Peru Cuts Illegal Online Gambling by 40 %—What’s Next for South America’s iGaming Market?

Domestic Market Surges—Global Operators Flood In

Thanks to clear rules, heavyweights such as Stake, Rush Street Interactive and Betsson have entered Peru. Between late 2024 and early 2025, 683 new retail sportsbooks opened, pushing the national total to 4,516. Mincetur expects online gambling and related services to generate US $250 million in annual tax revenue by 2026.

Snapshot of South America’s Online‑Gambling Hotspots

Colombia – The Pioneer Faces a “Tax Shock”

Colombia, the region’s first nationwide licensing regime (2016), introduced a 19 % VAT on deposits in February 2025. Industry body Fecoljuegos reports gross gaming revenue (GGR) fell 30 % in the first two months—evidence that steep taxes push players back to grey and black markets.

Brazil – Huge Potential, Huge Responsible‑Gambling Risks

With 200 million people, Brazil’s comprehensive law took effect 1 January 2025. Licences cost R$30 million (≈ US $6 million) and effective rates can reach 34 %. New measures will ban credit‑card betting and allow immediate blocking of unlicensed sites to curb addiction.

Argentina – A Patchwork of Rules

Argentina’s provinces license sites individually. Buenos Aires Province offers 15‑year licences at 15 %, while the capital issues 5‑year licences at 10 %. A federal bill to ban all gambling advertising and sponsorship was filed in 2025, fuelling calls for nationwide harmonisation.

Chile & Uruguay – Long Roads to Legalisation

Chile’s online‑gambling bill cleared the lower house in 2023 and awaits Senate approval, yet broadcasters have already been fined up to US $150 000 for illegal ads. Uruguay’s 2021 legalisation bill is still stalled in the lower house.

Tax Policy Will Make or Break Growth

Peru plans to introduce a 1 % turnover tax on each wager from 1 July 2025—up from 0.3 %. Coupled with the existing 12 % GGR tax, critics warn of double taxation. Colombia’s deposit VAT and Brazil’s high fees underline how rising fiscal pressure can throttle the regulated channel.

Responsible‑Gambling Measures and Social Costs

Peru is expanding school awareness programmes, mandatory self‑exclusion tools and time‑of‑day ad limits. Brazil is banning credit betting; Chile is tightening media penalties. Across the region, curbing problem gambling is now a policy priority.

Looking Ahead

South America’s online‑gambling market could hit US $13 billion in 2025. Peru’s 40 % cut is a success story, but whether giants like Brazil and Colombia can balance “right‑sized taxes” with robust player protection will decide who leads the next growth wave.