While the betting market in Latin America is going from strength to strength, growing faster than in other parts of the world, it still has a major challenge ahead – to finally leave the lawless land where it was born.
As governments regulate the sector, the progressive channeling of gambling into the regulated market is successful in countries such as Brazil , Colombia and Argentina .
But major operators, who advocate for transparent and legal markets, complain that authorities must do more to crack down on illegal platforms, most of which are located offshore, with many operating from China and/or using VPNs that make them difficult to detect.
Brazil and Colombia have blocked thousands of unauthorized platforms, and hundreds of new illegal sites are quickly emerging.
iGamingFuturo has obtained from data intelligence consultancy H2 Gambling Capital figures on the current market and projections on the future of the onshore channel.
Illegal Operators
These percentages refer to the proportion of market revenues obtained by legal or illegal operators.
In Brazil, for example, where sports betting and iGaming have only recently been regulated, licensed operators are expected to account for 83 percent of the market by the end of this year and reach 93 percent by 2027, thanks to effective oversight and, in particular, better control of the payment process, H2 Gambling Capital said.
However, the illegal market will still generate revenues of some 4.7 billion reals (BRL) this year, around US$800 million (£635.18m), according to estimates by H2.
Colombia is in a similar situation to Brazil. There the legal market will grow from 93 percent this year, to 96 percent in 2028, according to these forecasts.
Legitimate Market
In Argentina, things are going more slowly.
Only 24 percent of the iGaming market was legally authorized in 2021. By last year, 64 percent was already legalized and it is projected that this will reach 78 percent in 2027 and 88 percent by 2029.
How so-called “onshore channelisation” progresses in Brazil will depend on the ability of legal operators to capture revenue from unlicensed platforms, and whether they will continue to target the Brazilian market so aggressively, notes H2.
That is why it is important that the Prizes and Betting Secretariat (SPA) definitively grants the provisional licenses it has given, in order to consolidate the legitimate market.
The Brazilian regulator has now approved permanent licenses for 21 operators, bringing the total number of companies with definitive authorization to operate online betting in Brazil to 35. Another 20 can operate temporarily while they complete the necessary documentation.
The legal market is vital for the government to collect taxes, releasing resources that are used to improve oversight and provide funds for health programs that combat gambling addiction and seek to discourage betting among young people.
