As seen in G3

Looking across the regulated LatAm markets in which online casino is now live, which iGaming verticals are showing the most promise? In what ways have player preferences changed in the past two years? 

This varies greatly from country to country, particularly across a region that is so diverse in terms of both culture and player preferences. Live dealer games are proving to be very popular, as in other areas of the world where iGaming is opening up, but a lack of liquidity within regulated markets has served to put the brakes on the success of other verticals. One area in which we have seen some very positive signs are instant-win games and skill games with in-game bonus engines, which are quickly finding a niche in the market.

Considering the wide diversity of countries in the region, how do you see individual markets developing as a result of vastly different cultural heritages?

More than ever before, international operators are taking into account the uniqueness of individual countries when entering these markets, rather than employing a comparatively ineffective blanket approach. Established local brands have a strong resonance across LatAm and this is a driving factor in what I believe will be an increase in M&A activity in the region. The ability to harness the knowledge of a supplier that has specialized in appealing to a specific segment of the market can be the key to success. As markets progress towards maturity, platforms that can adapt at speed while offering operators an attractive price point will be those that experience the strongest growth.

Given football has a passionate following across the continent, sports betting is intuitively the acquisition channel of choice. How do you see casino evolving as a complementary product to sports betting over the next few years?

That is an interesting question and comes down to the choices of the operator in concentrating on which vertical to target at sports bettors. In my opinion, sports fans are a natural fit to cross-sell into table games or live dealer games, as they will be familiar with those game mechanics. However, slots players are unique and it’s a far more difficult task to get sports bettors interested in this vertical – as we have seen in the past with so many failures of sports-themed slots.

For this reason, it’s crucial that operators look to a variety of acquisition tools and affiliate networks to attract players of all backgrounds. I believe that one vertical will end up balancing another. For example, a major win from a sports betting event might result in a loss on the balance sheet for the sportsbook, but that is often followed up by a win for the house on casino games due to that player becoming more inclined to risk. There is no doubt that sports betting attracts a great number of bettors and will continue to do so as regulation rolls out across LatAm, but when you look at net results there are no guarantees for the operator – unlike with casino.

Given the prevalence of markets now online across LatAm, such competition between suppliers will inherently bring a greater need to differentiate. In what ways should casino providers look to stand out in order capture market share?

As competition increases, so too does the need for the operator to focus on brand-building and marketing activities and this is one of the major reasons why aggregation is growing at such a fast rate across LatAm. Without an all-in-one platform provider partner, the operator faces ever-increasing challenges at every step of the growth journey. These include the expansion of an IT department – amid a very challenging environment for attracting and retaining IT personnel – and the need to continually expand a range of game verticals and content, working with a host of suppliers while remaining fully compliant across multiple jurisdictions. It all adds up to a massive challenge. Having the ability to concentrate fully on B2C concerns, while relying on a partner that can provide all the content and innovative tools to engage and retain players within a modern, adaptable platform, is a must for the majority of operators in order to stand out in the market.