LATAM FROM A JURISDICTIONAL POINT OF VIEW – Colombia, Peru and Brazil
Many experts consider the Latin American region to be the next big thing for the iGaming industry. And with the prospect of countries within the region working to adopt a stable legal framework that acts as a safeguard for the substantial investments made by operators whilst also ensuring the players’ interest, this is a milestone not to be disregarded.
With local authorities seeking to regularize the online market, operators are setting their eyes on the benefits they could reap through such a strongly supervized environment. In this story we will analyze LatAm countries with the highest potential for growth in the iGaming market :
Colombia was the first country in Latin America to introduce a strong regulatory framework for the iGaming industry.
The new regulatory framework defines multiple gaming categories – covering sportsbooks, poker, fantasy sports, eSports, promotional games and online casino, among others – in addition to technical requirements for iGaming systems and landbased gambling.
Overall, Colombia has persevered through the “bad old days” to create an example for fellow South American nations to follow in terms of gambling legislation. The country is home to more casinos and gambling venues than anywhere else on the continent except for Argentina, so gamblers should have no problem finding their favorite games here.
The question is: Will the latest legislation make Peru “the new Colombia” in terms of interest from iGaming operators?
The local and international operators had a great expectation about the proposed new law for Peru and of course, they were interested in opening new businesses in this country since they consider that there is potential and interesting market. There Is no way that Peru will be placed as “the new Colombia” in terms of operators capture. These countries have different markets and also different players, whose idiosyncrasy are not necessary the same. On the other hand, if we consider Peru as the first country that passed a law for onsite gambling. In this context, operators’ interest on being part of this market would be convenient. One should not forget that the Law restrictions (definitions) play a very important role in investment decisions. Also, we need to consider the fact that once the proposed new law related to sports betting and online gaming is given by the Peruvian gaming authority, the regular customers will feel more confident because of knowing that the operators are being supervised. Players will be reassured that their benefits will be respected.
As one of the first countries in South America to authorize a regulated online gambling industry, Peru has issued a few licenses to reputable international operators.
In June 2015 Manuel San Román Benavente – who serves as the Director General of the Peruvian Gaming Control Board – signaled his intention to explore full legalization of all online gambling.
The chance to approve the new sport betting and online gaming law allows for an additional business front, and helps to attract investments. In summary, this will result in a greater economic dynamism within this sector in long term, and we could have a totally integrated large and regulated gaming industry that would turn Peru to become a market model for Latin America.
Lawmakers have been trying to legalize at least one form of iGaming in the fully-restricted Brazilian market for a number of years, along with creating a regulatory framework to liberalize the market. It is estimated that around 200,000 residents travel across the border to Uruguay to gamble at local casinos. The market’s potential is huge and there will likely be an equally high demand for iGaming offerings.
Finally, as is mostly the case in the iGaming industry, and the LatAm region is no exception, it is of the utmost importance for operators targeting to enter, or seeking to diversify their operations in the region, to be able to rely on the right technical partner who will bring with him a wealth of knowledge and experience from a global context needed for a seamless launch of the business on a local level.
A technical partner that will facilitate the tackling of the various challenges and problematics that the region may keep in hold, with its support department in the meantime assisting and working closely with the client’s operations team to identify their needs and fulfill the every day aspects of the job.
For deeper knowledge, download our latest Industry report: https://www.btobet.com/en/latam-a-sportsbook-opportunity-characterized-by-diversity-industry-report