Gambling Regulations in Latin America: an Overvie

Digital Gambling Policies in the Region

Every jurisdiction manages web entertainment content in a different way. Some of them embrace progressive directives, while others apply more restrictions or implement regulatory reforms. This makes it more complex for iGaming companies to adapt their services to each particular market.

In 2023, Latin America is probably the most promising market for gambling activities. It demonstrates significant growth potential along with countless opportunities for operators and providers. Let us see how local countries manage the entertainment industry so far.

Argentina

One of the largest states in South America has over 45 million citizens. Its approach to gambling activities differs from one region to another, which creates a diverse regulatory environment. While Buenos Aires and Misiones have legalised online casino sites and bookmakers, others are about to set up clear restrictions or prohibit them completely.

The government’s expectations include:

• $2.4 billion profit;
• 5% federal tax on online wagering.

Entertainment brands are allowed to deliver their software to individuals living in their region specifically. So they should learn how to navigate the market.

Bolivia

A country with a populace of 12 million people has decided to restrict gambling activities. The local administrations do not issue any licences to bookmakers, casino sites, and poker rooms.

Operators and players cannot promote and engage in web content. If they do, they take legal responsibility for ignoring Bolivia's jurisdiction.

Paraguay

The country has adopted a unique approach to iGaming regulations. Under Law-1016, the government legalised physical gambling but placed digital content into a grey area.

No particular licences are obligatory for operators, leading to poor regulation. Consequently, players often use international entertainment platforms for smooth online gaming experiences.

Brazil

The most populated country in the region is waiting for the right time to flourish. Its potential should not be underestimated. While the main content is still prohibited, progress towards regulating sports betting is already being made.

For now, Brazilian players have limited options to access:

• lottery games from Caixa;
• horse racing at jockey clubs.

The state legalised the sports bidding segment in 2018. However, the related policies have not been implemented by 2023. Once the process is finalised, Brazil is about to become the major land-based and digital market in the entire area.

Ecuador

Physical casino and bingo venues were closed across the country in 2012. The new regulations also affected wagering activities.

In the 2010s, the Association of Former Casino Workers stepped forward with the initiative to remove the restrictions. They mentioned the opportunities for Ecuador to enrich the state revenue by attracting gambling investments. The national authorities are currently in the process of re-regulating the entire sector.

Chile

The country takes an effort to create a legal foundation for wagering activities. In 2022, the Ministry of Finance presented a bill to keep casino gaming and sports betting organised.

The document has the following goals:

• enhancing tax profits;
• guaranteeing player security;
• providing special licences, etc.

If the bill comes into effect, gambling companies will face an annual charge from the national casino authority. They will also cover a tax on the revenue that they generate from people placing bets.

Colombia

With over 50 million citizens, the country happens to be an appealing area for digital gambling. This is why the authorities submitted Resolution 4,656, creating a comprehensive regulatory system for casino slots, sports betting, and video poker. Considering the local adoration for football, it should not be a problem for bookmakers to attract customers.

From 2016 onwards, Colombia has experienced remarkable growth in its gaming and betting segments. It surely contributed to the economy and revealed plenty of opportunities for business owners and punters.

Dominican Republic

The country’s entertainment experienced growth along with the tourism sector. In the 1960s and 70s, casino and sports wagering were fully legalised. Commercial establishments received tax privileges for investing in entertainment facilities.

Entrepreneurs pursuing iGaming licences in the Dominican Republic face financial obligations such as:

• a $230,000 cost and an extra $23,000 in regulatory fees;
• a 10% turnover tax;
• 25% of players' earnings.

Fantasy and virtual sports bidding remained ignored by the government for a long time. They are neither properly managed nor forbidden.

Costa Rica

This country has economic and political stability, which makes it perfect for the online gambling segment. The government banned games of luck in 1922 and 1974. Nevertheless, it demonstrated a relative tolerance by bringing over 450 entertainment companies to the local market. They cannot deliver their content to Costa Rican residents but to punters from other jurisdictions.

According to national law, the operator’s service needs to be located in a place different from the one where gambling activities take place. This condition focuses on stopping local punters from playing the games of luck.

Guyana

The smallest country in Latin America mainly prohibits online wagering with the Prevention Act. The only exception is made for lotto games and pool betting. The government legalised casino content to promote the tourism segment in 2017.

Currently, Guyana does not have clear laws that would manage gambling as it is. In 2013, the country cancelled licences obtained by remote iGaming businesses. This caused even more confusion in the regulatory landscape.

Mexico

One of the largest countries in the Latin region offers countless opportunities for online casino and sportsbook brands. This becomes possible thanks to extended regulations addressing various forms of gambling.

The services that remain poorly covered:

• physical card rooms;
• fantasy sports betting.

The Federal Gaming and Raffles Law serves as the primary document that regulates gambling in Mexico. Despite giving space for interpretation, it allows businesses to bring their products and services to the local public. Poor regulation at the state level often makes players refer to offshore platforms.

Nicaragua

A Central American nation decided to legalise online gambling in 2011. But it has to restrict certain content and marketing campaigns in the field.

The Gaming Control Board was assigned as the regulatory body. It issues licence certificates to operators and maintains their conformity with wagering legislation. The authority also ensures accurate taxation, which depends on the software provided.

Panama

Based on the Online Gaming Act, the country’s gambling activities fall under the Control Board’s responsibility. The body is empowered to issue licences and monitor the industry’s trends.

Despite the favourable regulatory environment, the Panamanian market is smaller than neighbouring states. So players often try their luck on offshore sites.

Peru

The country makes progress towards regulating the gambling niche. Local laws aim to establish a comprehensive framework for organising local operations.

The new document will cover the spheres such as:

• iGaming;
• online sports betting.

The government’s regulations ensure a safe and transparent gambling environment. The use of ISP blocking and advertising bans has been inspired by Colombia. As a result, the Peruvian authorities plan to make a profit of $409 million within 5 years.

Venezuela

The state’s online wagering operations are controlled by the National Commission of Casinos, Bingo Halls, and Slot Machines (CNC). Businesses are obliged to establish a physical presence in Venezuela, comply with anti-money laundering policies, and stick to legal specifications for legitimate game types.

Certain forms of content, such as sports betting, are banned. This properly regulated system enables legal access to online gambling, keeping strong oversight to protect the industry's integrity simultaneously.

Uruguay

The jurisdiction does not have a law restricting iGaming operations. However, it keeps the sector quite limited. Local punters have access to lotto games and sports bidding but they cannot register with offshore sites.

The government is working to expand the extent of gambling solutions. Digital casino software might become accessible to the local audience soon. This revolutionary directive aims to bring gambling activities into a regulated format, enhancing consumer protection and the player experience.