The iGaming industry in Latin America is currently undergoing a massive boom and is expected to reach a staggering value of $3.4 billion by 2025. This growth can be attributed to the introduction of new laws in countries like Colombia and the increasing popularity of online sports betting in Brazil. This transformation highlights the diverse and exciting gaming scene in this part of the world.

From online sports betting to playing fish games, iGaming in LatAm is thriving with the help of innovative payment methods and technologies that make it accessible and easier for players to participate. The industry is not just about making money but also about bringing people together through games, sharing the thrill and excitement of winning, and enjoying new experiences. As the online gambling industry continues to grow, it is set to offer even more opportunities for fun, creativity, and connection in the culturally rich context of Latin America.

Cultural Trends in Online Gambling in Latin America

Sports Betting

In Latin America, sports betting has deep roots, often tied to the passionate fan culture surrounding sports like football (soccer), boxing, and horse racing. Transitioning these traditions online, digital sports betting platforms, where fans can place bets on a wide range of sporting events from their computers or mobile devices have emerged. These platforms offer a variety of betting options, including traditional pre-match betting, live betting during games, and proposition bets on specific events within a match.

• Fútbol Quiniela: This is a popular form of sports betting, particularly in countries like Argentina and Uruguay. In a Fútbol Quiniela, players predict the outcomes of a set of football matches, usually from a selection of games in domestic and international leagues. The player who predicts the most accurate results wins a prize pool.
• Betting on Local Derbies and Rivalries: Latin America is known for its intense football rivalries, such as the Superclásico between Boca Juniors and River Plate in Argentina or the Clásico Regiomontano between Monterrey and Tigres in Mexico. Online betting on these high-stakes matches is a common tradition among fans, adding an extra layer of excitement to the games.
• Copa Libertadores and Copa América: Major football tournaments like the Copa Libertadores (South America’s premier club competition) and the Copa América (the oldest international football tournament in the world) draw significant betting interest in the region. Fans often place bets online on match outcomes, top goal scorers, and other event-specific predictions.

Moreover, the rise of fantasy sports and prediction games has also influenced online sports betting in Latin America. These platforms allow fans to create virtual teams, predict game outcomes, and compete against friends and other participants for prizes, further enhancing the interactive and social aspects of sports betting in the region.

Online Casinos

Slots and table games from online casino platforms form another vibrant segment of the iGaming scene in LatAm. Slots often feature themes related to local culture, folklore, or popular media, attracting a diverse audience. Table games like blackjack, roulette, and poker offer a classic blend of strategy, skill, and chance, continuing to be favourites among traditional gamblers. Adding to the excitement, live dealer games bring a real-time, interactive experience to online gambling. These games allow players to engage with a human dealer through video streaming, adding a layer of authenticity and social interaction that mirrors the experience of playing in a physical casino.

Fish Games

Fish games have quickly become a favourite in the region, despite being relatively new to the scene. In these games, players use virtual cannons to shoot at animated fish gliding across the screen, gathering points that can be turned into money or credits. With their interactive gameplay and lively graphics, these games resonate especially well with younger players and those who relish the thrill and visuals of video games.

Crash Games, Bingo and Lottery-style Games

Crash games, although recent, became popular and they involve players betting on a multiplier that increases as a graph or line ascends, with the goal being to cash out before a crash. This risk-reward dynamic and the game’s fast pace make it popular among those looking for quick, exciting gameplay. Meanwhile, bingo and lottery-style games offer a more traditional and relaxed gaming environment. These games, rooted deeply in many cultures, develop a sense of community among players.

Growth Statistics in LatAm’s Gambling Market

Brazil

Brazil is currently the largest online gambling market in Latin America, and it experienced an impressive growth rate of 200% in 2023. Despite ongoing legislative discussions surrounding online gambling regulations, analysts predict that the market will continue to grow at a CAGR of 5.45% during 2020-2026.

Argentina

In 2023, Argentina’s online gambling market experienced a significant boom with a growth rate of 120%, and it is projected to reach US$1 billion by 2024, according to SegPay. Buenos Aires has emerged as the hub of gambling activities in Latin America.

Chile

Chile’s online gambling market grew by 80% in 2023. As per the reports of SBC Americas, the market is expected to reach US$500 million by 2024.

