The study aims to provide benchmarking data and information, giving insight into the best regulatory models for global betting markets. By translating the study into Spanish and Portuguese, IBIA hopes to assist Latin American markets in developing betting policy. The study covers three existing regulatory models in Latin America: Colombia, Mexico, and Argentina. The organizations hope that the study will help spur regulations in major potential markets such as Brazil.
H2 Gambling Capital estimated that the value of the Latin American market is $1.3bn. The same report forecasts that it will increase to $3.4bn by 2025. This shows the potential for growth in the region.
The CEO of IBIA states that the Latin American sports betting market is an important focus for their members’ business operations. However, it is also a target for corrupters seeking to manipulate sporting events. Between 2017 and the end of the third quarter of 2021, IBIA alerted the relevant authorities to 112 cases of suspicious betting across 15 Latin American countries and four different sports. This highlights the need for effective betting regulation and protecting the integrity of sport.
The report aims to assist Latin American policymakers, sports organizations, and betting operators in responding to the threat and developing effective betting regulation. Integrity standards seen as a best practice model in Ontario should be replicated across Latin America and beyond, according to IBIA.
The market assessment and ranking conducted by IBIA and H2 included 20 markets. Argentina ranked 18th, and although regulatory changes are expected, it received a provisional score. Argentina’s markets have different tax rates and regulations, but licenses have been issued in Buenos Aires, setting the stage for further growth throughout the country.
Mexico ranked 15th and has outdated legislation that presents an obstacle to future growth. However, the opportunity for unlimited licenses offsets this setback and provides potential for expansion.
Colombia tied with Germany for 10th place in the rankings. It was the first Latin American country to regulate online betting, giving it an advantage over its regional competitors. Colombia’s ranking was boosted by a 15% GGR tax, but its lack of formal integrity practices prevented it from scoring higher.
