The LatAm gambling sector is currently experiencing a dynamic period marked by regulatory challenges ranging from new tax implementations to advertising restrictions. Laura Maria Gomez Betancur, who serves as the head of legal and compliance for Stake in Latin America, underscores the necessity for regulatory stability across the region.
2025 has been particularly eventful for the LatAm gambling markets. Brazil has been at the forefront, making news with the launch of its regulated online market earlier this year. This follows the path Peru embarked on with its own regulations introduced twelve months prior. Yet, even as these markets take shape, they are already contending with heightened pressure from new regulatory measures. For instance, Peru has introduced a consumption tax, while Brazil has made provisional increases to its tax rate and is contemplating additional advertising restrictions.
Gomez acknowledges that new regulations are seldom flawless and require ongoing adjustments. However, she urges regulators to allow more time to evaluate market dynamics before implementing significant changes. She articulates the desire shared by many in the industry: a stable regulatory environment.
“What we as a company, and I think most companies, want to see is stability,” Gomez emphasizes. The ability of the government to provide such stability is seen as critical. She concedes that while every new regulation is bound to have imperfections and will necessitate amendments, it is crucial to observe how the market functions before making sweeping changes. Allowing the market to establish itself should be a priority before introducing extensive modifications.
The specter of overregulation looms large for Gomez. She stresses the importance of dialogue between regulators and operators to address concerns about potential overregulation. The fear is that excessive regulation could inadvertently drive players and operators into the black market, a concern particularly resonant in Brazil. Here, the government has issued a provisional measure increasing the tax rate from 12% to 18%, alongside approving a bill that introduces new advertising restrictions, such as watershed periods. These actions have stirred apprehension amongst trade bodies about the lure of the black market.
“I do think that there is a risk of overregulating and I really hope that doesn’t happen, because sometimes you want to cover multiple topics, but you first need to understand the operation,” Gomez continues. Allowing the market to grow and engaging with companies to understand the operational dynamics is vital.
In Peru, the regulator, Mincetur, has successfully engaged with operators regarding regulations, notably the introduction of a 1% consumption tax on bets this year. Gomez hopes for similar interactions with Brazil’s Secretariat of Prizes and Bets. The goal is to showcase best practices from other countries to Brazilian regulators and seek guidance on compliance challenges not explicitly covered by the current laws.
“That’s the way we want to move forward,” she states, aiming for a mutual understanding with regulators to ensure compliance.
In Brazil, following the launch of its regulated online market on January 1st, operators faced initial hurdles in transitioning players to licensed platforms. This was largely attributed to players being unfamiliar with Know Your Customer (KYC) processes, including facial recognition technology, which regulations mandate. While Stake encountered difficulties, Gomez reports that it is largely “business as usual” now regarding KYC in Brazil. Education played a pivotal role, as Stake worked to help players understand that KYC processes serve to protect them.
“In the beginning, customers were very worried about data protection, or ‘what are you going to do with my documents, or what are you going to do with my data’,” Gomez reflects, noting that they conveyed to customers that such measures are for protecting their accounts and verifying their identities. For an online gambling operator, verifying customer identity is among the highest priorities.
This educational initiative extends internally within Stake, with Gomez involved in crafting guidelines to assist other departments in educating customers on KYC matters.
Despite the regulatory instability in LatAm, Gomez remains optimistic about the region’s future. “I think the LatAm market obviously has a lot ahead and it’s obviously the place to be right now, 100%, in comparison to other markets,” she concludes. The emergence of new regulated markets presents exciting opportunities. Establishing new operations and building relationships with regulators provides a chance to develop a positive reputation in LatAm.
Nevertheless, there remains a counterpoint to this optimism. Some industry analysts express skepticism, cautioning that without a more predictable and supportive regulatory environment, the potential of the LatAm market might not be fully realized. They argue that while the market’s growth prospects are enticing, the challenges posed by regulatory unpredictability cannot be overlooked.
The debate continues as stakeholders navigate the complexities of regulation and market dynamics in one of the world’s most promising gambling regions. Regulatory stability emerges as a critical component for ensuring the sustained growth and development of the LatAm gambling industry.
Topics: Peru · Anti-Money Laundering · Brazil · Illegal Gambling · Gambling Taxes · Product Launches
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