Latam Q3: Brazil slowdown, Colombia fiscal uncertainty
The third quarter results show a mixed picture in Latin America: Brazil is progressing more slowly than expected despite initial optimism following regulation, while Colombia continues to pressure the sector with its tax burden. Operators such as Flutter, Entain, BetMGM, Betsson, Codere Online, RSI, and Kambi are redefining strategies in a changing market.
Brazil: huge expectations, moderate results, and a market still in transition
The launch of the new regulatory framework in Brazil on January 1 had sparked unprecedented enthusiasm in the global iGaming sector. However, Q3 results show a slower consolidation pace than anticipated, marked by challenges in sports margins, regulatory delays, and the persistence of a robust parallel market.
Flutter: explosive growth through M&A, but pressure on Betfair Brazil
Flutter completed in May the acquisition of 56% of NSX, parent company of Betnacional, an operation that redefined its position in the country. The impact was immediate:
- Q3 Brazil revenues: USD 87 million, a 412% year-on-year increase.
But excluding the acquisition, the outlook was more complex:
- Organic revenues fell by 18%, affected by the account revalidation process that especially hit Betfair Brazil since January.
Still, CEO Peter Jackson maintains that Brazil “will be a structural growth opportunity” for operators with scale.
Entain: strong H1, quarter weakened by sports results
Entain had a solid start to the year in Brazil with Sportingbet, but Q3 took an unexpected turn:
- Brazil NGR: -11%, despite a 14% growth in volume.
CFO Rob Wood attributed the decline to a classic business factor: “Genuine sports bad luck.”
Additionally, the company reported difficulties in iGaming due to slow game authentication processes, a problem they consider widespread in the Brazilian market.
BetMGM: aggressive investment to reach 10% of the market
The joint venture with Grupo Globo continues to drive a strategy focused on massive visibility. The company did not disclose exact figures but spoke of “strong growth” and reaffirmed its goal of 10% market share.
The investment, however, comes at a cost; CFO Jonathan Halkyard anticipated a negative EBITDA close to USD 100 million for the year due to the bet on Brazil.
Betsson: LatAm grows in double digits thanks to casino
Betsson continues consolidating its regional expansion, with new launches in Brazil and Paraguay during 2025.
- LatAm Q3 revenues: €76.5 million (+10.2%)
- Record casino: €56.6 million
- Sportsbook down: €19.8 million, due to tough comparisons with 2024 tournaments.
Argentina, Peru, and Colombia remain the group’s main drivers.
Codere Online: Mexico dominates while Colombia becomes unviable
Codere Online operates in Mexico, Colombia, Panama, and several Argentine jurisdictions. The operator estimates a TAM of €4.8 billion, but if expanding markets (Brazil, Peru, Uruguay) are included, the figure could reach €8.4 billion by 2029.
Q3: highs and lows
- Mexico remains its main market with €26.8 million, surpassing Spain.
- In contrast, Colombia drags the “Others” segment down with a 32% drop due to the impact of the 19% VAT on deposits.
Executive Vice President Moshe Edree was blunt: “Our short- and medium-term strategy does not include Colombia.”
Moreover, the possibility that Mexico might increase its tax from 30% to 50% could alter future investments.
Rush Street Interactive: betting that the Colombian VAT will be repealed
Unlike Codere, RSI believes the 19% VAT will not be renewed in 2026.
The operator, which absorbed much of the tax through bonuses, showed:
- +50% GGR in Colombia,
- but -27% in net revenues,
- and an overall decline of 11% in the region.
Still, RSI claims to maintain the second position in Colombia and rank among the top 7 in Mexico.
The company plans to expand into Brazil, Ecuador, Argentina, and Chile.
Kambi: Brazil advances slowly and forces forecast cuts
Kambi lowered its annual adjusted EBITDA guidance from between €20-25 million to €17 million, acknowledging that Brazil is not growing at the expected pace.
CEO Werner Becher was explicit: “There is disappointment across the industry. The regulated market grows more slowly because the black market is still very large.”
Latam remains a magnet, but initial euphoria gives way to operational realism
The major operators agree that:
- Brazil is a gigantic market but still in formation, with a regulatory environment that generates frictions, volatile margins, and a dominant parallel market.
- Colombia faces fiscal tensions that could completely redefine the strategy of several brands.
- Mexico is attractive, but the possible tax increase generates caution.
- Argentina, Peru, and Chile appear as more stable growth hotspots.
Latam remains a global priority, but Q3 showed that the region demands capital, patience, and adaptability.
Tags: iGaming Latam, iGaming Latam Q3, Latam Betting Q3 2025