In this third and final part on iGaming, countries like Panama, Peru, Uruguay show a good mix of regulatory progress
The emerging markets continue to dominate iGaming topics of conversation throughout 2021, where there are multiple new market opportunities. The third and final part of this summary about regulation contains information from countries like Panama, Peru, Uruguay showing a good mixed of regulatory progress to give you an.idea about the enormous potential of this region, where Slotegrator, developer of gaming systems and platforms augurs further good developments in the region.
Latin America is a promising region for the iGaming industry, where markets that have chosen to regulate online casinos and bookmakers are seeing stable growth in the sector. In addition, some of those countries with favourable regulations on the horizon are anticipating surprising levels of growth in the near future.
Panama
Almost all forms of gambling are regulated in Panama. Online gambling is subject to local licensing, and operators can offer sports betting, auto race betting, and a full range of casino games. Some products, however, are prohibited; the list includes lottery games, betting on horse races, amateur events, political elections, and other events, at the regulator’s discretion.
Licenses cost approximately $49,900. Applicants must have a legal representative in Panama, comply with all rules and regulations, submit to a background check, and be established in the country. Online gambling is taxed 10% of Gross Gaming Revenue. Gambling in Panama is regulated by the country’s Gaming Control Board.
Regulatory changes announced in September 2020 made Panama one of the few countries in Latin America with a fully licensed online gambling market. Previously, licensees had been barred from offering their services to Panamanian citizens, but now operators will be allowed up to five “.pa” domains. Regulators anticipate licensing between 10 and 15 operations.
Paraguay
Almost all forms of gambling are legal in Paraguay. Paraguay’s sole licensed sports betting operator brings in roughly $4 million in taxes annually. In 2016, the government drafted a bill that would update some of the country’s gambling legislation, in particular when it comes to online gambling. Tax reforms in 2021 are anticipated to include new gambling taxes.
Peru
Peru regulates casinos and slot machines, but not lotteries, races, or sports betting. Online gambling is also unregulated, meaning that while authorities do not issue licenses, they also do not prohibit operators from offering online casino games or sports betting. The government has also announced an intention to regulate the online gambling sector.
The only organizations which are formally permitted to offer online gambling services are Intralot Peru and Corporacion Galena, which operate lottery games for social institutions, and Monterrico racetrack.
Technical and player identification standards are not laid out in current regulations. There is no set taxation scheme, but formally recognized online betting services pay a 20% tax on GGR. The mobile penetration rate in Peru lags behind many other countries in Latin America, with only 42% of Peruvians estimated to have smartphones.
While the land-based casino gaming and sports betting sectors are well-established, the online sector is growing, and presents a tempting opportunity for iGaming operators.
Uruguay
Most forms of gambling are legal in Uruguay, but the country lacks an overall cohesive legal framework. Instead, operators are regulated on a case-by-case basis according to the terms of individual concession contracts.
The government tightly controls the gambling sector, but over the past decade and a half has allowed more room for private operators to get involved. Most casinos are operated under a government monopoly, but some have private investors involved.
A 2018 law gave sole authority to operate online gambling enterprises to the Direccion Nacional de Loterias y Quinielas (National Directorate of Lotteries and Pools). Outside of lotteries and sports betting offered by DNLQ, online gambling is prohibited. However, there is an exception; online gambling operators may establish a legal presence in the Montevideo Free Trade Zone as long as they do not offer their services to citizens of Uruguay.
Venezuela
Casinos and bingo halls were banned in Venezuela in 2011. In 2019, the government approved a cryptocurrency casino in an effort to boost the value of the country’s Petro cryptocurrency.
