The Latin American iGaming market has been experiencing major growth recently. Its unique characteristics and immense potential make this market a clear opportunity for operators and providers looking to expand their horizons. According to a recent report by Vixio, “Latin America’s regulated online gambling market is set to quadruple in size and reach $6.75 billion in annual revenue by 2027”. One of the driving forces behind this surge? The widespread use of smartphones as the main source used around the world to place bets with operators, anticipated to reach a staggering 485 billion users by 2025.
While Brazil generates over 20% of all global online gambling traffic, more countries of Latin America are becoming regulated, including Peru, Colombia, and Argentina. With these interesting facts about the Latin American iGaming market, you might find yourself wondering which specific regions hold the most potential.
Let’s break down the three biggest iGaming markets in Latin America to give a better picture of how these markets have contributed to Latin America’s growth in iGaming.
Brazil
Brazil is Latin America’s largest country, with a population of over 200 million. It’s often referred to as “the sleeping giant” due to its full potential not being tapped in the iGaming industry.
Currently, most forms of gambling are prohibited, but in 2018, the regulation of sports betting was one of the main drivers which boosted Brazil’s potential. As of now, the Brazilian government is still working on defining the rules and regulations for sports betting operators and it’s anticipated that once the new betting regulations come into effect, Brazil will likely have the largest share for LATAM in the online sports betting market. With its unique characteristics, and a nationwide passion for sports, particularly, football, Brazil is a goldmine for sportsbook operators looking to expand their horizons.
Colombia
Colombia was the first regulated iGaming market within Latin America, as online gambling was regulated in 2016, and the betting market has been steadily growing since then. With a population of over 50 million, and a mobile penetration rate of roughly 56%, and similarly to Brazil, a nationwide passion for football, Colombia presents itself as an attractive market for online sportsbooks. Online casino games, such as slots and table games, also contribute to the market’s growth.
Mexico
Mexico is the second-largest economy in Latin America, with a population of over 120 million, and a mobile penetration rate of around 60%. Most forms of gambling are regulated in Mexico, except for land-based card rooms . Like the rest of Latin America, bettors are increasingly tech-savvy and enjoy playing on the go on their mobile devices. Similar to the other countries we’ve mentioned, Mexican bettors are very engaged when it comes to betting on football, so operators can tailor their offerings to meet the requirements of players.
Rest of LATAM
Other regions like Chile, Argentina, and Peru are also great markets to hit. Although, not as big as Brazil, Mexico, and Colombia, they have potential and are increasingly growing markets.
The Latin American market as a whole is a very competitive one, so it’s useful to test different trends and approaches. There are some important distinctions to note when targeting these regions, for example, in Brazil, the number of female players is slightly higher than male players. Operators wishing to target this region should take that into account for their marketing efforts.
When it comes to advertising, localization is very important. Using local language that will resonate with your audience will prove to be beneficial. Latin American players are very passionate and enjoy humorous content, so it’s recommended to create dynamic and vibrant ads that feature entry bonuses, winners’ stories and national flag colors to resonate with the target audience.
Conclusion
The Latin American iGaming market is experiencing exponential growth, with projections indicating a quadrupling in size for the market by 2027. Brazil is on the verge of a breakthrough with the pending regulation of sports betting, presenting a lucrative opportunity for sportsbook operators. For operators to succeed in these markets, they should tailor their strategies, considering demographic differences and embrace localization for effective market entry. As the Latin American market continues striving, adapting to emerging trends and focusing on vibrant and creative advertising will be key to reaching this dynamic market.
