iGaming in LatAm: The South American online casino gambling market

Latin America is a sought-after destination for many operators, and for good reason. Rapid digital growth, a passionate sports culture, and a developing regulatory landscape make the region one of the most exciting markets in global iGaming. As countries continue to refine their rules and new opportunities emerge, competition is heating up. Keep reading to learn more about the potential of this booming market.

In the iGaming business, Latam is a land of promise. Projections say the market could be worth $10 to $12 billion by 2028, with a young population driving digital engagement. Markets that have already chosen to regulate online casinos and sportsbooks are seeing stable growth in the sector, and industry experts are anticipating a very exciting future of iGaming in Latin America.

Why LatAm iGaming is on the rise in 2026

Latin America is becoming a true powerhouse in the iGaming landscape. Changes in consumer behaviour and structural reforms are speeding up growth in many areas:

• Regulatory breakthroughs, from Brazil’s licensing rollouts to Paraguay’s abolition of monopoly
• Growing connected audience: millions of internet native users consume content through mobile devices
• Widespread adoption of instant payments, e-wallets, and alternative payment methods
• Sports-related engagement: football’s deep-rooted fan base and the growing interest in esports are contributing to betting growth
• Market diversification: international brands continue to rise in the region while local companies are making options tailored to local tastes. This is driving growth in live casinos, micro-betting, and localised content formats

In addition, Latin America gambling news often reports that some countries, such as Brazil, Paraguay, and Peru, are implementing iGaming-friendly measures to make compliance more transparent and attract long-term investment.

Regulatory Landscape in 2026 LatAm iGaming

The regulatory status of online gambling varies across the continent. Some countries currently prohibit all forms of gambling — with an understanding that online gambling is included — except for state lotteries. In other countries, while there is no official regulation, it is not actively prohibited either. And, of course, there is a growing number of countries that regulate some or all forms of gambling.

The overall trend in licensing in Latin America is a gradual shift from uncertainty toward a structured state-controlled iGaming environment. Regulation is often built around digital transparency, fiscal efficiency, and social protection, while market pressure is applied through financial rules, infrastructure requirements, and the advertising ecosystem.

With demand remaining high, regulators are steadily increasing the cost of operating in the market. The offshore segment is being pushed out not through outright bans, but via technical and financial restrictions, fundamentally changing the way the region operates.

While juggernauts like Colombia and Brazil traditionally grab plenty of attention, there are markets throughout the whole region worth looking at. Below, we offer a country-by-country rundown of the South American online gambling market in 2026.

Argentina

Argentina’s rapidly growing population numbers nearly 47 million, and 90% are active internet users. iGaming regulations in Argentina vary on a province-by-province basis, with operators only allowed to offer their services to residents of their province. In those that choose to regulate the sector, operators are allowed to offer virtually all forms of gambling.

At the federal level, operators can be levied income tax, value-added tax, and tax on the crediting and debiting of their bank accounts. The introduction of indirect tax on online betting for resident and non-resident operators further complicates the taxation scenario.

At the federal level, operators' activities may be taxed as follows:

• Income tax at a rate of 41.5% on income (while dividends received on income are taxed at 41.5% they are not subject to income tax)
• Value added tax, in principle at a rate of 21% if the operator charges participants or players (e.g. rake in poker)
• Tax on deposits and debits, at a rate of 0.6% on deposits and 0.6% on debits from operators' bank accounts. Up to 33% may be considered as an advance payment of income tax

The country also regulates gambling advertising. Advertisements may not feature or target minors, and may not be deceitful or misleading. Only authorized operators may advertise their services in the country.

Among the most recent regulatory initiatives is the intensification of policies aimed at preventing minors and other vulnerable groups from engaging in online gambling across provinces. However, the country still lacks a unified federal law, which makes the Argentinian regulatory landscape particularly confusing.

Brazil

With a population of over 213 million and a nationwide passion for sports — particularly football — Brazil is a dream market for sportsbook operators.

The regulated online gaming industry in the country officially launched on January 1, 2025, with the enforcement of Law No. 14,790/2023. It introduced the Secretariat of Prizes and Bets (SPA) to govern online casino gaming and sports betting activities.

