The primary challenge facing the iGaming industry across the LatAm region is ongoing uncertainty. While countries such as Colombia and Panama have successfully put in place a regulatory structure, there is still a sense that for some other nations, competing desires are serving to block the path to regulation. As ever, politics plays a part, as we can see in the case of Peru and Brazil.
Naturally, Brazil stands out from the crowd as a country of significant worldwide potential. Research from Goldman Sachs indicates that the country’s economic potential is such that it is set to become the seventh-largest economy globally by 2050 and operators have not been slow to tie up sponsorship deals with major football clubs in a sports-mad region.
That said, there is far more to LatAm than Brazil alone and many countries are further ahead along the path to regulation. We have seen progress in Argentina, where Buenos Aires City and province launched regulated iGaming markets last December, soon to be followed by Córdoba.
Fundamentally, it is in the interests of all stakeholders that the industry is safe and secure, in order that growth can arrive through different channels. A regulated market that has robust, comprehensive player protections and a fair level of taxation is one that works for all. I also believe that in regulated jurisdictions, the incorporation of a wide variety of payment methods – including those that specifically appeal to players in particular locations – will lead to an improved playing experience, as well as an increase in channelization.
At Pariplay, we see huge potential for aggregated content within regulated markets across LatAm. What is vital is that platform providers are able to put before players content that truly resonates with a particular country or region. Within this journey, what I find particularly exciting is the discovery of up-and-coming games studios dedicated to producing fresh, locally relevant content.
Simply importing what has worked in Europe, for example, is not sufficient. While there will always be certain games and game types that appeal to a worldwide player base, the new breed of dynamic studios can play a major role in attracting and retaining players who have specific preferences that are common to a particular region. In bringing these new studios onto an aggregation platform, it is vital that providers can support them, offering all of the tools they require to make an impact.
We have found that there is a great deal of variety in what players in the region desire from their online gaming experience. The more basic, less feature-rich games consistently prove to be more attractive to players in some countries, perhaps tied to cultures where such titles have had long-standing success in land-based environments. In other nations – typically where there has been a history of exposure to online gaming – titles that have more win lines and a wider range of features tend to perform very well.
What all players have in common is a love of free spins and the chance to claim something for nothing. Again, those platforms that can hand operators a package of easily implemented reward types, including tournaments and spin wheels, will prove to be successful.
Amid the uncertainty over regulation, what is crystal-clear is that the time for land-based operations to expand online is now. The pandemic has forced many doors to shut, but fresh opportunities to engage with a ready-built player base are plentiful. Online gaming has quickly become an established part of the overall entertainment landscape. In competing with so many other forms of recreation, it is incumbent on the iGaming industry to provide high-quality experiences that grab the attention everywhere from Buenos Aires to Bogota.
Jorge Morales
Pariplay’s Director of Business Development for Latin America and the Caribbean
