By 2050 Latin America, or LatAm as we like to call it, will play a vital role in the global economy with Brazil and Mexico the seventh and eighth largest economies behind China, the US, India, Japan, Germany and the UK, according to investment bank Goldman Sachs’ review of emerging economies.
Brazil is the fifth most populated country in the world with more than 210 million inhabitants, but no one could have predicted the continent’s economic growth, importance and crucially, its potential across 14 untapped and rapidly regulating countries.
Pertinently for our industry, LatAm’s population is made up of a large percentage of young, mobile and tech savvy, highly engaged sports and esports fans making it fertile ground for a healthy, robust regulated betting and gaming market.
In overall terms growth is expected to rise 20% year-on-year, driven by digitally and mobile-connected Gen Z players with revenue predicted to exceed $7billion by the end of 2021. And this is just the beginning with only a handful of countries already online.
Colombia is the most digitally mature of all the LatAm countries with 17 active operators since it regulated online betting in 2017, while the pandemic has seen it accelerate live casino and new online games regulation in the last year. And it is this socio-economic factor that could well convince other countries to follow suit, particularly with large government shortfalls to be made up following a tough 18 months.
Mexico has also made huge strides but still has some way to go. It authorizes taking bets online, however its gaming legislation was last amended in 2013 and authorities recognise the need to update it especially in the light of neighbours Colombia’s success.
Argentina is the most complex country in LatAm with 24 different regulatory and auditing entities, one for each province. However, two of its most important jurisdictions, by size and strategic position, including the city of Buenos Aires, are taking their first steps in online gambling. And it is thought the biggest prize of them all, Brazil, will, at last, not be far behind with the pandemic-delayed process to update legislation already underway. With an already active sports betting market the industry remains hopeful of rapid change. While it is hoped regulation at a federal level will be enacted soon in Brazil, a Supreme Court ruling in September 2020 also paved the way for state lottery providers to offer their own fixed-odds sports betting.
The appetite, player base, connectivity and the foundation for a digital payments ecosystem – which has blighted LatAm countries for so long – is largely now all in place to successfully develop online betting and gaming markets. However, to launch within many of these markets you must first consider several essential ways to achieve sportsbook success. Let’s look at these in more depth:
Like many markets, prior to creating an online environment, countries often have well-established land-based casinos. These brands are also often at the front of the licensing queue to go digital, and LatAm is no different with highly popular lottery, bingo and slot entertainment businesses seeking to go online in step with new regulatory opportunities. However, these organisations also often lack the expertise, technology and infrastructure needed to launch a profitable and sustainable digital offering.
This transition from retail to online can be daunting but it need not be in the hands of experts and partners you can trust: specialist suppliers that have delivered platform projects, at scale and with high levels of success. LatAm retail operators going online will need to carefully examine their options and look for the best fit modular and API-driven iGaming solutions to deliver the ultimate player experiences in these emerging territories.
There are several to choose from, but not many that can produce both immediate and consistent results. LatAm brands will need a provider that gives them unprecedented flexibility with products that work together as an entire platform or independently depending on their needs, and that can be easily integrated with existing platforms.
From our recent research 95% of brands lack control of their odds. This is simply not acceptable in an era when consumers are putting unprecedented levels of demands on operators to deliver a consistently high standard product regardless of their country, device, chosen sport or time of day. Use the right tools, however, and LatAm operators can gain the immediate edge they need to stand out.
Before launching a new online LatAm sportsbook brand, it is vital you have a proven platform supplier behind you, one that provides all the key ingredients to ensure you stand out including offering:
Complete control of odds and payouts at any time, across any sport, market and game and at any time
Many land-based LatAm brands will be looking for a ‘turnkey’ solution, in other words an end-to-end solution where a provider takes care of everything from your digital wallet, player accounts, bonus system, and payment methods.
Here you also require a system that offers maximum flexibility, providing you with all the configuration, choices and support to empower your brand to thrive and become highly profitable in LatAm markets.
At EveryMatrix we have been making rapid in-roads into the market, and in June this year signed terms with the Foliatti Group, one of the largest land-based casino businesses in Mexico with 10 locations and our biggest LatAm turnkey customer to this point. Over the coming months, we will provide support Foliatti’s online brand launch and further expansion with our flexible suite of modular platform solutions including a leading casino integration and productivity platform, a fully managed sportsbook, a cross-product bonus system and a highly scalable player management platform.
There will be many brands looking to achieve sportsbook success in the rapidly growing and evolving LatAm online betting landscape, but only those that embrace digital knowhow, and a track record of proven platform achievements will make it to the top, thrive and stay there.
Read the Spanish version here.
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