LATAM

VBET’s Ariel Litvac has warned that the appetite for the Brazilian market is becoming increasingly selective as tax uncertainty elevates.

Speaking to iGaming Expert, he emphasised the importance of data-driven dialogue with the industry and policymakers, as a crucial election looms in the country.

How is the uncertainty surrounding taxation impacting the current performance of the Brazilian market?

There is broader legal uncertainty, not only tax-related. However, focusing specifically on taxation, the current environment delays investment decisions, increases unfair competition due to the illegal market and makes long-term planning more difficult. As a result, predictability decreases and expansion slows down.

Has the appetite for the market dwindled as a result of tougher taxation rates?

The appetite has not disappeared, but it has become more selective. Well-capitalised operators with strong governance structures are able to adjust their business models and products to mitiga..

Argentina’s provincial gambling authorities have launched a coordinated nationwide campaign to mark the start of Responsible Gambling Month this February.

The campaigns call on the need to expand public awareness on harm prevention and youth protection across the Argentine provinces.

Throughout the month, green-lit public buildings have been adopted as a unifying symbol to raise public awareness of gambling risks and safer-play behaviours.

Regulators across multiple provinces are rolling out training sessions for public officials, educators and community organisations, alongside outreach programmes designed to promote healthier gambling habits and early intervention strategies.

A central pillar of this year’s campaign is under-18 protection, with authorities expanding education around age-verification standards, limiting youth exposure to gambling content and strengthening referral pathways for families and schools concerned about risky behaviour.

“Responsible gambling is not jus..

Brazil’s Ministry of Health (MESP) has released a national guideline for medical professionals who administer care for those suffering from gambling harms.

The document expands on the country’s Unified Health System (SUS), and is aimed at professionals registered with the Psychosocial Care Network (RAPS), offering practical advice on how to monitor and treat problem gambling behaviour.

All guidelines were prepared as a result of close collaboration between MESP and experts in behavioural anomalies, including representatives from the Department of Mental Health, Alcohol and Drugs, as well as the Secretariat of Specialised Health Care.

MESP’s statement on the pressing need of the 73-page document highlighted that admissions to the SUS related to pathological gambling have grown significantly between 2018 and 2025, giving special attention to online betting abuse cases that have led to deteriorating mental health in patients, as well as financial hardships.

“With this set of measures, the Ministry of Health reinforces its commitment to the protection of the mental health of the population, the organisation of the SUS response and the offer of comprehensive, humanised and accessible care throughout the country,” the MESP added.

Guidelines do “more than recognising a growing pattern”

The guidelines cover aspects such as warning signs and patterns of problem gambling, support tools for evaluation and treatment, suitable responses to the severity of each case, as well as best practices for efficient collaboration with Psychosocial Care Centres situated across Brazil.

“The document arises from the collective commitment to understand and take care of the new forms of psychic suffering that emerge in the contemporary context, such as problems related to gambling and their relationship with the digital landscape,” the authors stated.

“More than recognising a growing phenomenon, it recommends how to improve the psychosocial care of affected people, considering the impacts on daily life, bonds and public health.

“Care must recognise that the problems related to betting games are not limited to an individual and mental health issue. These problems also manifest themselves as an expression of social, economic and cultural vulnerabilities, demanding territorial, intersectoral responses and based on listening and co-responsibility.”

Brazil recently celebrated the first anniversary of launching its regulated betting market back in January 2025. Since then, the gambling market in general has been significantly altered to protect the country’s vast population, including the launch of a national self-exclusion registry.

However, initiatives like the latest problem gambling guidelines show that there is still work to be done in that direction. This will be one of the key points at the SBC Summit Rio conference, which will bring the region’s top voices together on 3 March.

Operators in Brazil report that opportunistic bettors are trying to exploit a loophole in the country’s national self-exclusion scheme.

Media outlet BNLData has received warnings from local gambling firms about players who are trying to defraud businesses by placing bets within the period between making a self-exclusion request and the operator fulfilling said request.

