South America, as part of the LatAm iGaming market, is a fantastic market for building a successful business. At Atlaslive, we are dedicated to helping operators thrive by offering top-tier iGaming solutions. Our innovative platform and comprehensive set of components are developed to meet local regulatory standards, both in South America and globally.
In South America, several factors have driven the rise of iGaming. The ease and availability of platforms allow people to play various games and place bets from home with just a few clicks. The growth of mobile devices has also made it easier to bet anywhere.
Market trends have also been vital, especially the growing popularity of online sports betting. As more people in the region watch sports events and competitions, more people are betting on their favorite teams and players. The push of legal changes that have made online gambling more regulated and safe in many South American countries has also helped the industry flourish.
The online gambling market is set for significant growth, with the number of users projected to reach 10.4 million by 2028. Leading the charge in the South American iGaming scene are Argentina, Brazil, Colombia, Guyana, Paraguay, and Peru, which represent the largest markets in revenue. The penetration of users in the online gambling sector is expected to reach 2.1% in 2024, highlighting the growing acceptance and popularity of iGaming across the region.
South America boasts diverse customs, but the people living here share a common love for fun. They are cheerful, energetic, and tech-savvy, always looking for ways to enjoy life. iGaming offers a perfect blend of digital entertainment and social interaction, allowing people to have fun whenever and wherever they want.
This dynamic environment is attracting significant interest from players and operators, particularly in the rapidly expanding South American market, especially in Latin America. See why everyone is eager to explore this booming industry.
Explosive Growth: iGaming Market and Key Game Choice Preferences
User penetration in South America in the online gambling market will be 2.1% in 2024. This number highlights the potential for significant market expansion as more users discover and engage in online gaming.
The chart illustrates a consistent upward trend in revenue from online gambling sectors in South America, with online sports betting showing significant growth. By 2028, the total revenue for online gambling is expected to surpass $8 billion, driven primarily by the expansion of online sports betting, which increasingly attracts a larger share of the market.
Sports betting is rapidly gaining popularity, driven by the nation's love for soccer. Online gambling platforms have capitalized on this enthusiasm by offering extensive sports betting options, especially for major soccer leagues and tournaments, which has significantly boosted market growth. Additionally, online casinos are beginning to attract more players, although sports betting remains the most popular segment.
The chart below provides a detailed view of the revenue distribution in 2023 across different segments of the online betting industry in various South American countries, emphasizing the substantial impact of online casinos and sports betting.
eSports are gaining significant popularity, especially in Brazil. This was evident in the IEM Rio 2022 tournament, where Brazilian teams FURIA Esports, 00 Nation, and Imperial Esports competed against international teams in front of enthusiastic fans at the Jeunesse Arena, reaching a peak audience of 1.4 million.
Despite Brazil having top players and dedicated fans, the government historically has not supported eSports. Former sports minister Ana Moser categorized eSports as entertainment rather than a competitive sport, excluding them from the definition of sports in the General Law of Sports Betting. However, this may change soon, and betting on such tournaments could become possible.
South America: Average Revenue Per User (ARPU)
The Statista chart illustrates that the average revenue per user (ARPU) for various online betting sectors is undergoing notable changes from 2017 to 2028. The online casino sector shows significant growth, with ARPU increasing from $48.05 in 2017 to a projected $556.40 in 2028. In contrast, the ARPU for online lotteries is steadily decreasing, dropping from $504.80 in 2017 to $285.80 in 2028.
Online sports betting presents a steady increase, reaching $652.10 in 2028, surpassing casinos and online lotteries. This trend shows the shifting preferences towards sports betting and online casinos in the market.
All these numbers show that the dynamic and evolving South American market presents vast opportunities for those looking to invest and capitalize on the iGaming industry. There is also a growing demand for new technologies and innovative solutions that will drive player experiences, offering more opportunities and fun. Adopting these advancements is essential to satisfy the tech-savvy South American audience seeking entertainment.
Not Just Sports Betting, or Why Crash Games Are So Popular in South America
Crash games are increasingly popular due to their simplicity, fast nature, and the level of control they offer, unlike traditional slots. These games are consistently ranked among the top choices in the South American market. At Atlaslive, we recognize that a diverse player base requires a wide variety of games to cater to different tastes, and that's why we ensure our platform includes a rich variety of popular titles.
Atlaslive continues to partner with many new globally recognized game providers, and currently, our casino game portfolio is excellent in terms of game variety, visual appeal, and various bonuses and perks. We already offer over 10,000 online casino games, live games, virtual sports, lotteries, and tournaments, all in one place.
We see how many players in South America are engaged in crash games, slots, and roulette, and we are doing everything to meet the needs of our partners, providing all the exciting games their customers want. Currently, the Atlaslive Platform includes over 100 crash games, including all the popular ones.
A Variety of Regulatory Frameworks in the South American iGaming Market
At Atlaslive, we closely monitor the diverse and changing regulatory scenarios of the South American iGaming market. Each country has its own legal requirements and compliance standards that shape the opportunities and challenges for operators. Understanding the specific needs of our partners in these regions is crucial.
Brazil, Colombia
Brazil has made notable improvements in its regulatory framework. In December 2023, the signing of Bill 3.626/2023 marked the legalization of online sports betting and online casino games. This monumental change opens one of the largest economies in Latin America to regulated iGaming, offering tremendous growth potential for the industry. We, as a B2B iGaming platform provider, understand how important it is to meet the high demand and regulatory standards set by this new legislation.
Colombia stands out as a pioneer in gambling regulation in Latin America. Since 2016, the country's regulatory body, Coljuegos, oversees the sector with a strong emphasis on compliance and responsible gaming practices. Colombia's well-established regulatory framework ensures a robust structure for licensing and compliance, making it a stable market for operators.
Argentina, Peru, and Chile
When it comes to Argentina, the country presents a unique scenario with its decentralized approach to gambling regulation. Regulations vary significantly from one province to another, creating a mosaic of rules. This decentralized structure presents challenges and opportunities for operators looking to expand their presence in the market.
Peru is currently in the early stages of establishing its regulatory system for iGaming. Emerging regulations are shaping the future of online gaming in the country, presenting lucrative opportunities for early market entrants to capitalize on the growing demand. The finalization process is still ongoing, but the finish line is near, and many new operators are already showing interest. The government is working on issuing licenses, and once the structure is fully established, it will allow operators to officially start their businesses.
The Peruvian government has published regulations for online gambling, effective since 2023, allowing MINCETUR to license and regulate online gaming and sports betting. This framework aims to ensure fair play, responsible gaming, and increased government revenue through a tax of 12% on the net profits of licensed operators.
Becoming a fully regulated market is always a long road, and in the case of Peru, it is almost at the destination. Currently, user penetration in the online gambling market is 2.1% and there is a notable increase in interest among Peruvian customers in a diverse range of casino games.
Countries like Chile are gradually moving to establish their online gaming laws. The country recently introduced licensing regimes for online gambling, following the examples set by Colombia, Mexico, Panama, and certain provinces of Argentina. The Chilean government has been working on comprehensive legislation to regulate online casino gaming and sports betting. The Ministry of Finance has introduced a bill that has passed the first stage.
At Atlaslive, we are dedicated to continuously enhancing our dynamic iGaming platform, introducing new features and tools that operators can seamlessly integrate. Our focus spans all aspects of the user experience and market needs, from sports betting and casino offerings to payment methods, analytics, and efficient CRM.
Our strategic and innovative approach ensures that our partners are well-equipped to offer a safe, secure, and legally compliant gaming experience in Latin America.
Source: Atlaslive
