Lottery Feature in LATAM on Betbazar's view

With the popularity of online lottery betting expected to explode in Latin America over the next few years as formal legislation continues to take shape, we caught up with BETBAZAR’s Chief Operating Officer, Max Sevostianov, to discuss everything operators need to know before adding this increasingly popular vertical to their product line-ups

I think it’s fair to say that the cat is now pretty much out of the bag when it comes to the potential of regulated online gambling in Latin America. With major markets like Brazil, Peru and Chile all set to follow in the footsteps of Colombia, Mexico and Argentina by launching comprehensive licensing regimes throughout the year, online gambling revenue in the LATAM region is forecast to quadruple in size and reach $6.75 billion by 2027 – and in a continent where bettors believe strongly in tradition and heritage, the rise of online lottery will undoubtedly play a big role in that.

Already an established part of the in-person betting culture in thriving markets like Mexico, the trick for operators looking to tap into the LATAM lottery buzz will be understanding how to successfully convert legacy retail bettors into returning online customers. Of course, it goes without saying that this is a multi-faceted process that requires both time and extensive market research, but for my money there are four big considerations that all operators should make when looking to establish their brands in the region – trust, technology, localisation and collaboration.

Given that most countries in the LATAM market already have their own national lottery system – usually comprising of official operators, designated content providers and more – it’s important that operators work within that structure to establish similar levels of credibility online. The provision of clear and transparent online lottery regulation in emerging markets like Brazil will be a significant step when it comes to gaining bettors’ trust, but operators will need to go above and beyond this by also showing their commitment to responsible gambling and fair practice as well.

In addition to that, operators should also look to enhance their reputation and credibility by attaching themselves to some of the social projects that various national lotteries have become synonymous with. As part of the appeal of these lotteries to customers is knowing their money will be reinvested in the community, operators can enhance corporate social responsibility by ensuring a portion of their revenue is similarly redirected – and in this way, they’ll be able to raise their standing with recreational players who see lottery betting as more of a community support.

Once trust in a market has been established, the next big priority is to ensure that those looking to move their lottery betting online have the necessary tools to do so. As of April 2024, it was reported that over 70% of the population in Latin America own a smartphone and that internet penetration was similarly high at an average of almost 69% in the region, meaning that mobile betting will invariably account for a significant portion of all online gambling revenue in the market. As such, it’s likely that this will also be most customers’ preferred platform for online lottery as well, meaning services should be developed with a mobile-first approach that enables users to buy tickets and watch draws wherever they are.

In terms of the product itself, lottery is fundamentally a simple, low-risk game and operators should not lose sight of this fact if they want to retain their online audience. The priority should be to streamline the process of entering draws, tracking results and collecting winnings to the point that it becomes more convenient than in-person betting. Once that’s done, they can explore further opportunities to enhance user engagement such as offering additional draws and instant-win games – for instance, those that are tied to sporting events for additional cross-sell potential.

Now it goes without saying that in a region as culturally diverse as Latin America, player tastes and preferences will differ substantially from market to market – and for this reason, it’s vital that operators do their due diligence and research when it comes to localisation. If we’re talking about a stable business that has already been operating a different product in the same market, they should already have a wealth of data to draw on, but for those who are looking to launch directly in a region with their online lottery offering, understanding their target audience is absolutely vital.

In my opinion, operators need to appreciate that the demographic that enjoys lottery games is diverse and covers a lot of age groups and social backgrounds. Deploying multi-channel marketing strategies within a region will therefore be necessary to maximise their exposure and ensure they are connecting with as wide an audience as possible. For new lottery players and older participants who typically conduct their betting in-person, education about the product is also important – and this can be improved by teaming up with retail businesses and their partners. 

Essentially tying the three previous points of trust, technology and localisation together, operators that form strategic partnerships with local retailers or national lottery operators in the market they’re targeting stand a much better chance of transitioning offline lottery players onto their platform. Not only do these collaborations help to build up the legitimacy of an operator’s offering, but they also open the door to creating hybrid online/offline betting models that can potentially bridge the gap with older audiences who otherwise wouldn’t be aware of their product.

As touched on previously, partnering with charities and non-profit organisations in a specific market can also enhance an operator’s reputation and increase participation from customers who are passionate about these causes, as can teaming up with local sports teams for special promotions that are tied to certain events. By taking such an approach and really integrating themselves within the local culture and infrastructure, operators can ensure their product is not only being seen by a wide audience, but also being seen to give something back to the community.

Having now considered the four main factors that I believe will be most crucial to infiltrating the online lottery sector in Latin America, the groundwork operators will need to do in order to tap into this huge emerging market should be clear. Though the target audience undoubtedly differs significantly from traditional sports bettors and online casino players, the fundamentals of building trust in your product, simplifying the user experience and forging close relationships with local businesses all apply; and operators who do all this will be perfectly positioned to succeed.