It’s an exciting time in the iGaming world, as new markets are moving to regulate online gambling, providing brands with untapped audiences to convert. Latin America is one of the most attractive regional markets and the growth has been exponential over the last few years.
When it comes to a market maturing, a relevant factor is whether or not consumers can actually get online. The Latin American market is a great example of this, as their population steadily embraces the online world like e-commerce, digital payments, and smartphone technology. All of these are vital for companies to engage with iGaming audiences.
With that in mind, Income Access has prepared a specific analysis on this issue. Part of the Paysafe group, Income Access provides marketing technology and a full suite of digital marketing services to the iGaming, lottery and financial trading industries for over 18 years. In this article, the company breaks down how Latin Americans are moving towards digital solutions and, in turn, online gambling.
DIGITAL PAYMENTS PROGRESS IN LATAM
Though many iGaming brands can be accessed on desktop as well as mobile, unlocking the ability for users to play on the go is paramount for brands to really grow in a new market. With Latin America taking massive steps in this sector, the prospects for online gambling to flourish in new markets have as well.
Increases in digitalization in the LatAm market have been impressive over the last few years, with more and more consumers finding their ways online. For example, across the entire Latin American and Caribbean market, digital payments have recently expanded, with the number of debit and credit cards in circulation rising from 800 million in 2007 to 1.8 billion in 2021.
Digital payments are typically one of the preferred payment options in the area and including the right payment options in each country needs to be an important aspect for brands to consider. In the same vein, smartphone sales were up for an estimated 124 million units in 2021, a 15.5% rise on the previous year.
ONLINE GAMBLING TAKING OFF
Like every other continent, each individual country in Latin America has its own laws and its particular path towards regulating iGaming. For example, while Colombia became one of the first countries to regulate online gambling back in 2016, Brazil is still working on their regulatory framework with no clear end in sight. Of course, Colombia won’t be the last to regulate, with Peru, Chile, Paraguay, and Uruguay considering different levels of regulations for iGaming in their countries over the next few years.
Despite not all countries being ready to regulate yet, the gross gaming revenue projections in the market are still strong, as it’s predicted to triple from 2020 to 2025, hitting over USD 3 billion. Brazil is a massive part of this prediction, as the continent’s most populous country (214.3 million people) is also one with a great history with sports. Brazil has also seen plenty of growth when it comes to smartphone usage, so whenever this country goes live with regulated iGaming, the potential audience will be significant. This could potentially happen relatively soon, with the Minister of Finance, Fernando Haddad, recently saying that he would be interested in seeing iGaming regulated.
Although Brazil is often considered the most exciting untapped country of the area and for obvious reasons, more attention should be paid to Mexico, which is already thriving with iGaming. They are one of the leading markets in Latin America, with their regulated online gambling market seeing an anticipated compounded annual growth rate of 22.9% from 2020 to 2026.
Additionally, Argentina is another interesting country to keep an eye on in LatAm, boasting the region’s fourth largest population (45.8 million people) and a growing potential audience. Argentina is regulated on a province-by-province basis, with more provinces coming on board in the last few years.
CONNECTING WITH THE LATAM AUDIENCE
With the Latin American iGaming sector in the process of taking off to new levels thanks to the digitalization of the market, brands will need to find effective ways to reach and connect with new users. One potential avenue to consider is the affiliate marketing space, as affiliates have been flocking to the market with its continued growth. With digital ad spending expected to rise to USD 14.5 million by 2024, Latin American web traffic will be a valuable piece of the Internet landscape, and one that affiliates will be very interested in connecting with.
For brands, affiliate marketing offers a cost-effective and efficient way of targeting new users in the market, and is increasing in popularity in multiple countries in the area. Affiliates in LatAm are excited to work with operators and are looking to enhance the process to ensure positive gains for every party. If brands want to ensure the success of marketing with affiliates, offering them access to real-time data and tracking solutions to follow their progress is paramount, as this allows them to optimize their campaigns quickly and bring in new audiences with their adjustments.
While sports betting and other forms of gambling have been prominent in Latin America for years, doing it online has not. This is another issue where affiliate marketing can be quite valuable, as affiliate sites can help educate users on how online gaming works, where to find support and which brands they should consider playing with.
KEY TAKEAWAYS
The LatAm iGaming market is in a consistent upwards trajectory. Against the backdrop of more countries turning to regulated online gambling and the increased digitalization of the market, the potential seems truly endless. With the added digital infrastructure and clearer paths to connect with users through regulated markets, and with strategies like affiliate marketing available, the assumption is that even more brands will look to Latin America to connect with new audiences. As the market continues to find its foothold in the iGaming world, operators, affiliates and regional regulators will need to grow with it as well, leading it forward into a more productive future.