With the full implementation of online gambling legalization in Brazil, the overseas expansion of gambling games is becoming increasingly prosperous. Essentially, this is mainly due to the development of the internet, which enables zero-distance interaction between online gambling and gamblers.

On a micro level, it is also highly related to the gradually stabilizing political situation in some third-world countries and their pursuit of economic development policies.

Looking back at the period when the Philippines significantly opened up offshore gambling operations POGO, it was a major policy decision made by President Duterte to activate the Philippine economy.

Whether for political purposes or national needs, the economy is one of the important dimensions for assessing government performance.

And the gambling industry is one of the fastest and most direct ways to increase government revenue. Employment rate, tax revenue, market business development, which does not need the entry of foreign capital to promote urban economic development?

Due to the special nature of the gambling industry, the special supply and demand relationship of the gambling industry in certain areas and countries directly affects the scale of the regional market.

Today, PASA will discuss the gambling game market in Latin America with everyone. Seeing the booming gambling market in Brazil, the market opportunities in its neighboring countries and the broader Latin American continent have also become a focus for us in the industry.

1. Market Overview in Latin America

Latin America is a region full of diversity, and its gambling industry has become one of the fastest-growing sectors globally.

One of the biggest reasons is that several Latin American countries have formally legalized the gambling industry in recent years.

Of course, each government inevitably has its profound interest considerations. If there is no market for gambling in the country, the government will not consider legalizing it and implementing open regulation.

Therefore, the legalization of gambling in Latin America will be more widespread in the foreseeable future. PASA predicts that the gambling market in Latin America will continue to experience astonishing growth, and it is also a focus for us moving forward.

The size of the gambling market in Latin America is significant, and PASA will clarify this with several sets of data. This includes the entire online gambling market in Latin America, covering various types of gambling games such as real money games, other online casino platforms, and sports betting platforms.

Latin America is a Mobile-First Gaming Market

According to data from Newzoo, mobile games account for 48% of the region's gambling market revenue, with 58% of Latin America's online population (i.e., 273.4 million people) playing mobile games.

Brazil is the largest mobile gaming market in Latin America, both in terms of the number of players and revenue, with Brazil's 88.4 million players helping the Brazilian mobile gaming market generate over 1 billion USD in revenue this year.

In terms of mobile gaming revenue, Brazil is the highest, followed by Mexico (revenue approaching 900 million USD), Argentina, and Colombia. Mobile gaming is also the fastest-growing revenue area in Latin America, expected to reach 5.1 billion USD by 2024.

The main factor driving the development of mobile gaming in Latin America is the low barrier to entry in this field. As mobile networks become increasingly widespread in Latin America.

The current internet penetration rate in South America has exceeded 82.5%, Central America and Mexico have exceeded 78.8%, and the Caribbean region has reached 70.2%, with the overall internet penetration rate in Latin America reaching 77.2%.

And the most popular countries like Brazil and Argentina have internet penetration rates of 86.6% and 88.4%, respectively, both higher than the regional average.

The number of smartphone users in the region has already exceeded 400 million, with the number expected to surpass 485 million by 2030.

Furthermore, due to the very strict import regulations in Latin America, the prices of gaming consoles and gaming computers are among the highest in the world, making mobile devices the most viable option for many gamers in Latin America.

At the same time, the population distribution in Latin America is very young, which further accelerates the growth of mobile gamers in Latin America, with the population aged 11-40 accounting for 50% of the population.

With the proliferation of 5G, internet availability will further expand.

Latin America has a large number of mobile users, but the reason why the gambling game market can expand significantly is still because nearly half of the mobile players in Latin America are keen to spend money in games.

The absolute number of mobile paying players and the ratio of paying players to players have been increasing, and in terms of per capita consumption, Mexican players spend relatively more than Brazilian players.

Among them, Google Play is the preferred platform for players and payers throughout Latin America. Google Store accounts for more than 68% of app store revenue, with iOS and third-party stores accounting for 29.9% and 1.5%, respectively.

Android devices offer more choices for consumers (especially mid-to-low-end devices) and are usually cheaper than iOS devices with similar technical specifications.

