Simon Westbury
Strategic Advisor, 1xBet
The International Player Safety Index Report for LatAm shows that the continent is leading the world in the application of technology relating to player protection. There is still work to be done around education of players and to ensure the region does not simply experience a honeymoon of regulation towards player protection, and all regulated jurisdictions should aim to enshrine player protection and responsible gambling initiatives in the regulation.
The LatAm iGaming industry not only complies with global responsible gaming standards but also sets trends in certain areas that other regions follow. This is evidenced by the results of an independently commissioned study for 1xBet, in which surveyed operators and industry experts rated the current control system at 7-8 out of 10.
At the same time, 41% of respondents assess communication with regulators positively. It indicates that the region already has invaluable experience in technology integration and an effective regulatory framework.
Consolidation is key
This is why consolidation is becoming a key issue. Simply passing a law does not automatically make a market safe. Without coordinated action between government agencies, payment infrastructure providers, content rights holders and licensed brands, even strong regulation leaves room for illegal activity. The study clearly shows that where the market moves toward a unified system, player protection becomes not just a declaration, but a daily practice.
Over the past decade, LatAm has moved from an offshore model to local licensing in several major countries. Brazil, Argentina and Colombia have become benchmarks for neighbouring markets. Brazil relaunched its regulatory system in 2025 and, within the first 12 months, entered the ranks of the largest iGaming markets with revenue exceeding US$7bn.
However, the findings of the 1xBet commissioned research also show that progress remains uneven. In Argentina, a decentralised system with a strong role for provinces gives the market maturity, but also creates regulatory differences. One study participant explicitly notes that even similar, yet not identical, rules hinder the launch of a unified player protection program and create gaps that unscrupulous actors exploit.
This is the key argument in favour of consolidation: eliminating regulatory discrepancies reduces room for manipulation and prevents misleading signals to consumers.
Integrated technology delivers results
Latin America is not just talking about the importance of responsible gaming; it is also demonstrating effective implementation of specific tools. 84% of local operators use KYC verification, the highest rate among the regions covered in the 1xBet research series. Another 69% apply real-time activity monitoring, and 34% use AI to identify potential harm.
LatAm also outpaces other regions in the integration of self-exclusion tools: local operators offer them at least three times more often. Over 81% of operators provide users with access to links and materials related to safer gaming. Awareness and education are other important instruments for building a culture of responsible gaming.
One of LatAm’s most persistent challenges is the perception of gambling not as entertainment, but as a way to earn money. Consolidation here means not only data sharing and joint oversight but also coordinated educational efforts between the government and licensed businesses.
Side effects of uneven regulatory development
The 1xBet commissioned research emphasises that in some LatAm countries, the regulatory framework requires modernisation. In Chile, a comprehensive regulatory infrastructure for operators is still under development. In Uruguay, there is also a shortage of a solid legislative framework, which has given considerable freedom to ‘grey’ companies.
Even in more mature markets, the offshore segment remains a challenge, accounting for an estimated 30% of the LatAm market. If a licensed operator is required to comply with standards, undergo audits, implement limits and ensure transparent payment processes, while an illegal platform freely advertises online and promises more ‘favourable’ conditions, part of the audience shifts to it. The creation of a unified regulatory system remains the most effective way to combat the illegal market.
In Argentina, there is already a positive experience with regulatory consolidation, in which authorities from different provinces collaborate with payment operators to eliminate ‘grey’ platforms. In Puerto Rico, intelligence efforts, data analysis and AI are used to counter offshore operators, while Brazil has focused on controlling gambling content.
The logic is simple – games from certified providers are available only through legal companies.
Tax policy impact on market safety
Tax policy in LatAm countries directly affects the sustainability of the legal iGaming market. In Brazil, the GGR tax rate is set to gradually increase from 12% to 15% by 2028, while a separate 15% levy on deposits is also being discussed. In Colombia, the introduction of an emergency 19% VAT on replenishments was considered at the end of 2025, and in Peru, a combination of a 12% GGR tax and a 1% consumption tax remains in place.
The 1xBet research shows that excessive tax pressure reduces operators’ resources for implementing new technologies and preventive tools, as well as increases the risk of users migrating to the illegal sector. Government authorities need to strike a balance on this matter.
Latin America’s path to iGaming leadership
Today, the region already has strong grounds to claim flagship status in safer gambling. LatAm leads in KYC implementation, real-time monitoring and AI adoption. High operator engagement in self-limitation tools is demonstrated, and LatAm outperforms other regions in the availability of educational materials for players.
However, the research clearly shows that the next stage of growth is linked not so much to new regulations, but to how consistently and cohesively all market participants act. There is demand for fair and transparent rules from regulators, operators, players and affiliates alike.
LatAm has great potential for developing partnership networks, including within the 1xAffiliates program. It operates in more than 150 countries and has brought together over 500,000 partners. This flagship affiliate program supports more than 250 commission payout methods and offers access to a diverse library of creatives to support successful operations across all LatAm countries.
