Assessing Latam: a force to be reckoned with

While it’s always been on the igaming industry’s radar, I believe that Latam has truly become a force to be reckoned with – and one of 2023’s biggest growth opportunities.

In numbers, the market has easily proved its worth, with online GGR expected to reach $5bn by 2026.

To put it into perspective, 2020 (three years ago), saw just $400m turned over, which gives a very strong illustration of how fast things are moving.

So, what makes Latam a highly exciting prospect for all the innovative slots studios out there? Unsurprisingly, Brazil, Mexico and Colombia are the key drivers here.

Starting with Brazil, which is hot on the agenda right now – its sweeping digitalisation almost makes it a continent in its own right given its demographics.

With 167.7 million internet users and over 151 million plugged into mobile, estimated igaming GGR for Brazil in 2022 is immense, standing at $2.1bn. Not only that, one recent survey by a major industry research arm found that more than 60% of adult Brazilians have given slots (online and offline) a try.

Moving further north, Mexico is another giant, with 86.8 mobile million users. We’re looking at 76.3% of the population plugged into the internet, with mobile penetration at 80%.

With igaming taking up 40% of the Mexican gambling market – there’s still 60% more to convert from retail and land-based. In total, 2021’s total GGR stood at close to $2bn, meaning there’s more than a billion dollars’ potential for new igaming players.

The third jewel in the LatAm crown is Colombia, with Coljuegos already a real success story for regulation done right.

The last few years have aggregated an annual market growth of 66%, which again is simply immense, and just shows how well a market can grow with the right proactive regulation.

Ones to watch

On emerging dark horses, Argentina is also one to watch. As well as being the third largest economy on the continent, regulation is moving forward in each state province quickly, with just about every big-name studio looking to get in on the action.

Other contenders are Uruguay, with estimated GGR already at $52m, and Peru, which accounted for $278m in GGR in 2022 and is expected to reach $305m in 2023 – and then a whopping $616m by 2030.

Having covered those phenomenal macro numbers, it’s now time to go micro. The major opportunity I think most of us in the industry have our eye on right now is the local titan that is Brazil.

Sports betting is of course king, but casino is also a force to be reckoned with in a way that will no doubt put the continent on a par with Europe in the next decade.

Recall that more than 60% of Brazilians surveyed are interested in slots – alongside that, we’ve got a host of data that shows both slots and bingo-style games having enormous potential.

Playing smart

The key to all this is mobile in Brazil – over 88% of mobile users use their smartphones for online entertainment. However, before jumping into the market as a new brand, you’ll need to respect the heritage of land-based gaming and the retail element.

For comparison, it is in many ways similar to the approach to gaming that one sees in Southern Europe, with social value being a very heavy influencer on gaming habits.

The job now for online studios, especially with the market regulating, is to showcase why mobile gaming has a real edge over land-based.

Your advantage-play is going to need to be in offering seamless graphics, immersive sounds and advanced mathematics; something that ageing arcade machines can’t compete with.

The next thing is to merge your entertainment into the fast-growing wave of mobile gaming, which three years ago already stood at 147 million on the continent.

Estimates project another 17% increase by 2025, bringing us to almost 10% of all global mobile gaming users. Capture that wave with slots that can engage and excite, and you’ll be onto a winner.

Another real kicker for recent surges in casino traffic has been the Qatar 2022 World Cup, which has brought even more people into the world of mobile entertainment.

Unsurprisingly, the greatest popularity we’ve seen has been with football-associated instant games and slots – with sports-themed RNG gaming proving to be a real match winner.

Offering an exciting piece of short-form entertainment during downtime between matches, I would certainly advise any gaming suppliers looking to break into Latam to use sports themes as inspiration. They really do work wonders in overcoming any hesitancy for sports bettors looking to give RNG a try.

Tied in with that is retail heritage we’ve already mentioned. Just like with the local arcade games, keep it simple. It’s all about classic slots with familiar mechanics.

Last but not least, Latam is all about diversity. If you’re a new studio looking to enter the market, you need to find a way to unify the patchwork of cultures and local heritage with your gaming.

In short, you need a recipe that can appeal to multiple tastes, as there’s no sense in launching bespoke games for each market.

My advice is to focus on simplicity and familiar mechanics with a fresh twist. Layer that with gamification elements, such as Bonus Buy, jackpots, tournaments and player rankings.

To sign off, looking ahead to the next five years, I am confident that Latin America is going to become one of the most dynamic gaming markets available globally.

Representing 10% of global mobile gaming share by 2025 – and demographics that are growing at rapid speed – it’s a fantastic opportunity.

Vladimir Malakchi, Evoplay’s CCO, has extensive B2B igaming expertise, having held C-level posts in business development, marketing and sales. Since joining Evoplay in 2019, he has been the driving force behind its outstanding commercial success, creating a long-term business development strategy for the studio and leading it to winning multiple top-tier igaming awards.