Other Countries

Colombia, Peru, and Mexico have also witnessed a significant rise in the iGaming industry, indicating potential for future growth.

How Are Payment Methods Shaping Online Gaming in Latin America?

In comparison to other regions, traditional banking is not as prevalent in Latin America. For this reason, many consumers use alternative payment methods, such as digital wallets and cryptocurrencies, for online gaming. These methods are not just trendy alternatives but rather practical solutions for those who do not have access to a bank account. The objective is to make gaming more accessible and inclusive, thereby opening up a world of fun and opportunity for everyone.

Credit and debit cards continue to be the dominant payment methods in LatAm, favoured for their convenience and wide acceptance. The region has seen a push towards enhancing security and incorporating contactless technology, making transactions quicker and more secure. 

With many players opting for modern payment options, local alternative payment methods (APMs) are becoming increasingly popular as they make it easier for people to manage their finances, providing smoother and faster transactions. According to statistics from Paysafe, 46% of global sports bettors prefer to use digital wallets, using them 5-7 times per week, while 42% use them more than 7 times per week.

Leading Local and Region Payment Methods in LatAm

• Pix (Brazil): A widely used APM in Brazil that allows instant bank transfers, enabling gamers to gain immediate access to their gaming experiences. Developed by the Central Bank of Brazil, Pix has recorded over 551 million transactions in 2022, cementing its position as a cornerstone of the Brazilian payment ecosystem.
• PicPay (Brazil): PicPay is extensively used in Brazil, offering a versatile platform for storing cards, transferring money, and handling payments with ease. With a user-friendly interface and robust security features, PicPay has become a preferred choice among Brazilian gamers, facilitating seamless transactions for online gaming experiences.
• DaviPlata (Colombia): A Colombian e-wallet supported by Banco Davivienda, one of the major banks in the country. It’s focused on person-to-person payments and offers a secure and convenient way for gamers to fund their gaming accounts and participate in online gaming activities.
• Nequi (Colombia): A digital wallet that doubles as a mobile banking app, providing essential financial services to users in Colombia. With features like money transfers and bill payments, Nequi offers a comprehensive solution for gamers looking to manage their finances and participate in online gaming activities.
• OXXO Pay (Mexico): A digital wallet that also provides an in-store payment method for online purchases. It’s widely used in Mexico and allows consumers to pay for their gaming activities with cash at OXXO convenience stores, catering to those who prefer cash-based transactions.
• Nubank (Brazil, Mexico, Colombia): A neo bank with a flexible digital wallet that reportedly has 65 million users, mainly in Brazil, Mexico, and Colombia. With its user-friendly interface and innovative features, Nubank offers a convenient and secure way for gamers to manage their finances and participate in online gaming activities.
• Mercado Pago (Argentina, Brazil, Mexico): A versatile payment platform that facilitates various transactions, including online gaming. It’s popular across Argentina, Brazil, and Mexico and offers a user-friendly interface and robust security features, making it a preferred choice among gamers in the region.
• PayU (Colombia, Brazil): A leading payment solutions provider that’s particularly popular in Colombia and Brazil. With a broad spectrum of payment options and a user-friendly interface, PayU caters to the specific needs of gamers in these countries, offering seamless transactions and enhanced convenience.

These APMs enable gamers to fund their gaming accounts and enjoy their favourite games effortlessly. They have user-friendly interfaces and robust security features, driving the growth of online gaming and creating new opportunities for players and operators alike.

Bottom Line

The SiGMA Americas Summit 2024 is currently taking place in Brazil, showcasing the latest developments in the iGaming industry. This event highlights the region’s vibrant growth and innovation in the field. It covers everything from regulatory updates to the rise of sports betting and the adoption of new payment technologies. These advancements cement Latin America’s position in the global iGaming market.

The growth of the iGaming industry in the LatAm region is supported by innovative payment solutions that offer increased accessibility and convenience for a wide range of players. As a result, digital wallets, card payment processing, and local/regional alternative payment methods from providers such as GumBallPay are becoming increasingly popular. These modern payment methods reflect a shift towards meeting the needs of the population in Latin America.

Contact us to learn more about our payment solutions for iGaming. Our local acquiring banks, high approval rates, and wide coverage in LatAm and across the globe can transform your payment processing experience.