It’s been Latin America week at iGamingFuture, so for this edition of “Letter From America” we’re heading south of the border, for a one-off special, and focussing on the latest headlines and all the need-to-know developments from the LatAm gambling scene.
Welcome to the first-ever edition of Carta Desde LatAm.
We’re kicking off in Panama, where the government has scrapped its wildly unpopular casino winnings tax – a move celebrated by players and operators alike!
Panama Ditches Casino Tax
Good regulatory news from a tax department doesn’t come around often, so Panama’s decision to scrap its 5.5 percent tax on casino and betting winnings is significant.
The government has reversed its 2015 policy, following falling tourism and a steady three-year decline in casino revenues in an effort to boost gaming income and stimulate the wider hospitality sector.
Originally introduced to help fund Panama’s ailing pension system, critics argued the tax weakened the country’s appeal, particularly for high rollers, making neighbouring countries more attractive to destination gamblers.
Well, the official word is in: According to Panama’s Gaming Control Board (JCJ), the introduction of the tax correlated with declining tax revenue from the sector.
Tourism, which accounts for up to 10 percent of Panama’s GDP, also suffered, with hotel occupancy rates falling by as much as 45 percent in some months, triggering job losses across the sector.
Chile’s Dark Market Surge
From good to bad: While Chilean lawmakers continue working through the final stages of online gambling regulation, the country’s black market continues to thrive.
Data from consultancy group Yield Sec shows that more than 3,800 unauthorised betting sites were accessed from within Chile in 2024, generating an estimated US$3.1 billion (£2.3bn) in GGR.
Meanwhile, Chile’s regulated land-based sector has reported falling revenue, down 4.5 percent year-on-year to CLP509.8 billion (US$597.5m/£444.5m), prompting the sector’s trade body, the Asociación Chilena de Casinos y Juegos (ACCJ), to intensify its calls for wider judicial action, including site blocking.
Puerto Rico In Play
Back in the States–but geographically still in Latin America–and Puerto Rican lawmakers are looking to modernise and expand the gambling industry.
Senate Bill 960 seeks to expand certain forms of gaming, with officials estimating it could generate between US$50 million and US$100 million (£37.2-£74.4m) in annual government revenue.
The bill would authorise standalone poker rooms, expand online sports betting and esports and allow online lotteries.
Puerto Rico already has legal land-based casinos and retail and online sports betting, but it exists in a tightly controlled, casino-linked model.
But not everybody is convinced.
Gaming Commission Executive Director Juan Carlos Santaella Marchán has voiced concerns that the proposal could compromise the current industry’s regulatory framework, arguing:
“The casino industry is quite highly regulated. There is a great amount of requirements to open a casino, and now the proposal will be to open the market just to generate more income.”
Stake Hits Mexico
Stake has confirmed its Mexico launch just weeks ahead of the FIFA World Cup kick-off. The first fixture pits the home nation against South Africa on June 11 at Mexico City’s Estadio Azteca.
According to the company’s press release, Stake.mx will operate under a permit issued by Secretaría de Gobernación (Mexico’s Ministry of the Interior), acting as an agent of the licensed entity Uno Capali.
Stake’s LatAm General Manager, Diana Otalora, also revealed in recent interviews that this launch represents the first step in the company’s long-term expansion plans across the Latin American region.
86 Percent To Bet On World Cup
Speaking of the World Cup: A report released by Optimove Insights on May 26 estimates that some 86 percent of Latin America’s bettors plan to place a wager on the 2026 World Cup.
Although estimates vary, the tournament is being highlighted as a major acquisition opportunity for operators across the region.
H2 Capital estimates the total legal handle could exceed US$60 billion (£47.7bn), excluding offshore spending.
Excluded
Brazil’s Ministry of Finance says 519,000 people have joined the country’s national self-exclusion scheme since it launched in December 2025.
Forty-one percent of users cited “loss of control over gambling” and impacts on “mental health” as the main reasons for joining the self-exclusion.
Brazil’s population is estimated at 213.5-216 million, with roughly 13-15 percent of adults (around 25 million people) participating in sports betting. Including lotteries, this figure jumps to around 68 percent of adults.
Missed It?
In case you missed any of our Latin American week coverage, read iGF special LatAm correspondent, Rosa Ocha’s look at how prediction markets are affecting Mexico’s gambling market and challenging current regulatory frameworks.
And iGF investigative reporter Trilby Browne’s exclusive look at the politics at play in Latin America’s biggest gambling markets.
Alright folks, we’ll be back next week with the regular Letter From America – catch you then.
