In partnership with

LatAm
report 2024
The biggest opportunities in the industry’s latest growth market
04 LatAm report 2024
Introduction 05

Editor’s Letter LATAM’S GROWTH POTENTIAL

H2 Gambling Capital projects significant growth for LatAm
gaming, with Brazil extending its lead as the largest market

Questions?
Comments? AS THE US BOOM
QUIETENS,
robin.harrison-millan
@clariongaming.com

LATIN AMERICA
BRINGS THE NOISE
LATIN AMERICA is undoubtedly in this report. LatAm feels poised for
the hottest market in gaming today. explosive growth, as longstanding
A long and occasionally fraught regulated territories such as Mexico and
process to regulate sports betting Colombia are joined by other markets
in Brazil is ultimately concluding gearing up for regulation.
with wagering and igaming in the And to use an industry phrase, we’ve
mix as the government embarks focused on those territories “with a
on a four-step phase to finalise clear path to domestic regulation”. That
regulatory requirements. means deep dives on Peru, which will
Due to complete by July, it will end likely beat Brazil to its launch, as well as
a process that began in earnest in Argentina, with its unique province-by-
December 2018. That month outgoing province framework, and Chile.
president Michel Temer signed Not that the opportunities end there;
legislation paving the way for Congress other territories not covered in this
to develop and enact sports betting report are either discussing regulation
regulations. Two presidents later, and or moving towards changing existing We see this document as a primer for as a vision for the future through the producing this report, and especially
the market is finally poised to open. regimes. The likes of Uruguay and those eyeing up the region, providing data provided by our friends at H2 to CEO Tom Ustunel for sharing his
Get involved Brazil is the big opportunity in the Paraguay are likely to feature in future a foundational understanding of key Gambling Capital. My heartfelt thanks thoughts on Latin America.
@iGamingBusiness
region, but we’re covering far more editions of this report. developments in the market, as well also go to Sportingtech, our partner in We hope it proves useful.

LatAm Report 2024 April 2024

06 LatAm report 2024
View from Sportingtech 07

A VISION FOR
THE FUTURE OF
Tom Ustunel,
CEO, Sportingtech
LATAM GAMING
Sportingtech is well placed to capitalise on its
position as one of LatAm’s favourite platform providers.
CEO Tom Ustunel takes us through his bold vision for
LatAm in 2024 and beyond

AS ONE of the LatAm market’s in the Brazilian market,” Ustunel says.

European pioneers, Sportingtech “The adoption of a Lisbon office is
has paved the way for other platform testament to where we felt we could
providers to follow. best service Portuguese-speaking
Tom Ustunel, newly appointed CEO operators and continue to do so to
of Sportingtech, sees the growth as a this day.”
natural evolution for the company.
“Unlike other platform providers LOCALISATION
currently in this industry, Sportingtech’s PROVIDES THE EDGE
story has always been focused For Sportingtech, success in LatAm
towards LatAm and predominantly comes from getting to know local
Brazil,” he explains. audiences and localised preferences.
Ustunel joined Sportingtech in “Getting granular in knowing this
January 2024, after more than 15 years information is crucial,” Ustunel explains.
in the gambling industry with the likes “Getting insight from providers who
of Rank Interactive, News UK and GAN. have undertaken endless amounts of
While he may be relatively new, he’s research can also assist here and give
joined a business that has invested years operators a helping hand in identifying
in refining its offering for the region. trends and ensuring they deliver
“The product that users see today tailored content to various audience
with Sportingtech took years of fine segments and maximise engagement.”
Get involved tuning and hard work to create what The continent is certainly scaling
@ICE365Global @iGamingBusiness
we believe is the number one turnkey fast, and for Ustunel, one major

