player performances, aligns with a growing demand for engaging real-time betting experiences.

Once Brazil’s federal licencing regime launches, it will create a wave of economic activity. This will attract investors, operators and suppliers from around the globe. Challenges remain still. High taxes, licencing fees, and compliance requirements may limit market participation. This, coupled with the R$30 million concession fee, leaves room for unlicenced operators to mushroom.

Comparative market size

Brazil’s projected GGR in 2028 dwarfs its regional neighbours:

• Peru: $850 million (€782 million / £663 million).
• Colombia: $1 billion (€920 million / £780 million).
• Mexico: Over $2 billion (€1.84 billion / £1.56 billion).

These figures highlight Brazil’s outsized influence, with the country expected to account for more than half of Latin America’s total GGR by 2028.

A tale of two markets for operator density

The density of operators varies significantly between countries. This highlights the differences in regulation and market maturity in Latin America.

Peru’s licencing frenzy

By licencing 63 operators in just under a year, Peru stands out. With one operator per every 545,000 residents, Peru’s market is one of the most competitive in the region. With success come challenges in the guise of operators vying for market share in what looks to be a relatively small player base. This, however, drives innovation and encourages operators to introduce new products and embrace new technologies to stand out.

Colombia’s steady growth

Colombia was an early adopter of online gambling regulation. This helped it maintain a more measured approach to licencing. With 15 licenced operators, Colombia averages one operator per 2.8 million residents. This lower density makes the competition less cutthroat and allows growth to be sustainable, thus, in turn, allowing operators the space to establish strong brand loyalty.

Brazil’s selective strategy

As we highlighted earlier in this article, Brazil took a more selective approach to licencing by authorising 71 out of 114 applications. This, coupled with its high entry costs, looks set to see a less crowded but highly competitive market. Brazil’s regulation will cause a ripple effect far beyond its borders because it is the largest economy in Latin America. Its success, or failure, will shape not only the region’s regulatory landscape, but it will also influence neighbouring markets.

With Brazil’s market launch in 2025, the upcoming FIFA World Club Cup, and the 2026 FIFA World Cup, and other major sporting events are likely to have a massive impact. These events provide operators with many opportunities to attract and then keep longer term customers because they attract casual players as well as the seasoned gamblers who already use their accounts regularly.

The emerging regulation in Brazil can only be a positive for cross-border relations. Operators will see doors open, which would create regional consistent and also generate opportunities for operators to scale their operations and business models. Colombia and Peru, with their already established frameworks, will benefit from this trend.

Chile’s cautious optimism

Preparing to launch its own licencing system in 2025, Chile is scrutinising Brazil’s every move. To learn lessons from the successes and tribulations of Brazil, especially in the areas of taxation and responsible gambling, will stand Chile on a sound footing. The regulation of fixed-odds betting in Brazil has advanced with the announcement of the creation of the Interministerial Working Group on Mental Health, Prevention and Reduction of Harm from Problem Gambling. This will be a trend others will follow.

Argentina’s advertising evolution

The advertising restrictions imposed by Brazil are already resonating across the region. Argentina is debating a nationwide ban, inspired partly by Brazil’s stance of focussing on vulnerable groups. This can only be a good thing for the responsible gambling initiatives across the whole of Latin America.

The Copa America effect

The 2024 Copa America, held in the U.S., provided an enormous boost to operator revenues in Mexico, Colombia and Peru. By driving player engagement and revenue, operators reported a near doubling of its revenues in Latin America according to Rush Street Interactive. Betsson also saw a 34 percent surge in its regional earnings.

Sporting events like Copa America spike not only revenues: they also highlight the growing need for tech solutions that can scale rapidly. Meeting this growing demand hinges on technology, from AI-driven customer understanding, to secure payment systems.

Technology and innovation

This is a vast area of exploration in Latin America. Technological advancements, as similar in markets around the globe, are transforming Latin America’s online gambling industry. This allows operators to focus on a more regional and customer-centric localised business model, offering more personalised and secure experiences.

A game-changer is Brazil’s Pix payment system. This offers instant transactions and with a broad adoption across the country, will reduce friction in the player experience significantly, making it easier for operators to keep their customers.

Mobile-first gaming is another focus for operators. With mobile ownership and usage rising across Latin America, mobile-first platforms are naturally at the forefront of technological innovation, especially in regions with limited access to other devices, such as desktop. By adopting a mobile-first approach, operators will reach a much broader audience. Mobile ownership is surging amongst younger demographics in Latin America. Platforms are now tailored towards local preferences, offering culturally relevant themes and Spanish and Portuguese language interfaces.

As technology evolves, AI and data analytics are critical to maintain compliance and build player trust. AI-driven solutions enable operators to tailor their offerings, detect fraud and reinforce responsible gambling measures. Operators increasingly use AI-driven algorithms to provide personalised gaming experiences, such as customised betting suggestions based on user behaviour. Fraud detection has also seen advancements with AI-powered systems that can flag suspicious activities like unusual betting patterns, ensuring integrity and trust within the platforms. Chatbots powered by natural language processing (NLP) are revolutionising customer service by providing instant, multilingual support tailored to Latin American audiences.

These regions numbers paint a vivid picture of a region on the brink of a gambling revolution. With Peru’s licencing spree, Brazil’s economic dominance and Colombia’s steady growth, Latin America’s gambling landscape is as dynamic as it is diverse. Whilst this presents gargantuan opportunities for operators, it throws up colossal challenges. To take their slice of this fruitful pie, success depends on leveraging data, embracing innovation and adapting to localisation to understand the unique dynamics of each market. Latin America moves closer to its projected $12 billion GGR by 2028. Who wants a piece of it?

Read article one and article two of our three part series.

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