With Brazil being a key player in the Latin American iGaming sector and the name on every supplier’s lips for the past few years, attention is now on its regulatory framework and market dynamics. But how far might its influence extend? What can be learned from the newest LatAm market and applied elsewhere?
In the first of a two-part special, we talk to Henrique De Simoni, Country Manager – LatAm at 3 Oaks Gaming, Jeevan Jeyaratnam, Chief Betting Officer at Abelson Sports, Frederico Caputi, Sales Manager at Altenar, Toni Karapetrov, Head of Corporate Communications at Habanero, and Seth Waterworth, Senior Account Manager at Push Gaming, to discover what the future holds for the region.
iGaming Expert: Brazil’s iGaming market finally launched in January 25 after much anticipation. What are the key positive elements of this regulatory framework, and how do they compare to existing models in more mature Latin American markets?
Henrique De Simoni: Brazil finally entering the regulated iGaming space is a huge milestone. The new framework is robust, with clear licensing rules, strong KYC and AML requirements, integrated responsible gambling tools, and real-time data monitoring through SIGAP. It’s not just about legalisation, it’s about building trust and ensuring long-term sustainability. That said, I believe we’re still navigating a brand-new ecosystem where education and understanding will take time to fully develop.
Compared to countries like Colombia, which has been a pioneer in the region, Brazil has taken things a step further with stronger tech enforcement and greater transparency. Argentina, while active, remains fragmented due to its province-by-province model. Brazil has opted for a centralised system, and that will be a major point of difference. I would even say that, in terms of volume, it’s difficult to draw comparisons with other Latin American countries. It’s a truly new market.
Jeevan Jeyaratnam: Most recently, it’s pleasing to see the inclusion of esports after an initial motion that saw it excluded. It’s clear, given esports’ green light only after four months of regulation, that the lawmakers are still tweaking the framework. Provided this is fine-tuning rather than complete pivots then I think this is a positive. Recognising that not everything is quite right after an initial launch and making changes to address those issues is smart.
Esports are not the only major changes proposed since launch, with moves afoot to prevent recipients of social welfare benefits from using public funds for gambling. While this may be deemed as discriminatory, the intention is to reduce harm to those most likely to be negatively impacted by gambling.
Other unique elements of the Brazilian approach to regulation include the mandated use of the bet.br domain for approved sportsbook providers. While the intention is to ban illegal operators using .com or other domains, this should also give the public reassurance that the brands they are using are fully legal and compliant.
From Abelson Sports’ point of view, quite how Brazil compares to other regulated territories in LatAm will hinge on whether supplier registration is required, as is the case in Peru and Buenos Aires. From a punter point of view, the 15% tax on winnings, albeit with caveats, will not prove attractive vs. an offshore book but with the government clamping down on payment methods, using unregulated books may prove tricky.
Frederico Caputi: Brazil’s regulatory framework marks a significant leap forward for Latin America iGaming. It’s notably pragmatic, offering a dual model that legalises both online and land-based betting, while also establishing a clear tax structure. Crucially, it incorporates strong KYC requirements and mandates responsible gaming protocols, which align with global best practices.
Compared to more fragmented markets in the region, Brazil’s approach stands out for its long-term vision and scalability. While still a work in progress, it sets a strong precedent. Its structured, operator-friendly foundation positions Brazil as a model that other Latin America jurisdictions may seek to emulate in years to come.
Toni Karapetrov: Brazil’s regulatory framework represents a major milestone for Latin America. One of its most positive elements is the clear licensing structure, which provides legal clarity for both domestic and international operators. Additionally, the focus on responsible gambling, along with rigorous compliance requirements, positions Brazil as a forward-thinking jurisdiction from the outset.
Compared to markets like Colombia, which has been a benchmark in the region, Brazil’s model is similarly robust but benefits from hindsight. It avoids some of the teething issues seen in early Latin American frameworks, adopting a more scalable, transparent, and technologically adaptive approach that reflects the lessons learned across the continent.
Seth Waterworth: The primary benefit, like all regulated markets, is a clear and structured environment for operators and providers. From a provider’s point of view, it has enabled access to Latin America’s largest economy with legal certainty on their content.
It boosts credibility in the iGaming sector within Brazil and provides the Government with the opportunity to develop its economy further, ultimately benefiting individuals within the country. It has also helped promote iGaming in a much safer and responsible manner.
Regarding other existing regulatory models in Latin America. Brazil is more ambitious, trying to balance consumer protection along with rapid market growth as quickly and efficiently as possible. Colombia was the market leader in terms of market regulation, and there are similarities between these two, but it is leading the way in market-wide regulation.
iGX: With Brazil now open for business and thriving, what impact will this have on investment and operator activity in neighbouring Latin American countries? Will we see a domino effect, or will each market continue to evolve at its own pace?
JJ: Feedback I’ve had suggests that the compliance phase of the regulatory requirements has proved rather difficult to implement, due in part, I would imagine, to the opaque nature of some of the regulations. I’m sure there’s a lesson for other territories here; make things as unambiguous as possible.
Given the abundance of grey market betting opportunities available across the LatAm region, it makes absolute sense to regulate the industry wherever possible. Paraguay, currently a regulated monopoly, appears to be moving towards an open market, similar to what we are seeing in Finland. This makes sense, given the license fees and subsequent taxes the government will have noticed other operators paying in Brazil.
FC: A bit of both. Brazil’s launch is undoubtedly a catalyst for regional momentum, but it won’t produce a uniform domino effect. Each Latin American country has its own regulatory, political, and economic ecosystem, meaning timelines and approaches will vary. That said, Brazil’s success has already reignited regulatory discussions in countries like Chile and Peru.
Operators and investors are watching closely, using Brazil as both a benchmark and a proof of concept. The potential to unlock new revenue streams and leverage existing infrastructure is attractive. While we expect progress to remain staggered, Brazil’s influence will accelerate conversations and encourage governments to consider modern, operator-friendly frameworks of their own.
TK: Brazil’s launch has sparked a regional revitalisation. While each Latin American market has unique political and economic considerations, the sheer expectation surrounding Brazil, and initial results, is expected to create competitive pressure on its neighbours to follow suit.
We are already seeing increased interest in markets like Chile, Peru, and Argentina, where regulatory discussions are accelerating. Operators and suppliers are now more willing to invest in adjacent territories, hoping to replicate the scalable model Brazil has introduced. So yes, a domino effect is underway, but it will be uneven, depending on local legislative and infrastructure readiness.
SW: There are already regulatory frameworks coming into fruition in neighbouring countries such as Peru and Chile. Brazil has most certainly accelerated this process, and I imagine more countries will follow in the coming years, sooner rather than later.
Brazil’s regulation will encourage infrastructure investment, and this will most certainly spill into neighbouring countries through regional partnerships and tech outsourcing. Some major operators are already entering these markets, and this will likely encourage other regions to move quickly to avoid missing out. Brand recognition will become a significant factor in these markets, and investment opportunities will drive regulatory changes.
HDS: Brazil’s entry is a game-changer. It’s the biggest market in the region and represents, along with Mexico, the majority of the markets here in Latam. So, whenever a country like Brazil takes some action and this action is based on the UK regulation, one of the oldest and robust betting and gambling markets in the world, it seems a very good chance for everyone to watch and adapt. So yeah, we will probably see a domino effect, but it won’t be instant. We are in a very bureaucratic region.
Some countries can move faster to tighten or modernise their own frameworks to stay attractive for operators and investors. Others might still play the ‘wait and see’ game. Either way, Brazil sets a new benchmark, and I believe that will be the reference for the others.