Obtaining a Brazil online casino license is a complex process designed to ensure player safety, prevent fraud, and sustain the industry.

The country is actively tightening oversight of the betting market, shifting it toward a model of full transparency. Regulators have strengthened tax enforcement, introduced centralized systems for player registration and monitoring, and imposed strict restrictions on payments, traffic, and advertising for offshore platforms.

Financial oversight intensified through Ordinance No. 566, enacted on March 21, 2025 that requires banks and payment providers to block transactions for unlicensed platforms.

Other regulations of 2025 include Ordinance No. 36, which was issued on April 17, 2025. It expanded the sports for which fixed odds betting was permitted. The regulations legalized esports betting and prohibited exclusivity deals between operators and game studios.

Chile

Another highly promising market in the region is Chile. The country’s population nears 20 million, and the digital infrastructure is solid. Yet the question “Is gambling legal in Chile?” persists, since comprehensive regulations have yet to be finalized.

The current law prohibits gambling in Chile. The bill to regulate online gambling has been pending in the Senate since 2022. The reason is the strong opposition from monopoly operators. While the sector awaits its transition toward regulation, the recent centralized measures include the Chilean Supreme Court’s ruling to order the blocking of illegal gambling sites.

The proposed bill aims to fill the existing gap in the regulation of the online sector, outlining, among the rest, a licensing framework, taxation policy, and requirements for player protection.

Slow progress of Chilean legislation frustrates many; however, the country clearly signals an intent to establish a fully-regulated market, and 2026 could be the year the country finally approves regulated iGaming.

Colombia

Colombia is one of the biggest markets in Latin America. With a population of over 53 million, the fourth-biggest economy on the continent, a mobile penetration rate of roughly 56%, and a well-documented national passion for football, Colombia presents a massive opportunity for online gambling businesses — especially online sportsbooks.

Online gambling Colombia has been regulated already for a decade, and the gaming and betting market has been growing steadily since licensing began in 2017. With the 2016 regulation of the online sector, almost all forms of gambling, both land-based and online, are now legal in the country — except for online horse race betting; only Coljuegos, the country’s regulatory body, and private operations with government concessions may operate trackside betting.

Online casino license holders are required to pay an annual license fee of 811 Colombian minimum wages, which totals approximately $385,000 (as of January 2026).

In February 2025, the government briefly shifted its 19% VAT from a GGR basis to a 45% tax on player deposits, but this proved counterproductive (operators inflated bonuses to compensate). In December 2025, regulators reversed course: starting January 2026, the 19% tax is again applied on net gambling revenue. Under the new scheme, operators pay 15% concession fees plus 19% VAT on their gross win, yielding 34% of GGR.

Costa Rica

As an economically and politically stable country, Costa Rica is an attractive base for a variety of international industries.

While laws from 1922 and 1974 prohibit games of chance, the government’s unspoken approval has turned the country into a hub for online gambling.

The answer to the popular request “Is gambling legal in Costa Rica?” is the following: Authorities permit gambling companies to be established in the country provided they follow Costa Rican law, which prohibits them from offering gambling services to Costa Rican citizens. They can, however, accept players from other jurisdictions.

The government’s tolerance of gambling enterprises and lack of a tax on internet gambling revenues have made the country highly attractive for online casino operators; an estimated 450 companies related to the iGaming industry operate out of Costa Rica.

There is no official Costa Rica gambling license issued by regulators; instead, online casino operators apply for a “data processing” license, and are frequently classified as call centers. Additionally, Costa Rican banks do not process transactions for online gambling operators located within the country’s borders.

The Dominican Republic

The casino industry in the Dominican Republic developed along with the tourism industry throughout the second half of the 20th century, as the government aimed to diversify the country’s economy. The 1960’s and 70’s saw the legalization of gambling and tax breaks for private companies that invested in tourism, including casinos.

The Dominican Republic is one of the most organised gambling markets in the region. Long-standing national law governs land-based casinos, historically connected to the country's tourism industry. Retail sports betting is legal and common, especially for baseball, which is an integral part of local culture.