Brazil officially ratified its licensed betting market in January 2025, bringing millions of bettors into a regulated system that will feed back into the national economy. Overseen by the Secretariat of Prizes and Bets (SPA) under the Ministry of Finance, experts predict that the market will reach billions in value by the end of the decade.

Self-exclusion was one of the final steps in the legislative process, introduced in December last year. In the first 20 days of its inception, the registry saw 153,000 requests from players, BNLData added.

Championed by SPA Secretary Regis Dudena, the system works by receiving the self-exclusion request and automatically notifying operators about it, giving them a 72-hour period to go through with the blocking order.

This exact timeframe is being targeted by the bettors, who are wagering high sums which they then want back under the premise that they shouldn’t have been allowed on the platform in the first place.

Their success rate, however, remains a topic of speculation, as no operator has publicly confirmed any payouts made as a result of this fraud.

To put things into perspective, one case reported by BNLData involved a modest bettor, with their losses between 2024 and 2025 totalling around R$500 (£70).

On 2 January, the same player filed a self-exclusion request with SPA. Right after that, their activity showed multiple bets totalling R$5000 being placed with different sportsbook platforms, covering all outcomes of the same sports events.

They then tried to recover the accumulated losses by contacting the sportsbook providers, arguing that they’ve breached the law by allowing them to place a wager with a self-exclusion order in place. However, this is where details matter the most.

Operators would have been committing an offence if the self-exclusion was active, but bets and wagers are still considered valid if placed within the above-mentioned 72-hour period.

In addition, this appears to not be an isolated case, with multiple companies reporting the same pattern, pointing towards systematic fraud attempts.

Whilst this is unlikely to cause major damage to the gambling sector in Brazil, it could lead to SPA reevaluating the self-exclusion framework and introducing shorter enforcement timeframes.

Uruguay’s casino sector was given a boost at the start of the year after the culmination of strike action saw operations restart.

This was made possible after the General Directorate agreed to negotiate and sign a document that opens a new round of dialogue with the union.

The original action was undertaken in revolt against new frameworks and what was described as ‘a disguised salary cut’, implemented by the new administration, headed by Director General Fernández Estévez.

Such conflict caused venuesto be closed during what would have been one of the busiest times of the year for casino footfall – any further delay had the potential to be considerably detrimental to the wider economy.

Cecilia Alegre, General Secretary of ANFUCE, referred to the situation in an interview with Radio Cadena del Mar of Uruguay (FM 106.5), stating: “It all started when the General Director Estévez, introduced changes that directly affect our jobs, without having gone through collective bargaining, as required by law.

“Furthermore, he informed us that he will disregard a bill regulating online gambling that was approved by an absolute majority in the Senate during the previous legislature. That bill is still in effect, but the new casino management has decided not to pursue it. Our salaries are 80% variable. They always depend on customer traffic in the casinos. And with the rise of online gambling, this will be significantly reduced.”

According to media reports, the proposal was put forward and led to the adoption of a common position, which subsequently saw the reopening of casinos.

Negotiations will continue between the union and the General Directorate, even as casinos have reopened, with the vast majority of them being state-run operations.

There has been much speculation that Uruguay could see significant reform within its gaming framework as it looks to modernise the sector and gain a major economic uplift as a result.

Plans to establish a new National Online Gambling Regulation Agency will undoubtedly have been boosted by the quick resolution to the dispute between workers and the state-owned casinos, with the reform to the gambling sector reportedly set to create north of 20,000 jobs.

There has been a significant need for the overhaul of casino regulation and supervision in the country, with the growth of the illegal sector causing much trepidation.

It is anticipated that the bill will be progressed in the first half of 2026, with President Orsi having previously urged caution when it comes to gambling reform, underpinning that it will be focused on public health outcomes rather than political pressure.

During a recent press briefing, he said: “Regulation cannot be dictated by market pressure or political expediency. It must be guided by what protects our citizens and strengthens confidence in the institutions that govern gambling.”

The bill for modernisation was put forward by Senator Felipe Carballo, as he eyed a “mixed model” in which the state would operate its own gambling platform but also regulate private operators.

The National Directorate of Lotteries and Quinielas would administer the state-owned platform, as well as oversee the licensing of private operators, the regulation of advertising and marketing practices and hold the power to sanction stakeholders and revoke licences.