LatAm Report 2024 April 2024

12 LatAm report 2024
Brazil
LatAm report 2024
Brazil 13

BRAZIL’S INTERNET
GIANT PREPARES FOR
REGULATED GAMBLING
clarify how online gaming will fit into
Brazil’s market.
How Sportingtech is preparing
“Igaming being regulated was very for Brazil’s big launch
positive,” Ritta explains. “At one point Brazil’s regulating in to be regulated believes 2024 will be
last year, it was only sports betting. market will under Bill 3,626, but a milestone in Brazil’s
Now we have online games, it is now a undoubtedly attract a according to Ustunel gaming journey. The advent of regulated betting and igaming in Brazil provides a
matter of trying to adapt the product to number of key players the readdition of “I am hopeful potentially vast new revenue stream for those in the market, says
the nature of the fixed-odds concept.” to the market. But igaming presents its we are in the home
Paulo Samia, CEO of media giant UOL
Sportingtech has been own opportunities. straight now and that
GEARING UP FOR A FIGHT quietly biding its time. “It made sense everything will be up
Now a part of the igaming and sports In a varied region for igaming to be and running later this
betting regulated market Rolodex, one like Latin America, it’s brought back into the year,” he says. “I think
question stretches out into the ether: critical to ensure your regulation process,” the necessary rules and
How competitive will Brazil’s market offering makes sense he says. “There is great regulations have been
be? Reasonably, according to Ritta. And for the market you’re appetite for wagering thoroughly debated
“very few” of the well-known brands entering, says CEO opportunities in Brazil and detailed. It looks
will be able to hang tight. Tom Ustunel. across both sports as though no stone BRAZIL IS moving towards officially opening BALANCING OBLIGATIONS WITH
“The challenge is that foreign For Brazil, “football, betting and igaming, has been left unturned its sports betting and igaming market, and local THE IGAMING OPPORTUNITY
brands are already powerhouses in basketball and and to deliver both will in the proposal for online service provider Universo Online (UOL) is Part of Grupo Folha, the country’s
Brazil – Betano, Flutter and Bet365 beach volleyball are mean a greater depth legalised sports ready for them. second largest media conglomerate,
for example,” he says. “We have a popular”, whereas in of content and more betting and igaming “Regulation is good for every player in the UOL is Brazil’s largest digital media
few mainly Brazilian brands, such as markets like Mexico, variety for players.” from the Brazilian market, and every agent working in the market,” brand. Nine users out of ten access
Bet Nacional and NSX, for example, American sports reign. With the regulation government which UOL chief executive Paulo Samia says. UOL, and its homepage averages
that are big enough to compete with Naturally, sports yet to be fully should hopefully see “It’s going to make more people willing to more than 114 million unique visitors
international players.” betting was a shoo- implemented, Ustunel the market flourish.” understand a little bit more about this industry each month. It’s well placed to take
“But when a huge powerhouse is in and willing to try the betting arena. Gambling advantage of this influx of advertising
Brazil and knows the market, and now fledged regulated market. Bill 442/91 potentially within the next five years. becomes more credible, essentially. “People are investment.
it’s regulated, the costs and taxes will – which was sent to the Senate last year For now, wannabe players and going to feel more secure in placing that first bet.” That’s not to say eyes won’t be on the
increase a lot, so it will raise the cost of – would legalise a range of gambling established brands must wait for the It’s also going to bring an influx of international advertisers as much as the operators,
operating to the sky.” activities, from casinos in integrated kinks in the legislation to be ironed out. operators. That means “more opportunities, new however. Samia sees the controls as
It’s important to note that Brazil resorts to bingo. Ritta expects this But even with the market at a standstill, products, new ways of advertising those products comparable to regulations around
is some way off from having a fully to be passed “in the near future”, Brazil’s industry potential rings clear. for the media.” tobacco and firearm advertising. And