Resolution No. 136-2024 legalized online gambling in 2024. Both online casinos and sports betting require a licence, and there are specific regulations about taxes and responsible gambling policies. The Dominican Republic is emerging as a reliable, mid-sized regulated iGaming market in the Caribbean, thanks to high internet penetration and a strong cultural legacy.

Ecuador

Land-based casinos and bingo halls were forced to close in 2012. Online gambling, similarly, is prohibited. However, in 2019, a group calling itself the Association of Former Casino Workers of Ecuador began calling for a reversal of the prohibition. The group’s leader claimed that Ecuadorian citizens simply traveled to neighboring Peru and Colombia to gamble, bringing with them an estimated $45 million in potential revenue, and that casinos should be reopened.

In 2024, the President proposed the comeback of land-based casinos to be decided by referendum, which is still pending. The country’s laws also do not explicitly prohibit online gambling, which allows the residents to use offshore platforms. As Ecuador experiences a continuous, multi-faceted, severe security and humanitarian crisis, the fate of the gambling sector continues to be a part of broader uncertainties related to the internal conflict.

Guyana

Guyana’s Gambling Prevention Act prohibits gambling, but there are some exceptions, such as lotteries and pool betting. Casinos became legal in 2007 as part of a push to stimulate the country’s tourism sector. As of yet, only two casinos have opened, and only guests of the attached hotel premises are permitted to play. There is also one lottery and seven sports betting companies operating in the country.

There are no laws explicitly prohibiting online gambling in Guyana. The country’s Gambling Prevention Act specifically bans gambling in common gambling houses, a requirement that remote gambling does not fulfill. However, at the end of 2025, the Guyanese government had initiated a major crackdown. New regulations and amendments to the Fiscal Enactments Act in February 2026 are specifically targeting "gambling on demand" via mobile apps and online platforms to address social issues like debt and addiction. As a result, dozens of mining and gaming licenses were revoked, curbing the rapid, unregulated growth of the online sector.

Mexico

With over 133 million people, an internet penetration rate estimated at over 90%, and the second-strongest economy in Latin America, Mexico is widely considered to be fertile ground for new and expanding online casino and sportsbook operators.

Nearly all forms of gambling are regulated in Mexico except for land-based card rooms (poker games are only permitted in casinos) and virtual sports betting (which is permitted, but not expressly regulated). Like the rest of Latin America, all games of chance are popular throughout the country, with bettors showing an added level of enthusiasm when it comes to betting on football.

The foundation of gambling regulation in Mexico remains the 1947 law, which only partially aligns with today’s digital reality. By 2025, this mismatch became particularly evident. However, instead of pursuing comprehensive reform, authorities opted to reinforce oversight through payment regulation, AML enforcement, data protection measures, and tax policy. Gambling license in Mexico is issued exclusively to local operators under the supervision of the Ministry of the Interior.

The new AML law amendments of 2025 were accompanied by concrete enforcement actions: 13 casinos and online platforms were blocked, including bet365 and Betano.

Tax policy added further pressure. The increase in special excise tax (IEPS) up to 50% requires operators to demonstrate stronger financial resilience and reconsider their business models.

The 2026 FIFA World Cup, which Mexico will co-host, is becoming a key catalyst for further regulatory change. The anticipated surge in betting has intensified discussions about modernizing the framework.

Nicaragua

Aside from racing, fantasy sports, and betting on virtual products, all forms of gambling — both land-based and online — are regulated in Nicaragua. Regulatory authority is split between the Control Board of Casinos and Gaming Venues and the Ministry of Finance and Public Credit. Though gambling was legalized in 2001, the industry remains largely underdeveloped. There's no detailed license acquisition process for online operators. That means most online gambling happens through offshore sites that are not explicitly restricted by any local laws.

Panama

Almost all forms of online gambling and betting in the country are regulated by the Panama Gaming Control Board. iGaming is subject to local licensing, and operators can offer sports betting, auto race betting, and a full range of casino games. Some products, however, are prohibited; the list includes lottery , betting on horse races, amateur events, political elections, and other events, at the regulator’s discretion.

