“5G in Brazil will strengthen casino operators’ ability to provide better multiplayer experiences”

To make the most of that opportunity, operators must understand their audience. LATAM is a huge geographic region, so differences in the demographics of its iGaming players are significant. For instance, players in Colombia, Mexico, and Brazil are not a homogenous group.

By taking the time to fully understand the differences, a casino operator can better target its audience with content, features, marketing strategies, and themes more suited to LATAM preferences—and reap the rewards of their efforts.

Profiling the typical LATAM iGaming player

Across LATAM, the number of young iGaming players is increasing quickly. Gen-Z gamers are coming to the fore and the number of female players is also surging. However, the majority of activity still comes from those aged 40 and over.

Slots, poker, and video bingo are all popular across LATAM, with video bingo games especially well received in Brazil. Mexico ($1.9billion) and Brazil ($1.7billion) are the region’s two largest video game markets. Almost seven out of ten adults in Colombia and Mexico play mobile video games, and across LATAM more than two-thirds play mobile games for more than 40 minutes a day.

Sport is a key driver of the LATAM gambling culture. Almost 60% of Colombian adults have gambled, and almost one in five Brazilian adults bets at least once a week.

Global research suggests a typical low-earner is more likely to wager a higher proportion of their overall income, but a high-earning gambler normally spends more overall. This pattern is repeated across all LATAM countries.

Exploring the LATAM iGaming landscape

Understanding the preferences, behaviours, and attitudes of LATAM iGamers is critical. But so, too, is having an appreciation of the regulatory environment of the region’s biggest markets. Without that insight, casino operators are likely to fail to maximise the opportunities they face.

Significant regulatory changes in the region’s three biggest markets are making LATAM one of the most keenly-watched and exciting growth markets. In just two years between 2019 and 2021, six new regulated markets emerged in South America. This rapid pace of legalisation is helping LATAM dominate the conversation of new online gambling markets.

Colombia was the first LATAM country to establish a regulated online gambling environment and has ambitions to become the region’s industry leader, despite its comparatively small population compared to Brazil. In 2019, Colombia’s online gambling industry generated $19.6m for the government.

Mexico, meanwhile, is progressing gambling reforms through its legal system – although it remains unclear if these will make a positive impact for online casino operators. Brazil is also making regulatory changes, with a view to introducing state-specific gambling laws. All of these changes are increasing the trust levels of iGaming players across LATAM.

At the same time, accelerating smartphone penetration is widening the pool of potential players. Almost 352 million LATAM natives owned smartphones by the end of 2021  and approximately 113 million people in LATAM played mobile games. By 2026, that figure is set to grow to 143 million.

Brazil has LATAM’s highest number of internet users and the fourth highest number of internet users in the world. The arrival of 5G in markets like Brazil and Mexico will only strengthen casino operators’ ability to provide higher-fidelity mobile games and better multiplayer experiences.

Popular features and trends in LATAM iGaming

Just like everywhere else, every LATAM gamer is unique and searching for games that fulfill their specific needs. However, some broad trends are emerging. All iGaming software providers should be aware that:

• Mobile gaming accounts for almost half of the 2021 LATAM games market revenues and is growing at 12.9% annually (compared to 5.1% for the entire LATAM gaming market).
• Convenience and fast, reliable cashouts and payments are critical for both players and casino operators.
• Operators are also looking for partners who have optimized their processes through automation, thereby increasing the speed and quality of their software development and quickening the release of new titles and features.
• More than one-third of LATAM gaming is driven by word-of-mouth, referrals, and search engines, so a freemium or free-to-play business model and beautiful, captivating stories are key.

Success is built on knowledge

Building a successful online casino business comes from knowing every aspect of your audience. In LATAM, that audience is growing fast. But smartphone technologies today facilitate easy data collection, giving you a major advantage in your bid to grow your business.

By analysing players’ behaviour, operators and software developers can create a truly personalised iGaming experience. And that makes huge growth in one of the world’s most exciting markets more achievable than ever.

Albert Bellavista Vilanova
Head Of Business Development - Spain & LATAM at Wazdan Ltd.