According to Newzoo data (covering Mexico, Brazil, and Argentina in Latin America), 43% of players in Latin America purchase in-game currency, laying a very good user base for real money games in Latin America.

From language to player habits, and even the choice of streaming platforms, each country in Latin America is different.

The Brazilian market is more unified, as its main language is Portuguese, and there are no significant cultural differences nationwide, making it easier to understand the habits and preferences of its players.

However, in Spanish-speaking countries like Colombia and Argentina, language and cultural differences affect player preferences and habits.

Some emerging platforms popular in Brazil, such as NimoTV and Booyah's live streaming platforms, are not so popular in other regions of Latin America.

Spanish-speaking audiences prefer to watch gaming content on platforms like Twitch and YouTube, which are also Western-dominated platforms.

We mentioned earlier that young people make up half of the total population in Latin America, and according to data, mobile game players aged 21 to 35 perfectly match the young total population.

Looking at the age, players aged 21-35 make up the highest proportion of players in Latin America.

According to the current market development speed, the earlier movers and innovators, those game merchants who use data to analyze and understand the market, will win the favor of more gamers in Latin America.

Online Casinos and Sports Betting Share the Spotlight with Mobile Casino Games

Having discussed the mobile casino gaming market in Latin America, the next half of the gambling market in Latin America is online casinos and sports betting.

According to data from Statista, the online gambling platform market in Latin America will grow to 3.4 billion USD.

And detailed statistics on the gambling industry in various Latin American countries provided by Nuvei further enhance this forecast.

They rely on the daily traffic of gambling websites within their jurisdiction as an indicator of gambling activity, with three of the top eight countries coming from Latin America, with Brazil ranking first as the country with the highest visits to casino websites worldwide.

Mexico and Colombia follow closely, ranking fourth and eighth, respectively.

Among them, Colombia is one of the few regions in the area that has implemented transparent regulation of online gambling since 2016.

Their efforts have paid off, according to Statista data, the country's total online gambling revenue has been growing since 2018, and Brazil, which will start implementing transparent regulation of online gambling in 2024, is expected to become the largest and most active market in the Latin American region and even globally.

Among the emerging gambling countries, Argentina, which we often mention, has a provincial government, so regulatory provisions are inconsistent. Some provinces have an unclear official stance on gambling, while others allow it.

This also follows what PASA mentioned at the beginning of the article, that the market size will undergo a qualitative change as policy regulation relaxes.

In terms of sports betting, Latin America is also unique in terms of its influence on sports betting.

Firstly, the development of sports in Latin America is globally renowned, and the passion for sports is deeply rooted among the local residents. This very strong cultural pattern is also the reason why sports betting is so popular in the region.

People are more passionate about their favorite teams and are willing to invest in the results of matches, according to Statista data, the sports betting stakes in Latin America will grow to 10 billion USD by 2024.

Based on a 90% payout rate for sports betting, the sports betting revenue market will reach 1 billion USD in revenue by 2024.

So, adding up the mobile casino games, online gambling platforms, and sports betting, the total market will reach 10 billion USD in revenue, a scale rarely seen worldwide, with Brazil contributing the largest market.

2. Policies in Latin American Countries

The entire Latin America is experiencing an online gambling revolution, and after looking at the overall market in Latin America, as we mentioned at the beginning, the policies in each region will greatly affect the market size in this region.

The regulatory policies for online gambling vary from country to country, so the development of the market in each country also varies. Below is an overview of the policies of various Latin American countries in the online gambling market compiled by PASA.

Argentina's Gambling Policy

Argentina has a population of over 46 million, making it the fourth largest country and the second largest economy in Latin America. The gambling industry is regulated by province, and gambling operators in each province are only allowed to provide services to residents of that province.

As new jurisdictions continue to increase, the legalization of the gambling industry and the maturity of the existing judicial regulatory system are expanding the revenue and user base of gambling operators.

Brazil's Gambling Policy

Brazil is the largest and most populous country in Latin America, and also the most developed gambling market in the region. The Gambling Law was passed in 2018 and will be fully implemented this year.

