Latin America's gambling industry has the potential to generate over $150bn a year, a new report has claimed.
The latest Latin American gaming and gambling market report by Research and Markets revealed that if both the legal and illegal gaming activities in Latin America were combined, the region would generate this level of revenue.
Latin Americans spend approximately $10bn a year on gaming and gambling, with each inhabitant spending an estimated US$250 a year. Costa Rica, Brazil, Mexico, Argentina, Chile, Colombia, Peru and Venezuela are considered to be the most prolific gambling countries in the region, where slot machines, casinos, horse racing, lotteries, bingo, online gaming and illegal gaming entertain millions of people every day.
According to the report, Costa Rica has the largest gambling market, largely due to its favourable online gambling policies that help to generate $14.5bn a year. Brazil, meanwhile, has the largest lottery market in the region contributing $4.1bn to the economy each year and, when combined with its illegal slots and bingo business, the country’s gambling revenues exceed $7bn.
Argentina’s gaming industry generates $4.5bn a year, making it the third largest gaming market. Colombia’s revenues are estimated to be $2bn, while Panama generates $1.17bn, Venezuela records $1bn and Chile at least $600m.
Land-based gaming and gambling activities have traditionally been closely linked with the region’s tourism industry. Travel and tourism in Latin America in 2010 is expected to generate $200bn of economic activity and is expected to grow by 5.1 per cent per annum between 2010 and 2020.
"Despite the recent global crisis, Latin American countries are on a fast track to full economic recovery and it is projected that the region will benefit from a four per cent growth in 2010," the report said. "The region’s recovery is the second world’s strongest after Asia, according to the World Bank.
"Most countries in Latin America, with the exception of Venezuela, which in recent years has become a ‘socialist’ republic, encourage foreign direct investments. Foreign investors usually enjoy equal treatment to domestic residents and in some countries are given added benefits. All of the above factors are crucial for international gaming and gambling investors seeking to enter the Latin America region."
