In the third quarter, the online gambling market in Latin America showed some fluctuations, with Brazil's growth not as fast as expected, and Colombia's tax issues adding a lot of uncertainty. Various operators have released their performance reports, let's take a look at their specific performances and future plans.
Brazilian Market: Slower Growth but Significant Potential
Since the regulation took effect in January this year, Brazil has attracted many international corporations. Flutter, by acquiring shares in Betnacional, garnered $87 million in revenue in the third quarter, a 412% increase from last year—sounds impressive, right? However, truthfully, excluding acquisitions, the revenue actually dropped by 18%, mainly because Betfair Brazil is still adapting to the new regulations. Flutter's CEO, Peter Jackson, remains very optimistic, stating that Brazil holds great opportunities and that having good products can win the market.
Entain's Sportingbet saw a 21% increase in revenue in Brazil in the first half of the year, but the profit margin dropped by 11% in the third quarter. Deputy CEO Rob Wood attributed this to "unfavorable sports match outcomes," though the transaction volume was still decent. BetMGM also heavily invested in Brazil, aiming for a 10% market share, with growth in the third quarter but no specific figures disclosed, though the investment might lead to an annual loss of nearly $100 million.
Diverse Performances, Casino Business Holding the Fort
Betsson's revenue in Latin America increased by 10.2% in the third quarter, reaching €76.5 million, mainly driven by record casino revenues, which rose from €46.1 million to €56.6 million, offsetting the decline in sports betting. CEO Pontus Lindwall highlighted Argentina, Peru, and Colombia. Codere Online now focuses on Mexico, Colombia, and Panama, with the Mexican market generating €26.8 million in revenue, surpassing its domestic Spanish market, but potential tax increases to 50% in Mexico could force the company to reassess its investments. RSI's CEO Richard Schwartz believes that Colombia's VAT will not be extended, despite a 27% drop in revenue, but the company remains optimistic about the prospects in Latin America.
Tax and Regulatory Challenges, Industry Outlook
Codere Online assumes that Colombia's 19% VAT will be extended, so its medium-term strategy does not include Colombia. Kambi, due to slow progress in Brazil, has lowered its EBITDA forecast for 2025. CEO Werner Becher expressed that the entire industry is somewhat disappointed with Brazil, where the black market is rampant. Overall, the Latin American market is still in its early stages, with a large population and significant room for legalization, but tax and regulatory uncertainties are major stumbling blocks.
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