LatAm Report 2024 April 2024

14 LatAm report 2024
Brazil 15

Brazil’s advertising watchdog, Conselho UOL’s homepage and the biggest, and we have more DOES UOL HAVE A FUTURE moment we can provide a much better into law has ultimately resulted in a
Nacional de Autorregulamentação than 400 people working solely on AS AN OPERATOR? service to the entire ecosystem. So at strong framework.
averages more
Publicitária (Conar), quickly followed content development.” It may own the ecosystem, have the this time, moving in this direction is on “Now we have to see the second
than 114 million
President Lula signing Bill 3,626/2023 Building content is in UOL’s DNA, brand and the trust, but Samia doesn’t our radar. step, to add in details missing from the
into law with a package of measures for
unique visitors he says, and that ethos extends to the see UOL moving into operating just yet. “But of course we are a business regulations,” he says. “There are some
advertisers to follow.
each month. It’s advertising team. “What I see is an opportunity to help group. We have several businesses, grey areas yet to be discussed by the
“There are a lot of spotlights on this
well placed to take “We’re developing products and to foster the market as a whole,” including payment solutions. So it Congress, by players, by stakeholders
industry,” Samia says of the media advantage of this especially for betting, where the he says instead. “We are traditionally a would make some sense in the future of this market.
sector. This brings a level of formality influx of advertising audience can see real-time odds. They media company. Sometimes of course perhaps,” he adds. “But I believe what I can see from
previously missing from the market, investment can see analysis, they can see content we analyse other industries but we are To Samia, a wait of almost six other markets is our framework of
he argues. about their teams and the sports they not analysing this opportunity. years since President Michel Temer regulations is robust, very strong, and
He’s also conscious that a wave beginning is to offer new products prefer. They can subscribe to their “From our point of view, at this signed sports betting legislation can empower this industry.”
of advertising from newly regulated that are not advertising pure and preferred sports and get information
operators will only result in a backlash simple, but also provide information on betting.
from lawmakers. That means Samia has and relevant content to the consumer,” “In our view as a professional content
BRAZIL REGULATORY FACT FILE
to innovate if he’s to take advantage he explains. provider we have to provide services
Bill 3,626/23 – in December 2023 Betting Secretariat (SPA) Tax rate: 12% of GGR.
of the new opportunity. So how is he “We prefer to work very closely with and a high quality product for every
regulated sports and signed into law by Regulated products: The rate was previously
doing this? our advertisers in order to provide a stakeholder. Not only the advertiser, but
betting and igaming President Luiz Inacio Lula Online gaming and set at 18% before
service to the audience, to make it especially to the audience.”
in Brazil: Bill was da Silva that same month sports betting approved being lowered
BUILDING BETTER WAYS OF relevant to them. If this sounds a lot like UOL evolving
approved by the Regulator: Regulatory with Bill 3,626 signed Licence fee: R$30m and
ENGAGING THE AUDIENCE “We are the biggest internet portal into an affiliate business, that’s as far as it
Chamber of Deputies Policy of the Prizes and in 2023 will last for five years
“What we’ve tried to do since the in Brazil,” he continues. “The first will go – for now.

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16 LatAm report 2024
Brazil 17

BRAZIL’S LONG ROAD

TO LEGAL BETTING
AND GAMING
A condensed look at the timeline to launch

NOVEMBER DECEMBER FEBRUARY AUGUST JULY FEBRUARY DECEMBER APRIL

2018 2018 2019 2019 2021 2022 2022 2023
Brazil’s National Outgoing president Paulo Azi, a member Consultation on Market Brazil’s Chamber Outgoing Brazilian Industry raises
Congress approves Michel Temer of the Brazilian sports betting finishes change of Deputies votes president Jair concerns over the
legislation signs this legislation Chamber of regulations of revenue-based to legalise online Bolsonaro fails to proposed 15% tax
allowing online into law Deputies, files bill launched – the gambling tax and land-based sign sports betting rate on GGR
and land-based to legalise land- first of three such gambling in regulations before
betting – including based casinos consultations reference to Bill the 12 December
sports betting 442/1991 – a bill deadline
first introduced
more than 30 years
previous

JULY SEPTEMBER NOVEMBER DECEMBER JANUARY APRIL

2023 2023 2023 2023 2024 2024
Brazil officially Brazil’s Chamber of Brazil’s Economic Senate votes to approve President Luiz Inacio Ministry of Finance
regulates sports Deputies approves Affairs Commission sports betting and Lula da Silva ratifies publishes four-stage
betting, with bill amending sports (CAE) approves Bill removes mention of the new regulatory schedule to implement
President Luiz Inácio betting legislation – 3,626/23, sets tax igaming in the bill framework for Brazil fixed-odds betting
Lula da Silva signing Bill 3,626/23 at 12% and rejects regulations by end
the Provisional attempt to remove Chamber of Deputies gives of July 2024
Measure (PM) to igaming from bill final green light to regulate
enact the 2018 gambling and reintroduces
legislation. Tax is igaming to bill
set at 18%
LatAm Report 2024 April 2024
18 LatAm report 2024
Peru
LatAm report 2024
Peru 19

PERU: ON THE
VERGE OF
REGULATION
Law 31557 to regulate gambling first came into effect in
2022, but with some aspects of the law slowing progress
down, changes were needed to gain the required
support. With the amendments now made, Peru looks
set to have a regulated sports betting and igaming
market this year. Gonzalo Perez, CEO of Apuesta Total,
explains just how important those amendments were in
getting legislation over the line

