As most operators have announced their Q2 financial results, the performance of the Latin American gaming market has attracted significant industry attention. Despite the continued boom in Brazil's online gaming market, tax pressures in Colombia and Peru still pose significant challenges to operators.
Brazilian Market: Rapid Growth and Strategic Layout
Since entering the Brazilian market in 2024, Flutter has made significant progress, and its acquisition of a 56% stake in Betnacional's parent company NSX has begun to show results. Brazil's market revenue increased by 144% year-over-year in the second quarter, reaching $44 million, successfully offsetting a slight decline in Betfair's Brazilian business due to poor sports event results and new KYC re-registration requirements.
Flutter CEO Peter Jackson stated that the company is actively evaluating opportunities in Latin America and other new global markets, with Brazil being a core strategic region due to its market size and potential. Over the next 12 months, the focus will be on enhancing the customer experience in sports betting and iGaming.
Entain reported that the Brazilian market is "on track," with natural gas sales increasing by 21% in the first half of the year. Despite challenges with KYC registration for the Sportingbet brand, Brazil's tax policy also led to an EBITDA loss of about $38 million for the group. Regulatory uncertainty and potential black market expansion remain operational risks.
BetMGM aims to capture 10% of the Brazilian market share. Through collaboration with Grupo Globo, the company continues to invest in marketing and brand building. CEO Bill Hornbuckle emphasized that the first quarter was mainly invested in product development, with the second quarter focusing on market promotion to enhance brand awareness.
Performance and Challenges in Other Latin American Markets
Betsson's revenue in Latin America reached a record high of €84.7 million in the second quarter, up 35.4% year-over-year, with significant increases in sports betting revenue, although casino revenue slightly declined. Nevertheless, increased tax burdens in Peru and Colombia, along with potential advertising restrictions and tax increases in Brazil, continue to be operational obstacles. CEO Lindwall stated that the company will proceed cautiously with mergers and acquisitions to ensure manageable risks.
Codere Online's performance in Mexico was robust, with revenue reaching €29 million, up 2.8% year-over-year, and a 36% increase in active customers. However, the Brazilian market still requires cautious consideration, and the Colombian market has been reduced to minimal operational levels due to a 19% temporary VAT.
Rush Street Interactive reported strong growth in the Mexican market, with monthly active users in Latin America up nearly 42% year-over-year, and market revenue increasing by 125%. However, Colombian taxes still suppress profitability, with the company implementing reward strategies to mitigate the impact, expecting profitability to improve by 2026.
After exiting Brazil, Super Group LatAm's revenue was nearly halved, with overall revenue in the Latin American market dropping from $16 million in the first half of last year to $10 million, mainly due to a weak Mexican market and the Betway brand's exit from Brazil.
Summary and Outlook
Overall, Brazil remains the core growth engine of the Latin American gaming market, attracting major operators to make heavy asset investments and long-term strategic layouts. Meanwhile, tax policies in Colombia and Peru, potential advertising restrictions in Brazil, and regulatory uncertainties continue to pose challenges to market profitability. Operators generally adopt a cautious expansion strategy while increasing investment in products, marketing, and customer experience optimization to consolidate their market share in the region. Over the next 12 months, the Brazilian market will remain a focus of growth, while tax and regulatory factors will determine the strategic adjustment pace of the Colombian and Peruvian markets.
