South America, as part of the LATAM iGaming market, is fantastic for building a successful business. At Atlaslive, we are dedicated to helping iGaming operators thrive by offering top-tier iGaming solutions. Our innovative platform and comprehensive series of components are designed to meet local regulatory standards, both in South America and around the world.
In South America, several factors led to the rise of iGaming. The ease and availability of platforms allow people to play different games and place bets from home with just a few clicks. The growth of mobile devices has also made it easier to play games on the go.
Market trends have also been vital, especially the growing popularity of online sports betting. With more people in the region watching sporting events and competitions, more people are betting on their favorite teams and players. The momentum of legal changes that have made online gambling more regulated and safer in many South American countries has also helped the industry flourish.
The online gambling market is poised for significant growth, with the number of users expected to reach 10.4 million by 2028. Leading the South American iGaming scene are Argentina, Brazil, Colombia, Guyana, Paraguay and Peru , which represent the largest markets by revenue. User entry into the online gambling sector is predicted to reach 2.1% by 2024, highlighting the growing acceptance and popularity of iGaming across the region.
South America has different customs, but the people who live here like to have fun. They are happy, energetic and technology-savvy people, always looking for ways to enjoy life. iGaming offers a perfect combination of digital entertainment and social interaction, allowing people to have fun whenever and wherever they want.
This dynamic environment is attracting significant interest from both players and operators, particularly in the rapidly expanding South American market, especially in Latin America. This is why everyone is eager to enter this booming industry.
Explosive growth: iGaming market and key preferences in choosing games
South American user entry into the online gaming market will be 2.1% in 2024. This number highlights the potential for significant market expansion as more users discover and participate in online gambling.
The chart illustrates a consistent upward trend in revenues for the online gambling sectors across South America, with online sports betting showing significant growth. By 2028, total online gambling revenue is expected to exceed $8 billion, driven primarily by the expansion of online sports betting, which is increasingly attracting a larger share of the market.
Sports betting is rapidly gaining popularity, driven by the country’s love for football. Online gambling platforms have capitalized on this enthusiasm by offering extensive sports betting options, especially for major football leagues and tournaments, which has skyrocketed market growth. Additionally, online casinos are starting to attract more players, although sports betting continues to be the most popular segment.
The chart below displays a detailed look at the 2023 revenue distribution across different segments of the online gambling industry in several South American countries, emphasizing the substantial impact of online casinos and sports betting.
E-sports are gaining significant popularity, especially in Brazil. This was evident at the IEM Rio 2022 tournament, in which Brazilian teams FURIA Esports, 00 Nation and Imperial Esports competed against international teams in front of passionate fans at Jeunesse Arena, reaching a peak audience of 1.4 million.
Despite Brazil having great players and dedicated fans, the government has historically not supported e-sports. Former Sports Minister Ana Moser categorized e-sports as entertainment and not as a competitive sport, excluding them from the definition of sports in the General Sports Law. However, this may soon change, and betting on such tournaments may become possible.
South America: average revenue per user (ARPU)
Statista’s chart illustrates that the average revenue per user (ARPU) for various online gambling sectors is undergoing notable changes since 2017 and is likely to continue until 2028. The online casino sector shows significant growth, with the ARPU increasing from $48.05 in 2017 to a projected $556.40 by 2028. In contrast, online lotteries‘ ARPU is in steady decline, falling from $ 504.80 in 2017 to $285.80 in 2028, as per projection.
Online sports betting is seeing a steady increase, reaching $652.10 by 2028, surpassing online casinos and lotteries. This trend shows changing preferences regarding sports betting and online casinos in the market.
All of these numbers show that South America’s dynamic and evolving market presents great opportunities for those looking to invest and capitalize on the iGaming industry. There is also a growing demand for new technologies and innovative solutions that improve the player experience, offering more opportunities and fun. Adopting these advances is essential to satisfy the South American public interested in technology and looking for entertainment.
Not just because of sports betting, or why crash games are so popular in South America
Crash games are increasingly popular due to their simplicity, fast pace and level of control they offer, unlike traditional slots. These games are consistently among the top picks in the South American market. At Atlaslive, we recognize that a diverse player base requires a wide variety of games to suit different tastes, which is why we ensure our platform includes a rich series of popular titles.
Atlaslive continues to partner with many new globally recognized game providers and today our casino games portfolio is excellent in terms of game variety, visual appeal and diverse bonuses and benefits. We already offer more than 10,000 online casino games, live games, virtual sports, lotteries and tournaments, all in one place. We are aware of how many players in South America are involved in crash games, slots and roulette, and we are doing everything we can to meet our partners’ needs by providing all the exciting games their customers want. At the moment, the Atlaslive platform includes more than 100 crash games, including all the popular ones.
A variety of regulatory frameworks in the South American iGaming market
At Atlaslive, we closely monitor the diverse and changing regulatory landscapes of the South American iGaming market. Each country has its own legal requirements and compliance standards that shape the opportunities and challenges for operators. Understanding the specific needs of our partners in these regions is crucial.
Brazil and Colombia
Brazil has made notable improvements to its regulatory framework. In December 2023, the sanction of Bill 3,626/2023 marked the legalization of sports betting and online casino games. This monumental shift opens up one of the largest economies in Latin America to regulated iGaming, offering tremendous growth potential for the sector. We, as B2B iGaming platform providers, understand how important it is to meet the high demand and regulatory standards set by this new legislation.
Colombia stands out as a pioneer in gambling regulation in Latin America. Since 2016, the country’s regulatory body, Coljuegos, has overseen the sector with a strong emphasis on compliance and responsible gaming practices. Colombia’s well-established regulatory setup ensures a robust framework for licensing and compliance, making it a stable market for operators.
Argentina, Peru and Chile
When it comes to Argentina, the country presents a unique scenario with its decentralized approach to gambling regulation. Regulations vary significantly from one province to another, creating a patchwork of rules. This decentralized structure offers challenges and opportunities for operators looking to expand their market presence.
Peru is currently in the early stages of establishing its regulatory system for iGaming. Emerging regulations are shaping the future of online gaming in the country, presenting lucrative opportunities for early market entrants to capitalize on growing demand. The finalization process is still ongoing, but the finish line is close and many new operators are already showing interest. The government is working on issuing licenses and once the framework is fully established, it will allow operators to officially start their business.
The Peruvian government has published regulations for online gambling, effective from 2023, allowing MINCETUR to license and regulate online gambling and sports betting. This framework aims to ensure fair play, responsible gaming and increased government revenue through a 12% tax on the net profits of licensed operators. Becoming a fully regulated market is always a long road but, in the case of Peru, it is almost at its final destination. User entry into the online gambling market is currently at 2.1% and there is a notable increase in interest among Peruvian customers in a diverse range of casino games.
Countries like Chile are gradually adapting to establish their own laws regarding online gaming. The country recently introduced licensing regimes for online gambling, following the examples of Colombia, Mexico, Panama and certain provinces in Argentina. The Chilean government has been working on comprehensive legislation to regulate online casino gaming and sports betting. The Ministry of Finance presented a bill that was approved in the first phase.
Therefore at Atlaslive, we are dedicated to continually improving our dynamic iGaming platform by introducing new features and tools that operators can seamlessly integrate. Our focus covers all aspects of user experience and market needs, from sports betting and casino offerings to payment methods, analytics and efficient CRM. Our strategic and innovative approach ensures that our partners are well equipped to offer a safe, secure and legally compliant gaming experience in Latin America.