IN OCTOBER 2023, Peru’s Ministry of In May 2023, an amended Law

Foreign Trade and Tourism (Mincetur) 31557 was approved, replacing the
moved the country closer to regulated requirement for a retail licence with a
sports betting and igaming by single online licence, though the cost
approving gambling regulations. of that licence tripled to Sol2.97m
Supreme Decree 005-2023-Mincetur (£638,628/€744,466/$807,641), or
clarified the regulatory and technical 3% of net income, whichever is higher.
requirements that gambling operators More domains, including .bet.pe and
must satisfy to launch their offerings .com.pe were added, while a single
in Peru. 12% point-of-consumption tax for all
Peru’s then-president Pedro Castillo businesses offering their services in Peru
first signed Law 31557 into effect in was decided upon, regardless of where
2022, but controversial aspects such a company is based.
as the lack of clarity on offshore tax, Gonzalo Perez, chief executive of
the high cost of retail licences and the Apuesta Total, believes the changes
Get involved mandatory use of the .bet.pe domain made to Law 31557 were imperative to
@iGamingBusiness
forced a rethink. address existing concerns. In particular,

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20 LatAm report 2024
Peru 21

he highlights the tax alterations as There will be no

being key to gaining the support tax on players’ PERU
necessary to get the law change over winnings; taxes REGULATORY
the line by avoiding what he labels an will only apply to FACT FILE
“unfair and discriminatory” tax regime. companies, in a
“Those changes gave more welcome boost for Law 31557 – igaming and
protections to the authorised operators
legal operators online sports betting: Law was
as it became a criminal offence to
passed in October 2023 and went
operate without a licence,” Perez “With a population of 33 million, it
into effect on 9 February 2024
says. “Also, it was included that looks set to be the third biggest market
Regulator: Ministry of Foreign
only authorised operators can do in LatAm.”
Trade and Tourism (Mincetur)
sponsorship activities. Perez also noted that the market
Regulated products: Land-
Law 31557 came into effect on had been growing at a double-digit
based regulated since 1979.
9 February. Operators currently active rate for the last five years. Meanwhile,
Online sports betting and
in the Peruvian gaming market had ahead of the predicted launch month
igaming expected to be fully
one month to apply for a licence of August, a tax rate of 12% of gross
regulated in 2024
from 10 March or risk facing a fine of gaming revenue (GGR) has been set for
Tax rate: 12% of GGR
up to Sol990,000. The application operators, with Mincetur reckoning that
for operators
process is now closed, though those gambling will produce around Sol162m
Of the tax:
not previously in the Peru market can a year for the state. It estimates that
• 40% of that sum will go to
continue to apply. around Sol3.8bn was placed in bets
Mincetur for control and
Mincetur revealed that 145 requests during 2022.
oversight of the “exploitation”
were received from national and There will be no tax on players’
of online betting technology
international companies during the winnings; taxes will only apply to
• 20% to the Public Treasury
application window. These will now companies, in a welcome boost for
• 20% to the Ministry of Health’s
need to be examined. legal operators.
mental health department
“Mincetur will check the application With the licensing process well
• 20% to the Peruvian Sports
and if everything is fine, they will issue and truly underway, Peru looks likely
Institute for the development of
a temporary licence and give the to be a competitive market, aided
sports in Peru
operator 90 days to get its platform by a relatively low tax for operators
Licence fee: Annual cost of
certified,” says Perez. “Therefore, compared to some of its LatAm
Sol2.97m (£639,000/€745,000/
we expect the market to be fully counterparts, as well as the absence of
$807,000), or 3% of net income,
operational by August.” a tax on players’ winnings.
whichever is higher. Licences last
Sportingtech CEO Tom Ustunel is Just how big the Peruvian market will
for six years before they need to
excited by the potential of Peru. “The prove to be remains to be seen, but if it
be renewed
country already has an established continues on the double-digit growth
regulatory framework and it is quickly trajectory highlighted by Perez, the
growing in prominence,” he explains. potential is huge.

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22 LatAm report 2024
Chile 23

CHILE: DREAMING
OF A REGULATED
IGAMING MARKET
With a mature land-based market enjoyed by much of the
nation’s adult population, many of Chile’s stakeholders
are dreaming of the day they can entertain players
online. With an igaming bill currently in the Senate,
that dream might not be too far away. Cecilia Valdes,
executive director of the Asociación Chilena de Casinos
de Juego (ACCJ), and Marianela Artoni, chief commercial
officer of Chile’s largest casino group, Enjoy, explain the
current landscape