Carballo underpinned the vital nature of modernisation for Uruguay, as it adapts to the globalised nature of the iGaming market.

He stated: “This paradigm shift has placed the Uruguayan state at a disadvantage in a globalised market, hindering its capacity for supervision, taxation, and control.

“The expansion of transnational platforms, coupled with the use of cryptocurrencies and virtual private networks (VPNs), has reduced the possibility of exercising effective authority over a sector that, if left unregulated, could generate significant economic, health, and social damage.”

There have also been proposals for private operators to be granted the opportunity to apply for licenses, in a system that would be overseen and include a state-owned operator.

A monopoly model would potentially only go some of the way in terms of tackling the growth of the black market, with a monopolised system being limited without regulated competition.

In terms of comparisons, Uruguay may look to emulate the models of Chile and Argentina, which both take a hybrid online gambling framework approach.

Whilst both models have seen the dilution of state-owned operator dominance, providing players with a myriad of options has hindered the surge of the black market in both countries and boosted player protection – both of which are key prerogatives for Uruguay as it evolves its gambling ecosystem.

The timeline for the cementing of the online sector in Uruguay is unlikely to be confirmed until 2027, the upcoming year is a pivotal one for the country and its strategy in gambling evolution.

Debate and conjecture are set to be essential to the year ahead, as details around the next evolution of the market are examined and eventually uncovered – providing clarity on who will be able to enter the market and what their journey will entail.

Whilst there appears to be widespread commitment to the bill developing, there will still be caution given the faltering of a previous bill in 2021.

A key reason for the bill falling five years ago was fractions over the potential decision to enable operators to gain an online license without having a physical presence in the country.

Uruguay could regulate a new gambling regime generating 20,000 new jobs and an estimated $600m in economic investments.

The figures are presented as the first estimates of the newly created Chamber for Casino Services Operators and Investors. Formed this December, the Chamber has been established as an “industry group” providing advice to the Frente Amplio (FA) government, in gambling policies that will generate job creation, economic investment and consumer safety.

The reorganisation of Uruguay’s gambling regime has been pledged by President Yamandú Orsi as a mandate of the FA party. President Oris seeks to create a “unified law” for all gambling activities that have been fractiously governed by the laws of the Casinos Act, Uruguay Tourism and the Digital Transformation Act of 2017.

As detailed by SBC Noticias The Chamber brings together Uruguay’s key concession-holders, including “Grupo Codere; Baluma S.A. (Enjoy Punta del Este); Compañía Rioplatense de Hoteles (Radisson Montevideo Victoria Plaza); Manteo S.A. (Hotel Casino Rivera); Naranpark S.A. (Salto Hotel Casino); and Mirador Campero S.A. (Hotel Santa Cristina).”

Speaking to local media, Luis Gama Hernández, former Director of the National Directorate of Lotteries and Quinielas (DNLQ) and now Executive Secretary of CUOASEC, said the Chamber’s creation reflected “the need for a collective and technically consistent dialogue with the State” as Uruguay prepares for a fundamental rewrite of its gambling laws.

“This is a chance for Uruguay to create a clear, balanced and sustainable model that reflects the market realities of today,” Gama said.

“Our industry generates thousands of formal jobs and remains one of the strongest drivers of regional tourism. What we need now is a regulatory framework that encourages investment and ensures regulation keeps pace with innovation.”

A chamber has been formed to examine all adult gambling disciplines including online gambling, casino operations, bingo, arcades, and slot machines (no lotteries of quinelas), but cannot submit any legislative policies.

The group’s first economic appraisal highlighted Uruguay (population of 3.4 million) and its appeal as a tourist destination for negibouring countries, especially in the Punta del Este province. Furthermore despite its fragmented laws Uruguay has built a well-established network of licensed casinos resorts offering safe and high-quality gaming environments.

While the working group opted not to address taxation policy, it did emphasise the need to urgently update criminal and enforcement laws, warning that outdated penalties were “favouring the expansion of illegal gambling and creating competitive imbalances that penalise compliant operators.”

