Latin America: Online Gambling Challenges
However, what most industry analysts have failed to emphasize is that there are still several challenges that need to be addressed in order to successfully approach the Latin American market. In this article, you can read about what the main challenges are and learn about some ways to go about them and find the right road to El Dorado.
One of the biggest challenges affiliates have found in Latin America is player conversion. Statistics show that players in Latin America like to play for free and rarely convert to real money players. Contrary to popular belief, the issue is not that Latin Americans can’t afford online gambling, but there are many other obstacles standing in the way for them to become real money players.
The first thing a gambling affiliate should understand about the Latin American market is that they are targeting a small fraction of the entire population of the region. This is because the percentage of people in this region with access to internet is small, and the percentage of people with access to international credit cards is even smaller. Therefore, it is hard for players to convert to real money players not just for lack of money, but for lack of mechanisms that enable them to do so.
The other thing to consider is that while payment options are developed for Latin American players, you will probably be dealing with the small elite in those countries. Most Latin American countries are harshly stratified; they have small elites, a lot of poverty and a fluctuating middle class. For now, the online gambling industry has to target the upper and middle-upper classes of the region. This means that you should know the audience well so that your marketing campaigns and advertising are appealing to them.
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In order to deposit at an online casino, people need an international credit card and a bank account that allows them to transfer funds to and from other countries. This is not common in Latin America as only a tiny portion of the population manages to travel outside of their countries in their lifetime, and minimum wages in most of the Latin American countries don’t meet the requirements of a credit card.
A lot of industry entrepreneurs are trying to design payment options that are convenient for the average Latin American online gambler. Some ideas are pre-paid online gambling cards, but that still leaves out the issue of withdrawing funds. Once this challenge is overcome, any affiliate will be able to profit from the Latin American market as this is perhaps the biggest challenge the industry faces in that region today.
In case you missed it, read about online sports betting in Latin America.
In The Meantime…
While everyone is waiting for solutions to these challenges before stepping onto the Latin American market, I suggest that you start looking for solutions of your own. Start reading up on your knowledge! For instance, check out Costa Rica’s gaming regulations. Payment options won’t appear magically and if you are interested in the profits waiting for you in Latin America, then you should definitely start taking steps in that direction. Learn Spanish, and even Portuguese if you like, participate in our forum’s discussions on gambling legislation in the region and discuss ideas to head the industry in that direction. There’s nothing to lose and a lot to be won!
As part of your Latin American immersion, this is a song that tells a lot about the culture and the beauty of the continent. This version has English subtitles for those who don’t speak Spanish. Hope you enjoy it!