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Online gambling is booming in Latin America, with the market attracting more operators and investors. As a leading iGaming software development company, Softswiss has identified key factors that are boosting the growth of the LatAm market.
The popularity of sports betting, cultural values, the growing acceptance of gambling regulations, and the embracing of new technology are the key factors that have increased confidence in the Latin American market.
Key Factors Boosting the Growth of iGaming in LatAm
These are the main factors adding to the market growth in the region:
Gambling Regulations: The recent changes in gambling regulations have emerged as one of the top factors shaping the future of iGaming in LatAm. Many countries, including Colombia, Argentina, and Mexico, have implemented new regulatory frameworks regarding online gambling.
Historical Advantage: Latin America has rich historical background regarding gambling. Countries like Mexico have a history dating back to the Aztec empire, where gambling was widely practiced. Likewise, Brazil has a rich history with lotteries, locally known as ‘Jogo do Bicho.’
Lotteries and Horse Races: The growing number of lotteries and horse racing fans has greatly contributed to the spread of gambling in LatAm. Countries like Chile, Peru, and Argentina are well-known for their passion for gambling activities.
Other Factors: Besides the key factors highlighted above, the online gambling industry is growing faster because of high digitalisation, a growing middle class, and a vibrant economy.
The Future of iGaming in LatAm
Considering all these factors, the online gambling industry in Latin America is expected to hit USD 3.4 billion by 2025, according to Statista. With an estimated population of over 670 million, an expanding middle class, high mobile adoption, and new gambling regulations, the LatAm market is expected to grow faster than the previous years.
Nevertheless, the Latin American iGaming market has some challenges, especially regarding online payments. Many LatAm countries have varying financial regulations, and most are still limited to traditional banking services. This makes it quite difficult for players to deposit and withdraw their funds.
Gregory Penkov, Head of Sales at SOFTSWISS Game Aggregator, commented: “By providing innovative products and services and a commitment to regulatory compliance, operators can position themselves for success in this dynamic market. With SOFTSWISS’s experience and expertise in the region, the company is well-equipped to help operators navigate the unique challenges and opportunities the market presents.”