While being a golden opportunity for operators and bookmakers to tap into an endless market of active, diverse audiences, entering this market can be murky as the legal framework is still in its developing state. Today we will take a closer look at the current state of the online gambling market in South America, its trends, opportunities and obstacles, as well as delve deeper into the legal state of iGaming within the region.
Overview of Online Gambling in Latin America
For years, Latin America has been in the spotlight within the global online gambling community. Despite challenges such as jurisdictional inconsistencies and payment processing, experts predict that this region is poised to become a major player in the industry. So, what factors foster confidence in the Latin American market? What makes it such a promising and attractive spot for online gaming? Several factors contribute to this.
- Large population
The Latin American region has a population of more than 670 million, which offers huge potential in the field of online gambling. - Growing middle class
Latin American middle class is rising fast, contributing to economic and business expansion, as this group has more available budgets for leisure, including online gambling. - High mobile adoption
Over 70% of the population in Latin America owns a smartphone making mobile gaming a viable entertainment. - Growing acceptance of gambling regulation
Recent years have seen many announcements by South American countries about developing or improving legislation to regulate the industry. Brazil, which has been finalising its legislation to regulate this niche, is the latest big example of this movement. These efforts make the region a more business-friendly environment and attract investors. - Sports betting fandom
Latin America is arguably one of the few regions where sports betting is paramount and sometimes even more influential than casinos. The population's love of sports translates into a desire to support their favourite teams, which generates strong demand for sports betting services. - Cultural values
Lottery, bingo, betting on horse races – many gambling activities were a part of the daily lives of Latin Americans throughout history. In some countries, this loyalty to gambling has been cultivated over many years.
Especially noteworthy is the last point. Local interest in gambling and online gambling has traditionally been rooted in the history of particular countries and regions. Mexico, for example, has a rich history of gambling dating back to the Aztec empire, when they played a game called Patolli. A popular form of gambling in Brazil is the ‘Jogo do Bicho’, a lottery game that's been around for more than 100 years.
Chile, Peru, and Argentina are some countries where people prefer lotteries and horse races. Clearly, gambling has been a popular activity in South America for decades. Since most populations are already familiar with certain gambling activities, they grasp the concept and value of gaming with the desire to experiment, making South America ripe for innovation.