THE LATIN AMERICAN MARKET


We investigate the opportunities and challenges that await operators and affiliates considering entry into the Latin American market.


This issue, we investigate the opportunities and challenges that await operators and affiliates considering entry into the Latin American market. This report will feature insights into current regulation, the complex payments landscape and search marketing through a series of investigative commentaries. Here, Spanish and Latin American Gambling Consultant, Jaki Becker, and Online Marketing Performance Expert. Soufienne Fahdy, introduce us to a market of huge and largely untapped potential.

WITH A POPULATION of 580 million, Latin American (LatAm) is still a vastly unexploited market in the gaming industry. This is unusual considering the continent's huge potential and that it is a largely untapped market. First of all, there is no licensing in place which means no initial set-up fees - if you decide to target :::e Peninsula Spanish" market you will have to part with circa Ђ7 million and pay 25% tax before testing the water - so for many companies, the LatAm market is a lower risk, nitre profitable (no tax) and uncomplicated territory.

From experience, I know that advertisers targeting a Peninsula Spanish audience will, by default get Latin American traffic; the problem has always been converting that traffic into players. For an operator to have customers that want to play, but can't, is extremely frustrating as it is expensive to acquire players.

LatAm countries are emerging markets so they have a much higher growth than in Europe or North America. This means that the value of market share that you obtain today will triple or quadruple during next year.

Lastly, because of the low levels of competition in this continent, online advertising in LatAm is still around five times cheaper than in Europe or North America. The cost of acquiring new players is mathematically five times cheaper as well, thus, you can get five times more users when investing in LatAm than you would in Europe or North America.

With Spain regulating this year, many operators who have decided not to buy a license are now looking to invest in LatAm, which remains a lateral step for Spanish operators. For affiliates, this market represents similar opportunities in terms of reach and scope, and particularly if you are active in the Peninsular Spanish market. The remainder of this report will offer insight into the various forces at work in the LatAm region where it concerns payments, regulation and SEO, and should serve as an indication of the opportunities and indeed challenges of this potentially vibrant market.

1 Refers to varieties of Spanish spoken in the Iberian Peninsula (Europe), as opposed to the Americas.
 
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