Few regions in the world have experienced the kind of seismic shift in sports betting that South America has seen over the past decade. A combination of passionate sports culture, rapidly expanding mobile internet access, and sweeping regulatory changes has transformed this continent into one of the most exciting and complex betting markets on the planet. Whether you are an industry analyst, a casual bettor, or an investor eyeing emerging markets, understanding what is happening across South America right now is worth your attention.
Brazil Takes Center Stage
No conversation about South American betting starts anywhere other than Brazil. With a population of over 215 million people and a football culture that runs deeper than almost anywhere else on Earth, Brazil represents the crown jewel of the region’s gambling expansion.
After years of debate, Brazil officially regulated its sports betting market in 2023 under Federal Law 14,790. The country began issuing fixed-odds sports betting licenses in 2024, setting off a land rush among both domestic operators and international giants. Companies like Bet365, Betano, and Sportingbet moved aggressively into the market, while homegrown brands such as Esporte da Sorte positioned themselves as locally rooted alternatives.
The numbers back up the excitement. According to estimates from H2 Gambling Capital, Brazil’s regulated betting market is projected to generate over $2 billion in gross gaming revenue annually once it reaches maturity. That figure puts Brazil in the same conversation as established European markets like Spain and the Netherlands.
Cristiano Fidalgo, a gaming attorney based in Sao Paulo, put it plainly in a 2024 interview with iGaming Brazil: “The Brazilian market is not just big. It is uniquely emotionally invested. Brazilians do not just bet on football. They bet on their identity.”
Argentina’s Fragmented but Thriving System
Argentina operates under a notably different model. Rather than a unified federal framework, each of Argentina’s 23 provinces controls its own gambling regulations. This creates a patchwork of licensing environments that can frustrate international operators but has also allowed local entities to build strong regional footholds.
Buenos Aires Province and the City of Buenos Aires have been the most progressive, authorizing online casino games alongside sports betting. LOTBA, the lottery and betting authority for Buenos Aires City, has licensed platforms including Betsson and William Hill, alongside local operators like Codere.
The Argentine market carries a complicating factor that most others do not: chronic currency instability. The Argentine peso has faced severe devaluation over recent years, which has pushed many bettors toward using cryptocurrency as a workaround. A 2023 survey by the gaming consultancy Skalski Partners found that nearly 30% of Argentine online bettors had used some form of digital currency to fund a betting account, one of the highest rates in Latin America.
Colombia: The Region’s Regulatory Pioneer
If Brazil is the region’s biggest opportunity, Colombia is its most mature model. Colombia became the first country in Latin America to fully regulate online gambling when Coljuegos opened its licensing framework in 2016. Today, the Colombian market has over 20 licensed online operators and generates hundreds of millions of dollars in regulated revenue each year.
The Colombian approach prioritized consumer protection alongside revenue generation. Licensed operators must adhere to responsible gambling requirements, display problem gambling resources, and submit to regular audits. Brands like Betplay, which holds the naming rights to Colombia’s top football league, show just how deeply integrated regulated betting has become with mainstream sports culture.
Juan Pablo Correa, former director of Coljuegos, told Yogonet International: “Our model shows that regulation does not kill the market. It builds trust, and trust brings more players in from the unregulated space.”
Peru and Chile: Watching and Moving
Peru and Chile are both in various stages of formalizing their online betting environments. Peru passed a sports betting tax framework in 2020, requiring offshore operators to register and pay a 12% tax on gross gaming revenue. Enforcement has been inconsistent, but the framework signals an intent to capture value from an already-active market.
Chile has been slower. A comprehensive online gambling bill has circulated through Chile’s Congress multiple times, stalled largely by political disagreement over how revenue should be distributed. Despite the regulatory uncertainty, Chileans are active bettors, with football, tennis, and Chilean horse racing all commanding significant wagering volumes.
What Drives the South American Bettor
Several forces are accelerating market growth across the continent. Mobile penetration is the most important. As of 2024, smartphone ownership across urban South America exceeds 80% in most countries, and mobile data costs have dropped significantly over the past five years. The result is that betting is now something millions of people do on the bus, at halftime, or during a lunch break.
Football dominates, but the betting menu is diversifying. Brazilian bettors show strong interest in virtual sports and crash games. Argentine users have embraced live in-play betting at rates above the regional average. Colombian platforms report growing interest in esports, particularly among bettors under 30.
Sponsorship deals have also normalized betting brands in the public eye. In Brazil alone, over half of the clubs in the Serie A football league had a betting company as a shirt sponsor by 2024, a visibility that would have been unimaginable five years earlier.
Challenges the Market Still Faces
Regulation is only as strong as its enforcement. Unlicensed operators remain active across the region, often offering better odds by avoiding tax obligations. Consumer protection infrastructure is still underdeveloped in most markets outside Colombia. Problem gambling research specific to South American populations is limited, meaning that responsible gambling programs are often built on European frameworks that may not translate perfectly.
Payment processing remains a friction point. Many South American bettors lack traditional credit cards, pushing operators to integrate local solutions like Brazil’s PIX instant payment system, Argentina’s Mercado Pago, and various prepaid options.
The Road Ahead
South America is not a single market. It is a collection of distinct cultures, regulatory environments, and economic realities that require operators to adapt rather than simply copy-paste strategies from Europe or North America. The operators who will thrive here are the ones building local partnerships, investing in Portuguese and Spanish-language customer support, and taking the regulatory compliance process seriously from day one.
For bettors, the expansion of licensed platforms means more choice, better protections, and increasingly competitive odds. For the industry as a whole, South America represents one of the last great frontiers in global sports betting, and the race to establish position is already well underway.