Panama online gambling license cost is approximately $40,000. Applicants must have a legal representative in Panama, submit to a background check, and be established in the country. Online gambling is taxed 10% of GGR.

Paraguay

Paraguay has traditionally had a very restrictive policy on gambling, although the current regulatory framework is undergoing a transition. Until recently, gambling activities was regulated through a state monopoly model administered by CONAJZAR, with exclusive concessions awarded to single operators, and no defined regulatory framework for online gambling. As a result, online casinos and offshore sportsbooks have been operating in a gray regulatory area, accepting Paraguayan players without any local licensing.

In 2023-2024, the authorities launched a series of reforms to abolish monopolies and upgrade the regulatory framework for gambling, including plans to introduce multiple licensed operators, as well as enhanced regulation, transparency, and tax collection. Although a specific licensing framework for iGaming is not yet fully in place, the reform course indicates a forthcoming legalization. Paraguay is an early-stage, high-uncertainty but potentially high-upside market, for which regulatory preparedness, compliance advisory, and market entry assistance are likely to become increasingly important as the reform process is completed.

Peru

Peru gambling regulation is one of the most advanced in Latin America. The country implemented a comprehensive regulatory framework for online betting and gaming in 2023–2024 under Law No. 31557 and its amendments.

Peru is a regulated, scalable, and enforcement-driven market for operators and B2B providers. Online casinos and sportsbooks are fully legal and subject to mandatory licensing by the Ministry of Foreign Trade and Tourism (MINCETUR), with requirements including local legal representation, technical certification, AML compliance, and responsible gaming tools (deposit limits, self-exclusion, player verification). The tax model is relatively balanced by regional standards — a 12% tax on net gaming revenue and a 1% levy per wager, alongside standard corporate taxation. Advertising is permitted but regulated, particularly around player protection and minors. The country actively enforces compliance, blocking unlicensed operators and payment channels.

Uruguay

The Dirección General de Casinos (DGC) and a few private concessions have historically operated gambling under a public monopoly, making Uruguay one of the most state-controlled gambling regimes in Latin America.

While online casino games are still mostly limited to state or concession-based models, Uruguay officially legalized online sports betting in 2023 and gave the state telecom ANTEL exclusive operational rights in collaboration with authorised private suppliers. As a result, foreign operators are unable to freely enter the market under their own brands, and there is no open multi-licensing iGaming framework comparable to Colombia or Peru.

Venezuela

Casinos and bingo halls were banned in Venezuela in 2011. In 2019, the government approved a cryptocurrency casino in an effort to boost the value of the country’s Petro cryptocurrency. In 2021, Venezuelan then-president Nicolas Maduro reversed the decision made by his predecessor and legalized gambling again. In the long term, up to 30 establishments may appear in the country, and several have already opened.

Player preferences in Latin America

Preferences in Latin America have shown a clear affinity for sports, live entertainment, and interactive content. Sports betting, especially football betting, has been the leading vertical in the Latin American market in terms of online gambling revenue. In-play betting and micro-betting have been highly popular due to the dynamic nature of the content.

Slot games have also been successful in the Latin American market, especially mobile slots with culturally relevant themes and engaging mechanics. Operators are adapting their portfolios to regional tastes — incorporating local payment methods, Spanish and Portuguese interfaces, and tailored promotional mechanics to align with user expectations.

Payments & financial infrastructure

The evolution of payment systems in Latin America has been a major driver of growth in the region. The use of instant transfer systems, QR code payment systems, and such systems as PIX in Brazil and SPEI in Mexico, has significantly reduced payment processing times and fees. Players expect instant payment systems with low fees and mobile payment system integrations, and this has now become a norm in the market.

However, payment methods have now become a regulatory control point. Latin American countries are now using financial system controls, payment system monitoring, and collaboration with financial institutions to control and restrict unlicensed operators. The enhanced AML and KYC regulations and control of international transactions are making compliance more costly and pushing the market towards formalization.

How can Slotegrator help?

Starting an online casino or sportsbook is no easy feat. Without expert assistance, potential operators can stumble right out of the gate. Our legal experts can assist you with choosing the right market and business structure for your enterprise, as well as acquiring a license.

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