As we valiantly cross the midway point of 2024, there is no doubt that the past years belong to the ‘digital’ landscape.
It feels like all anyone wants to talk about is online, and in the industry’s defence (ourselves included), there has been ample reason to champion this innovative new player space.
In 2023, Latin America reached 434 million internet users, marking a 7% growth compared to 2022. With more Latin American countries establishing strong regulatory frameworks for digital gaming and over half the region’s population now having access to online platforms, the dominance of online gaming was inevitable.
Over the past 18 months, the world has watched as Brazil has enacted the (South) American Dream, fully regulating online betting and gambling, with projections suggesting the market will be worth US$2 billion in 2024. This, combined with actions like Mexico’s ban on slot machines in November 2023, presents significant opportunities for online operators to capitalize on the sector.
With this apparent shift towards digital gaming, questions arise: Are traditional gaming verticals like retail sportsbooks, lotteries, and land-based casinos still relevant? Is there a player base willing to return to these tried-and-true gaming formats?
In short, yes.
With the growing focus on the rapidly expanding online space, it’s easy to overlook the significant progress made by traditional gaming sectors in recent years. South American lotteries are a prime example. A pastime that predates the United States gaining independence, traditional Latin American lotteries have sustained a robust player base, currently numbering 2.5 million across Central and South America, generating over $616 million in revenue.
The upcoming SBC Summit Latinoamérica, scheduled for October 29-31 at the Seminole Hard Rock Hotel & Casino in Miami, will feature a dedicated ‘Lottery, Casino & iGaming’ track, offering a series of educational sessions aimed at deepening delegates’ knowledge of these traditional gaming verticals
This blog post will highlight these panels, offering insights into the various forms of gaming that will be discussed at the event, the influence of the online sector on these verticals, and how they are staying relevant in 2024 and beyond.
Land-Based Casinos
The Latin American region boasts an impressive array of land-based casinos across its various markets, with the highest volume of casinos based in countries such as Peru, Chile, Mexico, Colombia and Uruguay.
In June 2024, Brazil, which has captured the industry’s attention in recent months with its landmark regulation on online sports betting and iGaming, implemented further reforms to its land-based operations. These changes highlight the enduring mass appeal of traditional gaming verticals in the region, even as digital platforms continue to emerge and grow.
For many, the allure of land-based casinos is unmistakable. Stepping into a climate-controlled venue as the technicoloured dreamcoat of innovative slots wash over you, to the backdrop of a symphony of catchy jingles, jackpot bells and fantastic music (especially at the Seminole Hard Rock Hotel & Casino). With the added perks of occasional free drinks (or even massages), the chance to connect with fellow gamers and the tangible thrill of holding a winning hand or pulling the lever of a favorite slot machine; you have an experience that is not only immersive and thrilling but, above all, incredibly fun.
However, as digital platforms increasingly rival the experience of land-based casinos, it has become the industry standard for physical casinos to integrate digital elements into their operations. This allows bettors to place bets seamlessly from the casino floor or through dedicated apps linked to their casino accounts. A notable example is Grupo Slots in Argentina, which launched its online sports betting platform, ‘Jugador Responsable,’ facilitating a smooth transition between physical and online gaming.
With the addition of digital kiosks, cashless payment systems, and digital versions of traditional casino games like Blackjack and Roulette, the lines between digital and physical gaming are becoming increasingly blurred.
The dynamic Latin American gaming landscape is no stranger to change in recent years, and for many casinos, integrating digital aspects is now a necessity rather than just an aesthetic enhancement. To remain competitive and offer the convenience and accessibility that modern players expect, casinos must diversify their offerings and incorporate digital features seamlessly.
To help land-based casinos identify the right digital integrations, maintain their relevance and increase their appeal, SBC Summit Latinoamérica will host a dedicated panel titled ‘Transforming Omnichannel Strategies for the Modern Day’. The panel will feature industry experts Gabriel, Szlaifsztein (General Manager LATAM, Continent 8), Dinos Stranomitis (COO & Co-Founder, Altenar), Fernando Garita (CEO, Betsul), Alejandro Guizar (Senior VP de Tarjeta Presente y Canales, Kushki), Camilo Millon (Sales Director, Kambi) and moderator Seth Schorr (CEO, Fifth Street Gaming), as they explore strategies for brick-and-mortar gambling establishments to effectively adapt to the digital landscape. The panel will feature as part of the ‘Sports Betting & Media’ track, on Wednesday, October 30th.
Lotteries
Traditional lotteries have become a staple of nearly every major gambling market across the world, with its player base showing no signs of slowing down. In the UK, a staggering 70% of the UK’s over 18s take part in the national lottery on a regular basis, which is close to 45 million people, whereas in Latin America, an incredible 25 million people turn out every week to grasp at the chance of winning. For a market still considered in its infancy, this is a tremendous feat.
So in spite of rocky regulations and varying degrees of public opinion on gambling, how have traditional lotteries stood the test of time? A large degree of this public participation can be attributed to the fact that most lotteries are usually regulated and dealt with directly with government bodies, ensuring a fair share of profits gets funneled back to local communities, whilst also ensuring a safe form of gaming. Additionally, in many Latin American countries, the church has a direct stake in the lottery, since only charities sponsored by the church are able to receive a share of the public fund.
With such a high weekly turnout on state and provincial lotteries across the region, it may come as a surprise that many in the industry are seeking ways to enhance their lottery platforms. This can be attributed to a myriad of factors, such as the rise of online lotteries, illegal sites offering better odds and a diverse array of games offered away from traditional government-owned establishments.
With this in mind, SBC Summit Latinoamérica will feature two lottery-focused panels for delegates to glean insights and actionable strategies.
The panel titled “Digitizing Lotteries: Adapting to Modern Approaches to Stay Competitive” will delve into strategies for lotteries to diversify their offerings to attract younger audiences and compete with online platforms. The discussion will also consider whether there is a real need to broaden their audience base or if the focus should remain on their established clientele. This panel is part of the “Lottery, Casino & iGaming” track and is scheduled for Thursday, October 31st, the final day of the event.
Additionally, delegates will have the opportunity to delve into the Brazilian lottery sector through the panel ‘Lotto Insights – Analyzing Brazil’s Lottery Markets.’ This session will feature insights from experts such as Wesley Cardia (Former President, National Association of Lottery Games (ANJL)), Ana Clara Barros (Head of Legal, Sorte Online), and moderator Thiago Balieiro (VP of Compliance & People, Sorte Online). The panel will explore the rapidly evolving lottery landscape in Brazil, where several municipalities are currently structuring lottery frameworks. Within this new scenario, the discussion will focus on the challenges facing the market and how operators can navigate this dynamic environment. The panel wil feature as part of the ‘Lottery, Casino & iGaming’ track on Thursday, October 31st.
Final Thoughts
Whether you’ve embraced the digital age or fiercely opposed it, its impact on the industry is undeniable, with a legacy that will reverberate for the next century. While the rise of digital platforms has forced traditional gaming verticals to rethink their strategies and fight to maintain market share, it has also driven brands to stay current with modern advancements, adopt the latest technology, and appeal to younger audiences.
What was initially seen as a disruptive threat to traditional gaming sectors can now be viewed as a catalyst for innovation. Digital platforms have spurred lotteries, casinos, and sportsbooks to evolve and redefine themselves, ensuring their relevance and growth well into the future.