Brazil has a population of over 200 million and a nationwide passion for sports (especially football), making it a dream come true for sports betting platform operators looking to expand into the Latin American market.

Almost the entire online gambling industry has been closely watching the situation in Brazil.

Chile's Gambling Policy

In 2022, the Chilean Ministry of Finance proposed a bill to regulate online gambling. The planned regulations will allow casino gambling and sports betting to increase tax revenue and ensure player safety.

But Chile operates a monopoly system, where consumers can only bet with three gambling companies, or log in to offshore gambling platforms through VPNs.

Of course, with the major trend, this situation may change in the future. The Chilean legislature is currently considering a bill to regulate the country's online gambling services.

Colombia's Gambling Policy

Colombia is one of the largest economies in Latin America, with a population of over 50 million. Its nationals' passion for football is well known, providing a huge opportunity for online gambling platforms (especially online sports betting).

Colombia became the first country in Latin America to regulate online gambling in 2016, and has been issuing licenses since 2017, with the gaming and gambling market steadily growing.

With the regulation of the online industry in 2016, almost all forms of gambling, whether physical gambling or online gambling, are now legal in Colombia.

Therefore, Colombia is the most mature market in this region.

Costa Rica's Gambling Policy

Costa Rica has a stable political situation, the best infrastructure in the Caribbean region, and a friendly regulatory environment. Although the laws of 1922 and 1974 prohibit any games with gambling nature, the authorities' tacit approval has made Costa Rica a hot spot for the online gambling industry.

Therefore, it has also become a favored market for many gambling merchants, with the authorities allowing gambling companies to set up in the country, provided they comply with Costa Rican law, which prohibits them from providing gambling services to Costa Rican citizens. However, they can accept players from other jurisdictions.

Costa Rica's completely open attitude towards online gambling, the government's tolerance for gambling, and the non-taxation of online gambling revenue make the country extremely attractive to online casino operators; it is estimated that Costa Rica has 450 companies related to the iGaming industry.

Dominican Republic's Gambling Policy

The Dominican Republic implemented gambling legalization in the 1960s and 70s and provided tax breaks for private companies investing in the tourism industry (including casinos).

The Dominican Republic has long been considered one of the preferred locations for online gambling operators to conduct business. This success is attributed to various factors, such as progressive legislation, political stability, first-class telecommunications facilities, and a well-developed financial services industry.

Mexico's Gambling Policy

Mexico has a population of over 120 million and, as the second largest economy in Latin America, Mexico's online gambling and sports betting operators are thriving in this land.

Mexico regulates all gambling, with the main legislation managing gambling being the Federal Gambling and Raffles Law of 1947. The complete regulations took effect in 2004, but after much debate. In 2021, guidelines were released for advertising, bonuses, and player loyalty policy standards for gambling operators, further improving the regulations in this field.

It is worth mentioning that Mexico's online gambling platforms and sports betting operators do not need additional licenses, but need authorization and to establish partnerships with physical license holders. This makes Mexico's gambling market more flexible and adaptable, attracting more and more operators and investors.

Mexico has great potential for future development in the gambling field.

Nicaragua's Gambling Policy

Nicaragua regulates all forms of gambling, including physical casinos and online gambling. Although online gambling was legalized in 2001, the industry is still underdeveloped in Nicaragua.

Nicaragua's unstable political situation is one of the main reasons for the slow development of the industry. Additionally, Nicaragua's small population of about 6 million also limits the development of the industry.

Panama's Gambling Policy

In 2020, Panama announced changes in gambling regulation, making Panama one of the few countries in Latin America with a fully licensed online gambling market.

This means that Panama's online gambling market is undergoing significant changes, attracting more gambling operators to invest. However, as with Brazil, which has the same open policy, the development of the gambling industry in Panama is limited by its national population and income.

Paraguay's Gambling Policy

All gambling is legal in Paraguay. The government drafted a bill in 2016 aimed at updating some of the country's gambling legislation, especially regarding online gambling. The purpose of the bill is to ensure the legality and transparency of the gambling industry.

Paraguay conducts a sports betting tender every five years