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Emerging Markets: Navigating iGaming Regulations in Latin America
As this market continues to develop, operators looking to expand into Latin America must navigate a complex regulatory landscape to ensure compliance and connect with users.
Latin America is quickly becoming a significant player in the global iGaming market. Countries like Brazil, Peru, and Argentina are leading the charge with new legislation that is creating opportunities for online sports betting, casino games, and lotteries Revenue in the market is projected to reach $5.1 billion USD in 2024, showcasing how large the market already is. As this market continues to develop, operators looking to expand into Latin America must navigate a complex regulatory landscape to ensure compliance and connect with users.
To learn more about the Latin American and other important iGaming markets, download our whitepaper, “Future-Proofing iGaming: Navigating the Regulatory Maze.”
Regulatory developments in Latin America
Brazil: Brazil has long been considered the sleeping giant of the Latin American iGaming market, but recent legislation has changed that idea. The legalization of online sports betting and casinos has created significant opportunities, but operators must contend with strict payment restrictions. Credit cards, cash, pay slips, checks, and cryptocurrency are banned, and withdrawals must be made via electronic transfers authorized by the Central Bank of Brazil.
Peru: Peru is another market to watch, having recently legalized online gambling. Operators must meet stringent requirements around age verification, KYC (Know Your Customer), and AML (Anti-Money Laundering) to obtain a license. The new regulations, which aim to protect players, have led to a surge in license applications from both national and international companies.
Argentina: Argentina's approach to online gambling is similar to the United States, with regulations varying by state. Buenos Aires, the most prominent market, has recently halted new online casino licenses due to concerns on how gambling may affect minors. This state-by-state approach creates a patchwork of rules that operators must navigate carefully.
Compliance strategies for operators
Operators must develop robust strategies to navigate the complex licensing requirements and payment restrictions in Latin America. This includes staying up to date with local regulations and ensuring that all aspects of their operations are fully compliant. Compliance with age verification, KYC, and AML regulations remains critical in Latin American markets.
Responsible gambling is becoming a critical element of iGaming worldwide, with Latin America being no different and new regulations emerging to protect users. Operators should look to offer tools that help players manage their gambling behavior, such as deposit limits and self-exclusion options, to meet regulatory requirements and protect their players.
Role of payment solutions
Localized payment solutions are vital for meeting the unique regulatory requirements of each Latin American market. These solutions must be tailored to the specific needs of the region, offering a range of payment methods that comply with local laws.
Paysafe’s payment solutions are designed to help operators navigate the regulatory challenges of the Latin American market. With a deep understanding of local regulations and a robust compliance framework, Paysafe ensures that operators can offer seamless, secure, and compliant payment options to their players.
Operators that have partnered with Paysafe have successfully navigated the complex regulatory landscape of Latin America, maintaining compliance while offering a smooth payment experience to their customers.
Conclusion
The Latin American iGaming market offers tremendous growth opportunities, despite operators needing to navigate a complex and evolving regulatory environment. By understanding local regulations, implementing strong compliance measures, and leveraging localized payment solutions, operators can succeed in this emerging market.
For more detailed insights and strategies, download our whitepaper, “Future-Proofing iGaming: Navigating the Regulatory Maze.”