CHILE TOOK a big step towards the responsible gaming and Chilean sport,
legalisation of igaming last December taxed at 1% of annual gross income
when its Chamber of Deputies passed and 2% of GGR respectively.
a bill that would regulate online When exactly igaming will be
gaming. The bill will now go to the legalised is unclear, but its expected
Senate, where it will face a second regulation will prove exciting for Chile’s
legislative process. land-based casinos, which are currently
There are still challenges to prohibited from offering online games.
overcome, however, with tax one of The ACCJ’s Cecilia Valdes believes
the main obstacles to a competitive Chile could have a provisional
igaming market and subsequent system in place by November 2024.
channelisation to legal operators. However, this would come after further
Like land-based venues, online deliberation within the government.
Get involved operators must pay 20% tax to correct “The bill is currently in the Senate,”
@iGamingBusiness
externalities, as well as contributions to Valdes says. “We are optimistic it will

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Chile 25

be ready. It will take between March these years of legal vacuum to take a “effective” due to its heightening in betting to be regulated urgently so
CHILE REGULATORY FACT FILE
and June to take the bill through the strong position in the market, while player awareness of the dangers of that transparency and security can be
Senate Chamber, back to the Chamber land-based casinos with high tax illegal operators. provided to players.” Federal Gambling betting and “games • 1% of GGR towards
of Deputies and then signed into law. burdens and very high fixed costs have For Valdes, the hope is that the The regulation of igaming would Bill 035/2022 – of chance” responsible
Following that, there will then be a time not been able to participate.” new bill will give authorities increased arrive with Chile’s land-based online gambling: Tax rate (proposed): gambling
for operators to apply for licences.” Prior to the Chamber of Deputies capabilities to clamp down on the industry in good health, with casino Currently in 20% of GGR • 15% tax on players’
Valdes is “very anxious” over the passing the igaming bill in December, black market, with advertising only GGR reaching CLP$513.68bn the Senate In addition: winnings
tax rate, though, adding: “When the Chilean Supreme Court had allowed via legal operators, while those (£421.8m/€493m/$530.6m) in 2023 Regulator • 2% levied for sports Licence fee
it comes to taxation, we know it’s ruled online betting to be illegal and operating online gambling in Chile thanks to a 9.1% year-on-year increase. (proposed): betting - given (proposed):
going to be very high. This will be a demanded the government block illegally will not be allowed to have The rise in GGR for the 25 venues Superintendencia de to the national General licence (five
big issue, because too high a tax will access to all igaming sites. registered bank accounts in the country. across the country was aided by a hefty Casinos de Juego federation of the years), CLP64.2m
make it uncompetitive.” It’s a move that has split opinion. Banks will also have the power 12% uptick in the number of visitors to Regulated products sport on which the (£58,147/€67,744/
Enjoy’s Marianela Artoni echoes There is still much to be done, and to block transactions made with casinos, surpassing 7 million people. (proposed): Sports bet is placed $74,189)
Valdes’ tax concerns, saying: “Many for Artoni, it is an opportunity to label illegal operators. The casinos’ overall tax contribution of
operators have taken advantage of the Supreme Court’s decision as Artoni agrees the bill offers a stark CLP$195.72bn was an 8.7% hike on last land-based venues have set high trust, legality and accountability. We
improvement over the country’s existing year’s CLP$180bn. standards for online casinos to follow. understand the regulation of online
Regulation of igaming would arrive with responsible gambling policies. “We Artoni is confident igaming will “Land-based casino operators gambling will allow physical operators
Chile’s land-based industry in good health, have great expectations about this bill,” not cannibalise the success of land- have accustomed our customers to generate a new source of income
with casino GGR reaching CLP$513.68bn she says. “The industry needs online based casinos. Instead, she says to interacting in an environment of and offer a new entertainment channel.”

LatAm Report 2024 April 2024

26 LatAm report 2024
Argentina 27

ARGENTINA:
A PATCHWORK
OF REGULATED
MARKETS
Argentina is one of the few countries in the world that
requires a different set of rules and regulations for each
jurisdiction. To explain the complexity of the country’s
24-province regulatory process, Agustín Li Gambi,
president of the Legal Affairs Commission and
Argentinian Association of Lotteries, Pools and Casinos
(ALEA), takes us through Argentina’s development

