Colombia’s gambling market is what all other Latin American gambling markets aspire to be. It is well-regulated and continues to grow, making it a significant source of revenue for the country. As Brazil, Argentina, Costa Rica and others explore how to make their own markets successful, they could take some tips from Colombia, which saw total gambling revenue of over $1 billion in September.
Colombia’s Gambling Market Continues Rise
According to Coljuegos, Colombia’s gaming regulator, September’s gambling revenue topped $1.09 billion (COP$4.1 trillion). This represents a year-on-year increase of 116% and follows successful summer reported previously. Since the beginning of the year, the country’s gaming revenue has surpassed $8.3 billion, 131.2% more than during the same period in 2020.
Explains Valencia Galiano, the president of Coljuegos, “For us, this is a very important result that allows us to recognize and exalt the great work and effort that our industry is making towards the reactivation of the economy of this country.” The continued strong performance is why Colombia is attracting big names in the gaming business, including William Hill, Even Bet, Betsson and many others.
Online Gaming Strong, but Land-based Rules
As has been seen in many countries, online gaming continues to grow in Colombia. However, it still isn’t a real threat, nor will it ever be, to land-based operations. Land-based gambling was worth $5.23 billion in September, while online operations accounted for $2.9 billion of the total revenue. The rest of the revenue came through local lotteries.
Colombia received $13 million in tax revenue for September’s achievements, marking an increase of 108.1% over what it received a year earlier. Since the beginning of the year, the country has received $132 billion in tax revenue. Of this amount, land-based operations have provided $45.8 billion, a year-on-year increase of 119.8%. Online gambling is responsible for $33.88 billion of the total, 133.3% more than what it delivered during the same period last year.
Sports Betting to Increase
Coljuegos’ figures didn’t break down the source of the revenue, but it’s expected that each gambling segment will continue to grow. Sports betting, in particular, is forecast to see significant growth over the next couple of years across all of Latin America, Colombia included. Currently, the LatAm market is reportedly worth around $1.3 billion, but will increase to $3.4 billion by 2025.
Similar patterns are expected to be seen throughout the global sports betting industry. The online segment will likely see the most growth, expanding from its current $24 billion to around $59 billion by 2026. That, if it holds up, would represent a compound annual growth rate of 13.6%.