The General Assembly has now begun reviewing the first round of reform proposals, though initial submissions have been described as vague and limited in scope.

One formal Bill has been submitted by Senator Felipe Carballo, proposing a state-run online gaming platform to be operated directly by the National Directorate of Lotteries and Quinielas (DNLQ), allowing only restricted private-sector involvement through mixed-licence arrangements.

President Orsi and FA officials told media that they were underwhelmed by the proposal, which does not fulfill the goals to maximise

Industry leaders, however, have called for a more transparent and investment-friendly model, arguing that Uruguay’s success will depend on clarity, modernisation, and a level playing field for regulated operators.

As Gama concluded:“Uruguay’s legal architecture belongs to another era. Reform cannot be partial — it must be comprehensive and future-ready if we are to protect players, grow responsibly, and compete on a global scale.”

The PT government of Brazil has stated that mental health will be central to its national gambling policy, with the launch of the “Health Observatory on Gambling Disorders” — a first for South America.

The Observatory will be established to study, research, and advise on the prevention of gambling harms in parallel with Brazil’s new national betting market, which officially came into effect in January 2025 and further regulatory changes.

Formed under a Technical Cooperation Agreement (ACT), the Observatory represents a formal partnership between the Ministry of Health and the Ministry of Finance, aligning health protection, fiscal oversight and data-sharing under one framework.

The agreement was signed by Health Minister Alexandre Padilha and Finance Minister Fernando Haddad, signalling a unified government approach to prevention, treatment and responsible regulation.

Brazil: ACT first on Health & Gambling

The ACT establishes a permanent line of communication between the Secretariat of Prizes and Betting (SPA) — part of the Ministry of Finance — and the Secretariat of Specialized Health Care (SAES) within the Ministry of Health.

Its aim is to create a continuous data exchange between both institutions, identifying vulnerable individuals and communities while enabling targeted interventions through Brazil’s Unified Health System (SUS).

The five-year agreement, renewable upon review, is designed to serve as the foundation of a national mental health strategy linked to the regulation of gambling and betting activity.

According to Regis Dudena, Secretary of Prizes and Betting, the Observatory and its framework are “the tangible results of the Interministerial Working Group on Mental Health and Prevention of Gambling Harms (GTI),” which unites several ministries and agencies in addressing social protection and harm reduction.

“The agreement formalises not just a valuable tool for putting public policies into action but a framework,” said Dudena. “It provides a structured flow of information between agencies and lays out the policies for prevention, risk reduction, and assistance to people with harmful gambling-related behaviours.”

Haddad’s sign off
Finance Minister Fernando Haddad described the initiative as a key moment in connecting fiscal responsibility with social welfare.

“We are very concerned about gambling-related issues; they affect families and have a huge impact on the economy,” Haddad said. “Our greatest concerns are the laundering of money through gambling and other crimes, and the negative consequences of gambling for health.

“For the Ministry of Health to be active, it needs to know, and we have that information. We are going to identify the most significant risk cases, both in crime and addiction, and report those to the Ministries of Justice and Health. The teams are trained to provide the best possible approach.”

The agreement also provides for the creation of educational materials and training programmes for SUS professionals, aimed at helping healthcare workers recognise signs of problem gambling and understand the structure of the betting market.

New public tools and care initiatives
Health Minister Alexandre Padilha described the launch of the Observatory as a “historic step” for Brazil.

“For the first time, we will have qualified information to identify risky behaviours, activate the SUS teams, and provide care and support to those suffering from compulsive gambling — a very invisible issue that destroys lives and families,” he said.

Together with the Observatory, the Ministry of Health has also launched the ‘Care Line for People with Problems Related to Gambling’, offering clinical guidelines, online support and in-person consultations to expand access to treatment across the country.

“The SUS will be ready to reach these people through in-person support, telehealth and the Digital SUS,” Padilha continued. “The message is clear: no one has to face this alone. The SUS is here to help and protect.”

2026: Observatory & self-exclusion

Padilha concluded that the ability to analyse and share data will be the driving force behind Brazil’s prevention strategy. The Ministry of Health confirmed that approximately 450 online consultations per month will be offered, with in-person follow-ups available when necessary.