ARGENTINA’S REGULATORY which contains well over a third of the “It cannot be delegated unless the which is under a separate regulatory regulators, operators, suppliers and
process is somewhat notorious in its nation’s population, have legalised National Constitution is modified, an framework, sets a 10% rate. The other parties to make it work effectively.
complexity, with the lack of an all- igaming since 2019, other provinces issue that in practice is very complex city was also the first to formalise its “In each jurisdiction there are
encompassing federal licence meaning are yet to do so. Taxes also vary across because it requires a supportive online gambling licensing requirements particular legal regulations, specific
provincial licences are required to the provinces. majority and specific processes that in 2020. socioeconomic situations, pre-existing
launch in the country. Despite these complications in will be difficult to be carried out,” That same year the government contracts and a series of issues that
In Argentina, the state can only Argentina, president of the Legal Li Gambi says. also increased federal taxes on online need to be taken into account before
influence matters that the local Affairs Commission and Argentinian Buenos Aires, which passed igaming gambling to 5% from 2%. This can rise adopting a model used in another
governments cede to it. Gambling Association of Lotteries, Pools and legislation in 2018, is the dominant to 10% for operators based in countries region,” he explains.
regulation isn’t one of these. Casinos, Agustín Li Gambi, feels the province in Argentina. It has a 25% tax deemed to be tax havens. Córdoba’s legalisation of igaming in
Get involved While provinces such as Córdoba country’s legal structure means there is on gross gaming revenue (GGR), while According to Li Gambi, the system 2022 means 15 of the 24 provinces in
@iGamingBusiness
and Buenos Aires, the latter of little alternative to the current system. the autonomous city of Buenos Aires, requires a joint effort between Argentina, including the city of Buenos

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28 LatAm report 2024
Argentina

Aires, now have online gaming.

ARGENTINA REGULATORY FACT FILE
Despite the rise of igaming in the
country, Li Gambi says the very mature Online gambling in Argentina is not regulated at a federal level. Instead, each
land-based sector in Argentina is of the 24 provinces regulates gambling within their own jurisdictions. In total,
still performing well. The land-based 15 of Argentina’s 24 jurisdictions now regulate online gambling in varying
sector is regulated in every province in forms: Mendoza, Santa Fe, Corrientes, Chaco, Misiones, San Luis, Tucumán,
Argentina and has been for decades. Entre Ríos, La Pampa, Neuquén, Río Negro and Santa Cruz, Buenos Aires City,
Buenos Aires Province and Córdoba. Of the 15 jurisdictions, Buenos Aires City
“Face-to-face gaming continues to be
and Buenos Aires Province are the most notable. Per the 2022 census, they
important, although the advancement
are home to nearly 20 million of the country’s 46.23 million population – and

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of online gaming continues to grow, are responsible for more than 30% of the country’s GDP.
mainly in larger markets where the
supply and volume of gaming is usually BUENOS AIRES CITY BUENOS AIRES PROVINCE
more attractive,” he explains. Regulator: Lotería de la Ciudad Regulator: Provincial Institute for
Like a number of its fellow LatAm Buenos Aires (LOTBA) Lotteries and Casinos (IPLyC)
nations, Argentina is also facing Total licences: No limit Total licences: Seven available.
problems with the black market, with Tax rate: 10% of gross revenue Applications made by international
ALEA previously criticising the rise Cost of licence and duration: operators must be partnered with a
in federal tax from 2% to 5% for its • $30,000 licence processing fee domestic company, with a minimum
harmful impact on channelisation to • Fixed annual licence fee of 15% revenue share
licensed operators. $100,000 Cost of licence: Annual single
Li Gambi believes the fight against • $2m “compliance guarantee” as a fixed fee of $75,000
illegal gambling in Argentina is one of form of insurance Tax rate: 25% of gross revenue
the “main battles” the country’s legal • Five years, option to extend by Verticals regulated:
market is facing, adding: “We must another five years •O
 nline casino
keep in mind that an effective way to Verticals regulated: • Poker
combat illegal gambling is to become • Online casino • Bingo
more competitive in legal gambling and • Poker •S
 ports betting and fantasy sports
for this, it is essential to offer attractive • Bingo • Lottery
products to the betting public.” • Sports betting and fantasy sports
To do this, Li Gambi believes that • Lottery
advertising has a big part to play
in combatting the prevalence of and due to the very complexity of our be done, the market is now more
marketing by illegal operators. federal system, a game can be legal developed than ever. If it continues
“Due to excessive advertising carried in one jurisdiction and illegal in the on the right track, the country will
out by influencers or mass media, neighbouring jurisdiction,” he says. have a big part to play in shaping the
which end up legitimising illegal sites While there’s plenty of work to continent’s future.

