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In a recent sitdown, GLI Vice President for Latin America, the Caribbean and Spain Karen Sierra-Hughes described 2024 as a "roller coaster of feelings" for Latin America's regulatory activity. 2024 experienced some really unprecedented gaming legislation development in Latin America, with many countries taking significant strides toward developing a regulatory environment that could mold the future of gaming. All these events pave the stage for an even brighter 2025, with regulators and operators preparing for the next stage of regulatory development and growth in the marketplace.
Peru's Regulatory Milestone
One of 2024's biggest breakthroughs involved that of Peru legally regulating its gaming industry through thorough legislation. Not only did this legitimize gaming verticals, but, through a robust model for future growth, it constructed a robust platform for expansion. By offering a healthy model for regulation, Peru has constructed a platform that encourages investment, responsible gaming and compliance with worldwide standards.
The formalization of Peruvian gaming has spilled over into neighboring countries, with them following its direction towards legalization. Challenges have, however, ensued, such as with a new gaming revenue tax that jeopardized its viability for the marketplace. Taxation will have to be balanced with expansion for operators and players in a manner that will have a positive impact on all involved.
Brazil's Ascendancy in Online Gaming
Brazil became the powerhouse of Latin America's gaming industry in 2024, solidifying its position as Latin America's biggest online gaming and sports betting jurisdiction. The nation's large market, coupled with an active regulatory attitude, has made it appealing to many operators and suppliers, making Brazil a focal point for online gaming operations.
The commitment of the Brazilian government to a clear and well-regulated gaming space has been one of the driving factors for such speedy growth. The new licensing regimes, the increased enforcement against unregulated operators and the embracing of responsible gaming programs have all contributed to driving a purer and more sustainable gaming space.
As the Brazilian market continues to mature, demand for such offers such as the "5 euro no deposit bonus" has grown immensely. Incentives such as these have proven successful in recruiting new players and in developing responsible gaming practices. As Brazil continues to mature its regulatory environment, even more international operators will enter the market, generating competition and driving innovation.
Regulatory Developments in the Region
Outside of Brazil and Peru, several other Latin American countries have moved towards regulating and growing their gaming sectors in significant ways. The Dominican Republic, Colombia, Paraguay and several Argentine provinces have all adopted new gaming laws or updated current regimes to harmonize them with best practices worldwide.
For instance, Colombia continues to build its regulative environment, enhancing its protection for consumers and imposing stricter controls over web gaming platforms. In contrast, Mexico is in the process of revising its gaming laws in a move to react to a growing demand for web gambling and casino gaming. Argentina's provinces, in return, have started issuing localized legislation in phases, one that addresses its marketplace requirements specifically.
Challenges Amid Progress
Despite the positive trends in 2024, a variety of concerns have not yet been resolved. In December, a new gaming levy took effect in Peru and with it, controversy regarding its long-term impact on the development of the sector. High taxes can act to discourage innovation and drive operators towards unregulated channels, undermining the whole purpose of formalization in the first place.
Similarly, in Chile, a legislative bill to enact a regulated gaming and sports betting environment is stalled in limbo. After initial indications in 2024 that it would pass, a sequence of setbacks delayed its timeline to 2025. That legislative uncertainty kept operators and investors in limbo, accentuating the difficulty of working with gaming legislation in Latin America.
GLI's Commitment to Regulatory Assistance
Gaming Laboratories International (GLI) has taken a leading position in offering a supporting function for regulatory procedures within the region. GLI has actively been involved in assisting governments and regulators in coming up with policies that encourage gaming industry growth and consumer protection simultaneously.
GLI emphasizes that gaming can and must be regulated and controlled in a manner that will ensure transparency, integrity and audibility in gaming operations. With sophisticated compliance tools and through collaboration between regulators and gaming operators, GLI aims to develop a gaming environment that promotes fairness, innovation and responsible gaming.
Expected Challenges for 2025
Sierra-Hughes has identified essential challenges that Latin America will encounter during its development path toward 2025. Her priority is to really boost the proactivity of responsible gaming initiatives because she wants to avoid strict regulatory measures that might obstruct industry development.
Additionally, she really emphasizes the imperative for heightened inter-institutional and inter-jurisdictional collaboration. Illegal gambling, player fraud and match-fixing can only be countered through coordinated actions between regulators, law enforcement and industry participants with each other. In the lack of a coordinated campaign, unregulated operators will pose a continued and considerable danger to the industry.
Conclusion
The year 2024 witnessed a change in Latin America regarding gaming regulation. With continued collaboration, transparency in regulating and technological development, the region can confront future expansion in gaming in a long-term manner. As new opportunities and challenges present, regulators and operators will need to respond, with frameworks in regulating that allow for expansion in gaming and responsible gaming conduct.
With the establishment in 2024, Latin America's gaming industry is well placed for even larger success in 2025 and future years. With continued improvement in regulatory frameworks, Latin America can become a global gaming policy and marketplace development pioneer.
