Punta, Baby, Punta! Argentina & Uruguay are home to high-end casinos like the Conrad Punta del Este.

If the famous scene from Swingers where Jon Favreau and Vince Vaughn drive through the Nevada desert had a South American equivalent, it would probably be Buenos Aires or Sao Paulo businessmen leaving their offices on Friday and flying chartered jets to Punta del Este for a full night of blackjack or roulette.

The scene is played out every weekend at high-end casinos like the Conrad and speaks to regional wealth and the tremendous upside for the gaming sector, not only in Argentina and Uruguay, but in several key Latin American countries. Travel and tourism in the region is forecast to hit $200 billion this year, and a new report from Research & Markets says Latin Americans spend $10 billion on gaming and gambling annually.

High Internet and mobile phone penetration rates coupled with strong economic growth are two of the factors favoring Argentina, where legal gaming activities generate upwards of $4.5 billion annually. Uruguay’s gaming sector should also continue to grow thanks to the Mujica administration’s pro-foreign investment stance which will encourage more casino projects in Montevideo, Punta del Este and even interior towns like Fray Bentos.

Argentina’s El Diario de las Pampas says local casinos are also growing thanks to women who enjoy playing the slots, or tragamonedas. In the online gaming sector, Argentina was a regional pioneer with the first legal site launching in 2006 and several sites today offering online lottery (Quini 6, Quiniela) and sports gambling.

For more information about investment opportunities in Argentina and Uruguay, download the new issue of InvestBA Privada.