Playtech’s Responsible Gambling Report: New Consumer Insights in LatAm

The Latin American (LatAm) market is often regarded as the next big thing in the iGaming industry. This region has seen a significant increase in its online gambling sector, with most countries legalising some form of online wagering. However, despite this growth, there remains a complex web of regulations that vary from country to country and even within individual states, such as Argentina.

Despite these challenges, LatAm continues to be viewed as an area with immense growth potential. With a large population and a smartphone adoption rate of 73%, according to GSMA's Mobile Economy report for 2021, it is no surprise that this region is considered a prime destination for slots and casino operators. Additionally, the deep-rooted passion for sports further makes it fertile ground for a safe and responsible gambling sector to flourish.

The development of AI technology offers an excellent opportunity for the industry to tackle the issues of problem gambling at root, according to the report.

"The industry should consider how technology can help identify key at-risk behaviours and identification with personalised interactions. Further, the industry should ensure it is equipped to provide signposting and assistance to players who are identified as high-risk. It is the role and responsibility of the industry, collectively, to invest and offer effective tools and information to protect players online."

Examples of such AI-powered tools could include flags on player accounts engaging in unhealthy betting patterns, a more sophisticated live support team, and improving money laundering identification.

Politicians Already Weighing In

In Brazil, the biggest country in Latin America, the understanding of the wholesome benefits of regulated gambling to broader society are well understood by those in power.

In the study, José Francisco Cimino Manssur, Special Advisor to the Executive Secretariat of the Brazilian Ministry of Finance, said: "The importance of Regulation and Responsible Gaming in the betting industry is becoming more evident every day. Through our efforts to regulate the sector, and with effective implementation of strong, Responsible Gaming practices, the players will experience a healthy, socially responsible relationship with due protection so that any undesirable residual risks of gambling are removed, transforming the experience into something truly pleasurable."

It is unsurprising to see politicians begin to get involved in the debate. According to forecasts by regulatory intelligence body Vixio, a regulated sports betting, casino, and bingo market in Brazil would be worth almost $3 billion in revenue by the end of 2027, and would rise to the top of the largest markets in the world.

James Kilsby, chief analyst for Vixio and a co-author of Vixio’s Latin America Online Outlook report, said: "Recent activity in Brazil’s Congress has sharpened minds across the global industry as to the potential of this major new market."

This latest report by Playtech indicates a significant growth in the LatAM industry, with almost 70% of respondents engaging in betting activities over a six-month period. This is a considerable increase from the previous report, which recorded only 53%. As the market expands, there is also an increasing focus on implementing know-your-customer (KYC) procedures to ensure responsible gambling practices.

This trend is not unique to Latin America alone. With Europe already placing a high emphasis on KYC measures, it is only a matter of time before it becomes standard practice for players in the South American region as well. As more countries regulate their gambling markets, there will be heightened scrutiny and interest in how operators are safeguarding their players.