LatAm Report 2024 April 2024

30 LatAm report 2024
Mexico
LatAm report 2024
Mexico 31

MEXICO: REAPING
THE REWARDS
OF A LIBERAL
REGIME
Mexico has one of the more liberal betting markets in
Latin America, with a wide array of products available
to its population of close to 130 million. As a result,
the country is quickly developing into a sought-after
market, and one that is proving particularly beneficial
for Codere Online. Oscar Iglesias, the company’s chief
financial officer, explains how it’s bucking the trend
with its Mexico focus

AN INTERNATIONAL Betting compared to other developed markets

Integrity Association (IBIA) market in what the regulator, the Secretariat for
assessment in 2021 found Mexico to Home Affairs (SEGOB), allows.
have a channelisation rate into legal Most advertising is allowed as
markets of 90%, aided by its wide long as it encourages responsible
range of betting options, with most gambling, does not appeal to minors
forms of gambling – online and land- and avoids deception.
based – available. Further help comes A 2022 report from Delasport on
Get involved in the form of Mexico’s advertising Mexico’s igaming market found that
@iGamingBusiness
restrictions, which are more favourable approximately 60% of the country’s

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32 LatAm report 2024
Mexico 33
MEXICO
REGULATORY
FACT FILE
1947 Federal Gaming and
Raffles Law: Amended in 2004
with the Gaming Regulations,
but still outdated compared to
changes in technology since
then. New federal framework was
proposed in 2014, but unclear
when it’ll be implemented.
Regulator: Secretaría de
Gobernación (SEGOB).
Regulated products: Most forms
of gambling permitted, both
land-based and online, for those
aged 18 and over. Slot machines
banned by presidential decree
in November 2023, with new
operators barred from gaining
licences for slots and existing
bettors wager on sports, while around Operators opting to Such is Codere Online’s success at readily available products on the application fee for potential licensees. licences expiring at the end of
40% bet on casino offerings such as expand into Mexico in Mexico, it has actually allowed the market, they are somewhat dated but Players’ winnings are taxed, too, with their term.
slots and blackjack. are choosing to company to avoid the high-reward, but fit the needs and requirements of its 1% going to the federal government Tax rate: 30% of GGR for both
One operator enjoying real success do so in spite of a also high-risk, markets such as the US customer,” he says. while states take approximately 4-6%, online and land-based operators.
there is Codere Online, which last
30% tax on gross and Brazil. “Like any market a new, more agile depending on the local regulations. States can also impose their own
year saw Mexico leapfrog its home “With people distracted away product will become available and And yet, despite the high tax rates, taxes, but can be deducted from
gaming revenue
country of Spain to become its leading from some of our core markets to a you’d expect to see a shift towards Mexico is still flourishing and offering the federal rate. Players taxed on
market thanks to a 2023 in which some of the big global international market like Brazil or focused on the US more technical and dynamic offerings.” operators growth opportunities. winnings, with 1% going to the
revenues in the nation rocketed by 60% operators are still a little bit reticent opportunity, it just gives us that much Operators opting to expand into Iglesias believes operators are starting federal government, while 4-6%
year-on-year. to get involved, given some of the more opportunity to continue making Mexico are choosing to do so in spite to catch on to the potential of the go to states.
Codere Online has invested heavily in complexities to operating in a market gains in the two markets that are really of a 30% tax on gross gaming revenue Mexican market. Licence fee: Annual cost of 1-2%
the Mexican market, though it’s a path like Mexico. driving value for us as a company, (GGR), a tax that applies to both land- “Part of it is it’s still a developing of turnover. 1% of sports betting
that some would-be competitors seem “I think people see that it’s a sizeable which are Spain and Mexico,” based and online products. market,” he says. “I think for a lot of turnover or 2% of racing turnover.
hesitant to join, as its chief financial market and a good opportunity for Iglesias continues. Operators pay an annual licence fee of people, maybe three, five years ago, it Licences can last up to 25 years,
officer Oscar Iglesias explains. them. They are just maybe not clear what Sportingtech CEO Tom Ustunel 1% of turnover on sports betting, while was more of a secret thing. with 15-year extensions available.
“It’s an intense, competitive their approach or what their winning believes the product offering suits the the rate is 2% on racing turnover, for “Today, the secret is out that Mexico
landscape,” Iglesias says. “I think approach would be to that market.” Mexican population. “If we take a look both dogs and horses. There is also no is a strong online gaming market.”

