Hugo Nogueira, senior marketing communications manager at Gamingtec, has laid out the blueprint for success within the LatAm markets, drawing upon the company’s past experiences and key learnings.
LatAm: Land of opportunity for Gamingtec
It’s no secret that the Latin American market represents fresh territory for operators and suppliers alike. With populous countries, improving technology standards and the possibility of more regions passing online betting laws this year, the market offers a fantastic growth opportunity to the industry. So much so that H2 Gambling Capital estimated Latin America’s value at $1.3bn. The same report forecasts an increase to $3.4bn by 2025.
Nogueira explains: “The entire Latin American market offers tremendous potential for operators that can deliver an engaging, compelling and, most importantly, highly localised sports betting and online casino experience to players in each jurisdiction.”
Nogueira also highlights customisable content and immersive gameplay as factors contributing to supplier success.
“This is a region where a one-size-fits-all approach simply does not work,” he says. “In terms of specific markets, there are plenty for operators to target – Colombia, Mexico, Argentina and Peru will be high on the agenda for many, and then of course there is the sleeping giant that is Brazil.
“However, operators thinking about making a play here must ensure their proposition and product is a cut above the rest. The competition will be fierce as brands fight for their share of the market and ultimately the player experience will be what sets aside those who succeed and those who don’t.”
Risk and rewards of entering LatAm
Gamingtec has grown accustomed to being an innovator in the industry, putting itself in the spotlight as a high-quality technology provider. Despite fierce competition, it has developed into an organisation of 150 specialised workers and 11 directors. Now the firm has shown unwavering self-belief in its products by taking them to market in Latin America.
“Launching into any new market means taking a risk,” Noguiera continues. “But we believe that innovative technologies combined with experience can help mitigate this and put in place the foundations for success.”
In highlighting the quality of Gamingtec’s solutions, Noguiera also believes they will encourage other competitors to follow suit. “Our solutions are proven in markets around the world, and we have gone to great lengths to ensure they are not only fit for purpose in Latin America, but set the standard for others to follow,” he says.
“The Gamingtec team is unrivalled in its experience and expertise, and this combined with our tech stack means that we are the go-to partner of choice for operators who not only want to enter LatAm markets but want to rise to the top in each.”
There is no way of telling how small the window of opportunity might be for operators seeking to establish themselves in the market. Nogueira believes Gamingtec’s solutions promise swift entry into the industry, enabling operators to reap rewards in record time.
“Gamingtec offers the quickest and most cost-effective route to market in the industry. Our GT White Label is a turnkey solution that enables operators to enter LatAm markets in just six weeks with a comprehensive sportsbook and/or casino offering that is fully compliant with local regulations and requirements.
“This is from signing on the dotted line to accepting their first bet or spin. Not only does it give operators unrivalled control, but it is also incredibly flexible, which in turn makes it easy for our partners to fully localise their offering in each market they target.”
Regulation pending in Brazil
While the potential for growth in Latin America is clear to see, the pathway to success is not without its obstacles. Inconsistent and ever-changing regulations within the market is just one of the many roadblocks for operators and suppliers.
Take Peru, which has regulated casinos and slot machines, but not lotteries, horse races, sports betting, or even online gambling. Elsewhere, Brazil’s Chamber of Deputies voted to legalise online and land-based gambling in February 2022, but these proposed changes are yet to be implemented. However, Noguiera believes this risk will not become a deterrent to Gamingtec or other companies planning to enter the market.
“Some of the big LatAm markets are already regulated and are thriving, so this will undoubtedly act as a catalyst for others to push ahead with legislation and roll out their own regulatory frameworks. Of course, all eyes will be on Brazil over the coming 12 months where it’s a case of when and not if online gambling will be legalised.
“In terms of compliance, we work closely with regulators to ensure that our technologies and platforms comply with their rules, and we also look to secure additional certifications. Because of our experience and the agility of our technology, we can ensure that our operator partners are always compliant despite the many regulatory updates and changes they can face.”
Keeping it local: The Gamingtec strategy
Nogueira is a firm believer in adapting solutions to best serve their area of use. “In any market, it is vital for operators to localise their proposition and product,” he explains. “In LatAm, it’s important for operators to understand some of the challenges they will face that are specific to the region when compared to more established markets such as Europe.
“Players now expect a tailored experience across all areas of the sportsbook and/or casino from bonuses and markets, odds and games to payments and customer support. If operators do not meet these expectations, they will simply fail to gain traction in the market.”
One key tactic within Gamingtec’s strategy is attempting to navigate the problem of low mobile penetration rates within Latin America. For example, research from GSMA shows just 69% of Latin American adults had access to mobile phones in 2021, compared with 92% in the UK. This significantly restricts the population’s access to online gaming and gambling. Nevertheless, Nogueira believes Gamingtec can supply its partners with a remedy.
“Key considerations for us are the prevalence of feature phones over smartphones and the high cost of data to consumers. This means that operators must take steps to ensure they can still deliver an engaging and entertaining experience despite these challenges. Of course, our suite of platforms and solutions allows them to do just that.
