The Latin American sports betting industry entered 2021 with seemingly never-ending discussions about online regulation still dominating the headlines. The success of Colombia’s regulated online gambling market has created great excitement for what could happen in the region, but progress has been slow. Many within the industry had hoped that 2020 would see legalization in both Brazil and Peru, but the COVID-19 crisis side-lined any progress.
There are, however, some positive signs in Brazil—potentially Latin America’s biggest sports betting market. Waldir Eustáquio Marques Júnior, the Brazilian government official responsible for gambling, has indicated that a fixed-odds regulatory framework could be in place by July of this year.
Other Latin American markets have made more concrete progress. Puerto Rico Governor Wanda Vázquez Garced, in one of her final acts as governor, signed into law a bill that paves the way for the activation of sports betting and esports.
Argentina’s most populous province, Buenos Aires, moved a step further and issued seven licenses for online sports betting and iGaming. The potential offered by the market is perhaps best illustrated by the identity of the successful applicants, as William Hill, bet365, Playtech, 888 Holdings, Flutter, Intralot, and Betsson all established partnerships with local companies to allow them to secure the 15-year licenses.
While regulation remains the top priority in Latin America, many companies have turned their focus to more practical concerns such as developing the right online product for players in markets where land-based betting and cash payments remain the norm. Operators have discovered that consumers are not interested in European-style sportsbook platforms. To adapt, a number of sportsbook technology providers now offer localized online-only and omnichannel products optimized for each jurisdiction or country, with native language, a focus on the favored sports in that market, and local payments integrations.
Some sportsbooks have heavily invested in new localized products to grow their market share. In Colombia, Wplay teamed up with Playtech to deliver a custom experience that further establishes them as the market leader while Betfair and William Hill recently followed suit through investments in specialized local product from Aspire Global’s BtoBet.
Another challenge that operators have worked on is how to reach and engage with an online audience in markets where betting has traditionally been a retail product. The work has resulted in some innovative solutions.
In Colombia, Rappi, the on-demand, delivery service, is using its existing network of 9 million users to build a trusted network for sports betting. The company created Rappi Apuestas, a mobile and web app, that allows customers to choose from a selection of licensed operators and, in turn, provides sportsbooks with access to a potentially huge customer base. The familiarity of Rappi, combined with Rappi’s proprietary QR code payment technology, seeks to overcome potential consumer concerns with online gaming. With Rappi’s total customer base in excess of 40 million people across ten Latin American nations, there is potential for its sportsbook and iGaming app to see significant growth as more territories regulate.
Meanwhile, Betcris, a Costa Rica-based operator, is using partnerships to expand its market share in Mexico. The operator’s deal with Buffalo Wild Wings places Betcris betting facilities in ten of its restaurants, with further locations set to follow. The modules allow players to place a bet on any market available on the operator’s website, immediately deposit or withdraw funds, and join the Betcris loyalty program.
Betcris has also invested heavily in the more traditional promotional channel of sports sponsorship and now boasts partnerships with the NFL, MLB, and Mexican national soccer team for its key Latin American markets. Its international profile received a further boost with the signing of Brazilian soccer great Ronaldinho as a brand ambassador.
Investments in partnerships have proven to be a key tactic regardless of the market. In Brazil, sportsbook operators are getting ahead of the anticipated legal market by investing in soccer partnerships. Sportsbooks are represented on sixty percent of kits in the top two national soccer league tiers.
Whether those sponsorships are simply designed to win market share among the estimated 450 foreign sports betting sites currently operating in Brazil, or prove useful in establishing those brands in the event of a regulated market finally arriving, only time will tell.