Betting on Boundaries: iGaming’s Legal Tightrope in LatAm, Brazil and the US

The iGaming industry is exploding in growth — but that growth is coming with strings attached. From Latin America to the United States, the rulebook is changing faster than many can keep up. And for marketers and operators alike, the real challenge isn’t just drawing players in — it’s doing it legally, responsibly, and profitably.

Legal clarity has never mattered more. And the lack of it in some key markets? That’s causing serious headaches.

Brazil’s Booming Market Is Finally Getting Rules — Kind Of

Brazil has long been seen as the crown jewel of the Latin American betting scene. After years of speculation, delays and political debates, the country finally passed legislation to regulate fixed-odds betting and online casinos. That was December 2023. You’d think clarity would follow. It hasn’t.

One sentence here.

The regulatory framework still needs to be built — which means the law is official, but the details are vague. Operators are watching closely. Marketing rules? Age verification systems? Tax structures? Still in flux.

Three paragraphs:

• Operators are awaiting proper licensing procedures, which are now expected to roll out in late 2025.

• Affiliate marketing is especially murky; some platforms have pulled back to avoid risk.

• Localisation and cultural fluency are critical — ads must now account for social concerns, not just clicks.

The Brazilian Ministry of Finance has said it will apply heavy fines to those operating without a licence. That includes affiliates.

Latin America: One Region, Many Rules

You’d be forgiven for thinking Latin America has one shared stance on iGaming. But the reality is patchy — and messy. Each country’s stance is wildly different, and constantly evolving.

Argentina allows provincial regulation. Colombia has one of the most mature online betting ecosystems. Peru and Chile are still debating national frameworks. Mexico? It’s legal but lightly regulated, which makes compliance hard to pin down.

Then there’s advertising. And this is where it gets sticky.

• Colombia enforces age verification and advertising restrictions across digital and physical channels.

• Peru’s 2023 law introduced new KYC requirements and tax rules, but implementation remains slow.

• Chile has no formal regulation — but proposed legislation could limit promotions and bonuses soon.

Every market has different rules around marketing, licensing, and even terminology. That makes it hard for affiliate networks and platforms to scale their campaigns safely.

One sentence paragraph again here.

“Trying to build reach across LatAm without legal headaches is like playing a different game in every country,” said Mikhail Zhukov, Strategy Lead at Adsterra.

US Market: Land of Opportunity… and Red Tape

The United States may have some of the world’s biggest potential iGaming revenues, but it’s also got some of the toughest restrictions. Why? Because it’s not regulated at the federal level — each state does its own thing.

That means advertising in New Jersey is fine, but in Utah? Illegal. Literally. Operators have to set up geofencing, adjust creative for each state, and work with licensed partners.

And here’s the catch: even in legal states, marketing is under a microscope.

• Google and Meta have strict policies for iGaming, requiring pre-approvals and certifications.

• Creatives must avoid misleading language, overly aggressive bonuses, and anything appealing to minors.

• Many affiliates have been delisted from search results due to non-compliance with local rules.

Operators are leaning on programmatic platforms to keep their reach consistent. But even those are being scrutinised. Pennsylvania, for example, has issued fines for misleading ads even on third-party platforms.

This all leads to one unavoidable truth: In the US, one-size-fits-all marketing no longer works.

The Ad Platform Squeeze Is Getting Tighter

Even when operators comply with national laws, they’re now running into another wall: the platforms themselves.

Google, Facebook, TikTok — they’ve all added new layers of friction. Most now require:

• Proof of operator licensing in each target country

• ID verification for all campaign managers

• Screenshots and approval of all landing pages

• Mandatory content warnings for bonus promotions

There’s also a trend towards algorithmic throttling. If a campaign raises red flags — high bounce rate, unclear legal copy, or age verification lapses — it may get silently downgraded, even if technically compliant.

One quick line here.

This “silent punishment” has forced marketers to be extra cautious, even when rules seem vague.

Programmatic ad networks, like Adsterra, are adapting by offering more granular audience targeting and automated compliance filters. But even then, creatives are regularly rejected.

KYC, Player Safety, and the Ethics Tightrope

It’s not just about where and how you advertise — but who you allow through the door. Know Your Customer (KYC) rules are now front and centre.

They’re no longer optional. They’re law. And they’re strict.

KYC requirements have expanded across the board:

One-sentence paragraph again.

It’s good for player safety — but it’s bad for conversion rates.

For affiliates and advertisers, this shift means creative and funnel design needs to account for drop-off, trust-building, and data transparency. Fast signups are out. Long forms and ID uploads are in.

Operators who fail to comply risk more than fines — they risk being blacklisted by payment processors and ad platforms alike.

So Where Do We Go From Here?

There’s no silver bullet — just a growing sense of urgency. The rules are only getting tighter, not looser. But compliance doesn’t have to mean chaos.

Some are finding success through localisation and smaller, high-intent audiences. Others are leaning into influencer marketing and closed communities, where trust carries more weight than reach.

One operator we spoke to in Peru described their approach as “legal guerrilla marketing” — creative, compliant, and hyper-targeted. It works, but it takes time.

And for everyone else?

Zhukov puts it bluntly: “If you’re not staying ahead of the legal updates in your target markets, you’re gambling more than your players.”