David Natroshvili, founder of SPRIBE, explains that markets like Mexico, Colombia, and Peru are as interesting as Brazil, and operators must offer localized content if they want to attract players.
Opinion.- Latin America is one of the most popular regions for online gambling at the moment and the pressure is really mounting in Brazil before the country opens its doors to regulated online gambling with a license starting January 1, 2025.
It's easy to see why Brazil is causing such a stir. This is a large market with a population that is younger than others, where Millennials and Generation Z make up the largest audience targeted by casino and sports betting operators.
This difference in audience should be reflected in the experience offered by operators, and this means stocking their books and lobby with fast betting products and combining that with social interaction and a thriving community around the brand.
It is important to remember that this is a market of influencers, esports fans, and intensive game players. Operators must understand these cultural peculiarities and deeply localize their offerings to meet player expectations; if they do not, players simply will not interact with their brands.
Operators who can do this have the best chances of succeeding in Brazil, a market that promises to be tremendously competitive; I dare say that in the early days it will be the most competitive market we have ever known as operators and providers fight for a share of the market.
But success in Brazil provides operators with a blueprint for launching into other Latin American markets: the region is more than just Brazil, of course. While Latin American markets differ (just as in other regions like Europe and North America), the fundamentals are more or less the same.
So, what markets can operators look to expand into beyond Brazil?
Here is an analysis of the situation in Mexico, Colombia, Argentina, and Peru.
Mexico is a somewhat sleepy market at the moment. Both online sports betting and casinos are regulated, and the market is expected to have a value of around USD3.000m per year by 2029. This is supported by market operators reporting significant revenue increases, especially online.
The online gambling market in Colombia is also on a good upward growth trajectory: in the second quarter of the year, revenues reached USD2.500m and the industry proved to be a key contributor to the country's broader economic growth.
Interestingly, online sports betting contributed the most to the total, accounting for about 47 percent, and localized casino and bingo games, including crash, accounted for 33 percent.
Argentina is more of a long-term bet, especially considering the situation in Buenos Aires, where the regulator suspended license applications from new operators. This is due to concerns that the regulations do not sufficiently protect players.
These issues are likely to be resolved and the processing of licenses resumed, but in the meantime, current license holders can continue offering online gambling to their players.
Other provinces that have regulated online gambling include Santa Fe, Misiones, San Luis, Entre Ríos, Neuquén, Río Negro, Chaco, Córdoba, and Tucumán, with a total estimated market of around USD2.400m per year.
Peru passed a law to regulate online gambling in February, with more than 145 license applications submitted by operators wanting to enter the market. The recent introduction of a special tax of 1 percent has caused some concern, but it remains a solid market that operators should explore.
In each of these markets, localization is an absolute necessity. This covers everything from currency and payments to bonuses and, of course, content. Crash games are very popular in Latin America and are a must-have for operators in any Latin American market.
This is because they offer the fast action that players are looking for, are multiplayer, and offer a lot of social interaction. Games like Aviator, the number one intensive game in Latin America and indeed in the world, have also been designed for mobile devices, the dominant gaming channel across the region.
Indeed, Aviator is proving to be a powerful acquisition tool for operators in Latin America, while also allowing them to build a loyal and engaged community around their brands. In such a competitive market, having stocks of Aviator makes the difference between success and failure.
