Latin America’s gambling revolution opens new regulatory frontiers

As online gambling continues to develop, Latin America is a region of opportunity. Yet, while the appeal of this growing market is indisputable, entering these diverse and developing jurisdictions is not without its challenges. From the complexities of regulatory environments to technical hurdles and market dynamics, operators must engage in strategic planning and tread carefully.

In an exclusive two-part series, James Kilsby , Chief Analyst and VP of Americas at Vixio Regulatory Intelligence shares his insights into the regulatory landscape with SiGMA News and discusses the obstacles operators must navigate when expanding into Latin America and other global markets.

A two-pronged challenge lies ahead

James Kilsby nods thoughtfully when asked about industry challenges and opportunities in iGaming regulation. He explains that the industry is being challenged on two fronts.

First, an ever-increasing number of markets are regulating on a global basis. So, a considerable challenge is more opportunities to expand into new regulated markets outside of the long-established core. On the other hand, the industry faces stricter regulations in different areas. James adds that player protection and responsible gambling are at the heart of those regulations. This year is pivotal as online gambling expands beyond borders.?

“This is a challenge for the industry to remain compliant in markets where operators and suppliers are already active.

Generally speaking, compliance burdens and regulations have become more onerous. At the same time, the good news is that increasing costs and burden can be mitigated by expanding to new, less mature emerging markets globally.”

James points out that this gives many opportunities to grow in less mature parts of the world but still increases the compliance burden because operators and suppliers who may have been in four regulated markets in Europe ten years ago now may be in ten in Europe alone, then anywhere from three to a dozen in the U.S.

The second part of the challenge is the quick spread of regulation in Latin America and Africa, another emerging frontier. The good news is that there are more opportunities to grow and expand globally, cultivating a sense of optimism and hope.

UK leads the global shift in gambling regulation

We move on to increased regulation in mature markets, and I mention that European governments are considering ways to increase tax income from the gambling industry. Some see this as a knee-jerk reaction to public opinion, while others see increased scrutiny and accountability as long overdue. James quickly points out that this is a clear global trend, not just a European initiative.

“The UK and Australia may have been at the forefront of it, but policymakers in a great number of jurisdictions have felt the need to revisit and revise the initial regulations that they established on online gambling, motivated by concerns of player protection and the wider visibility of gambling as a result of advertising and sponsorship.”

He adds that this is something we’ve seen across Europe, Australia and North America. Of course, North America, Latin America, and Africa are further back in the process. However, the increased visibility and prominence of online gambling and its immediate availability have naturally led to concerns among politicians and governments.

Reiterating my point about the populist reaction to negative stories about the gambling industry, I note how the mainstream media and social media adopt hostile problem gambling narratives. Even when we read about a lottery winner, there’s a pessimistic underlying theme to most articles. While it’s true that gambling is an addictive activity for some, more people enjoy gambling responsibly than not.

James agrees that in some countries, there has been more direct policy backlash against the industry. In others, he says they tighten the rules gradually...[Read More]