Latin America is big business for iGaming in the 2020s. New markets have emerged, demand for online sports betting and casino products is booming, and regulation is being established in a region of dynamic populations.
As those markets grow and more players enter the iGaming ecosystem, it becomes increasingly important to position player protection as a core pillar of the sector.
Accordingly, SBC Media has published part three of the International Player Safety Index, which places Latin America under the spotlight and offers stakeholders a glimpse into the best practices and regulatory trends in this region.
Commissioned by 1xBet, the International Player Safety Index – LatAm gathers insights from operators, regulators and other expert stakeholders to provide a window into how player protection works across Latin America.
Simon Westbury, Strategic Advisor at 1xBet, commented: “We’re seeing an entire region undergoing profound regulatory change. We see countries like Brazil and Colombia establish robust regimes, and then others catching up or moving in that direction.
“In the report, there was some really interesting feedback in terms of real-time player activity monitoring, where LatAm’s got 69% of operators using that. 34% are deploying AI, which is even more than operators in Western Europe.”
Understanding the current status quo is essential, particularly in a fast-moving environment like Latin America. While some markets are well-established, others are more volatile, where regulation is being updated.
“We are moving from this transitional phase into a vanguard phase from what has been a honeymoon period of regulation,” Westbury noted. “And as we’ve seen, as regulation evolves, it always becomes more stringent.”
One market that certainly feels as though cold water has been poured onto the fire is Brazil. Launched in January 2025 to much fanfare, Brazil’s betting market has indeed boomed, but President Lula appears to have itchy feet about online casino gaming and is implementing phased increases in GGR taxation, with rates expected to reach at least 15% by 2028.
One of Westbury’s key mantras is that a lack of clarity on regulations results in confusion. Confusion is never a good state to be in, particularly when viewed through a player-protection lens.
“It stifles the operators within the regulated market, and it becomes a challenge,” he said. “I think this is where the operators need to engage, because if we do not self-regulate a little bit now, this honeymoon will be over, and then we may see some more arbitrary or more robust regulation as we’ve seen in Western Europe.”
Westbury identified the Netherlands as a key example of a market with robust regulation, to the point that it is tough for operators to be commercially viable.
“If you don’t empower the operator to act in a market that is commercially viable, then it’s the player that suffers,” he added.
Indeed, within the IPSI – LatAm, the Brazilian government was identified as a destabilizing force for the sector. If a mooted tax on player deposits is ushered through, one can expect those complaints to get much louder.
Though a lack of maturity across LatAm markets exposes some frailties on player protection, there is no hiding from the fact that it has some significant advantages.
As mentioned, operators in LatAm are far more likely to use real-time activity monitoring and AI for player protection than their counterparts in Africa and Western Europe.
Those benefits speak for themselves, allowing operators to get ahead of players’ risky behaviour before it becomes a real issue.
Westbury explained that adopting new technologies is much easier in the early stages of a market’s lifecycle, which gives LatAm a global advantage.
“What we’re actually seeing in LatAm is what I’ve always hoped for, which is using AI as a tool. When applied correctly, it is very useful.
It’s easier when regulation is at an embryonic stage to apply these new technologies and tools to a new market. It’s like a child when they’re learning a language – it’s a lot easier for them to learn at five than when they’re 45 trying to learn two.”
The report perhaps exposes an unconscious bias when it comes to technology. 50% of respondents identified tech as a key barrier to player protection, yet in qualitative discussions, it was not technology but regulation that was highlighted.
“LatAm’s been building a high-tech framework for players, but they’re still trying to understand the application of player protection tools. The main challenge to me is you need to bridge that education gap, and I’m skeptical if the report is saying that technology is the key tool to do that.”
One key theme that has emerged across the three editions of the IPSI is the need to emphasize player education to make them aware of the risks associated with gambling and the tools available to them.
“When you’re looking at technology on the website for intervention, interaction and engagement with the player, yes, technology is important. But actually, the education tool you need to engage with players is not necessarily technology-driven.”
Rather troublingly, a trend that has emerged in Latin America as well as Africa is a perception that gambling is being viewed as a means to generate income, rather than a form of entertainment.
That only underscores the requirement for operators to do more to educate their players, as 1xBet does through its 1xBalance tool.
“Africa and LatAm have a problem around education and people understanding what gaming is, what gaming should be, and it’s not income generation,” Westbury noted. “But then we have seen Western European operators, for example in Portugal, not being able to intervene because the regulation doesn’t allow them to. But what we are seeing more in Africa and LatAm is that player protection isn’t enshrined in all countries.”
#LatinAmerica #ResponsibleGambling #PlayerProtection #GamingIndustry #GamingRegulation #AIinGaming #MarketTrends
Welcome to Gambling Consulting Authority (GCA) - Your Strategic Partner in Gambling Industry Advancement
