Abelson Sports chief betting officer Jeeve Jeyaratnam welcomes the transition from grey to regulated markets across LatAm, but says rising taxation is an “area of increasing concern”
On the face of it, it has been a strong year for business in both Latin and Central America. Working alongside some of the biggest operators in Mexico, Brazil, Chile, Colombia, Ecuador, Peru and Argentina has been rewarding, if not an eye-opening adventure. However, there is an underlying area of increasing concern – and it’s not limited to the Americas – and that is the steady rise in taxation. Across LatAm, there has been structural change over the last number of years, moving towards regulated markets, from grey, in many cases.
This has been great for governments, player protection and international reputations, but there is a very delicate balancing act around channelisation when we consider taxation. Charge too much and you’ll force operators to react by offering less attractive odds. Offering poorer pricing encourages the punter to look at readily available offshore betting operators where pricing is more competitive and alternative payment options are likely welcomed – think crypto. In November, the Mexican Senate approved raising the tax on online gambling in the country from 30 per cent to 50 per cent. It is very easy for governments to continually hit out at perceived vice industries, as we have seen in the UK, but overtly aggressive taxation is unlikely to prove a sensible long-term strategy.
BRAZIL REFLECTIONS
Brazil has proved a challenge, both for regulators and operators, as shifting sands have clouded the waters over and over again. For example, in Q4 2025, a bill imposing retroactive taxation was only narrowly defeated. The instability caused by occasional threatened regulation or taxation changes means that operators and bettors have found it difficult to feel confident that changes won’t be made, reducing profitability and eroding channelisation.
With the 2026 elections looming, it is fair to say that operators and suppliers in this region could expect further changes depending on the result. At present, President Lula is deemed slightly odds on to retain the presidency. While there is little doubt as to the size of the opportunity in Brazil, the market requires a period of stability in which to grow and confidence that there won’t be further significant overhaul to key elements of the regulatory framework.
REGULATORY DEVELOPMENT
The overriding trend in LatAm is a shift towards regulating previously grey markets. We’ve already seen Brazil, Colombia, Mexico and Panama transition to fully regulated sports betting markets. Peru is in the process of fully implementing its recently approved regulatory framework, including supplier licensing. On a similar theme, Argentina, though fragmented by state, does have a clear framework in place in Buenos Aires and that also includes supplier licencing via the Lottery of the City of Buenos Aires (LOTBA). Abelson Sports has licensing in place for both regions and is actively supplying its Football Player Markets product to operators and platforms there.
2026 could be a pivotal year for Mexico (as mentioned), Chile and Paraguay. Chile’s bill appears to have stalled over the last year but given the market size and potential, I’d expect to see some progression, especially given recent news stories about the proliferation of illegal casinos impacting the state-owned monopoly casino provider. The Paraguayan government has signalled, with the ending of its gambling monopoly, reform within its borders. That said, the market remains relatively small and the commercial opportunity for operators is still limited compared with its larger neighbours.
LATAM CHALLENGES
With regulation comes external pressure, namely taxation and framework changes that can transform a market from a lucrative and competitive one to one that sees significant leakage as channelisation fails. The challenge for operators working within regulated frameworks is the lure of the black market, which can offer competitive products without the overheads of taxation, while readily accepting alternative payment options, all while requiring much less in the way of KYC and AML admin.
Many of the key operators in LatAm are either European-owned sportsbooks or have been influenced by European sportsbooks. The market, while providing an extension to global operators’ total addressable market (TAM), is not hugely dissimilar to that of a European sportsbook. Payments are perhaps the most challenging of the differences. From an Abelson Sports point of view, we have been operating within this region for years and our footprint has grown considerably. There are still a number of opportunities with native operators and as other countries move towards regulation and monopolies open up, we expect our business opportunities to increase, too.
WORLD CUP FOCUS
With Mexico one of a trio of Americas hosts, meaning favourable time zones and a record number of qualifiers, there is no doubt that the World Cup will be the biggest tournament witnessed to date. This means significant projected revenues and monstrous marketing budgets. Competition will be fierce, but the natural pull of the World Cup means consumer interest and engagement will be peak. Ensuring your product and pricing is good enough will be critical.
For operators, the real challenge after the World Cup will be retention. The surge of new and returning customers drawn in by the tournament will only translate into long‑term value if those players continue betting, gaming and engaging with casino content once the tournament ends. With major leagues such as Brazil’s Série A and MLS pausing mid‑season for the World Cup, there’s a natural “slingshot effect” waiting to happen. If customers have enjoyed a strong, seamless World Cup experience, they’ll return to domestic leagues with even greater momentum and appetite for continued play. The opportunity lies in converting that tournament‑driven excitement into sustained engagement across the full product suite.
