iGaming, or online gaming, has emerged as a vibrant sector in Latin America, driven by increasing internet penetration, access to mobile devices and sustained interest in sports betting and casino games. In addition to providing entertainment, the sector has begun to play a critical role in the region’s economic development, generating tax revenues, creating jobs and promoting financial inclusion.
Fiscal contribution and public funding
One of the most visible impacts of iGaming on local economies in Latin America is its contribution to tax revenues. Countries such as Colombia, Mexico and, most recently, Brazil have established regulations for the sector that have allowed for the collection of revenues through specific taxes. For example, in Colombia, where online gaming has been regulated since 2016, the regulator Coljuegos reported that in 2022, taxes derived from iGaming platforms exceeded 800 billion Colombian pesos (approximately $200 million USD). These revenues are mainly used to fund the public health system.
Promoting financial inclusion
In a region where more than 50% of the population remains excluded from traditional financial services, iGaming has played a significant role in promoting financial inclusion. Many platforms allow users to transact using alternative methods such as digital wallets (e.g. Mercado Pago and PayU), local bank transfers and cash payment systems such as OXXO in Mexico or Rapipago in Argentina.
The integration of these payment methods not only facilitates access to online gaming services, but also educates users on the use of digital financial tools, preparing them for a more digitized economy. According to a Worldpay study, 40% of online gamers in Latin America use e-wallets, a figure that is growing year on year.
Impact on local communities
Beyond the economic numbers, iGaming has brought direct benefits to local communities. In several countries, operators are dedicating part of their revenues to social programs, sponsoring sports and cultural events, or contributing to infrastructure works. A prominent example is the program in Brazil, where sports betting operators have funded amateur football leagues, providing opportunities for young local talent.
In other cases, platforms have worked with local governments to improve technology infrastructure. For example, in regions of Colombia and Peru, international operators have established technology training centers that not only benefit the industry, but also train the local population in high-value skills.
Attracting foreign investment
The growth of iGaming has also attracted international operators who see Latin America as an emerging market with great potential. Companies such as Betsson, Codere and Bet365 have established local operations, investing in infrastructure, personnel and strategic alliances. According to a report by Grand View Research, the iGaming market in Latin America is estimated to grow at a compound annual growth rate (CAGR) of 12.8% between 2022 and 2030, highlighting the importance of the region in global expansion strategies.
Challenges to overcome
While the positive impact of iGaming is undeniable, it still faces significant challenges in Latin America. The lack of consistent regulation across the region creates uncertainty for both operators and governments. While countries such as Colombia have adopted successful regulatory models, other markets such as Brazil are in the early stages of establishing clear regulatory frameworks. Resolving these challenges will be critical to maximizing the economic benefits of the sector.
