Untapped Goldmine: The Rise of eGaming in Latin America

The Latin American market has been an area of intrigue for eGaming investors globally. Laden with potential, this region boasts millions of individuals poised to engage in online betting and casino games. Despite stepping into the legalisation sphere a tad later than some regions, Latin America is now witnessing a significant surge in eGaming demand.

The Legal Landscape of eGaming in Latin America

The legal tapestry of eGaming in Latin America is diverse. Whilst countries such as Costa Rica and Panama have embraced this form of entertainment for over a decade, others are only beginning to recognise its potential.

Colombia took swift action in 2016, legalising eGaming, inclusive of sports betting & online casinos. This decision has borne fruitful results, with the government reporting revenues of $19.6 million in 2019. Sports betting remains the driving force behind Colombia's eGaming revenues, mirroring many sports-loving nations globally.

In the case of neighbouring countries, Argentina and Brazil, their paths to legalisation have been unique. In Argentina, the decision to legalise eGaming is province-dependent. Today, mobile betting is legal in 14 of its 24 jurisdictions, with some also sanctioning online casinos. According to our study, eGaming is a $2.4 billion industry in Argentina.

Brazil, after years of resistance, finally legalised eGaming in 2018. Although licensing efforts have been slow to start, the industry is expected to surpass $1 billion in the near future.

Mexico, Paraguay, and Peru each offer varying levels of eGaming accessibility. Mexico allows land-based enterprises to provide eGaming services, which leads many Mexicans to opt for offshore casinos and sportsbooks. Most forms of eGaming are permitted in Paraguay. However, the industry remains relatively small, generating about $4 million annually. Peru, on the other hand, allows slot machines and table games but prohibits races, sports betting, and lottery games.

Costa Rica and Panama have long supported eGaming. Both countries are home to hundreds of eGaming establishments, although many businesses are unable to offer their services to local residents due to certain restrictions.

Market Drivers: Shaping the Future of eGaming in Latin America

Several factors contribute to the allure of eGaming in Latin America. A key driver is the easy access to safe offshore eGaming sites, many of which hold licences from Latin American nations like Panama, Costa Rica, and Curacao. These platforms have earned a reputation for their safety and service quality, giving players little reason to seek alternatives.

Over the past 15 years, mobile technology has played a pivotal role in the growth of eGaming in Latin America. With millions gaining internet access via smartphones, even the most sophisticated games are now just a touch away. This technological revolution means that users no longer need a desktop computer to indulge in their favourite slots or sports bets - a reliable mobile eGaming site and a smartphone are all they need.

Moreover, the broad range of betting options offered by eGaming platforms further fuels their popularity. Whether users are interested in football betting, e-sports, or bingo, they can find an online platform to suit their preferences. The convenience of having a diverse range of betting options available on a single platform cannot be overstated.

A Promising Future: Latin America's eGaming Market Outlook

Latin America presents a world of promise for the eGaming sector. Countries that have chosen to regulate online casinos and sportsbooks are witnessing steady growth. Meanwhile, those with favourable rules in the pipeline are bracing themselves for an explosive growth spurt in the coming years.

Countries like Bolivia and Nicaragua have integrated eGaming into their broader gambling regulation systems. Others, such as Argentina, regulate eGaming on a province-by-province basis. Countries like Bolivia, Mexico, and Brazil are either exploring or actively pursuing changes to their eGaming legislation, with proposed laws currently under consideration.

Argentina, the fourth-largest country in Latin America, is expected to generate $2.4 billion in annual revenue from the eGaming industry. To recuperate from the financial fallout of 2020, the government has recently announced an increase in federal tax on eGaming from 2% to 5%.

In conclusion, Latin America is a treasure trove waiting to be unearthed. The future of eGaming in this region is brighter than ever, with each country presenting its unique opportunities and challenges. Fuelled by robust technological growth, favourable regulations, and a rapidly expanding user base, the Latin American eGaming market is set to redefine the global eGaming landscape.

Source: Statista