Since the National Charity Lottery (LNB) unified licensing in 2021, operating a casino or online gaming platform has required a permit valid for up to ten years, annual external audits, and a substantial 55% tax on gross gaming revenue (GGR)—a rate that funds social programs and forces operators to optimize margins and costs.
Despite this fiscal burden, the market shows signs of traction. According to industry projections, the online sports betting segment will generate approximately $9.5 million in 2024 and grow at a compound annual rate of 6% until 2028. This growth is fueled by tourism.
The Surf City initiative
El Salvador’s Surf City initiative aimed to promote the country as a world-class surfing destination. The initiative significantly boosted tourism, attracting 3.9 million visitors in 2024. This initiative has placed El Salvador among the countries with the highest tourism growth globally.
Digital infrastructure supports this growth. El Salvador has 11.5 million mobile lines, 160% of its population, and 92% of the country has at least 3G coverage. The GSMA estimates that 91% of these connections are mobile broadband. This makes smartphones the primary channel for online gaming acquisitions and payments.
The Bitcoin Factor: Now Optional
In 2021, the adoption of Bitcoin as legal tender put the country in the headlines. However, in January 2025, the Legislative Assembly reformed the law in line with a $1.4 billion IMF loan, making accepting BTC voluntary instead of mandatory. This amendment maintains the “crypto-friendly” narrative while reducing the exchange rate exposure that concerned banks and compliance officers.
For gaming, crypto offers tactical advantages. Establishments can attract international high rollers with instant deposits via Lightning and immediately convert funds to dollars through BANDESAL, the authorized state bank, if desired. Additionally, cross-border processing costs are lower than those of traditional cards. Nevertheless, adoption remains limited. Only one in five businesses accepts Bitcoin payments, and 88% of those immediately convert to USD to avoid volatility.
2025-2030 Outlook:
With clear rules, dollar-based revenue, and cryptocurrency as an optional feature, El Salvador is positioning itself as a Central American testing ground for medium-sized operators seeking regional entry without the costs of a Caribbean license. If online regulations are fine-tuned, such as by defining specific rates for virtual games, analysts estimate that the market could double in size by 2030, provided that the tax rate doesn’t increase and tourist flow maintains its current pace.
El Salvador offers a defined regulatory framework, solid digital infrastructure, and a controlled approach to cryptocurrency use, which could appeal to operators looking to expand in Central America. However, the effective tax on gross gaming revenue (GGR), additional compliance costs (including anti-money laundering/know your customer (AML/KYC)), and limited Bitcoin adoption require a rigorous financial evaluation.
Before committing capital, interested parties should consider their tolerance for exchange rate volatility, ability to implement robust controls, and the evolution of local demand. Understanding the competitive landscape and potential market growth will be key to making informed investment decisions.