“The SUS will be crucial in turning information into care,” Haddad added. “Through cooperation between the Ministries of Finance and Health, we can act preventively, responsibly and collaboratively to protect children, young people and adults, and provide real pathways of support to those who have become dependent.”

During 2026, the SPA plans to roll out a centralised self-exclusion system covering all licensed betting operators. Recognised as the SPA’s flagship player-protection initiative, Brazil’s self-exclusion is scheduled to enter beta testing by the close of 2025, ahead of its full nationwide implementation later in 2026.

Under the broader mental health strategy, the SPA’s self exclusion scheme is viewed as the tool system that allows individuals to block access to all licensed betting websites and opt out of receiving betting-related marketing linked to their CPF (tax identification number).

A tumultuous opening year for Brazil’s Bets regime appears to show no signs of abating after a Senate Committee approved a 2026 tax increase on online gambling.

The Committee of Economic Affairs (CAE) has passed a proposal to raise taxes on betting licences from 12% to 18% of gross gaming revenue. The measures will be graduated, with the rate rising to 15% by 2027 before reaching 18% a year later.

Although a blow for operators seeking to secure their footing within the burgeoning landscape, the CAE adjusted a previous proposal from the government to double taxes to 24% – which failed in Congress in October.

Welfare spending

The changes, combined with tax reforms for fintech services, could raise as much as R$5bn in federal revenue from 2026 onwards, according to economic projections.

President Luiz Inácio Lula da Silva is targeting the dual tax reforms to help finance the Brazilian Government’s R$300bn in welfare spending in 2026, in what is described as “the largest social-investment package in Brazil’s history”.

Similar optics provided a challenge for the UK gambling industry, as in the run up to the UK budget, advocates for increased tax linked the potential revenue boost with reforms targeted at combating child poverty.

Though not directly linked by Chancellor Rachel Reeves, UK remote gaming duty will be hiked to 40% in April 2026, while child benefit frameworks have been reformed within her mandate.

It elevated what was already a tough landscape for the gambling industry in terms of making the case against significant tax hikes.

Ongoing reform

Operators will be hopeful that a degree of stability in the Brazilian market is found in 2026, as 2025 has marked a somewhat chaotic period.

Since the market opened on 1 January, operators have been forced to adapt to new restrictions on bonuses as tighter frameworks around incentives and regulations related to ensuring welfare recipients can’t use funds for gambling.

This bill related to welfare funds proved controversial upon its introduction following the publication of SPA/MF Ordinance No. 2,217/2025, recipients of Bolsa Familia and the Continuous Cash Benefit are among groups banned from taking part in fixed-odds sports betting.

In order to ensure the implementation of the guidance, the SPA also issued Normative Instruction No. 22/2025, which sets out procedures that betting operators must follow to ensure compliance.

According to the new rules, companies must consult the Betting Management System (Sigap) to verify whether a user is included in the database of beneficiaries during customer registration, and at the first login of each day.

It outlined that operators must ensure that players are blocked if they are registered, with any deposits also being returned to them.

Speaking at the time of the implementation of the rules, Regis Dudena, Secretary of Prizes and Bets at the Ministry of Finance, stated: “To ensure compliance with the Supreme Court’s ruling, it was necessary to develop a robust technical tool, carefully ensuring that the measure guaranteed the protection of the rights involved. Protecting citizens, their security, their rights, and their personal data are always objectives of the Brazilian Government.”

The Ministry of Finance stressed that recipients do not risk having their benefits suspended if they are found to be accessing betting sites, and it is the responsibility of operators to stop this from happening.

Meanwhile, regulatory gaps, such as the creation of a federal self-exclusion register and a dedicated bill to govern online gambling advertising, remain to be determined in 2026.

The bill to increase taxes will now advance to the Chamber of Deputies, before heading to the lower house for further committee analysis. Any amendments will return to the Senate for confirmation.

