Latam to become iGaming force, U.S. operators to seek tax cuts: Spectrum
Latin American countries will become a force in sports betting and digital gaming as they develop comprehensive licensing procedures and regulations in coming years, Spectrum Gaming Group forecasts.
The consultancy firm has published its annual top ten predictions for the coming year in terms of trends for both the land-based and i-gaming industries. It has been compiling the list since 2005, based on inputs from global experts on what will be the biggest challenges and opportunities for the industry.
The list is in alphabetical order and not in order of priority.
On LATAM, it also says that national lotteries throughout the region are considering the adoption of digital sports betting and, like their counterparts in North America, moving toward the authorization and adoption of ilotteries.
Call for lower taxes
As sports betting continues to be rolled out across U.S. states, Spectrum predicts that operators in some jurisdictions will push for lower taxes and cut advertising as they focus on profitability. They will also take a look at the tax treatment of promotions.
Spectrum also predicts that in the U.S., pure i-gaming operators may begin to feel pushback from land-based properties who see them as a threat.
“This schism among land-based operators will deepen, and digital operators will find it increasingly difficult to maintain business models that both compete against, and work with land-based operators,” it said.
That said, efforts to legalise i-gaming in the U.S. will increase, it said. Outside of the U.S., regulators and law enforcement may push back on digital gaming companies licensed in jurisdictions such as Malta and the Philippines.
Spectrum also predicts that the recently completed acquisition of LeoVegas by MGM Resorts will be a catalyst for further internationalisation of the gaming industry. U.S.-based operators will consider global expansion for technology-based operations, while European B2B providers will seek market entry to the U.S.
Asia predictions
In Asia, China is finally expected to reopen its borders after Covid early next year, but it’s still highly unclear whether the VIP and mass players will return. This is due both to the economic downturn and Beijing’s crackdown on overseas gambling and capital outflows.
Elsewhere, Spectrum predicts that Thailand will likely legalise gambling to create one of Asia’s largest markets, but its ability to effectively regulate may be “an open issue.” Japan will launch probity checks for the IRs in Osaka and Nagasaki, while Australian states will take another look at their regulation following recent inquiries into Star Entertainment and Crown Resorts.
In the world of horse racing, Spectrum says states and the industry face huge challenges in adhering to the Horse Racing Integrity and Safety Authority, which became effective in 2022. Next year, the group sees an increase in efforts for horse racing to embrace fixed-odds betting to boost the industry’s fan base.
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