Latin America is not the most developed region when it comes to online gambling, especially online poker. However, the region has great potential, which is now coming to fruition. Therefore, the idea of investing in Latin American markets is becoming increasingly attractive.
In this article, EvenBet experts Roman Bogoduhov, Head of Accounts LatAm, and Manuel Jiménez, Head of Sales LatAm, will share the opportunities, features, insights, and challenges of developing an online poker business in Latin America.
Before getting down to the real details, let’s understand why this region is worth your attention.
According to Statista, the online gambling market in South America is expected to reach $5 billion in 2024. This is driven by a number of factors, including a large population, widespread mobile internet access, a growing middle class and the region’s inherent gambling culture.
Establishing a legal framework for online gambling also plays an important role. In Colombia, for example, 6W Research reports a market growth of 2908% from 2016 to 2019 after the start of industry regulation.
As you can see, the online poker industry is growing rapidly in Latin America. Brazil, Colombia, and Argentina are experiencing the fastest growth.
Online poker in Brazil
Brazil has one of the largest potentials, with numerous stars, as seen in the Global Poker Index, where Brazilians are among the top 100 players. Many tournaments have been held, including a $5 million tournament.
It’s impossible to talk about poker in Brazil without mentioning the online clubs that operate in a “grey” area. Brazil is one of the biggest markets for club applications like PPPoker and its counterparts. The biggest unions boast over a million players.
Online poker in Colombia
Colombia has a thriving poker scene, with regular casino tournaments. The country is a leader in online gaming regulation. Playing on foreign platforms is illegal in Colombia, and players can only play within the country.
Online poker in Argentina
Argentina has a promising poker market, with a large population, accessible internet, progress in regulating the market, and notable players in the Global Poker Index. Until recently, Argentina was South America’s leading online poker hub, but it is now being challenged by more favourably regulated countries such as Colombia, Mexico, and soon Brazil.
Preferences of poker players in Latin America
Tournaments with add-ons are very popular in Argentina and Colombia, and players also enjoy re-entry tournaments. Brazil favours the mystery format, which is similar to bounty tournaments, but with random prize pools of up to $1 million.
Cash tables in Latin America often feature the Bomb Pot option, with Omaha 5 and Omaha 6 gaining popularity in recent years.
Overall, the region tends to prefer poker variations that are more exciting and thrilling rather than those that require skills in poker mathematics.
Challenges of online poker development in Latin America
One of the main challenges for the legal online poker business in Latin America is the preference for illegal “grey” applications by the majority of players. There are several reasons for this.
1. Imperfections in payment mechanisms. Withdrawals from legitimate sites being less risky take longer than those from illegal sites that use intermediaries for quick transactions.
2. Cultural characteristics. The intermediary system has been in place for a long time, and personal contact is the preferred way to solve problems.
3. Weak players. Weaker players are drawn to illegal projects, which attract regular skilled players looking for profit rather than entertainment (a typical poker situation of “a shark in a pond of fish”).
5 Insights for foreigners who want to start a business in Latin and South America
Many companies fail in this region because they overlook its peculiarities, so here are 5 insights that will help you connect with the players and build relationships with local partners.
1. Show understanding and respect. Companies must demonstrate a deep understanding and respect for the culture, personal relationships, and local regulations to earn trust and establish profitable relationships.
2. Personal relationships and mutual trust are crucial in business. Long-term partnerships are valued over immediate results, and businesses must embrace the warmth and nuances of the region to succeed.
3. Networking is based on personal and professional relationships. Building strong relationships based on reputation and trust, which includes natural empathy and genuine personal connections is critical to finding commercial opportunities.
4. Individual approach and close communication. When dealing with Latin American culture, it is very important to show genuine interest in the client’s needs and concerns.
5. Pay attention to gambling regulation. Jurisdictions in Latin America are adapting regulatory models to their cultures, working proactively with operators and local guilds to enhance market development.
Conclusion:
The online poker market in Latin America is attracting more attention and becoming a prominent player on the world stage. Considering the fast-growing GEOs, poker player preferences, and market entry challenges, these insights will help you start your business in Latin America. In addition, EvenBet Gaming has been assisting in the development of iGaming projects in Latin and South America for many years, providing software for launching standalone poker rooms, integrating poker games into existing projects, and connecting operators to the poker network. For more details, please contact our managers.
Original article: https://www.yogonet.com/international/news/2024/06/27/72734-full-guide-on-latam-market-geos-preferences-of-poker-players-challenges-insights
