Why most iGaming projects don't survive in LATAM and how to get among the successful ones.

Anatoly Odintsov, Head of Product FinTech & iGaming | Ride-Hailing | E-Com.

The Latin American market looks simple on paper, but in practice it is a minefield. Below are five typical traps that almost everyone entering the region for the first time falls into.

• 1. Trying to compete without weighty budgets.
  The phrase «Let's make a quality product and win» sounds naive. The reality is this: there is a war of attrition. The big operators are spending over two million dollars a month on marketing in one country. Bet365 and Betano are buying out top influencers, burning out advertising platforms, sponsoring soccer clubs. Without a budget of at least three hundred thousand dollars per country for six months there is nothing to do. You need either money or a narrow niche.
• 2. The unresolved problem of trust.
  The market is overflowing with fake products and «fake» brands. Users lost money, faced data leaks, casinos disappeared. Simple advertising doesn't work - trust needs to be built through Influencers with real reputations and years of community building. One post of the right Influencer can replace a month of classic marketing.
• 3. lack of a calculated unit economy.
  The illusion of «the market is huge, we will make money» is costly. Reality includes licenses, taxes, rising costs of attracting clients, payment system commissions. LTV may not cover the costs. You need to calculate everything before you start: if the economics don't add up, it's better not to go in. A week of calculations can save half a year's budget.
• 4. lack of necessary payment methods.
  Visa and Mastercard do not operate in the same way in all countries in the region. Each country has its own local players and solutions. The minimum is PIX (Brazil), SPEI (Mexico), Pago, cryptocurrency, and global tools like Apple Pay and Google Pay. If a top-up takes longer than 58 seconds, the customer leaves.
• 5. Universal approach.
  The formula «it works in Mexico - it will work in Argentina» is ineffective. A one-size-fits-all approach to different countries does not work. Each country is unique. In Mexico, boxing, luchadores and family are important. In Brazil, soccer and samba. In Argentina, it's the cult of local heroes and Maradona. Universal creatives are failing. Deep localization is required: trends, cultural codes, mentality.

Bottom line.
Each mistake costs tens of thousands of dollars and months of lost time. The key success factors are sufficient budget or niche, trust through influencers and grids, calculated economics, local payment methods and deep localization.

LATAM is a tremendous opportunity for those who approach the region with intelligence and resources.

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