I.M. Round Table | Sports Betting in Latin America

17 February 2009
Jeanette Kozlowski:
    Welcome to first part of an IGamingNews round table discussion on trends in sports betting in Latin America. Two experts on gaming in the region join us today: Maximiliano De Muro, chief executive and founder of Latin Interactive Gaming Ltd., and Almir Ribeiro, owner of Betboo.com.

    Greetings gentlemen. Let’s get started.

    Many in the industry view Latin America as a major emerging market. As members of this market, where is the epicenter -- within the market, what area promises the most potential growth in sports betting? And why?

Mr. Ribeiro:

    Brazil and Argentina are definitely the main market. They are the main market in terms of Internet penetration, economic potential as well as in terms of population.

    Brazil is almost 50 percent of the Internet penetration in South America. Argentina receives a huge approach from Bwin and Victor Chandler regarding sports betting, and it is the second country in terms of economy and Internet.

Mr. De Muro:

    I agree with Mr. Ribeiro. Also, I will add Mexico, Chile and Colombia.

Mr. Ribeiro:

    I agree with Mexico, too. It’s a very big market, but very difficult to enter.

Ms. Kozlowski:

    What are some restrictions you've seen in certain regions that have stymied business growth?

Mr. Ribeiro:

    I would say payment methods and customer service.

Mr. De Muro:

    In Latin America, we have a lack of legislation for online gaming. This is at a country level.

    Some payments companies are entering Latin America, but it is very difficult to set up a 100 percent reliable method for now.

Mr. Ribeiro:

    It is very difficult to operate without local payment methods in South America. Some countries do not have the culture of using credit cards to make purchases on the Internet, but now companies like Citadel and Neteller (Neovia) have started to look at approaching these customers.

    And the international credit card is very small in percentage is some countries like Colombia, Peru and Venezuela.

Mr. De Muro:

    E-commerce is still growing, and the interest in online gaming is growing as well. So, many operators must keep an eye on it because the market will be regulated in a near future … especially in the main countries like Mexico.

Ms. Kozlowski:

    What methods do your sites currently use?

Mr. Ribeiro:

    We use local methods like local bank transfers, EntroPay and others (but you have to use local methods to reach success).

Mr. De Muro:

    Some financial institutions are forbidding all the transactions related to online gaming. Venezuela is a good example.

Ms. Kozlowski:

    Regarding legislation in Mexico, you think regulation will favor online gaming or restrict it?

Mr. De Muro:

    It will favor online gaming because they have a huge interest on it as well. Last year, Playtech made an agreement with a huge Mexican group to reach people on and offline.

    People = Audience.

Mr. Ribeiro:

    Our focus is much more South America, but the information we have is that it may be approved in Mexico.

Mr. De Muro:

    Mexico is also a huge market with lots of land-based culture.

Mr. Ribeiro:

    Exactly.

Ms. Kozlowski:

    Moving right along, tell me some factors that have played into your successes in Latin America?

Mr. Ribeiro:

    I’d have to say customer service and local payment methods. South America and Latin America have their own needs. Customers need very close and personalized support.

Mr. De Muro:

    Players in Latin America want to stay in touch with local people from (if possible) his own country.

Mr. Ribeiro:

    And it changes from country to country, though most speak Spanish. They speak the same language but have small differences.

Ms. Kozlowski:

    So, how important is product localization?

Mr. De Muro:

    Referring to loyalty, customer support and all these issues related to communications between customer and operator, if you're not local, you'll fail in your goals, probably. This is because the Latin culture is quite different than Scandinavian or North American culture.

    For example, it is not logical if you have a site for Brazilians, and you have all your information in English from the U.K., or the site is in "Spanglish" with some words in Portuguese. This is not good. It is not logical; it doesn't make sense.

Mr. Ribeiro:

    And there is a big difference when you deal with Brazil. In our opinion, it is important to develop some games for the specific cultures. It is very important you offer what people are used to playing.

    For example, video bingo in Brazil is huge... roulette in Argentina... quiniela (kind of lottery) in some countries.

Mr. De Muro:

    And some local card games, too.

Ms. Kozlowski:

    From what you are saying, it seems like some operators want to tap into the market, but are doing it in a pretty sloppy way.

Mr. Ribeiro:

    In my personal opinion, it is almost impossible for you have success here if you manage it from Europe without any key people in the region.

Mr. De Muro:

    I agree with Almir 100 percent. You need *at least* need a country manager -- even for your marketing purposes -- living in the country you want to tap out.

Click here to read the second part of this round table on Latin America.




Jeanette Kozlowski is a staff writer for IGamingNews and manager of Clarion Gaming's Gaming Industry Media portal. She lives in Kirkwood, Mo.