Whilst Latin America has long been a promising region for the iGaming industry, the market is still undersaturated. This means smaller outfits are able to use this “newer” market as a way to establish themselves and grow market share, a much easier route than having to win it from competitors - cementing the region as a major opportunity for iGaming operators, big and small. There are many aspects for operators to consider when tackling this vast market; with a special focus on Brazil, we've broken down some of the key considerations below.
The potential market size is continuing to grow
As more countries in Latin America either legalise or regulate gambling activity, growth in the sector is picking up pace. Brazil stands out as being particularly ripe for the taking - commonly referred to as the “sleeping giant” by many in the iGaming sector, this Goliath has already shown signs of awakening. Sports betting was recently legalised in Brazil, with regulation currently being discussed in Congress.
Another factor contributing to Brazil's potential, is that internet penetration has been growing rapidly (currently around 75%), and with a high concentration of people living in urban areas now with improved communication, it’s clear why Brazil is becoming a huge market.
The future of crypto looks strong in Brazil
Another promising aspect, is that digital asset ownership in Latin America and Brazil is already high and is set to grow further. A recent Crypto Pulse report by Bitstamp found that Brazilians maintain a bullish stance on cryptocurrency, with 77% declaring their trust in digital assets. This is likely due to the desire from the Brazilian people to have more control of their funds, and the fact that some Latin American countries are exposed to very high year-on-year hyperinflation. Hyper accelerated crypto adoption is common in countries with a volatile economy. Dollar-pegged stablecoins and digital assets have become increasingly attractive, as some Brazilians try to hedge against the steady depreciation of the Brazilian real against the U.S. dollar.
Accepting cryptocurrency payments has become a necessity
With the race for iGaming dominance in Brazil well under way, finding ways to offer an experience superior to competitors is important if merchants are to gain market share. Offering crypto payments, using popular stablecoins on cheap and fast blockchains, will be a major piece of the puzzle. USDT (on the Tron blockchain) and USDC (on the Solana blockchain) are highly popular in Brazil, and their low fees and fast transaction speeds make them exceptionally attractive for payments.
Partnering with the right crypto payment processing partner like Orbital, will make offering the best stablecoins and blockchains much easier. Add in a solid acquisition and bonus strategy to incentivise digital asset usage, a slick interface and unbeatable payment page design, and merchants will soon see reduction in payment costs as their players switch over to crypto payments. Resulting in happier customers and happier operators. A win-win!