One of the most attractive deals for companies worldwide is the Latin American betting market. As sports betting and gambling in general is on the rise, this market show real potential for business who are looking to grow. Some recent news from countries such as Ecuador show how vast is this market and how troublesome could be with all its regulations.
Betting Advances in Ecuador
Ecuador’s decision to regularize its sports betting sector has generated great interest among companies at home and abroad. The South American country’s tax authority the Internal Revenue Service (SRI) said 65 sports betting companies are keen to enter the newly regulated Ecuadorian market. This rush of attention demonstrates quite how attractive the region is to the betting trade.
Legalizing betting operations in Ecuador is a significant statement in the nation’s gaming sector. Ecuador kept tight bets for more than a decade, restricting the development of betting industry in the country. But with the passing of the Law of Economic Efficiency and Creation of Employment, the country has allowed legal betting on sports to take place. The step will help the economy as it will generate employment and earn revenue in the form of tax.
Of those 65 companies, 63 are domestic and two are foreign operators. This wide spectrum of participants mirrors the wide interest in the Ecuadorian market being expressed by domestic players ready to take advantage of the new conditions, and foreign players keen to access ascendant markets.
Despite the new regulations’ buzz, Ecuador’s tax regime is harsh. Operators are subject to 15% tax on their gross gaming revenue, as well as a player winnings tax. This “double-taxation” style is extremely effective at the taxman getting a large slice of industry revenues, but it’s tough for operators to play a fine-margins game if they want to be able to show a profit.
LATAM Pay Per Head Prospects
Traditional sportsbook companies are not the only that have limited operations exposed to the Latin America market, PPH companies do as well. PPH solutions are a one-of-a-kind product which can open the LATAM market for bookies, as long as they are aware of the regulations of each particular country.
Equally important for PPH bookies looking to expand into the Latin American market is knowing which countries allow bettors to seek foreign operators. While there are some countries in the region that have legalized offshore betting, others have adopted a strict approach to the issue, and have even banned it. PPH providers must be aware of these legal subtleties in order to avoid potential traps.
Aside from dealing with the red tape, there are also the PPH bookies to consider…these guys need to make sure they have a solid PPH provider. A quality PPH service supplies bookies with the tools to service any betting market efficiently. This includes having a simple´n Easy to use platform, tight security, and customer service to satisfy Latin American clients. Working with a quality PPH service is one way that bookies can ensure that they are best placed to compete in this very demanding market.
The Future of Gambling in Latin America
Opportunities and challenges for operators in the evolving Latin American betting market As the betting market in Latin America continues to open up, W2 looks at the factors driving the sector and the potential effects on businesses. Nations such as Ecuador are priming for a more regulated and legitimized industry of gambling – this may bode well with bettors who will have more faith as they invest. Yet the strict tax structures and legislative conditions also require businesses to be savvy in order to succeed in the long run.
The Latin American market: What are the keys to success for those betting operators that use a PPH service? poolFor aBookie, I’m often asked about what is it that players like when they bet on football, and my answer is simple, they like to win. If they do, they can leverage themselves unimpeded by complications of the region and the emerging appetite for sports betting.
And whether in land-based or online standard services such as PPH, the room for growth in LATAM is huge, something certainly worth watching in the future.
