If you work in iGaming, you’ve probably noticed how often “sweepstakes casinos” pop up in U.S. discussions as a supposed workaround to gambling laws. Behind the marketing, though, there’s a lot of nuance and even more risk if you try to copy-paste that model into other regions.

At Atlaslive, we wanted to look specifically at Latin America: how do local regulators view sweepstakes-style mechanics, prize promotions, and “casino-like” experiences built around raffles or contests? Where do these products sit today in relation to consumer, advertising, and gambling rules?

This article offers a high-level overview of selected Latin American markets as of the end of November 2025. Laws and regulatory practice may change quickly, especially around games of chance and digital promotions, so readers should always verify the latest official sources and, where appropriate, seek local legal advice before making any business decisions.

Across the main Latin American markets (Brazil, Mexico, Colombia, Argentina, Chile, Peru), what English-language texts call “sweepstakes” are generally regulated as promotional contests, raffles, or sales promotions, sitting under:

• consumer-protection / advertising rules, and
• in some cases, lottery / games-of-chance frameworks (when chance and prizes are involved).

None of these core markets has a standalone statute branded as a “Sweepstakes Act.” Instead, prize promotions are anchored in general consumer and unfair competition law, plus specific rules on promotions, “rifas” and lotteries. (The Ministry of Economy of Argentina)

Where a promotion starts to look like gambling, i.e., players give some form of consideration (purchase, paid SMS, paid call, paid “participation pack”) for a chance to win a prize, regulators can and do re-classify it under their gambling / lottery / raffles regimes, which typically:

• reserve operation to licensed / authorized entities, and
• require prior authorization for the promotion itself. (The Ministry of Finance of Brazil)

Enforcement against illegal raffles / misleading promotions has clearly tightened since 2023–24, especially around social-media promos and influencer campaigns in LATAM.

Country snapshots (operator-relevant)

Brazil

• Promotional prize campaigns (“promoção comercial”) are the marketing name for what Law 5.768/1971 calls “distribuição gratuita de prêmios, mediante sorteio, vale-brinde ou concurso, a título de propaganda” or “Free distribution of prizes, through raffles, gift certificates or contests, for advertising purposes.” (The Ministry of Finance of Brazil)
• Article 1 of Law 5.768/1971 explicitly says that this type of prize distribution depends on prior authorization from the Ministry of Finance (today exercised through the Ministry of Finance’s Secretaria de Prêmios e Apostas – SPA)
• Decree 70.951/1972 regulates this law and sets the procedures for getting authorization for promotions and similar operations. Later decrees and Portaria SEAE nº 7.638/2022 update details but keep the same structure.
• Running a qualifying prize promotion without authorization can result in administrative sanctions (fines, ineligibility for further authorizations, and, in serious cases, treatment as illegal gambling activity).

Dec 2025 / beginning of 2026 note:

SPA’s 2025–26 regulatory agenda includes a project to modernize the rules for promotional prize campaigns and align them with digital mechanics, but the work is scheduled for 2026.

Mexico

• Promotions that take the form of raffles / chance-based prize distribution fall under the Federal Gaming and Raffles Law (Ley Federal de Juegos y Sorteos) and its Regulation (Reglamento de la Ley Federal de Juegos y Sorteos).
  
   
• The Regulation was substantially amended by a Decree published in the Diario Oficial de la Federación on 16 November 2023, in force from 16 November 2023.
• “Sorteos” (raffles / draws) can only be operated with authorization from the Secretaría de Gobernación (SEGOB), via the Dirección General de Juegos y Sorteos.
• The current framework is still lottery/raffle-centric: it distinguishes permits for raffles, betting, and other games, but does not create a special “free-to-play sweepstakes casino” license.

Colombia

Colombia regulates all games of chance, including raffles (rifas), under Law 643 de 2001, which establishes the State monopoly and requires prior authorization for any activity involving chance and prizes.

The main update is Decreto 1486 de 2024, which amends Book 2, Part 7 of Decreto 1068 de 2015 and sets new rules for raffles, including authorization through approved operators and the possibility of digital raffle systems (boleta digital, GNA, online reporting).

For late 2025–2026, the decree’s transition period means operators are expected to finish moving from manual raffles to digital ticketing and updated technical requirements, with Coljuegos already implementing these rules.

Argentina

At the federal level, promotional contests and sweepstakes used for marketing are governed mainly by Ley 24.240 de Defensa del Consumidor, which requires clear, accessible conditions for any promotion.

They are also regulated by Decreto 274/2019 de Lealtad Comercial, which sets nationwide rules for how promotional contests must be presented to consumers.

The decree sets federal rules on fair advertising and promotions, prohibiting misleading or confusing messages and regulating prize offers and contests, while empowering the trade authority to define specific requirements for contests, raffles, and promotions.

Chile

Chile’s Ley 19.496 on consumer protection governs promotions and contests. Article 36 specifically states that when a promotion offers participation in contests or raffles as the incentive, the advertiser must:

• inform the amount / number of prizes
• state the period during which prizes can be claimed, and
• adequately publish the results.

The National Consumer Service (SERNAC) reiterates these duties in its guidance and campaigns: promotions that use contests or raffles must give clear, timely information about bases, prize structure, and claim periods, and are treated squarely as advertising / consumer-law issues, not as a gambling carve-out.

Peru

Peru’s INDECOPI enforces the Código de Protección y Defensa del Consumidor (Ley 29571), and rules against misleading advertising and unfair competition (e.g., Decreto Legislativo 1044), in relation to promotions, contests, and raffles.

In recent years, INDECOPI has publicly emphasized that:

• social-media sweepstakes / raffles run by brands or influencers are regulated advertising
• failure to disclose promotional nature, conditions, or prize delivery clearly can trigger administrative sanctions (fines, corrective measures).

What this Means for “Sweepstakes Casinos” in LATAM

In the core regulated markets you’re covering (Brazil, Mexico, Colombia, Argentina, Chile, Peru), there is currently no explicit, country-level license category or statute that mirrors the U.S. dual-currency “sweepstakes casino” model (e.g., gold coins + sweeps coins redeemable for cash). The local frameworks remain anchored in raffles, lotteries, betting, and promotions.

If an operator offers redeemable value (cash or prizes) awarded by chance, then, in most of these jurisdictions, it’s likely to be treated as either:

• a raffle / lottery-type promotion requiring prior authorization (Brazil promoções comerciais; Mexico sorteos; Colombia rifas / juegos promocionales, etc.)
• illegal gambling if run without the appropriate license / authorization.

Consumer-law obligations are strict across the region:

• clear and accessible rules (bases de la promoción)
• free-entry mechanisms where required 
• transparent disclosure of prize quantities and claim periods
• actual prize fulfillment within announced timelines

Non-compliance can trigger:

• administrative penalties from consumer authorities (INDECOPI, SERNAC, Brazilian consumer authorities, etc.)
• criminal exposure in some countries

Conclusion

Across Latin America, sweepstakes-style mechanics continue to fall under existing consumer, advertising, and lottery frameworks rather than any dedicated “sweepstakes casino” category. The common expectation is simple: if a promotion involves chance and prizes, it must be transparent, properly authorized, and compliant with each jurisdiction’s rules.

With several markets updating regulations around digital raffles and online promotions into 2026, operators should pay close attention to disclosure duties, authorization processes, and the line between marketing activity and regulated games of chance. Overall, the region’s direction is steady—greater clarity, more oversight, and a strong emphasis on consumer protection.