Repercussions of FECOLJUEGOS panel on challenges and the future of industry in Latin America in GAT 2024

FECOLJUEGOS panel: Challenges and the future of the gaming industry in Latin America was one of the conferences highlighted at GAT 2024.

“I believe that the current situation is very particular in Latin America, where there is an excess of regulation. It is clear that in many regulations there are parameters. The norms are elaborated in the sense of proportionality, and here there is an absence of proportionality in the development of the application of regulation. What is happening is that there is an excess of paternalism in some governments, and it is that regulators want to take care of the rights of citizens so much that they quit their own rights”, says Evert Montero Cárdenas, president of Fecoljuegos.

From his point of view, “there is a lack of understanding of the dynamics in these countries, and there is a constant change that exists in relation to legislators that generates problems”, and adds: “Never do legislators consult the most legitimate sectors, as in the case of the sector’s own entrepreneurs”.

After the initial presentation, Montero Cárdenas consults with stakeholders about the panorama and consequences of regulation in Latin America. Here are some of the highlighted points:

Experiences of an operator in Peru and Argentina
“We plan to enter the Peruvian market before the end of the first half of the year. The next target market is Brazil, a complex market, but with great potential, is waiting for the necessary regulations to operate in the country and we are evaluating a long-term business model, with a horizon of 5 to 10 years.

“We now had 60% of the Argentine market thanks to our presence in provinces such as Buenos Aires, Cordoba and Mendoza, we made the decision to withdraw. "And why did we decide to withdraw?" The main reason was that it involved entering each province individually, which was not viable for our business plan. This is due to the costs associated with entry and participation in the market, including taxes on the game, income, online finance and marketing strategies."

Which market to choose?
As operators, we have to decide very carefully where to enter, in relation to the number of operators, the percentage of taxes, etc. In this sense, Peru, Chile and Brazil are the recommended countries. There is also an analysis of the Colombian industry, where there is an important regulation and the contributions of the game are intended for the health of citizens.

What about technology?
The platform must be flexible and adjust to the specific conditions of each market. This is the starting point to start communication and application of technology in the technological community. Technology can be used in several areas, such as responsible play and interaction with customers, especially those who require technological analysis. The real challenge is that an international operator, with the aim of operating in multiple markets, manages to implement itself effectively.

It is essential to carry out strategic planning to determine where we will locate our customers and where we will concentrate our efforts. We must identify in which market we have the opportunity to increase our subscriptions. After obtaining positive results, it is crucial to analyze and decide how to distribute our investment efficiently.