Over the last few years, Latin America has become one of the most enticing and promising iGaming markets. As the gambling business news reports, more and more investors are considering putting their money in gambling businesses in the LATAM region.
Login Casino interviewed Samantha Asensi, the iGaming consultant in Latin America and co-founder of Affiliate Summit LatAm, to find out what are the current trends and perspectives for the online gambling sector in this region.
How did the iGaming market of Latin America transform in the last two years? How did the global pandemic affect the online gambling sector?
The iGaming market in Latin America has experienced a huge transformation in the last few years. The pandemic has completely changed the game. Before COVID-19, a significant portion of gambling was conducted through land-based venues, like betting shops and physical casinos. Users were used to placing bets at the shops and during the pandemic, 80% of them closed. Just to get an idea, in Colombia, there are more than thirty thousand betting shops around. The lack of sports events was also a major impact, as Latin America is the bettor’s region. This scenario made operators in Latin America realize the importance of digitalization and portfolio expansion.
In your opinion, which gambling products are the most popular in the LATAM iGaming sector?
Well, that is a very interesting question. It is split by region. Brazil is a region of bingo lovers, bingo rooms, video bingo, and the famous raspadinhas. Chile is all about casino products with a particular focus on slots and roulette. Peru has a mix of sports and casinos, same for Colombia.
Argentina has a huge casino culture.
The common denominator for all regions is sports, Latin American people love to bet, it is a way for them to entertain themselves. It is part of their culture, and they see betting as an enjoyable pastime rather than a way to make money. Another product that is gaining a market niche is the lottery. Online lotto will increase in the next few years, providers need to expand their portfolio to adapt to customers’ local tastes.
How do laws concerning gambling advertising differ in Latin American countries? Which jurisdiction has the strictest regulations?
Colombia is the model to follow in Latin America, I would say. Coljuegos played a major role, operators get all the support they need, and it is a clear regulatory framework. The strictest one, I would say, is Argentina, because it is done by regions and could be confusing for both European and Latin America operators. Every region has specific requirements and the regulated game is happening in: Chaco, Entre Rios, Misiones, Rio Negro, San Luis, Tucumán, La Pampa, Santa Cruz, Neuquén, Santa Fe.
The most recent ones and Buenos Aires province and Buenos Aires City. Regulation in the province of Buenos Aires happened only through joint ventures between local and international operators. It seems Peru will follow the same structure as Colombia and is moving forward.
Which means of promotion proved to be the most effective in the LATAM online casino sector?
In the LATAM online casino sector, omnichannel actions are the most effective. Ops need to educate the player on how to play online and the benefits that this type of gaming brings. All omnichannel actions were very positive and have increased ROI in all regions. Operators have realized that users need to be educated on how to open an account online, how to make a deposit, and how to get a bonus. We find that the Latin American player is senior on land-based games but junior in the digital space. This is very challenging.
Cross-selling activities are very effective as well, users receive new promotions with a positive attitude.
Thirdly, I would say, the VIP treatment has increased the level of service, providing a high-class service with the best standards.
What is the role of affiliate marketing in iGaming? In which country of Latin America working with affiliates, social media influencers, and live streamers is the most common?
The role of affiliate marketing in iGaming, in general, is a tier-one role. It represents almost 30% of the GGR. When it comes to Latin America, affiliate marketing is still very challenging. Some regions are more developed, like Brazil, but in other regions affiliation is still kind of immature. Affiliation in Brazil is huge but is an oligopoly, only three large affiliate networks are managing the whole region. This can change when webmasters realize the potential there is with affiliation in Brazil.
In Peru and Mexico, influencers are playing a big role and operators are educating them in the affiliation business to professionalize it. Live streamers are growing day by day following the European model. I would say that there is a huge niche of affiliates in Latin America, and I am aware that international affiliates are investing efforts as well.
In your opinion, what changes will the new regulation of gambling in Brazil bring to the LATAM market? Which country will be next to change online gambling regulations?
Regarding Brazil, this is the big topic, and it really is one step forward and one step backward. There are a lot of pandora’s boxes, for instance, the loss of tax collection and the non-generation of income by lack of game regulation. Nevertheless, the last debate for the regulatory framework games concluded that the model with all legal gaming verticals is the most suitable for Brazil and should happen in the coming future. That would mean that the ban on gambling in Brazil, including casino and jogo do bingo games, will end after 80 years. This is a big step, and I am pretty sure that Q1 2022 will bring more updates. I hope that Brazil will be the next country in Latin America where gambling is regulated.
How do you see the future of iGaming in the LATAM?
I see a bright future in Latin America. I have been working in this region for ten years now and with the right portfolio of games, high-level customer service, and customizing the offers, iGaming in Latin America is becoming an established market rather than the promising market it was before. The operator needs to approach the market with an open mentality and not just as any other market. There are key pinpoints that you need to face to succeed; Latin America should be targeted through regions, localization, and player education. Most important is the long-term investment rather than short term.
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