Gaming

The Rise Of Online Casinos In South America

iGaming is one of the most dynamic global industries, and the development pace changes from one continent to another or from country to country. While Europe is seen as the spark that started everything, it’s time for other regions to take things further. More specifically, South America is the continent that currently sets the rhythm. 

With a population of over 500 million and a generally relaxed attitude toward online gambling, the area has the potential to emerge as the next iGaming hotspot. In this article, we’ll examine how technological advancements impact the gambling market across the continent. Technology is one of the major driving forces behind the expansion of the online casino industry

South America’s Stance on Online Casinos by Country

The gambling laws in South America are set individually by each state or province. Some of the biggest countries are still in a “gray area” state when it comes to online casinos, with most of the activity coming from offshore operators. Costa Rica and Panama have been considered the pioneers, but other nations were quick to catch up. 

More recently, Colombia set the path in 2016 when online gambling was legalized at the federal level. The move was a massive success as the industry spiked in the following years, leading to a revenue of $19,6 million collected by the state in 2019. Likewise, online casinos are legal in a few Argentinian provinces, such as Buenos Aires and according to drjuego.com, there are plans for further expansion. Mexico also allows online casinos to operate but only with the condition of doing so through a local land-based business. Brazil is another nation that voted for the legalization of online gambling and the issuing of licenses. However, they are still working on the framework to set everything into motion.

Finally, Peru also started working on their gambling laws in 2022 with ambitious plans to collect over $40 million in taxes. However, things seem to be at a standstill after the president signed Bill 31557. Even so, it’s a major step to join the other states in regulating the online gaming environment. 

What Fuels the Online Casino Market Growth in South America?

iGaming development is influenced by many factors. The legal landscape, local culture, internet access, and technological advancement are just a few of the vital ones. And we’ve seen that generally speaking, the continent is eager to allow online gambling in various forms. This is happening due to the legalization of online casinos in the US, and the massive potential revenue that is lost by South American nations without an iGaming framework.

The cultural aspects also paved the way for a thriving environment for games of chance and entertainment, but there were no massive changes in this department. South Americans are often defined by their passion, courage, and will to live life to the fullest. Therefore, it’s safe to conclude that technology and wide access to the internet remain the main “suspects” for the online gambling spike registered in South America. In the following paragraphs, we’ll take a close look at these factors and their massive influence. 

Wider and Faster Internet Connections

With around 360 million users, South America ranks fourth among the regional online markets worldwide, after Asia, Europe, and Africa. However, the continent has a far better internet penetration rate, estimated at 75% in 2021. In addition, the cost of mobile data kept dropping annually in recent years, allowing gambling enthusiasts to access casinos from their smartphones or tablets. 

Regardless of internet availability in South America, the iGaming industry shifted towards mobile devices in the past decade. Therefore, all the conditions are met for casino players from Colombia, Mexico, Argentina, and other countries, to easily enjoy their favorite games.

How Technology Contributed

The relationship between the internet and technology is often symbiotic, with each growing in tandem. In South America, the development of cheaper and more accessible smartphones played a significant role in the growth of online gambling. As a result, online casinos became more readily available to players on the continent. Additionally, cutting-edge technologies such as virtual and augmented reality have added a new dimension to the online gambling experience. While there aren’t many operators in South America that offer AR or VR casinos yet, the market is expected to continue evolving in the coming years.

Moreover, the impact of cryptocurrency on the iGaming sector in South America cannot be ignored. The anonymity provided by crypto casinos has allowed players from countries with strict online gambling regulations to access offshore operators safely. This trend is not only occurring in South America but worldwide. As more people turn to cryptocurrencies as a form of payment, it’s likely that crypto casinos will continue to grow in popularity.

Final Thoughts

South America is poised to become the next iGaming hotspot, thanks to a variety of factors, including the legal landscape, local culture, internet access, and technological advancements. The continent has generally relaxed attitudes towards online gambling, which has opened up opportunities for offshore operators. With the rise of faster and more accessible internet connections, the iGaming industry has shifted towards mobile devices, providing an easy and convenient way for players to access online casinos. In addition, cutting-edge technologies such as virtual and augmented reality have added a new dimension to the online gambling experience. The use of cryptocurrency has also made it easier for players to access offshore operators safely. With these developments, the online casino market in South America is poised for continued growth and expansion in the coming years.

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