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The Latin American (LATAM) gambling market is experiencing explosive growth and attracts significant attention from operators worldwide.
However, this area is currently experiencing many changes. What was once the norm has now evolved to a different status. Therefore, all those who want to increase the number of legal bets in LATAM need to understand new regulations and adjust their gamification and loyalty program strategies.
That’s why, in this exclusive interview, industry expert John Smith sheds light on the gamification strategies in LATAM. With his help, we provide valuable insights for operators seeking to thrive in this dynamic market.
But first, let’s take a look at…
The LATAM gambling landscape
Some countries in Latin America have made remarkable progress in online gambling, marked by significant legislative strides and substantial economic growth.
Let’s take Brazil as an example. Continued pressure from the general public led to the lifting of some restrictions over the years. For example, in 1971, non-commercial bingo was legalized. A little later, in 1984, horse racing and betting associated with it were legalized. And in 1996, a state-owned lottery system was established. So, as you can see, Brazil entered more and more into the reality of gambling.
But the breakthrough came in December 2023, when after decades of a stringent ban dating back to the 1940s, the Brazilian Senate heralded a new era by passing comprehensive regulations for sports betting and online casinos.
This huge move was primarily fueled by two factors: public opinion and the recognition of online gambling’s potential to generate substantial tax revenue, a critical consideration given the country’s economic challenges.
Indeed, the income from online gambling was predicted to soar to over $1.5 billion in 2023 alone – that’s an impressive growth of more than 200% from the previous year. What’s more, the country’s online gambling market is expected to reach even more in 2024, reaching $1.97 billion.
But that’s not all, as the projected market size is expected to reach as much as $3.63 billion by 2028.
So, as you can see, a lot is going on.
Below you’ll see some key takeaways from an interview with industry expert John Smith, who will give you more insight into gamification and loyalty strategies in LATAM.
Key takeaways about gamification in the LATAM market
#1 Shift gears from acquisition to retention: prioritize existing players
According to John, the secret sauce to long-term success in the gaming industry, especially in Latin America, is striking the right balance between attracting new players and keeping the existing ones happy and engaged.
There’s no doubt that bringing in fresh faces is vital, but the real magic happens when you turn those players into loyal fans. The golden rule here is “Don’t give them a reason to leave.” That’s why you should create compelling gamification and loyalty programs. These initiatives are not just about keeping the game interesting – they’re about showing players they’re valued by offering personalized experiences and rewards.
It’s this focus on retention and loyalty, through understanding and catering to different player segments, that separates the successful brands in LATAM from the rest.
#2 Navigate the regulatory landscape: have adaptability in mind
Regulations, particularly in Brazil, are undergoing significant changes, and require operators to remain vigilant and adaptable. John emphasizes the importance of staying informed about these evolving regulations and ensuring that gamification and loyalty programs comply with all legal requirements.
Moreover, such new regulations present a significant opportunity for brands to differentiate and enhance their offerings. For example, they encourage higher quality standards and push brands to innovate in retention and player engagement.
#3 Embrace diversity: tailor strategies for individual markets
LATAM is not a monolithic entity. Therefore, you should bet on customization and local strategies. John stresses the importance of recognizing the significant differences in regulations, player preferences, and overall market maturity across individual countries. He encourages a tailored approach, as it will enable operators to carefully strategize and customize their offerings to resonate with each unique market segment.
What you should definitely give up is using a one-size-fits-all approach, which is no longer appropriate if you want to stay competitive.
On the other hand, if you rely on personalization, you will better tailor content to your audience, increase engagement, and build a larger loyal customer base.
#4 The power of data: leverage insights for deeper personalization
John underscores the importance of harnessing data and insights to create personalized gamification and loyalty programs that resonate with individual players and their preferences. This data-driven approach fosters deeper engagement and ultimately drives higher customer value.
Also, understand and leverage key performance indicators like lifetime value and cost of acquisition to understand your clients’ behavior, make adjustments in business, and adequately drive your strategies.
Above that, dive into your brand’s existing assets, target audience, and competitors so you can craft the right and tailored strategy. Again, look at the regulations in each market to be sure that you know what you are allowed to do. It may be very different in Brazil than in Peru or Ecuador, for example, so always check that what you actually want to offer is compliant and fits with what the brand wants. This consultative approach can set you apart and ensure that you actually deliver a relevant and unique experience.
#5 Beyond generic incentives: focus on player value
Successful gamification and loyalty programs go beyond simply offering generic rewards. John emphasizes the need to provide experiences and incentives that are truly valuable to players, foster a sense of appreciation, and drive continued engagement.
John outlines a pyramid model. Here, daily free-to-play games serve as a foundation. Next, they are leading up to gamification tactics (like missions, levels, achievements, jackpots, and rewards stores.) If you’ve already earned a lot of points on the gamification leaderboard, that means you’re just a few points away from moving to the next level. So, the last stage culminates in a comprehensive loyalty program that aims to encourage people to get more points and win.
This approach emphasizes the progression from engaging users daily to fostering long-term loyalty. That’s more or less the whole loyalty strategy.
#6 Evolution of dynamic market demands: embrace experimentation
The LATAM market is characterized by its dynamism – it’s renowned for its vibrant and changing nature. That’s why John encourages operators to embrace experimentation and adaptation. Brands that thrive in this environment are those that consistently experiment with novel strategies, meticulously assess outcomes, and adjust their tactics in response to the insights gained.
Thus, staying ahead in such a dynamic landscape demands a proactive approach to change and embracing the flux as an opportunity to innovate. This cycle of trial, analysis, and adaptation is essential for businesses aiming to maintain relevance and achieve long-term growth in this region.
A roadmap for success in LATAM
The one key takeaway after talking with John Smith is retention.
John says it’s the simplest thing in the world. But again – companies spend so much time getting hundreds of thousands of new customers, but then neglect them. So the goal is to work with the customers you’ve already acquired. Customers are your voice and your brand, so don’t give them a reason to leave.
By prioritizing player retention, adhering to regulations, tailoring strategies to individual markets, leveraging data for personalization, offering valuable rewards, and embracing experimentation, operators can navigate the complexities of the LATAM market and unlock its immense potential.
Take advantage of John’s insights and thrive in this exciting and dynamic region.
