(PRESS RELEASE) -- In recent years, Latin America's iGaming segment has undergone a significant transformation driven by the introduction of modern technologies and legislative regulation. Currently, more than a third of operators in the region use AI for monitoring, and the KYC level is a very high 84%. In fact, almost all countries in the region have gone through a tough journey from offshore operators dominating the market to successfully setting up a legal framework for gambling. Despite progress in this area, the main challenge remains the fragmented regulation of the industry across different countries.
Comparative analysis: Argentina, Brazil, ColombiaEach country in the region seeks its own path through the endless possibilities of the gambling industry.
ArgentinaThis country leverages the advantages of decentralization by delegating the creation of specific gambling regulations to the provincial level. As a result, each province creates its own set of rules and requires operators to obtain their own license.
According to data from the ALEA national association, at least 20 of the country's 24 provinces allow online gambling. The main gambling center in Argentina is the province of Buenos Aires, with a population of over 17 million people.
Gambling regulations were adopted relatively recently, so they already include advanced tools and safe gaming systems and fully comply with the requirements of the digital age. At the same time, the abundance of regulations may hinder the widespread implementation of new rules on advertising restrictions aimed at improving player protection.
BrazilAt the beginning of 2025, a new set of gambling regulations came into force in Brazil, making the country one of the largest legal markets in the world. In just the first year of the new laws, the country received more than $7 billion in revenue from legal operators.
The large-scale introduction of licensing in Brazil was long overdue, as the country had previously been dominated by a gray market that did not prioritize player protection. Nevertheless, even under these conditions, major international brands adhered to the generally accepted responsible gaming rules and standards applied in other countries.
Transparent rules of the game will attract even more major brands to the country, thereby increasing competition and enabling local players to secure the most attractive conditions for playing. Centralized management of the licensing process will allow the regulator to quickly introduce new rules and take action against violators if necessary.
ColombiaColombia is a pioneer in regulating online gambling in Latin America, having begun the process as early as 2016. Over the past decade, the local regulator, Coljuegos, has safeguarded the interests of Colombian players by updating legislation as the gambling sector has evolved.
Despite the regulator’s systematic efforts, the segment faced significant political and economic challenges in 2025. In an attempt to address budgetary issues, the government introduced a 19% VAT on gambling deposits, which was temporarily suspended by the country’s court for further review.
At the same time, the potential VAT increase for players is expected to remain on the agenda at least until May 2026, when Colombia will hold its next elections, and further legal proceedings are anticipated. As a result, the potential VAT increase introduces uncertainty into the gambling sector, reducing the region’s attractiveness to major market players.
Problems with the decentralized approach and lack of coordinationThe example of Latin American countries clearly shows that a lack of coordination between provinces and countries creates loopholes for the gray market. Brazil, which has created a modern set of rules and clear terms of play and strictly regulates the gambling market throughout its territory, has virtually eliminated offshore operators. Argentina, on the other hand, due to the abundance of diverse rules, allows illegal operators to circumvent legislative restrictions in certain provinces. The lack of a centralized regulator in the country significantly hampers the fight against such operators.
Colombia, on the other hand, is an attractive market held back by its own government, which imposes excessive tax pressure.
In such conditions, licensed operators face competition from offshore operators, as it is much easier for players to use the services of the gray market, whose representatives do not charge 19% VAT on deposits. In addition, against the backdrop of growing competition from offshore operators and rising operating costs, official operators, acting in accordance with the letter of the law, may begin to cut back on innovation and player protection tools.
Player protection and social responsibilityIn Latin America, football and other national sports occupy a special place in the life of the country. Almost every adult is an active fan of the local football club and the national team. Yet in such an inherently passionate environment, there is a problem with the perception of betting, as many players view it as a source of income rather than entertainment.
Blaming operators for cultivating this model is not feasible, as Latin American operators lead in providing support links (81%) and in using self-assessment questionnaires. However, they still face a lack of player education on responsible gaming principles. We should also note that restrictions on advertising (56%) and bonuses (16%) are much less stringent here than in Europe.
ConclusionLatin America has enormous potential for further development of the gambling segment, driven by high technological readiness and the introduction of modern legislative initiatives. This process could be much more active if the countries in the region presented a united front and modernized their legislation to counter the gray market's pressure jointly. If Latin America overcomes bureaucratic fragmentation and develops uniform standards for gambling regulation, it could become a global standard for responsible gaming and a benchmark for other regions.
In turn, the segment's growth will automatically give new momentum to the development of affiliate networks such as 1xPartners, which provides solid earnings for program partners in Latin America.