Gambling in LATAM (Opportunities and Challenges in the Fast-Growing Market)
#GambleLike_LatinAmerica #GambleLike_Argentina #GambleLike_Peru #GambleLike_Chile
Latin America with over 670 million population, a sports betting culture, and a rising middle class appears to be the region with a big perspective for online gaming. However, this market has been noticed by online casinos and software developers just lately. While gambling in Europe has a long tradition with regulated markets that have been launched many years ago, authorities of some Latin American countries have legalized gambling several years ago. Since that time, the gambling industry in the region has shown steady growth with big potential for further prosperity.
Our research on iGaming in Latin America aims to represent the current state of things in gambling on the continent, highlight opportunities and challenges that companies and players face, and see what the future of gambling in LATAM could be.
LATAM GAMING OVERVIEW (TRENDS AND PREFERENCES)
Gambling in Latin America thrives and grows every day, as more and more players choose to enjoy online casino entertainment. It is not surprising especially when to consider that more and more online operators and software providers apply for gambling licenses to be present in the region.
Currently, it is easier to say which big companies still do not hold gambling permits in Major Latin American markets like Mexico, Argentina, and Chile. Thus, we will mention just a few. Among online casinos, those are Betsson, Guts, Aztec Play, Pocket Play, Mond, and Casumo. Among software developers, such big companies as Net Entertainment, Pragmatic Play, Yggdrasil, and Play’n GO already offer their games to Latin American players.
Such a variety of top casinos and software providers as well as a passion for gaming are among the reasons why gambling is so popular in LATAM. Thus, according to Nuvei’s statistics on gambling by country, Brazil, Mexico, and Columbia are among the top 8 countries by the number of daily visits of online operators. Thus, Brazil has 7.8 million, Mexico has 3.6 million, and Columbia has 1.8m daily visits.
Trending Casino Genres
Those wondering what types of games prefer players in LATAM will not be surprised that sportsbook is in the first place. Sports betting is a fandom for many Latin American players, as football is like another religion for them. Thus, no wonder that players from Brazil, Mexico, Argentina, and other countries in the region opt for betting on football matches, volleyball, mixed martial arts, basketball, and motorsport (those are the five most popular kinds of sports for betting in LATAM).
In terms of casino games, we can see:
- Slots and table games: those are the most popular genres of casino entertainment in the region. The diversity of slots and potential wins that can be scooped in them, as well as the traditional casino gaming experience provided by roulette, baccarat, and other table games are among the main reasons for the big popularity.
- Fish games: even though this genre is relatively new for LATAM, it shows a big rise in popularity among players in Argentina, Brazil, Chile, and Peru. A novel gameplay that makes it different from traditional casino games is what attracts players in LATAM. How do those fish games work? They have a shooting mechanic at the core, so players should kill fish (or other characters) with bullets that are equal to bets in reeled machines. Thus, fish games offer players a mix of slots and shooters.
- Lottery, bingo, and scratch cards: those genres also find their admirers in Latin America thanks to their simplicity and accessibility.
OPPORTUNITIES FOR IGAMING IN LATIN AMERICA
There are several aspects of the current social, political, and economic states that create opportunities for the development and rapid growth of gambling in the region. Some of them you can find below.
Demographics
First, Latin America is a region with over 670 million people, and such demographics create big potential for the iGaming industry, as there are many people that might be interested in this type of entertainment.
Then, we can see that the middle class is rising quickly in the countries of Latin America. They contribute to the economy and business. Moreover, this social class has enough money for leisure, and online gambling is one of the ways to spend their time.
Finally, gambling has been popular in the region since the times of the Aztecs, so it is no wonder that this entertainment is of interest to current generations too. Moreover, we should not forget about their excitement about betting on sports events. Thus, no wonder that casino entertainment has found many admirers among Latin American players.
Mobile Gaming
People in Latin America are mobile-oriented, and 147 million were categorized as mobile gamers in 2020. This number is expected to increase by 17% by 2025.
Thus, online operators and software developers see a big opportunity in offering mobile-first games and casinos adapted for mobile play to players in LATAM.
Esports
Latin American players are interested not only in physical sports, but they are also paying more and more attention to esports. Thus, the number of players of such games as League of Legends and Dota 2 is rising rapidly. Therefore, esports is a prospective niche in LATAM.
Crypto
Cryptocurrency-friendly casinos are popular all over the world, and LATAM is no exception. Being home to the 7th biggest crypto market, Latin America offers big opportunities to cryptocurrency-oriented operators.
CHALLENGES IN GAMBLING FOR LATAM
One of the main and biggest challenges in the Latin American gambling market is a payment system.
In many countries of LATAM, payment processing is challenging, as each country has different financial regulations that are strict and controlled by the authorities. Moreover, traditional banking methods used in other regions are not represented in Latin American countries or their usage is very limited.
Such a state of payment system makes deposits and withdrawals rather complex and inconvenient. All transactions go through the banking system, which means they are not processed on the weekend. Thus, if a player makes a withdrawal on Saturday or Sunday, they can receive it no faster than Monday. At the same time, they might continue gambling with money that is already in withdrawal. This creates a debt, but an operator does not see this issue until a cash out is processed.
Another difficulty is the legislation that is different in different Latin American countries, so the LATAM market is not unified in terms of restrictions and rules. Moreover, gambling is allowed and regulated in some countries, and illegal in others. Furthermore, there are countries that neither allow nor forbid online casino entertainment.
THE FUTURE OF GAMBLING IN LATAM
Online gambling in Latin America will continue to develop and grow in the upcoming years, as more players will enjoy this leisure and more countries will make this entertainment legal. Mobile gambling will also continue to become more popular.
At the same time, the industry will still face payment challenges and will have to compete with land-based casinos.
