Expansion into new country markets like Colombia represents a golden opportunity for operators to nurture growth that will last well into the future. If you’ve been in the online gaming market for a while, you know that Colombia historically hasn’t always been an attractive gem to offshore investors. So what changed?

Before gambling regulations were codified in 2016, Colombia’s online gambling market was rife with unregulated operators, low trust in the gaming system, and an unstable environment for lawful operators.

With the passing of the eGaming Act in 2016, Colombia established strict rules that make it one of the absolute best offshore landscapes for legalised online gambling in Latin America. The Colombian iGaming market saw an estimated growth of US$798m in online portfolios by December 2019, which was a whopping 2908% increase from the two previous fiscal years.

By all measures, even with economic downturns due to the pandemic, Colombia is the fastest-growing region for iGaming in Latin America. We recently received certification to operate in Colombia, adding to our growing list of Wazdan Licences. That’s why I’d like to write more about why we chose to join this new and exciting regulated market.

Colombia, the golden entry point to Latin America

If operators want to continue their trajectory for growth, it’s important to look at parallel industries to identify wider trends. 

I’ve been thinking about this Forbes article on capital investments in Latin America in Q2 2021. Latin America achieved a record figure in capital invested in startups on the continent, almost three times larger than any other quarter in history, reaching $ 7.3 trillion. At the front of this wave were capital investments within Colombia on virtually every relevant market imaginable.

Just take a look at e-commerce expansion in the region. With over 650 million consumers, Latin America is the fastest growing e-commerce market in the world. It’s no secret that the online casino operators closely follow the waves made in the e-commerce world as we share those digitally-enabled consumer demographics.

Why going live in Colombia is a huge deal

Colombia offers a strong governmental regulatory framework, a single-licence application for game portfolios, and a safe online gambling environment.

From there, operators will find little resistance when expanding to up-and-coming markets that are closely following Colombia’s well-regulated, casino-friendly environment. They aren’t quite at the same level yet, but the industry is seeing signs of them following suit over the next few years.

Still, Colombia should be at the top of your list if you’re looking to expand your iGaming territory and have your sights set on growth into other Latin American regions. Rapid online growth in this sector has taken over the country through lockdowns, with over $3 million newly registered accounts created under licensed operators in Colombia.

Don’t miss out!

If you are a legitimate operator, you're missing a golden opportunity if the following key advantages aren’t already on your radar.

Colombia is the first Latin American country to develop landmark online gambling regulations with the eGaming Act of 2016, which establishes the procedures necessary for international entities to function legally.

Coljuegos, the Colombian regulatory authority, cracks down on bad actors to make the online gambling market safe for players and offshore investors. Colombia’s government has taken severe measures against over 3000 illegal gambling premises that failed to meet the new regulations. Furthermore, the state has blocked over 2,000 online domains from unlicensed operators

Obtaining a single license for all games makes it straightforward for casino operators to launch their entire portfolio under one application rather than obtaining permits for each slot individually.

Taxation and revenues from gambling are well-established thanks to the eGaming Act, which funnels funds into public health services. By March 2020, taxes on gaming produced a total Gross Gaming Revenue of US$33.483m and COP$20.24bn in revenue for the country. Campaigns are increasingly making Colombian citizens aware that their participation in betting comes back to them in social improvements

For these reasons, there is no shortage of online casinos owners eager to begin operations in Colombia. 

The future of iGaming in Colombia

Looking forward, it seems offshore operators will continue to be attracted to Colombia as the first foothold in their Latin American presence. With up to 60% of adults having been involved in betting, the outlook is strong, especially for a country that, despite protests earlier this year, is certainly bouncing back from a previously less-than-stellar image.

Here at Wazdan, we launched our game titles in Colombia in December 2020. We are now analysing how the use of our slots is evolving in this market. After seven months, nearly 1 in 4 players of Wazdan games have made use of in-play Volatility Levels™, our unique feature allowing gamers to modify their win size and frequency. Out of this group, over 80% chose mid- and high-levels of volatility. Such results indeed look promising, especially that only our slots bring this possibility to players, so it’s a novelty in the region. 

Wazdan's iGaming industry expertise has rapidly helped us enter new jurisdictions, and LATAM is also an exciting region for our brand. Join us in the comments with your stories or challenges in expanding reach in regulated markets like Colombia.