The region of Latin America has been a sought-after emerging market by iGaming brands for quite some time especially during recent years with various countries allowing brands to establish themselves. Therefore, there are various key metrics and insights provided in this guide that every operator or affiliate who is interested in this region should know about.
The Latin American (LatAm) market is composed of 20 countries reaching a total population of 653 million, according to the UN World Population Report, with predominantly speaking Spanish and Portuguese languages. 66% of the population has internet access and goes online frequently. In addition to that, according to BtoBet’s LatAm Industry Report, 60% of the population has access to smartphones, whereas mobile strategy is an important one for companies to consider when evaluating LatAm opportunities.
Challenges for Operators and Affiliates
The LatAm market has a lot of potential, yet there are a few important aspects to be considered when evaluating all its opportunities:
Local language has presented to be a challenge to stakeholders in the region. Although only two languages are spoken across most countries, there are various dialects in the LatAm region, which are also very different from those spoken in Europe. This usually becomes a problem with website translation when it is done inaccurately without considering local dialect rules. In addition to that, customer service must be offered in the local languages by international operators; and this aspect is usually not given enough importance when launching a LatAm-focused brand.
Local and International Competitors
There are a great number of established brands with high budgets invested in traditional marketing channels, which allows them to be more successful through digital channels, such as affiliate marketing, due to their increased exposure. The population is also very loyal to the established brands that they have known for a while. This makes it more complicated for new brands to conquer the market and compete with popular local and international brands.
Another important aspect of LatAm is the highly localized profile of the consumer, where brands who adopt a “one-size-fits-all” approach will likely not succeed. As there are obvious differences with the language, there are many cultural differences between countries as well.
Lastly, regulations and licensing in each LatAm country must be considered. The processes are not always clear and might take some time for the brands to be able to fully operate in the market. We do, however, see a great change from previous years when it comes to PPC campaigns where they are now allowed to be targeted on multiple LatAm countries.
Online Gambling PPC in LatAm
As the LatAm iGaming industry has evolved, Google has released clear guidelines for Pay Per Click advertising in the region. Currently, PPC campaigns for online gambling content is allowed in Brazil, Mexico, and Colombia. See Google Ads Gambling Country Restrictions for more details.
Trends and Opportunities in the Region
1.Global Pandemic: COVID-19 has had a negative impact all over the world, however many experts in the iGaming industry believe it could be an opportunity for countries in LatAm to speed up their legislation and regulatory processes. Due to the closure of land-based casinos and betting shops, plus the loss of income from tourism, many countries in the region are left with an economic deficit. Therefore, governments could turn to the regulation of online gambling as an additional tax income.
2.Mobile-First Strategy: LatAm has a much higher mobile penetration rate than the world average, where most of the online gambling transactions are already performed on mobile. Thus, any operator or affiliate should prioritize mobile optimization and a “mobile-first” customer journey for their strategies to target players.
3.Glocalization: The understanding of cultural differences amongst countries is key to the success of any brand in the region. The global strategy of the product should be adjusted to have a local appeal. For example, they can achieve this by adjusting their branding and identity to the local languages and interests.
4.Digital Wallets: With most of the adults in the region not having a credit card, digital wallets have become very important for operators to offer as payment methods. Cryptocurrencies have also increased in popularity amongst the younger generation as another alternative.
Overall, the LatAm region has consistently continued to develop in the iGaming industry with various countries showcasing a regulated model that can be very successful. Additionally, any new operator entering the region should adjust its global strategy to cater to each country separately to reach the local player.