The Latin American (LATAM) region has rapidly emerged as an enticing frontier in the global iGaming market. Its immense potential, unique characteristics, and dynamic nature make it a rich opportunity for operators and providers looking to expand their horizons.
In a recent webinar moderated by Anna McChesney, Senior Marketing Manager for Continent 8 Technologies, Gabriel Szlaifsztein, Regional Sales Director for LATAM (Continent 8) and Marcelo Blanco, CTO at Vibra Gaming (a Continent 8 customer), explored what the opportunity is for operators and suppliers in the region and how to develop a strategy for growth across this emerging market.
They also addressed the current and future regulatory landscape, the importance of cybersecurity, cultural nuances, infrastructure requirements and the influence of socioeconomic factors affecting player habits. Marcelo provided deeper insight into the key challenges and opportunities when setting up regional operations through his customer case study and talked enthusiastically about how “opportunity beckons.”
Emerging Market Potential
The LATAM region is often hailed as one of the most promising emerging markets in the iGaming sector. Its vast, untapped population of over 670 million, the proliferation of mobile devices, and an increasing appetite for online entertainment create a perfect storm for growth. The region is ripe for innovation and investment, attracting global players who recognize the potential of this exciting market.
Regulatory Landscape
The regulatory landscape in LATAM varies significantly from one country to another. Some countries have embraced iGaming and enacted favourable legislation, while others are still navigating the complexities of regulation. It’s imperative for operators and providers to closely monitor and adapt to the evolving legal framework in each jurisdiction they operate in. In our webinar, Gabriel explains the growing acceptance and adoption of regulation and provides a detailed, country-by-country overview of gambling activity and licensing requirements across the region.
Cultural Diversity
LATAM is a tapestry of diverse cultures, languages, and traditions. Understanding the cultural nuances of each nation is pivotal for iGaming success. Tailoring strategies and customising offerings to resonate with local markets in each country, from content and marketing to user experience, is a key consideration in the region. The flexibility required to create a “unique look and feel” for different products is crucial.
“There is a huge diversity of devices and connectivity across Latin America. We need to provide different content for different markets in order to provide the right solution. Each audience has a particular taste, and we must accommodate that.” – Marcelo Blanco, CTO, Vibra Gaming.
Sports Betting Popularity
Sports hold a special place in the hearts of many LATAM residents. Football, in particular, reigns supreme, and sports betting enjoys immense popularity. Boxing, basketball and baseball also attract a lot of interest. There has been an explosion in online gaming and sports betting in the LATAM region, which has risen sharply since the pandemic. There were 383 million registered mobile internet users in 2022, with the highest numbers in Brazil and Mexico. The intertwining of sports betting and iGaming presents a unique opportunity for providers to engage a passionate audience.
Technological Advancements and Cybersecurity
As the LATAM iGaming market evolves, embracing technological advancements becomes vital. Infrastructure and cybersecurity take centre stage to protect sensitive data, ensure fair play, and maintain uninterrupted services. There are 135 data centres across the region, all very well distributed. Continent 8 has established certified operations in Colombia, as well as Peru and Puerto Rico.
“The right data centre for operations in LATAM is a combination of technical capacity, latency and regulatory aspects in the target market.” – Gabriel Szlaifsztein, Regional Sales Director (LATAM), Continent 8.
Cyber threats are on the rise. According to a recent cybersecurity report by Fortinet, there were 137 billion registered cyber attack attempts in Latin America during the first half of 2022, the main attack vectors being ransomware and DDoS. Mexico saw the highest number of cyber attacks, followed by Brazil and Columbia. This makes the role of cybersecurity paramount for the industry’s integrity and a critical investment for operators and suppliers.
Local Partnerships
Local partnerships and collaborations are crucial to navigating the intricacies of the LATAM iGaming sector. Understanding local business practices, forming solid relationships with local entities, and complying with regulatory requirements are integral to long-term success. Marcelo talks about the importance of being prepared and describes how having a strong partner in Continent 8 was critical to Vibra Gaming’s journey when setting up infrastructure in regulated markets.
The LATAM iGaming market is a treasure chest of opportunity for operators and providers with the vision to tap into its potential. While navigating the complexities of regulation, understanding cultural diversity, and embracing technological advancements, industry players can position themselves to thrive in this dynamic and evolving landscape.
In the final part of the webinar, Gabriel and Marcelo discussed their predictions for the industry and the region for the next 5 years. These included greater coverage for regulated markets, a level-up in disruptive and emerging technologies and the development of a new breed of players as the market matures.
Interested in learning more about developing a strategy for growth in the LATAM region? Contact Continent 8 today and book your free 1-hour consultation with our experts.
