Ayvar Gabidullin: iGaming in LatAm & Asia: Slotegrator’s outlook for 2024

This year, markets across Latin America and Asia attracted the attention of the entire iGaming world.

In addition to growing populations and spreading communication infrastructure, there were changes in regulation, in some cases opening up major new regulated markets. As a result, iGaming companies updated their marketing strategies and worked on localizing their offers.

Let’s dive briefly into the current situation in these markets, and then discuss some expectations.

Latin America is home to some of the world’s most exciting emerging markets, such as Brazil, Peru, Mexico, Argentina, Columbia, and Chile. Overall, the Latin American market is set to be worth somewhere between $2-7 billion.

Each country is at its own stage of development:

• Brazil recently enacted a provisional measure to regulate sports betting after a five-year wait.
• Mexico is struggling to rein in the country’s gray market, but in the next three years, the market is expected to grow by 33%.
• Peru, formerly a massive gray market, recently passed iGaming regulations.
• In Columbia, there will be a new set of regulations intended to combat problem gambling by requiring online operators to, among other things, detect risky behavior, display warning messages, and enable players to exclude themselves and limit their deposits.

Let’s take a look at Asia – one the largest and most culturally diverse regions in the world.

Gambling markets in Asia are some of the world’s most tightly regulated, but with over 60% of the world’s population and a lightning-fast rate of digital technology adoption, Asia is the perfect environment for iGaming brands.

Which markets are among the leaders? Macau is called "the Las Vegas of Asia", Singapore is known as an iGaming hub, and the Philippines is still considered the iGaming center of Asia due to its POGO program.

The Indian market is also full of potential, despite its complicated regulatory landscape — laws vary from state to state. With a population of 1.3 billion, increasing internet connectivity, and spreading mobile usage, India has plenty of potential for operators who successfully localize their offerings to include rummy, cricket betting, and other local favorites.

Gambling in China is illegal, with the exception of the two state-run lotteries — the Welfare Lottery and the Sports Lottery. However, Chinese nationals can gamble in two special administrative regions of the People’s Republic, Macau and Hong Kong.

Despite the restrictions, however, Chinese players are famously happy to visit offshore platforms, particularly enjoying Chinese-speaking live dealer games based in the Philippines.

Chinese gamblers spend ¥1 trillion ($145.5 billion) annually on online gambling, much of it in cryptocurrency.

And it’s interesting to look at Georgia and Armenia. In Georgia, the gambling sector grew by 23% in 2020, becoming the only part of the national economy that did not experience a decline during the pandemic. With the market booming, authorities have tried to impose restrictions on businesses, including raising the official gambling age to 25 (18 for tourists). However, the new restrictions are unlikely to end locals’ thirst for betting.

Armenia has become a regional innovation hub with a tech-savvy population. The world of gambling has also been affected — the percentage of gambling participation here is six times higher than in the UK, which is one of the key centers of the gambling industry in Europe.

The current situation is now clear. Let’s move on to expectations.

The entireiGaming industry has been keeping a close eye on Latin America, and in particular the situation in Brazil — and for good reason; within five years of becoming regulated, the country’s sports betting market is expected to be worth over $1 billion. So, the world has great plans for Brazil, especially next year.

What about the Asian market?

Asia is a region of contrast and a vast variety of cultures — and this includes different attitudes to gambling activities. Muslim countries have a dim view of playing games for money or prizes, while their neighbors have long traditions of gambling and even favorite games that have been played for generations.

Either way, people gamble. They find more sophisticated ways to do so in places where it’s forbidden: cryptocurrencies are extremely widespread in every region of Asia, as are VPNs and simply traveling to countries where gambling is legal.

The rising awareness of player protection measures and potential value of the industry in terms of state revenuescaused a noticeable shift in attitudes in many countries, opening the door to legalization where only a decade prior it would have been out of the question.

Slotegrator is looking forward to explosive growth of these markets in 2024.

There are several reasons:

1. A huge population that loves games and trying their luck
2. Growing internet access and interest in mobile gaming
3. Changing legislation to regulate the market and make it safer for society

One of the key practical recommendations for successful entry into these markets is to localize online casino websites and gaming content for the language and culture of the target audience and offer clients payment methods that suit their needs and requirements. Mobile gaming is becoming increasingly popular, so it’s necessary to create games that prioritize mobile (and often single-handed) gameplay.

An immutable rule that applies to both LatAm and Asia is to offer games that the audience likes. Having the right offer does wonders for your odds of success.

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