In this article, global bookmaker 1xBet explores how consolidation is emerging as a critical factor in strengthening safer gaming frameworks across Latin America’s evolving iGaming landscape.
Simon Westbury, Strategic Advisor at 1xBet, commented on the recently released “The International Player Safety Index Report for LatAm,” noting that the continent is leading the world in the application of technology related to player protection. He added that there is still work to be done around player education and to ensure the region does not simply experience a regulatory “honeymoon” regarding player protection. All regulated jurisdictions, he said, should aim to enshrine player protection and responsible gambling initiatives within their frameworks.
The Latin American 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: 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. This indicates that the region already has valuable experience in technology integration and an effective regulatory framework, yet deeper coordination among all market participants is still needed.
That is why consolidation is becoming a key issue. Simply passing a law does not automatically make the 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.
Why consolidation has become a key challenge for the region
Over the past decade, Latin America has moved from an offshore model to local licensing in several major countries. Brazil, Argentina, and Colombia have already become benchmarks for neighboring 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 $7 billion. It is a vivid example of how the combination of effective legislation, modern technologies, and coordination among regulators, operators, and payment providers can dynamically reshape the sector’s architecture.
However, the findings of the 1xBet-commissioned research also show that progress remains uneven. In Argentina, a decentralized system with a strong role for provinces gives the market maturity, but also creates regulatory differences.
One of the study participants 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 favor of consolidation: eliminating regulatory discrepancies reduces room for manipulation and prevents misleading signals to consumers.
Technology delivers results when integrated into a unified system
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 artificial intelligence to identify potential harm.
Latin America 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.
However, technology alone will not solve the problem if it exists separately from the market’s overall infrastructure. The study clearly illustrates this gap: on the one hand, the region is rapidly adopting advanced solutions; on the other hand, players do not always understand how and why to use them.
One of the most persistent challenges in Latin America is the perception of gambling not as entertainment, but as a way to earn money. Therefore, consolidation here means not only data sharing and joint oversight, but also coordinated educational efforts between governments and licensed businesses.
Side effects of uneven regulatory development in the iGaming industry across Latin American countries
The 1xBet-commissioned research emphasizes that in some Latin American countries, the regulatory framework requires modernization. Regulatory gaps can arise at the intersection of taxes, advertising, payments, and law enforcement. If one market segment is overly strict while another remains open, the offshore sector, rather than legal platforms, reaps the benefits.
For example, in Chile, a comprehensive regulatory infrastructure for iGaming operators is still under development. In Uruguay, there is also a lack 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 Latin American 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 “favorable” conditions, part of the audience shifts to it.
Therefore, in practical terms, consolidation means harmonizing market access for payment providers, advertising platforms, game suppliers, and operators themselves.
The most effective way to combat the illegal market remains the creation of a unified regulatory system. In Argentina, there is already a positive experience with regulatory consolidation, where 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.
Why digital platforms and influencers are not about marketing, but about regulation
The 1xBet-commissioned research showed that Latin America is a region where illegal operators actively use digital promotion channels. The market is already demonstrating a positive response to this challenge: more than 56% of local operators restrict promotional campaigns in line with responsible gaming and player protection rules.
Regulators oversee advertising on social media, messaging apps, and digital platforms, but only for legal operators. “Grey” companies have far greater freedom of action. Unifying advertising restrictions between offshore and licensed operators will ultimately resolve this issue.
The topic of influencers and digital media cannot be viewed in isolation. It requires collaborative action by regulators, platforms, payment providers, and content rights holders. Without such consolidation, restrictions will end up working against the licensed segment rather than the illegal one.
Tax policy impact on the iGaming market safety
Tax policy in Latin American 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 top-ups 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 showed 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. Therefore, government authorities need to strike a balance on this matter.
Consolidation: Latin America’s path to leadership in the iGaming industry
Today, the region already has strong grounds to claim flagship status in safer gambling. Latin America leads in KYC implementation, real-time monitoring, and AI adoption, demonstrates high operator engagement in self-limitation tools, and outperforms other regions in the availability of educational materials for players.
However, the research also 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. Latin America has significant potential for developing partnership networks, including within the 1xAffiliates program, which operates in more than 150 countries and has brought together over 500,000 partners.
The 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 Latin American countries.
Original article: https://www.yogonet.com/international/news/2026/03/20/118175-1xbet-analysis-consolidation-as-a-key-driver-of-safer-gaming-development-in-latin-america
