Latin America: The Rising Star of Sports Betting Markets

Latin America stands at the forefront of the online gambling industry's meteoric global expansion. With a fervent sporting culture, a burgeoning middle class, and advancing internet and mobile accessibility, the region emerges as a pivotal market for sports betting operators.

Leading the charge is Mexico, which an International Betting Integrity Association (IBIA) assessment in 2021 found to have an impressive 90% channelisation rate into legal betting markets. This is aided by the country's wide range of gambling options available both online and land-based.

‍

Navigating Mexico's Evolving Sports Betting Regulations

Mexico's gambling industry is governed by the 1947 Federal Gaming and Raffles Law, which was updated in 2004 but is still outdated compared to today's technological landscape. A new federal framework was proposed in 2014 but has yet to be implemented.

The country permits various forms of gambling for individuals aged 18 and above, encompassing both online and retail sports betting. However, a presidential decree in November 2023 banned slot machines, presenting significant openings for online operators as new licences are restricted and existing ones expire.

Tax rates are set at 30% of gross gaming revenue (GGR) for both online and land-based operators. States can also impose additional taxes of 4-6% on player winnings, with 1% going to the federal government. Annual licence fees range from 1-2% of turnover depending on product verticals, with licences lasting up to 25 years with 15-year extension options.

The good news for sports betting operators? Mexico is far from the only Latin American market where the opportunities are growing.

‍

Peru

In October 2023, Peru approved regulations for online sports betting and iGaming through Law 31557. The Ministry of Foreign Trade and Tourism (Mincetur) oversees the regulated market, which includes a 12% GGR tax rate split between the government and initiatives like responsible gambling programmes.

‍

Chile

Chile's Chamber of Deputies passed a bill in December 2023 to regulate online gaming, including sports betting and "games of chance." The bill now awaits Senate approval. If passed, it would impose a 20% GGR tax plus additional duties for areas like sports integrity and responsible gambling.

‍

Brazil

The true giant of the region, Brazil legalised online sports betting and gaming in December 2023 through Bill 3,626/23. With a projected $100 billion annual market, Brazil is a dreamland for operators able to secure one of the R$30 million 5-year licences. Tax rates are set at 12% of GGR.

‍

Argentina & Colombia

While lacking federal frameworks, certain provinces in Argentina have regulated online gambling since the early 2000s. Colombia was the first mover, legalising online betting in 2016 through its eGaming Act with a 15-17% GGR tax.

With rising consumer demand, improving infrastructure, and new regulated markets opening, Latin America is shaping up to be online gambling's next gold rush. Operators willing to invest early and navigate the regulatory hurdles could reap massive rewards from being first movers in this high-growth region. 

‍

Securing Your Advertising Investment: Safeguarding Against Ad Fraud

As ever: where the money goes, fraud is sure to follow. Online operators looking to expand into Latin America should take proactive steps to ensure they mitigate the impact of click fraud and invalid traffic on their digital advertising campaigns, especially in light of the region's deregulated online sports betting market. This presents both significant opportunities and heightened risks for advertisers, emphasising the critical need for robust fraud protection measures.

In this landscape, TrafficGuard emerges as a vital ally for online operators. As pioneers in ad-fraud prevention, TrafficGuard offers a comprehensive solution powered by intelligent algorithms and machine learning. Beyond merely filtering out fraudulent activity, TrafficGuard's platform provides real-time insights and granular data analysis, enabling advertisers to identify and mitigate risks swiftly.

Expanding into new markets inherently entails uncertainties, but with TrafficGuard's cutting-edge technology, advertisers can navigate these challenges with confidence. By safeguarding advertising investments against fraud, operators can ensure that every penny of their ad budget is maximised for genuine engagement and conversion, driving sustainable growth in Latin America's burgeoning online sports betting industry."

‍

‍