iGB Intelligence reports | Page 38

Chapter 2: Market overviews 2.2.2 South America Major online betting operators, South America Market Operators South America SBOBet, Betboo, Betsson, 888, Miapuesta (Sportingbet) SNAPSHOT South America Largest population Brazil Largest income (by av income/PPP) Argentina Largest GDP Brazil Best economic outlook Brazil Highest TV households (% penetration) Colombia Highest broadband penetration (by number of users) Brazil Highest mobile penetration (per 100 inhabitants) Argentina Biggest gambling market (by value) Costa Rica In 1949, the anthropologist John Cooper provided an overview of the prevalence of games and gambling among indigenous Latin Americans. In pre-colonial times, gambling was primarily limited to two areas in the west: one in present‐day Peru and Ecuador, and the other farther south in the Araucanian region (in present‐day central Chile), among the Picunche, Mapuche, and Huilliche peoples. In addition, gambling is documented only among a few scattered peoples in the north; Cooper mentioned the Otomac (in Venezuela) and the Chibcha (in Colombia), but there might have been a few other peoples in this area who bet on rubber ball games. On the Caribbean islands, gambling, in the form of betting on ball games, was present among the Taino of Hispaniola. Cooper concluded, concerning the relatively few Latin American peoples who gambled, that: “All these peoples, except perhaps the Mapuche‐Huilliche and Otomac, took their gambling gains very lightly.” Looking at modern Latin America, the region has 33 countries with a total population of around 590 million that dedicates a large proportion of its income to gaming and gambling. Land-based gaming and gambling activities have traditionally been closely linked to the tourism industry and Latin America is a region that continues to successfully attract tourists every year. The Latin American gambling industry has grown consistently over the last 10 years and if regulatory issues are resolved in the major markets there is serious potential in such a vast region. Evaluating the exact value of the igaming sector is difficult because it is largely unregulated at the moment, but H2 Gambling Capital forecasts that it could reach €900m by 2020. Increased access to broadband has been one of the key factors behind the region’s growth in gaming although there remain wide differences in broadband use among countries. While some countries including Uruguay, Chile, Argentina and Mexico have fixed broadband penetration ranging between 11% and 30%, others countries, including Haiti, Paraguay, Nicaragua and Cuba have particularly low penetration. Generally, higher broadband penetration can be found in the southern countries while the lower rates are prevalent in Central America and in the poorer countries on the northwest coast and interior of South America. The region still suffers from insufficient bandwidth (leading to expensive and slow services), though a number of new cables, particularly from landings in Brazil, will improve the situation during the next few years. Digital Sports Betting 31