Vixio: LatAm iGaming Market To Increase 400% In The Next Four Years

Article by : Erik Gibbs Dec 12, 2024

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The regulated online gambling market in Latin America is on track for rapid expansion, with projections indicating a leap from $2.5 billion in 2024 to $12.3 billion by 2028. This fivefold increase is highlighted in a new report by Vixio, a regulatory and compliance intelligence agency for the iGaming and payments sectors.

Over the past decade, several LatAm nations have adopted regulatory frameworks for online sports betting and casino games, transforming the region into a key player in the global iGaming industry. Countries like Colombia, Panama, Peru, and Argentina have established systems to regulate these activities, with others moving in the same direction.

Brazil is anticipated to be the primary driver of this growth, with the launch of its federal “Bets” market in 2025. The introduction of a legal framework is expected to significantly boost Brazil’s market, which currently operates in a grey area. Federal licenses have attracted immense interest, with 114 applications submitted so far.

Revenue forecasts suggest that Brazil could generate $2.9 billion in gross gaming revenue (GGR) in 2025, accounting for nearly half of the region’s regulated market. By 2028, this figure is projected to climb to $6.3 billion, representing over 50% of Latin America’s expected total.

Despite these optimistic figures, operators in Brazil will face substantial tax burdens. The market is subject to a 12% general income tax on GGR, with the potential for additional taxes that could increase the total rate to 26.5%. These challenges are part of an evolving regulatory landscape that businesses must navigate as they enter the market.

Beyond Brazil, other nations are also contributing to the region’s growth. Mexico’s online gambling market is predicted to exceed $2 billion by 2028, up from $1.3 billion in 2024.

Colombia is forecasted to cross the $1 billion threshold during this period, while Peru’s recently launched regulated market is expected to generate $436 million in 2025 and surpass $850 million by 2028. Peru’s issuance of 118 licenses to 63 operators highlights its competitive and rapidly growing market.

Meanwhile, Mexico presents significant opportunities despite facing regulatory hurdles, including legal disputes over online gaming restrictions. Argentina and Chile are also key markets to monitor, with Argentina considering advertising bans and Chile planning to implement new licensing frameworks by 2025.

The report underscores the transformative potential of regulation in Latin America’s online gambling industry while cautioning stakeholders about the evolving legal and tax environments.