By Mitch Rice
iGaming is thriving in LATAM. Not in all of the countries but those who legalized the different forms of gambling benefit from tax revenue and growing tourism. But this didn’t happen overnight, changes took place over the past decade when Internet access expanded across both urban and rural areas. Mobile Internet is driving this change along with affordable smartphones bringing millions of new users into the digital economy.
In Latin America, the average mobile connection speed was 4.9 Mbps in 2017 and reached 18 Mbps by 2022. The Internet penetration rate is steadily increasing resulting in a regional average Internet penetration rate of 74.63%. This increased connectivity has created a perfect entry point for online casinos to start operating in the region.
Why LATAM is The Next Big Location for iGaming
Culturally, gambling is nothing new in LATAM. From national lotteries to horse racing and sports betting, people across the region are very into games of chance. Online casinos are simply taking it to the next level allowing people to play casino games from on their Android and iOS devices. MercadoPago and Pix simplify deposits and withdrawals making it super convenient for a wide range of mobile users.
A large portion of the LATAM population is under 35. This age group is making the most money and is highly active online meaning that using apps and making digital payments is something that they usually do throughout the day. The only thing casino operators need to rich them is to find the right marketing channel.
Legalization and Licensing Landscape
Legalization process is a big pain for the iGaming industry. Most LATAM countries either banned gambling or put it into an uncertain position due to outdated laws or sociocultural aspects. And when there are no licensed operators doing business in the country that can be properly regulated and taxed, it’s almost certain that there will be a ton of black market gambling and offshore casinos penetrating the market. This is exactly what is happening in Peru and Venezuela who have either slow-moving policies or outdated laws that haven’t caught up with digital trends.
Another big problem is that local governments are forced to spend millions of dollars to fight illegal gambling and still fail because of many reasons starting from poor funding and ending with the rise of offshore casino sites that are hard to ban due to the use of VPNs and almost impossible to control. With that being said, there’s a strange situation when gambling is restricted but anyone who wants to gamble will find a way to gamble in a matter of minutes. As a result, this evolves into a bigger problem when young adults and even underaged teens get uncontrolled access to iGaming websites.
Marketing Strategies
Marketing, marketing , marketing… It’s a cornerstone for any successful business for decades if not centuries. Same principle works for the iGaming industry. Brands like 777bet are leaning heavily into influencer marketing and paid search in their digital campaigns to grow their audiences. Other brands show their ads on YouTube and try to work with Twitch streamers that focus on gambling or PC gaming.
Taking into account the growing price and complications that accompany marketing campaigns in the LATAM region, working with streamers can be a breath of fresh air for iGaming operators willing to maximize their ROI and LTV. Brands now invest heavily into country-specific marketing campaigns in order to better resonate with local audiences. What works for Venezuela will not be as successful for Brazil and vice versa. That’s why brands like ADJogosRS and B1 BETdevelop their inner marketing teams to better penetrate the Brazilian market and neighbouring countries.
Affiliate marketing is a huge marketing channel in terms of bringing a steady flow of first depositors to a casino website. Just like in any other country, in LATAM they see the growing share of affiliate marketing while traditional ads are not that effective anymore. The key benefit for casinos here is that affiliates generally work on a revenue share model which means the casino has to pay only when it makes profit. No profit means no affiliate payouts. This is dramatically different from running campaigns using Google Ads or Facebook ads, when you have to pay for clicks and then calculate your ROI.
What’s Next for LATAM iGaming
There is no single landscape for the Gambling industry in the LATAM region as each country handles gambling differently. Responsible gambling measures are still developing in many countries, sparking concerns about addiction and underage access. Looking ahead, the future of online casinos in LATAM will likely involve a mix of regulations and restrictions. As more countries start making money from legalized gambling, they may see more well-working regulatory frameworks like the one in Colombia.
For countries with underdeveloped banking systems, cryptocurrency may play a larger role in enabling access for the unbanked share of the population. The more people know about stablecoins and Bitcoin, the more players casinos can potentially reach. They can be sure that the industry will face deeper integrations between LATAM platforms and global casino brands as the region becomes more lucrative especially for big and legit casino brands who want to enter the market via straightforward legalization procedure.
They already see a bunch of new players entering Brazilian markets after their government started issuing specialized licenses. Barão Games and Crianças Inteligentes are now fully compliant with the local laws and work with players from all over Brazil. This creates a positive case and encourages many international brands to start investing in Brazil, create new jobs and bring more tax money to the budget. If that’s not a positive scenario that should be scaled in surrounding countries, then what is?
Data and information are provided for informational purposes only, and are not intended for investment or other purposes.