“To overcome these challenges, operators must work with a platform provider that gives the flexibility they need to localise their offering for each market while overcoming the specific challenges they will face.”
The specifications of feature phones often dictate that users only have access to basic applications and are manufactured with press-button based inputs with small non-touch displays, but Nogueira insists Gamingtec is capable of navigating these obstacles.
“The prevalence of feature phones, for example, often means that operators need to offer a stripped-back product so that players can enjoy an uninterrupted betting or playing experience at all times. That said, they still need to be able to differentiate and that’s where our GT Orbit solution, underpinned by our GT Core PAM system comes in.
“This platform provides unrivalled flexibility and can be connected to any of our GT products or third-party providers they wish to work with. All of our products and services give operators everything they need to deliver a superior igaming experience to players in LatAm markets, across games, bonuses, customer support, payments and compliance.”
Future gaming technology: Five products for Latin America
While there remains a lack of clarity relating to igaming and gambling legislation and regulation within some countries in the LatinAm market, other countries have in the region have regulated and those that have have reaped the rewards. For example, Colombia became the first country in the market to licence and legalise online gambling in 2016, growing rapidly as a result.
Similarly, nearly all forms of gambling are now regulated in Mexico, while Argentina has moved to regulate gambling advertising with some provincial authorities launching licensing regimes with a series of foreign and domestic operators.
In light of these developments, Nogueira is revelling in the excitement of taking Gamingtec’s products to market.
“We offer more than 10,000 online slot and casino games from tier-one providers via our GT Casino platform – this allows operators to curate a lobby packed full of games that appeal to players in each market they target. GT Sportsbook is just as comprehensive, with more than 70,000 in-play events each month across a vast array of sports, leagues, teams and players.”
First up on the exciting list of products is the aforementioned GT Casino, an online gambling software solution with a multiplatform frontend and dedicated bonuses functionality. The solution offers RNG Casino and live dealer products, while operators craving quick integration will be truly satisfied with how quick and easy it is. It is even fully customisable to fit the client’s requirements.
Gamingtec have also catered for sports fans by creating the GT Sportsbook, a state-of-the-art betting software solution for competitive bookmakers that supports event creation and pricing, promotes risk management for players and features in-play betting, statistics, advanced intelligence and reporting.
Operators searching for more variety will have 10 themed frontends to choose from with GT White Label. It has a flexible bonus engine to attract and retain customers, as well as in-house marketing, tracking and affiliate software.
The GT Turnkey will attract operators with access to the fully developed core platform (compliant with MGA and UKGC). The advanced turnkey igaming solution has a fully-maintained, bespoke and customisable frontend.
The GT Payments solution is also a game-changer for operators trying to adapt to the Latin American market. It enables delivery of multichannel, multicurrency casinos. It is easily maintained, capable of API integration with hosted page or server-to-server options, and even offers automatic reconciliation for payment methods.
A piece of the pie: Processing payments
Payments is one of the enduring problems for players and operators who are worried by inefficiency and security threats, and this could cause disruption in the emerging Latin American market.
Cryptocurrency has been identified as one potential solution to remove constraints and foster cost-effective transactions. Consequently, cryptocurrency usage at online casinos that exclusively accept crypto has grown by 116% globally. However, these methods have left players more susceptible to fraud, with digital fraud levels rising by 50% from Q1 2021 to Q1 2022, according to a UK parliamentary report.
A 2022 Mastercard survey found that 51% of its Latin American consumers have made at least one crypto transaction, and players are increasingly searching for fast, flexible and localised payment solutions. This can be seen in the success of Pix, an instant payment platform managed by the Central Bank of Brazil. So how does Gamingtec plan to utilise these findings in its own strategy?
“Payments is another pain point for operators, with players in each market wanting to deposit and withdraw via different methods,” says Nogueira. “Our GT Payments solution helps them overcome this by offering more than 200 local providers for them to choose from.
“We recently secured PCI DSS certification which means we are protecting payments and transactions to the highest level to give our partners the ultimate confidence in our solutions.”
Leaders at Gamingtec aren’t satisfied with just being compliant, they are striving to raise standards within the market to enhance future gaming technology.
“We will continue to enhance our suite of products and all of their payment-based features to ensure we can not only meet but exceed the needs of operators targeting Latin America,” says Nogueira.
“How will we define success in LatAm? By seeing our partners enter markets and not only achieve but surpass their goals.”
Much has been said about the future of the Latin American market and the industry is rightly excited about the opportunities on offer. With more countries set to legalise gambling in 2023, businesses will be looking to upgrade their gaming technology to take advantage of the new markets. By taking risks and solving problems with simple, original and effective solutions, Gamingtec is confident it has the formula to expand its horizons.
Gamingtec is an international company that develops full turnkey B2B software solutions for the igaming industry. With more than 10 years of experience in the business, the Gamingtec platform is the place where flexibility meets class.