In Guatemala, the legal situation regarding gambling and sports betting remains in a grey area. Despite the prohibition established in the Penal Code, the sector continues to operate in a legal limbo that raises more questions than answers. The lack of a modern regulatory framework poses challenges for the state, causing it to miss out on potential tax revenue. At the same time, operators and players are exposed to significant risks. 바카라ers face a double risk: operating in an unregulated market and incurring legal sanctions.
Outdated law in a digital reality
Article 477 of the Guatemalan Penal Code clearly states the illegality of gambling. In theory, its application should deter the operation of betting houses and 바카라s, whether physical or digital. However, many Guatemalans access foreign platforms without significant issues.
Since there are no specific regulations regarding online 바카라s within the country, players can opt to operate on international sites. However, local authorities cannot intervene in disputes or fraud.
Bill 4294 project
Guatemala has already attempted to establish a legal framework for gaming. At one point, proposed the creation of a National Gaming Commission and a Gaming Superintendency, intending to oversee and regulate the sector. However, despite being approved by the Economic Commission, this project was archived without implementation.
In the current landscape, discussions about regulation have gained renewed relevance, mainly due to the government’s growing concern about the potential use of gambling as a mechanism for money laundering. , the absence of solid regulations facilitates the operation of murky financial schemes that can use gaming as a channel for illicit activities.
Are international models an option for Guatemala?
If the government decides to move forward with regulation, it could draw inspiration from successful models in other countries. In Latin America, regulations like those in Colombia have shown that a well-structured betting market can generate significant revenue for the state while protecting players. According to data from Colombia’s Ministry of Finance, online gaming regulation has contributed over 1.5 trillion pesos to the treasury since its implementation in 2016.
Adopting a similar approach in Guatemala could translate into increased tax collection, the promotion of responsible gaming, and a reduction in the participation of illegal operators. However, for regulation to be effective, it should include clear licenses, supervision mechanisms, and measures against money laundering.
Lotteries: An exception to the rule
Although the law prohibits gambling, specific regulations allow lotteries to operate legally in Guatemala. An example is the Santa Lucía Lottery, supervised by entities like the General Comptroller’s Office, which is considered a safe and controlled gaming option.
Lotteries are legal in Guatemala due to three fundamental aspects:
- Specific Regulation: Lotteries are regulated by specific laws and regulations, such as Government Agreement Number 54-2015, which establishes how they should operate and be audited.
- State Authorisation: Lotteries have state licenses and are supervised by government authorities, ensuring transparency and control.
- Social Benefit: Lotteries in Guatemala have a social purpose, funding programs for people with visual and auditory disabilities, contributing to their legal and social acceptance.
This regulatory duality raises a key question: if the state already permits and supervises certain forms of gaming, why not extend that model to online 바카라s and sports betting?
From the operators’ perspective, regulating the sector could open a new market with transparent and predictable rules. For technology providers in the iGaming industry, implementing regulatory controls could mean increased demand for identity verification solutions, transaction security, and responsible gaming tools.
Perspectives toward comprehensive regulation
As the Guatemalan government evaluates its next steps, it becomes clear that regulating gaming is no longer a matter of “if” it will happen, but “when.” As seen in other emerging markets, delaying regulation only fosters the growth of illegal platforms and reduces state control opportunities.
For authorities, the main challenge will be balancing the need for robust legislation with the flexibility necessary to foster a competitive ecosystem. They must involve operators, providers, and regulatory experts to achieve this. Doing so ensures that the resulting legal framework is both practical and sustainable in the long term.
Both operators and technology providers are ready to enter the Guatemalan market if a viable legal framework is approved. Meanwhile, players will likely continue betting on foreign platforms, navigating uncertainty.
If the government decides to take action, the key will be to frame the sector within legality and make it attractive for investment. As noted by the Guatemala Lottery in its annual report, “well-designed regulation not only protects players but also drives economic development and transparency in the sector.”
This article was first published in Spanish on 7 March 2025.
