Latin America wants to have a rosy future. In those markets where the choices have already been made to legalize online sportsbooks and casinos, steady growth is being observed, and countries standing on the threshold on the brink of good legislative reforms are going to follow the same path soon.
Online gambling policies vary quite widely across the continent. In certain countries, all forms of online and offline betting are illegal except for the state lottery. Others have no formal permission or prohibitions. And finally, there is the growing list of countries that are legalizing specific forms of gambling, such as Chile online gambling, which is currently undergoing drastic legislative reform.
Although giants such as Brazil and Colombia have received most of the spotlight, there are other markets within the region that are worth exploring.
Chile is moving large in the direction of a regulated market. The Ministry of Finance presented a bill in an effort to regulate online gambling. That bill has passed the Chamber of Deputies and is awaiting review by the Senate.
New responsibilities will be created for the Gambling Superintendence, the Financial Market Commission, and the Tax Authority if it is approved.
The bill proposes an estimated $74,189 in licensing fees. Licensees will pay varying sums, with funds directed to the National Sports Institute, the Chilean Olympic Committee, and the Paralympic Committee, totaling 2% of GGR. A 20% profit tax and a 1% contribution for responsible gaming programs will be added.
Illegal gambling is also covered in the bill. Unlicensed websites will be banned from advertising by media, ISPs will block unlicensed sites from access, and banks will be allowed to block transactions with illegal operators.
Currently, sport betting is state-monopolized and online casinos are banned. With the new law, there will be no cap on the number of licenses.
Argentina, the fourth-largest country and third-largest economy in the region, with a population of 45 million, has over 75% of its people actively using the internet. In the provinces, gambling is governed, and there can only be legal operators supplying services to local residents within their province of registration. Where markets are not forbidden, operators may offer all categories of betting.
At the federal level, operators are taxed on income, value-added tax, and credit and debit taxes on bank accounts. The levy of an indirect tax on online gambling by both resident and non-resident operators complicates the tax picture further.
Federal-level taxes are as follows:
The country also regulates advertising of gambling — it cannot be aimed at minors or contain misleading claims. Only licensed operators may advertise their services.
IPLyC, the local regulatory body of Buenos Aires, launched a licensing system based on local company and foreign operator partnerships such as William Hill, Bet365, and 888 Holdings.
It is worth noting that Buenos Aires officials have suspended new license applications.
Brazil is the biggest and most populous nation in Latin America.
Home to a population of around 200 million, with around 63% of these people being connected to mobile technology, and with a national fixation on football, Brazil is the sportsbook's dream market for any hoping to break into South America — and the dream has been realised at last.
The Brazilian Chamber of Deputies at last voted through regulation of the market in a breakthrough to the country's gambling law. Approval came after passage of a bill that not only regulates sport betting but also legalizes other forms of gambling. All proposed taxation measures were also passed by the Economic Affairs Committee.
This legislative development followed intense debate in the Chamber, with members of the Brazilian evangelical political bloc attempting to veto the bill for fear of negative impacts. Supporters argued regulation would legitimize the industry and offer protection for all stakeholders.
Phases of early legalization tend to be accompanied by regulatory changes as well. In this case, Brazil's Central Bank has already tightened controls on financial transactions related to gambling.
The revenues of Brazil's online casino and sports betting market are projected to exceed 100 billion reais. A significant amount of that revenue will come from tourism.
Colombia is one of the largest markets in the continent. With 50 million residents, it boasts the fourth-largest economy, with mobile technology penetration of around 56% and football enthusiasm.
Therefore, Colombia offers huge opportunities for the online gambling sector, especially sportsbooks.
Colombia was the first Latin American nation to legalize gambling online. It was followed by licensing shortly afterwards, and since then, the betting and gambling sector has recorded consistent growth. Nearly all forms of gambling are legal in the country today, both online and offline, with the sole exception being remote horse race betting. Only the state regulator Colijuegos and private entities specifically licensed by special government authorization are permitted to offer race betting.
Online casino licensees must pay an annual licensing charge of 811 times the country's minimum wage, or about $196,830.
There is a need for online gambling operators to contribute a 15% gambling tax if they are offering an 83% return-to-player value. If this is not given, then gambling tax increases to 17%.
Concession holders must also make an administrative fee of 1% on NGR, annual license fee, and an online gambling 19% VAT.
The industry is showing strong performance. Estimated GGR in the Colombian market was around $300 million, and state revenues increased significantly year on year.