Damián Martínez: SBC Noticias
President Claudia Sheinbaum has finally confronted the glaring liabilities of Mexico’s gambling laws. Yet her actions appear driven more by growing scandals than by a genuine effort to replace an 80-year-old legal charter, reports Damian Martinez of SBC Noticias.

Confronted by national media in the glare of a widening scandal, Claudia Sheinbaum has stated that Mexico’s gambling laws must be modernised to combat criminal activities that have exposed and benefitted from current liabilities.

On Wednesday, the President of Mexico held a press conference in which she acknowledged the flaws of a gambling regime governed by the Federal Law of Games and Lotteries of 1947.

“The regulations for online casinos must be updated, because when the law was created, this way of betting didn’t exist,” Sheinbaum said. “As a result, it must now be regulated, because otherwise it opens the door to money laundering.”

Her remarks followed revelations that 13 casinos are under federal investigation for allegedly facilitating multimillion-peso cash movements and international currency transfers aligned with recognised money-laundering typologies.

At a subsequent briefing, Omar García Harfuch, Secretary of Security and Citizen Protection, revealed that both physical and virtual casinos had, exposed “patterns of risk, fiscal irregularities, unusual operations and transnational financial connections that compromise the integrity of the financial system.”

The joint investigation carried out by the Financial Intelligence Unit, Federal Fiscal Prosecutor’s Office and the Attorney General’s Office has led to the temporary suspension of multiple venues, the blocking of online gambling sites, and the freezing of accounts linked to suspect operations.

Federal police described intricate schemes in which online casinos used identity theft and prepaid cards to move money abroad before returning it to Mexico as “legitimate” business income.

A relic of prohibition
The scandal draws renewed attention on the structural weaknesses of the 1947 law, a relic that views that gambling should be tolerated by Mexican authorities rather than legitimately governed.

More than a decade in power, the MORENA government continues its transition from the administration of Manuel López Obrador to Claudia Sheinbaum’s presidency.

Yet a sidelined gambling sector and police authorities are mounting pressure to repeal and replace the legislation, a reform long stalled in committee amid concerns over corruption, tax evasion and moral opposition from religious and conservative groups.

Last month, Congress approved Sheinbaum’s 2026 national budget, which introduces sweeping increases in IEPS (Special Tax on Production and Services)—the so-called sin taxes. The measure doubles levies on gambling, sugary drinks, violent video games and tobacco, with the government arguing it will strengthen public finances and discourage harmful consumption.

Industry demands 2026 guarantees
Mexico’s regulated gambling industry is worth an estimated $10 billion, modest beside the more liberal markets of Brazil, Colombia and Argentina. Yet the sector remains fragmented, divided between state-level permits and administrative licences issued by the Interior Ministry (SEGOB) and lacking a coherent national framework for online play.

Industry groups and trade associations have urged the government to begin legislative modernisation in 2026, insisting that the sector underpins tens of thousands of jobs and contributes significantly to hospitality, tourism and entertainment—pillars of the economy that Mexico hopes to showcase as it co-hosts the FIFA World Cup alongside the United States and Canada.

The Mexican Association of Gaming Suppliers (AIEJA) has long urged the government to modernise the country’s gambling laws. In previous campaigns, the trade body presented detailed proposals to transform gambling into an economically positive sector that could stimulate hospitality, leisure and tourism.

AIEJA argued that properly regulated gaming could enhance the appeal of Mexico’s resort destinations and generate substantial tax revenue. The vision was not to rival Las Vegas, but to harness the industry’s potential as part of a broader economic ecosystem. Successive administrations, however, rejected these proposals, with MORENA maintaining that the risks of liberalisation outweighed the fiscal rewards.

Failure will cost MORENA
The political question now is whether MORENA can deliver. Sheinbaum’s government must strike a delicate balance: tightening controls against illicit finance while legitimising an industry long treated as marginal. Success will require more than legislative tinkering; it demands institutional rebuilding—aligning fiscal, security and tourism policies around a sector newly recognised as economically vital.

If the administration succeeds, Mexico could emerge from 2026 with a modern, transparent gambling framework fit for the digital age. If it fails, it will greet the World Cup as a co-host still struggling to keep the game fair—off the pitch as much as on it.