Is Latin America a leading light for global player protection strategies?

Latin America is big business for iGaming in the 2020s. New markets have emerged, demand for online sports betting and casino products is booming and regulation is being established in a region of dynamic populations. 

As those markets grow, and more players are consumed in the iGaming ecosystem, it becomes increasingly important to position player protection as a core pillar of the sector. 

Accordingly, SBC Media has published part three of the International Player Safety Index, placing Latin America under the spotlight, offering stakeholders a glimpse into the best practices and regulatory trends from this region.

Commissioned by 1xBet, the International Player Safety Index – LatAm gathers insights from operators, regulators and other expert stakeholders to provide a window into how player protection works across Latin America. 

Simon Westbury, Strategic Advisor at 1xBet, commented: “We’re seeing an entire region undergoing profound regulatory change. We see countries like Brazil and Colombia establish robust regimes and then others catching up or moving in that direction. 

“In the report there was some really interesting feedback in terms of real-time player activity monitoring, where LatAm’s got 69% of operators using that. 34% are deploying AI, which is even more than operators in Western Europe.”

Some of the headline grabbing stats from the report include: 

  • 63.6% of operators feel like local regulations provide clarity on safer gambling policies
  • 69% of operators use real-time activity monitoring and 34% use AI to track players’ behaviour on safer gambling
  • 56% of operators in the region curtail or alter their advertising in some ways with a view to player protection 

Understanding the current status quo is essential, particularly in a fast moving environment like Latin America. While some markets are well-established, others are more volatile where regulation is being updated. 

“We are moving from this transitional phase into a vanguard phase from what has been a honeymoon period of regulation,” Westbury noted. “And as we’ve seen, as regulation evolves it always becomes more stringent.”

Is Brazil’s honeymoon phase over?

Image: Simon Westbury/1xBet

One market that certainly feels as though cold water has been poured onto the fire is Brazil. Launched in January 2025 to much fanfare, Brazil’s betting market has indeed boomed, but President Lula appears to have itchy feet about online casino gaming and is implementing phased increases in GGR taxation, with rates expected to reach at least 15% by 2028.

One of Westbury’s key mantras is that if operators have a lack of clarity on regulations, it results in confusion. Confusion is never a good state to be in, particularly when viewed through a player protection lens. 

“It stifles the operators within the regulated market and it becomes a challenge,” he said. “I think this is where the operators need to engage, because if we do not self-regulate a little bit now, this honeymoon will be over, and then we may see some more arbitrary or more robust regulation as we’ve seen in Western Europe.” 

Westbury identified the Netherlands as a key example of a market that has robust regulation to a point where it is tough for operators to be commercially viable. 

“If you don’t empower the operator to act in a market that is commercially viable, then it’s the player that suffers,” he added.

Indeed within the IPSI – LatAm, the Brazilian government was identified as a destabilising force for the sector. If a mooted tax on player deposits is ushered through, one can expect those complaints to get much louder.

LatAm ahead of the curve on tech 

Though a lack of maturity across LatAm markets exposes some frailties on player protection, there is no hiding from the fact that it has some significant advantages. 

As mentioned, operators in LatAm are far more likely to use real-time activity monitoring and AI for player protection than their African and Western European counterparts. 

Those benefits speak for themselves, allowing operators to get ahead of players’ risky behaviour before it becomes a real issue.

Westbury explained that adopting new technologies is much easier in the early stages of a market’s lifecycle which gives LatAm a global advantage.

“What we’re actually seeing in LatAm is what I’ve always hoped for, which is using AI as a tool. When applied correctly, it is very useful. 

It’s easier when regulation is at an embryonic stage to apply these new technologies and tools into a new market. It’s like a child when they’re learning a language – it’s a lot easier for them to learn at five than when they’re 45 trying to learn two.” 

The report does expose perhaps an unconscious bias when it comes to technology. 50% of respondents identified tech as a key barrier to player protection, yet in qualitative discussions, it was not technology but regulation that was highlighted.

“LatAm’s been building a high-tech framework for players, but they’re still trying to understand the application of player protection tools. The main challenge to me is you need to bridge that education gap, and I’m skeptical if the report is saying that technology is the key tool to do that.”

Global trends show education is a priority

One key theme that has emerged through the three editions of the IPSI is that there is a great need to emphasise player education to make them aware of the risks associated with gambling and the tools they have available to them.

“When you’re looking at technology on the website for intervention, interaction and engagement with the player, yes technology is important. But actually, the education tool you need to engage with players is not necessarily technology-driven.”

Rather troublingly, a trend that has emerged in Latin America as well as Africa is a perception that gambling is being viewed as a means to generate income, rather than a form of entertainment. 

That only underscores the requirement for operators to do more to educate their players, like 1xBet does through its 1xBalance tool.

“Africa and LatAm have a problem around education and people understanding what gaming is, what gaming should be, and it’s not income generation,” Westbury noted. “But then we have seen Western European operators, for example in Portugal, not being able to intervene because the regulation doesn’t allow them to. But what we are seeing more in Africa and LatAm is that player protection isn’t enshrined in all countries.”

Webinar to dissect IPSI – LatAm

As seen during the two previous versions of the IPSI, SBC Media will be hosting a webinar to allow an open discussion of some of the key takeaways and findings within the body of research. 

Taking place on March 19, the session will ask whether Latin American players are actually safer today than in the past. It will feature: 

  • Simon Westbury, Strategic Advisor at 1xBet
  • Simon Vincze, Head of Sustainable and Safer Gambling at CasinoGuru
  • Luiz Felipe Maia, Partner at Maia Yoshiyasu Advogados
  • Alfredo Lazcano, SC – Chair at Lazcano Sámano, S.C.
  • Damian Martinez, Business Journalist at SBC Noticias

Westbury said it will offer a strong opportunity to get under the hood and debate what the findings mean for future responsible gambling partnerships. 

“These webinars are the beauty of everything. It’s like live sport. It’s not scripted, you don’t know where you’re going to go. 

“It’s a chance to bring the report to life and actually have a discussion or debate. You never know it could end up in an argument! It’s about understanding different viewpoints, because how I read the report may be different to how you read the report.”

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