SiGMA South America Market Report: Brazil leads iGaming expansion
Industry experts believe that South America’s online gambling market is entering a phase of structural consolidation. According to the latest SiGMA South America Market Report, this development is anchored by the scale of Brazil and reinforced by strong secondary markets across the Southern Cone and the Andean corridor.
The report draws on data from market intelligence provider Blask from February 2025 to January 2026. It reveals that while South America shows revenue concentration in a handful of regulated economies, there is a widening participation across both licensed and unregulated jurisdictions. The report finds that the current environment is shaped by one dominant powerhouse, several stable mid-tier markets, and emerging demand in territories lacking structured regulatory frameworks.
Measurable engagement and revenue are primarily concentrated in regulated markets, though the report says certain unregulated jurisdictions generate notable revenue, suggesting “monetisation potential beyond licensing structures.”
Brazil: The regional structural anchor
Brazil stands as the dominant powerhouse of the continent. With a population of over 220 million and internet penetration exceeding 170 million users, the report says the country outpaces all other South American jurisdictions. Blask data shows Brazil leads by an overwhelming margin, with peak engagement exceeding 232 million.
Blask estimated that the monthly revenue exceeds $500 million, which accounts for a substantial share of the total continental value. Speaking exclusively with SiGMA World, Carlos Cardama, Founder of BIS SiGMA South America, notes that the licensed sector generated BRL37 billion ($7.2 billion) in gross gaming revenue (GGR) in 2025, contributing over BRL10 billion ($1.9 billion) in direct and indirect taxes for the country. Cardama says that Brazil now functions as the continent’s operational reference point for compliance, localisation and market entry strategy.
Stability in the Southern Cone and Andean Corridor
Argentina and Peru form the second revenue pillar of South America. Based on the report, Argentina ranks second in revenue and third in engagement. Experts believe that this demonstrates that structured licensing can sustain monetisation even during economic contraction. Argentina’s peak revenue exceeded $137 million per month in 2025.
Meanwhile, Peru is described as one of the most balanced markets on the continent. The report says that the country combines consistent engagement, peaking at 30 million, with monthly revenue approaching $80 million.
Both countries operate within regulated frameworks that enable structured monetisation. Colombia also supports stable monetisation through its fully regulated framework, combining peak engagement above 14 million with revenue exceeding $41 million per month.
Revenue generated in grey markets
The SiGMA Market Report also finds that demand exists in unregulated or grey markets in several jurisdictions. It finds that Chile presents a strong demand profile despite the absence of a regulatory framework for online betting. Blask estimated monthly revenue in Chile peaks above $95 million, suggesting activity occurring through offshore or grey-market operators.
Venezuela and Ecuador also rank within the top six of the Blask Index, which represents the aggregated level of user interest in all gaming brands. Online gambling and betting in these countries are unregulated. According to the Blask data, Venezuela recorded revenue exceeding $10 million per month, while Ecuador reached nearly $19 million. These markets represent fiscal opportunity, though experts say they raise questions around tax capture, consumer protection, and long-term sustainability.
Industry leaders warn against over-regulation, fiscal pressure
Industry leaders in the region believe that the next phase of iGaming expansion for South America depends on balanced taxation, regulatory clarity, and stronger action against illegal operators. Evert Montero, President of Fecoljuegos, tells SiGMA World that demand can exist with or without regulation, but tax collection, consumer protection, and integrity only consolidate in regulated markets.
Cardama cautions against a revenue-raising saga, noting that tax increases on the legal market may push bettors to seek the illegal market. Ahikam Raviv, CCO of Notix.Games believes that natural progression will eventually lead these markets toward clear frameworks and legitimacy.
The future of regional growth
South America stands at a turning point. While demand is resilient, long-term sustainability relies on legal stability, sound tax design, and effective control of illegality. Industry leaders argue that curbing the illegal market is critical for responsible gaming and tax capture.
Montero emphasises that technical regulation, legal stability, and effective enforcement are the paths forward. The report concludes that the next growth phase will be defined by how effectively governments and operators align to convert engagement into sustainable, regulated revenue.
A new frontier rises beneath the skyline of São Paulo. From 06–09 April 2026, BiS SiGMA South America transforms LatAm’s gaming capital into a hub of innovation, bold talks, and billion-dollar opportunity. Don’t sit this one out.
