NEXT(.)io and DATA(.)BET map five Latin American iGaming markets after Brazil’s ban

NEXT(.)io and DATA(.)BET published a Latin America report that was originally meant to cover six countries, but Brazil was removed days before publication after the ban on betting there. For PSPs and operators, the useful bit is not “Latin America” as a single story; each market is at a different stage of regulation, tax design, and channel mix.

1. Mexico is the largest market in the report, with about $3.4 billion in legal GGR and another $0.9 billion in the offshore segment. The gaming law dates back to 1947, no new licences are being issued, and market entry happens through sublicences under 39 holders of land-based permits.
2. From 1 January 2026, offshore operators got a new route: they can register with the tax authority and pay gaming tax without setting up a local legal entity. That is the sort of detail that matters more than the headline rate, because it changes who can actually process payments and on what structure.
3. Argentina has about $1.1 billion in legal GGR versus $1.2 billion offshore. There is no national licence; licences are issued by provinces. Consultants estimate that the illegal market may account for up to 80% of turnover, supported by agents selling gaming credit through social media and messaging apps.
4. Peru is estimated at about $1.4 billion, with only $0.2 billion offshore. The market has around 100 licences held by almost 60 operators. The main tax risk is a 1% levy on each bet, rather than on GGR, which is exactly the kind of distinction that can turn a neat model into a messy one.
5. Colombia remains the most mature market in the group: regulated since 2016, with about $620 million in legal online GGR. The top three operators — BetPlay, RushBet, and Wplay — account for about 60% of revenue. In 2025, VAT on deposits pushed the tax burden above 70% of operators’ real revenue, but the Constitutional Court overturned that measure in early 2026.
6. Chile is still unregulated, with estimates ranging from $865 million to $3.1 billion. A bill is expected to pass in 2027–2028. Under the current draft, the tax burden would be 37.6% of GGR, while the industry is pushing for a rate below 20%. Betano is the current leader with a share slightly above half.

The report’s broader point is that 2026 turned into an election year: power changed hands in Chile, Peru, and Colombia, and uncertainty slowed deals and market entry. Activity is expected to pick up in 2027, but the commercial lesson is already clear — the stated tax rate is not the same thing as the effective cost of market access, and in mature markets buying licensed operators can matter more than building from scratch.