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Sleeping Giant: LATAM sports market springs to life

By - 6 September 2019

Cristian Acuna, Head of Sales for Play’n GO operations in Latin America, speaks on the development of the LatAm market and why we are at a turning point in the region’s relationship with online gambling

The Latin American market once was a sleeping giant, but it is slowly awakening. In the last few years, the region has made great strides in regulation and is gradually realising its potential to be a major hub of the online market. From Argentina through to Uruguay, countries are making headway in regulating the market and opening it up to the industry, though some more than others.

For every Argentina, Mexico and Colombia, countries moving forward and bringing themselves in line with the rest of the industry, there’s a Bolivia, Chile or Paraguay, areas that continue to be behind in their approach to online regulation. However, things are improving, and the whole region is moving forward.

The continent of South America is home to over 400 million people, while Latin America (by geographical definition) counts well over half a billion in its numbers with an average age of 29 years, making it a huge untapped resource.

While land-based casino is already well developed in the region, there is massive scope to progress in the online space. The advent of technology globally is changing the face of gambling, and it’s the perfect time for LatAm to join the other markets in moving forward, to avoid the danger of getting left behind.

Latin America has a long and rich history with gambling, so it’s easy to forget that the area has only really embraced online gambling in the last three years. The focus of gambling in the LatAm sphere is very much tied to the social aspect of it. Casinos are still to this day seen as second homes to their patrons, and it is more than just a place to go for entertainment, so it has taken a long time for the idea of online gambling, especially when it comes to foreign operators, to be accepted as a viable alternative.

With the increase in technology use globally, and the rise of a millennial generation to whom technology is a way of life. They want access to their favourite pastimes wherever they are, and whenever they want so, slowly, things are moving forward.

While Argentina has permitted online gaming since 2006, Colombia was the first South American country to pass nationwide legislation allowing it, in 2016. By 2018 the licensed online operators were generating over $7m in revenue, sums that were used to help underwrite health care and other services for its population.

Other countries are now following suit, and the next year will be pivotal for everybody in the industry. With Buenos Aires on the cusp of going live soon; Brazil looking to overhaul their online betting laws and Uruguay looking to make reforms, things are happening on several fronts.

Of course, with the popularity of sports in the region, sports betting is the leading driver of many of these changes and reforms, but online casino isn’t going to be far behind. But, with everybody turning their head in that direction newness isn’t going to be much of a sell, with everyone trying to get in on the ground floor.

So, what’s next? It’s an interesting question. With the differences in development, legislation and a willingness to open up to the industry, it means that there is no one cure-all for the LatAm region. In total, there are 33 countries in the region and each brings its own set of challenges and opportunities. For instance, although Mexico is currently the most active country in regards to gambling, it is estimated the online sector represents only 5% and is still very much only open to home-grown operators, and so partnering with local operators is still the best way to make headway in that market. However, Colombia is open to both local and foreign operators, so, a different approach is required.

One thing shared across the whole of the market is the strict importance of regulation. Each country has its own regulatory body, and it seems no two operate in the same way, so a high level of compliance is imperative no matter where you operate. As a company, we have specifically focused on a commitment to becoming the strongest supplier in regulated markets, and it will allow us and our partners to take advantage of the opportunities LatAm has and will present. While restrictions are in place across the continent, it seems more and more governments are starting to open up to the benefits of a legally regulated gambling industry. It not only allows their citizens to gamble safely under the protection of the law, but it provides a huge boost to the country purse through the reinvestment of taxation revenues, allowing money to be put into public services including healthcare and education.

With the size and scope of the LatAm market, it’s clear that there is an amazing opportunity to satisfy the appetite of the people there looking to engage in gambling entertainment in a safe, regulated space.

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