Latin America is the market on everyone’s mind at the moment. From Argentina to Brazil, and Colombia to Mexico, the region is ripe with opportunities for growth.

With more markets across the region considering whether or not to introduce gambling legislation, it’s no surprise that many companies from across Europe and North America are looking to get in on the action.

According to Growe, Latin America should be high on the agenda for operators and suppliers alike. According to Growe’s Head of LatAm, Cristhian Gomez, this region “will be one of the regions with the greatest expected growth” in the near future.

He began: “LatAm is a region where regulation is becoming a trend among its countries because a regulated market allows governments to collect more taxes, protect citizens who interact with gambling websites, and guarantee high standards that encourage healthy competition and continuous improvement of both sports betting and online casino platforms.”

While the introduction of gambling legislation means additional costs such as taxes and compliance, it is also absolutely essential to create a safe, sustainable and competitive industry that protects both operators and players.

As a global company, Growe knows how to handle the complexities of ever-changing regulations, with expertise in Asia, Africa, and Latin America. Despite the fact that some may view regulation as a challenge, Growe views it as a great opportunity to foster a culture of innovation among different stakeholders.

Gomez added: “We all know that a regulated market, despite the tax burden for the operation, means security and stability for a company to invest in the country. Having a clear regulatory frame allows us to reduce country risk and strategically plans a business case with solid bases for a profitable operation.

“On the other hand, the greatest opportunities in the region are given by the large size of the markets, and the low competition in unregulated markets and the technological development that allows it to stand out and differentiate itself in the industry. Furthermore, Latin America is a great opportunity for companies that are in a process of accelerated expansion.”

Unique challenges

But with new opportunities do come a set of challenges that are very unique to the Latin American region.

From language and cultural differences to the unique player preferences when it comes to payment methods, there are numerous considerations that iGaming companies must make before entering the region.

The vast majority of Latin American markets are highly developed in terms of technology and connectivity. However, Gomez noted that, in his experience, there are a handful of jurisdictions where banking, 5G networks, and socioeconomic factors may hinder expansion efforts.

“This is a new industry which, in many markets across Latin America, needs recognition in order to have access to the basic business functions including financial services, bank accounts, and business loans, or even access to payment options that allow customers to cash out,” Gomez continued.

“It is important to mention that local competition is fierce and has done a great job positioning itself strongly in the top of mind of customers and makes it harder for new players to win some market share.”

Think global, act local

For operators, an understanding of player preferences is also essential for success in Latin America. This understanding must also include an in-depth knowledge of the unique dynamics of each individual market.

From his experience, Gomez noted that there have been many iGaming companies who have attempted to enter Latin America but failed to consider that each country within the region has its own unique characteristics. The mistake they often make is treating the entire region as one homogenous entity.

“Each country has its own idiosyncrasy, regulatory requirements, currency, payment methods, tax structure, characteristics, customs and betting preferences. What may work in Argentina may not work in Mexico, for example. Of course, there are synergies in the countries that can be optimised, but localisation continues to be the most relevant point to consider when expanding.”

It might be assumed that Latin American bettors primarily seek sports options from their gambling operators, particularly, markets for football.

Sports are undeniably popular across the region, with local football and American sports proving to be the most popular markets. From a product perspective, Gomez explained that bettors have shown a strong preference for streaming services, in-play betting and bet builders, all of which have significantly enhanced the overall experience.

In recent years, however, Growe’s Head of LatAm stated that it isn’t just sports betting that has captured the attention of bettors. There has been a notable uptick in bettors enjoying online casino products.

Game providers have been placing a greater emphasis on developing promotions and bonuses that not only enhance the player’s experience but also allow them to stand out from the competition.

Gomez warned that simply emailing your players a ‘carte blanche’ bonus offer isn’t a sufficient strategy to engage – and more importantly, retain your players. He suggested that campaigns should leverage available data to create personalised offers that will make your player feel ‘special’, thus encouraging them to return to your site over competitors.

Gomez said, “The content that you offer needs to be varied, spanning classic table games to products such as slots and crash games. Standing out from the competition, especially in such a competitive region as Latin America, is challenging.

“The key is in the preferential treatment you give to your customers, a wide variety of games that players can enjoy, high-quality bonuses, and a user-friendly platform.”

For Growe’s Head of LatAm, these are just a few steps toward achieving long-term success in South America. Get these right and he believes the growth opportunities could be limitless.

Upcoming SiGMA event: The?SiGMA East Europe Summit?2024 will be held in Budapest this September.