Why Sports Betting is Growing so Much in Latin America

If you are a GOSUBETTING reader, you have a love for sports betting, and you know that this pastime has seen a dramatic rise in the past decade worldwide. Everyone familiar with this activity knows that the fall of PASPA triggered the American sports gambling boom, and Europe has been a fledgling market since the start of the mid-2000s. Today, these two parts of the globe are getting competition from a new rising sports wagering region, Latin America.

Now, for those unfamiliar with the term Latin America (LATAM), we must educate that this phrase encompasses not only the continent of South America but also Mexico, Central America, and many Caribbean islands. These are parts of the globe where Romance languages are spoken, chiefly Portuguese and Spanish.

Per data featured on Statista, the worldwide sports betting industry will bring in revenues of $50 billion in 2025, expanding at a rate of 6.3% per year until 2029. The same source cites that Latin America’s betting market has grown to $3.4 billion from a size of $1.3 billion, which it boasted five years ago. So, it almost tripled in half a decade. Much of this gets attributed to gambling becoming less taboo everywhere in recent times and global betting operators seeing the bettor potential Latin America has, particularly because of its residents’ love for football/soccer and the deep passion Latin Americans have for this sport.

In the subheadings that follow, we go into other reasons why Latin America’s sports betting sector is growing so quickly, which countries are the top players in this expansion, and how this sphere will likely develop over there.

History of Betting in LATAM & Growth Factors

As noted above, wagering on football/soccer has deep historical roots in this region, even when legal sportsbooks were not a thing here. The sport’s popularity is a cultural phenomenon, which is evident in the fact that countries like Argentina and Brazil have done so well in past World Cups. Now, we must mention that there traditionally has been, and still is, some level of stigma regarding betting in Latin America. That comes from the region being predominantly Catholic, with Protestantism growing rapidly in some parts. These are religious traditions that discourage gambling, as this is a hobby that does not fall in line with their moral teachings. This has led gambling to get associated as something that is super irresponsible to engage in.

That aside, for the most part, over the 20th century, this activity lacked regulation and operated in legal gray areas, or it was totally illegal. It began to transition into a regulated pastime in the late 1990s and early 2000s. That happened because governments recognized the economic benefits of this sphere for their tax coffers. Colombia was one of the first big countries to regulate its gambling industry, which it started doing in 2016 with Law 1753. Then, Brazil and Argentina followed suit.

The regulatory changes that LATAM has seen over the past decade have put in place detailed licensing systems in many of its countries and have established strict standards of transparency and fairness. Naturally, the digital transformation throughout Latin America has greatly contributed to online gambling becoming more accessible than ever, as now, around 80% of people in Latin America have internet access. Since so many individuals can download an app and gamble on sports in LATAM right now, that has boosted the appeal of tournaments like the Copa Libertadores and Copa América a great deal. Furthermore, stats show that a younger demographic is increasingly engaging with competitive gaming, and eSports are taking a hold in the region. All this has caused global giants like Betway and Bet365 to enter Latin America, partnering with local companies and sponsoring major teams, making sports betting a normal activity and nothing taboo.

Top Latin American Markets

According to the Rio Times, Brazil is now the world’s third-largest betting market. The country legalized wagering on sporting events in 2018, and now this industry, per the Strategy & Brazil consultancy board, is responsible for 1% of the nation’s GDP. The top operators who generate the most betting traffic in Brazil are Bet365, Betfair, and Betano. However, many Brazilians also choose to play at crypto bookmakers based in Curacao, many of which also accept fiat transfers or allow these gamblers to buy cryptos using reais with payment methods available in the country.

Argentina, naturally, is another of the region’s most developed betting landscapes. Nonetheless, it is a bit more complex in terms of regulations, as certain provinces, like Bueno Aires, can implement their own frameworks concerning how they regulate betting fun. The fact that iconic clubs like Boca Juniors have entered into sponsorship agreements (Betsson in this example) with betting companies just goes to show how mainstream this activity has become in Argentina.

Colombia, cited as the LATAM online betting pioneer, used to have the biggest wagering markets before Brazil blew up, and Mexico is doing big things in the sports betting arena as of late, reporting a billion in revenues from this activity in 2023. Sponsorship deals are also making waves here, as Betcris, a San Jose-based operator, recently became a sponsor of Atlante F.C., a team that competes in Liga de Expansión MX.

Challenges & Further Growth Potential

Without question, the most pressing issue for many is the high taxation rates that some countries implement on operators. These can deter betting companies from entering or expanding in such markets. For instance, Argentina has national and provincial tax regulations, which can take a big chunk of operator profits.

While gambling is not as frowned upon as it was a few decades ago, it is still not accepted by various sections of Latin American society. We also must add that this part of the world lacks the complex infrastructure needed to address gambling addiction, as it does not have the same help avenues present in Europe and North America.

Something that too must get pointed out is that market saturation in countries like Mexico is a problem that may soon emerge as the number of operators is quickly growing. When a market becomes overcrowded, then aggressive marketing tactics start coming, and these can have both a positive and negative effect on the landscape.

It is clear that in the future, eSports betting will see a sizable expansion in Latin America, and we think that blockchain wagering will make its way into regulated sportsbooks from LATAM in a big way. More team sponsorships should be on the horizon, as well as new regulations that will look to put in place better customer protection rules. 

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