LatAm Report 2024 April 2024

34 LatAm report 2024
Colombia
LatAm report 2024
Colombia 35

COLOMBIA:
LATAM’S MOST
MATURE IGAMING
MARKET
With a robust, fully regulated online gaming market
in place since 2017, Colombia has blazed something of
a trail in Latin America. Marco Hincapie, president of
the country’s regulator Coljuegos, tells iGB why he is
bullish about the market’s future prospects

COLOMBIA LEGALISED online “We have done a lot in terms of Empresarial in September of the same online gaming operators to operate Contravening Colombia’s gambling
gambling – including online sports taxation so that we can be paid for the year. In the months ahead regulator live dealer games to boost Colombia’s law severely impacts Colombia as a
betting – in 2016 through its Egaming resources of the monopoly,” he says. Coljuegos then issued several more market as the pandemic began. The country, Hincapie says, particularly
Act, becoming the first Latin American “There is also a criminal sanction for online gambling licences to key players, pandemic also saw Coljuegos legalise through the funding of illegal groups.
country to regulate igaming. The those who do not pay the tax. including Codere, Gaming1 and Luckia. instant-win scratch cards and bingo “Illegality affects the entire gaming
country’s Gambling Act was enacted in “There are very severe penalties, such As the market developed further its games until the end of 2021, again to market,” he explains. “Money
2001, when Law 643 was passed. as terminating the contract. A clause big-time market players emerged. generate activity in the sector. laundering, financing of terrorism,
Colombia’s gambling tax rate was applies that says they can no longer Today, the most popular operators in The country’s regulator has played a groups such as mafias that are more
recently under review, with the Senate hold a contract with the state. Our Colombia are regarded as BetPlay, large part in how the Colombian market found in areas where there has been
analysing the current rates of 15% legislation is a legislation with teeth, to RushBet and Wplay. has developed since 2016. In 2022 more violence such as Santander.”
on gross gaming revenue (GGR) in be able to force operators to comply Like every gambling market, Coljuegos made significant moves to “Let’s say that this makes these
February. Marco Hincapie, president with its rules.” Colombia was affected by the prevent illegal gambling operators groups on the margins of the law take
of Colombia’s regulator Coljuegos, Colombia’s first online gaming prevention measures implemented in accessing the market, carrying out raids advantage and take over illegality in
Get involved stresses the importance of operators licence was awarded to Wplay.co response to the Covid-19 pandemic. and shutting down 1,577 unlicensed various places.”
@iGamingBusiness
following the law surrounding tax. in June 2017, followed by Corredor In April 2020, Coljuegos permitted sites in the first half of the year. Last year, Coljuegos made a bid

LatAm Report 2024 April 2024

36 LatAm report 2024
Colombia

to become Colombia’s gambling hopes for Colombia’s gaming market, emerging technology and ensuring that
advertising regulator. This came and views the role of the regulator as responsible gambling practices are put
in the form of a bill submitted to essential to its prosperity. into action.
Colombia’s parliament last October. In “Success for the next five years will be On the second of these, Montero
the same month it issued a resolution to grow much more,” he says. is keen to “develop the topic of
that outlined how it would regulate Evert Montero, president of technological innovation, such as
gambling ads in the country. However, Colombian industry trade body artificial intelligence, and apply it to
this needed to be approved by the Fecoljuegos, believes that Colombia gaming sector.” Doing this, he explains,
country’s parliament in order to pass; will face three main challenges in will “both strengthen the revenues and
in the event, it failed. its gaming market: fighting against also achieve more effective control.”
Looking ahead, Hincapie has high the black market, implementing Montero is acutely aware of
Fecoljuegos’ role in promoting

COLOMBIA REGULATORY FACT FILE responsible gambling.

“We have been insisting more and
more on the professionalisation of
Egaming Act 2016: Regulated return-to-player (RTP)
Legalised online rate of 83% of stakes, the sector, to make a much friendlier
products: Online
gaming and sports gambling, sports and 17% of GGR for sector,” he says. “Socially, to make a
betting in Colombia betting, casinos, slot those with an RTP rate sector much more understood, even
Slot halls and land- halls, bingo halls of over 83% politically if you like. I believe that
based casinos: Tax rate: 15% Licence fee: 811 responsible gambling has to be a
Regulated in 2008 of gross gaming times the minimum
commitment of operators, authorities
Regulator: revenue (GGR) for wage, equivalent to
and all the people who participate in
Coljuegos operators that have a around COP1.05bn
this entertainment activity.”

LatAm Report 2024 April 2024

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iGaming Business
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