The Latin American online gambling market is developing at an incredible speed. It is estimated at $12.18 billion in 2023 and is expected to grow at a CAGR of 3.2%. The user penetration rate in South America is 2.1%.
New Zealand is a much smaller country by area and population, but online gambling is even more popular in this country. The casinos and gaming market in New Zealand was estimated at $9.9 billion in 2020 and is expected to reach $12.1 billion by 2025. The user penetration rate is almost 10% in New Zealand.
Let’s discover why both these markets have a similar value and what the difference is between the online gambling landscape of Latin America and New Zealand in this article.
The Current State of Online Gambling in New Zealand
You may be surprised to hear that 80% of people gamble in some way in New Zealand. The popularity of online casinos has surged in recent years, with an increasing number of players drawn to multiple digital platforms.
The average amount spent on gambling is around $572 a month. Many New Zealand players gamble at the best online casino sites with diverse bonuses and various games are rather impressive! Let’s discover more about the casino and gaming market of this country.
Market Size and Trends
The online gambling market in New Zealand is projected to hit $600 million in 2024. The average revenue per user there is projected to reach $2.52k by 2024, while the total revenue of the market might be $1.25 billion in 2024.
All forms of gambling are popular in the country, including lotteries, games of chance, instant games, prize competitions, and betting on sports. The latest trend is to turn to e-services for online gambling experience.
Casino games are getting more popular every day, so in 2022, the number of casino app downloads exceeded 3.82 million. This results in the growth of revenue from casino games, that is going to increase by 6.67%.
Regulatory Bodies
In New Zealand gambling is regulated by the Gambling Act 2003. However, it focuses mainly on land-based gambling, while the operation of online casinos and sports betting sites in the country is mainly illegal. The only authorized New Zealand providers are Lotto NZ and the TAB. 65% of local players gamble on MyLotto, the only official online platform to buy lottery tickets and check results, while the rest prefer offshore platforms.
Facts and Statistics
There is much interesting information about the gambling industry in New Zealand. Speaking of other surprising facts about it, there are several more points to mention. iGaming stocks within the country have garnered significant attention from investors due to the country’s growing interest in online gambling and the potential for substantial returns in the evolving gaming market.
The country loses more than $140 million a year because of the unregulated nature of online gambling.
Problem gambling is a major concern. In 2018, the number of people over 15 years who were at risk of harm from gambling exceeded 76,000. Problem gamblers put the most money into the gambling industry, making 30% of losses.
Every 10th New Zealander bets on sports and racing.
The Present State of the Gambling Industry in Latin America
Latin America’s largest gambling markets are Mexico, Colombia, Brazil, Chile, Peru, and Argentina. The impressive speed of its development can be seen by looking at the massive growth of the gambling market of Colombia — it has increased by 2908% in 3 years! The total number of gamblers on this continent is over 13 million, and it is incessantly growing.
Overview of Online Gambling Market Size
The regulated online gambling market of Latin America is expected to grow by 4 times by 2027 and bring about an annual revenue of $6.75 billion. The online gambling market will grow exponentially to $3.4 billion by 2025. The market size is projected to reach $15.21 billion by 2030. The countries that generate the most GGR are Brazil, Venezuela, Mexico, and Colombia.
Current Laws and Regulations
The online gambling industry lacks a unified regulatory system since the region has adopted gambling legislation in a fragmented way. There are countries where gambling is fully banned, states where this industry is completely regulated, and areas with no clear position on this topic.
In Argentina, gambling is regulated in 23 provinces and the city of Buenos Aires, while online gambling is prohibited.
Brazil developed a drafted Gambling Law in 2018, but it hasn’t been adopted. Colombia is a pioneer in the legalisation of the gambling industry. It passed the Colombian Gambling Act back in 2001. Almost all types of gambling are also regulated in Mexico. They are governed by the Federal Gaming and Raffles Law.
Statistical Data and Facts
The LatAm gambling market united dozens of smaller markets that make it very versatile and unpredictable. No wonder there are several more interesting facts to discover about gambling in Latin America. Sports betting is paramount in Latin America and overcomes casino games by popularity.
The most significant gaming activity is in Brazil, with over 7,800 daily visits to online gambling platforms. It is followed by other LatAm countries like Mexico and Colombia, with 3,600 and 1,750 visits a day, respectively. Latin America constitutes almost 10% of global mobile gaming usage.
The Final Insight
Analysis of both gambling markets concludes that the Latin American gambling market faces significant growth at the moment, but there are many countries that haven’t still legalised gambling. A huge part of the market is currently in a grey zone.
New Zealand impresses with its incredible popularity of gambling and the very high revenue it generates.
However, there is a question: how hasn’t such a developed and casino-focused country made an attempt to regulate online gambling activity? It means that despite the constant growth of the online gambling market, there are steps to be made for proper regulation and improvement in both areas!