Soccer ball hitting a cell phone, sports betting, latin america, football

Winning Growth Opportunities in LATAM iGaming Market

ShareHIDE

The Latin American iGaming market is in the midst of a transformation. As we dive into 2025, the region presents lucrative opportunities for operators, investors, and gaming enthusiasts alike.

From Brazil’s market launch to Colombia’s framework, Latin America is becoming a powerhouse in the global gaming landscape. With 355 million active gamers driving the market, the region’s potential extends far beyond traditional gaming boundaries.

SECURE YOUR SPOT IN LATAM GAMING

Market Overview

The Latin American iGaming market presents an extraordinary growth trajectory, transforming from a $2.5 billion market into a projected $12.3 billion powerhouse by 2028. This explosive growth stems from a change in the region’s digital adoption and regulatory environment.

Brazil, Mexico, and Colombia are LATAM’s gaming titans.

The way Latin Americans use technology is changing fast. This year, we’ll see 73% smartphone penetration and 74% internet coverage across the region. This digital revolution powers a gaming community of 355 million active users fueling the market.

This massive digital shift opens doors for gaming companies to reach millions of new players through their phones.

Young, Tech-Savvy Population

Latin America’s gaming scene thrives thanks to its young population that loves technology. These players eagerly embrace mobile gaming and are always ready to try new betting platforms. They’re especially excited about esports betting, jumping into games like Counter-Strike and League of Legends with enthusiasm.

Smart Money Solutions

Money matters are getting easier by the day. Players can now use local payment methods they trust, like Boleto Bancário in Brazil and OXXO in Mexico. Some players even use cryptocurrencies for faster and more private transactions, making it simpler to join the action.

Better Rules, Better Games

Countries across Latin America are creating clear rules for online gambling. Brazil leads the pack, working on new laws that could help the market reach nearly $3 billion by 2027. Colombia has already set a great example with its gambling laws, showing other countries how it’s done.

ENTER THE LATAM GAMING MARKET

Payment Innovation

Players need an fast, easy way to fund their wallets. Here are the most payment methods across LATAM.

Digital Wallets Lead the Charge

Latin American players embrace digital wallets like no other. E-wallets like PicPay, Nequi, and DaviPlata dominate the gaming scene, offering instant deposits and withdrawals that keep players in the action.

Local Payment Champions

Each country champions its own preferred payment methods. Brazil’s PIX system processes over 551 million transactions, while Mexico’s OXXO Pay enables cash-loving players to join the digital gaming revolution4. These local solutions transform how players fund their gaming accounts.

Crypto Gaming Takes Flight

Blockchain technology revolutionizes the gaming landscape. Players increasingly choose Bitcoin and Ethereum for their speed and privacy benefits. This shift particularly appeals to security-conscious players across Brazil, Argentina, and Mexico.

Speed and Security Matter

A remarkable 98.4% of LATAM live casino players prioritize transaction speed, while 83.3% focus on security. Gaming operators now deliver one-click payments that keep players immersed in their favorite games.

Banking the Unbanked

Traditional credit cards reach only one-third of Latin Americans. The industry responds with innovative solutions like prepaid cards and vouchers, available at local stores. This approach brings online gaming to previously unreached players, expanding the market’s potential.

Cross-Border Solutions

Payment platforms secure regulatory approval to serve multiple countries. Recent developments demonstrate the industry’s commitment to providing seamless payment experiences across borders.

CONNECT WITH A WINNING PAYMENT PROCESSOR

Regional Opportunities

While many countries comprise the LATAM market, there are many overlapping opportunities to target.

Growing Middle Class Drives Growth

Latin America’s middle class continues to expand, creating a perfect storm for sports betting and casino growth. With more money to spend on entertainment, these tech-savvy consumers eagerly explore online gaming options. Average player spending increases by 27% year over year.

Mobile Gaming Takes Center Stage

85% of Latin American gamers prefer playing on their phones. Smart operators capitalize on this trend by creating mobile-first platforms that work smoothly even on basic smartphones. Games load faster, play better, and keep players coming back for more.

Sports Passion Meets Betting Innovation

Latin America’s love for sports, especially football, creates natural opportunities for betting platforms. Live betting during major tournaments sees a 156% increase in activity. Successful operators combine sports streaming with instant betting features, giving fans the ultimate experience.

Local Partnerships Power Success

Smart gaming companies team up with local brands and sports teams. These partnerships help build trust and recognition. For example, betting companies sponsoring football clubs in Brazil saw a 43% increase in new player signups during the 2023 season.

Untapped Markets Show Promise

While Brazil and Mexico lead the pack, smaller markets like Peru and Chile offer exciting opportunities. Peru’s gaming market grows at 39% annually, while Chile’s recent regulation opens doors for licensed operators. These emerging markets welcome companies ready to adapt to local needs.

Cultural Connection Matters

Winners in this market understand local culture. They offer:

  • Games featuring popular local sports teams
  • Customer support in Spanish and Portuguese
  • Promotions tied to regional events and holidays
  • Payment methods that locals trust and use daily

The key to success? Think locally while operating globally. Companies that embrace Latin American culture while delivering world-class gaming experiences win big in this growing market.

OFFER LOCAL PAYMENT OPTIONS

Regulatory Landscape

Before diving headfirst into these growth opportunities in LATAM igaming, make sure you’re up to snuff on regulations.

Brazil’s Market Launch

Brazil’s regulated online betting market kicked off on January 1, 2025, introducing some of the world’s strictest gaming standards. Out of 66 applicants, 14 operators secured permanent licenses, while others received provisional approvals.

The Ministry of Finance now monitors all betting transactions in real-time through their Betting Management System (Sigap).

Colombia’s New Tax Structure

Colombia just implemented significant changes to its regulatory framework. Starting February 21, 2025, online gambling deposits face a 19% VAT, affecting both local and international operators.

This marks a substantial shift from their previous tax model, which used a graduated system of 15-17%.

Peru’s Fresh Framework

Peru’s gaming market transformation continues under regulations that took effect in February 2024. The country expects to generate S/162 million annually in tax revenue, with funds directed toward tourism, infrastructure, and mental health programs.

Within the first month, 145 operators applied for licenses, showing strong market interest.

Chile’s Progressive Steps

Chile moves closer to regulation with a comprehensive gaming bill now in the senate. The proposed framework includes a 20% tax on operators and requires 2% of gross gaming revenue to support sports development.

The bill also outlines strict measures against illegal operators, including ISP blocking and transaction restrictions.

Paraguay’s Market Evolution

Paraguay modernized its approach by introducing Law 7.438, which removes gambling monopolies and allows unlimited licenses for sports betting. The National Gambling Commission now operates under tax authority supervision, strengthening enforcement capabilities against illegal operators.

The Latin American market continues its transformation from an unregulated space into a structured, regulated environment. By 2028, the region’s regulated online gambling market is projected to reach $12.3 billion, up from $2.5 billion in 2024.

Now is your chance to get in and secure your seat at the head of the table. Start now.

START YOUR LATAM GAMING BUSINESS

About the author

As President of DirectPayNet, I make it my mission to help merchants find the best payment solutions for their online business, especially if they are categorized as high-risk merchants. I help setup localized payments modes and have tons of other tricks to increase sales! Prior to starting DirectPayNet, I was a Director at MANSEF Inc. (now known as MindGeek), where I led a team dedicated to managing merchant accounts for hundreds of product lines as well as customer service and secondary revenue sources. I am an avid traveler, conference speaker and love to attend any event that allows me to learn about technology. I am fascinated by anything related to digital currency especially Bitcoin and the Blockchain.