Spectrum Gaming Group predicts that Latin American countries will become major players in sports betting and digital gambling as they develop comprehensive licensing procedures and regulations in the coming years.
The consultancy has revealed its annual top 10 predictions for the land-based and online gaming industries over the coming year. The list was compiled based on the opinions of global experts on the industry’s biggest challenges and opportunities.
The list is in alphabetical order and has no regard to order of priority.
For Latin America, the company also said that national lotteries across the region are considering accepting digital sports betting and following North America’s lead in moving towards authorizing and accepting electronic lotteries.
Calls for lower taxes
As sports betting continues to expand across U.S. states, Spectrum predicts that operators in some jurisdictions will push for lower taxes and cut advertising due to profitability considerations, and will also study the tax treatment of promotions.
Spectrum also predicts that pure-play i-gaming operators in the United States may begin to feel a counterattack from physical properties, which view them as a threat.
“This fragmentation between brick-and-mortar operators will deepen, and it will become increasingly difficult for digital operators to maintain a business model that competes with and collaborates with brick-and-mortar operators,” the company said.
The company also said that the movement to legalize i-gaming will increase. Outside the United States, regulators and law enforcement are likely to push back against digital gaming companies in jurisdictions such as Malta and the Philippines.
Spectrum also predicts that MGM Resorts’ recently completed acquisition of LeoVegas will be a catalyst for further internationalization of the gaming industry. U.S.-based operators will consider expanding technology-based operations globally, while European B2B suppliers will seek to enter the U.S. market.
Asia Forecast
In Asia, China is finally expected to reopen its borders after the epidemic early next year, but whether VIP and mass players will return is still highly unknown. The reasons are a sluggish economy and Beijing's crackdown on overseas gaming and capital outflows.
Turning to other countries, Spectrum predicts that Thailand will likely legalize gambling and create one of the largest markets in Asia, but its ability to regulate effectively may be an “unknown.” Japan will conduct integrity checks at integrated resorts in Osaka and Nagasaki, while Australian states will take another look at their regulations following recent investigations into The Star and Crown Resorts.
In the racing world, Spectrum said states and industry face huge challenges in complying with the Horse Racing Esteem and Safety Authority regulations that come into effect in 2022. The group believes the horse racing industry will step up its efforts next year to accept fixed-odds betting in a bid to boost the industry's fan base.
