Although many trends from the US and Europe slightly delay hitting Latin American countries, the market is exceedingly important to many local and global players.
While online gaming is already well established in these parts, the enthusiasm in countries like Brazil and Argentina was only really ignited during the exceptional situation of the last two and a half years.
Although the closure of many leisure activities during various lockdowns also caused a boom in this country, a real gaming fever has broken out in Latin American countries.
Virtual gaming houses are playing a special pioneering role in this context.
SOUTH AMERICA’S GAMING INDUSTRY IS BOOMING
With a population of around 441 million, the southern part of the American continent is also of great economic importance.
While the gaming industry in countries such as Brazil used to count classic console gamers among its potential customers, online gaming is taking up more and more space.
Since 2021, a sharp increase has been observed, which is also due to the particular circumstances and associated restrictions on social contacts and conventional leisure activities.
The example of Brazil serves as a gauge of trends in statistical surveys on the subject.
The most populous country in the Latin American region has long been a hub for the gaming industry.
Many developments in the region, therefore, originated in Brazil.
One significant boom is the growing enthusiasm for eSports.
While there were 7.6 million active players in 2018, around 12 million Brazilian gamers now pass the time playing online games.
The rapid increase clearly shows the potential of the South American market for developers and publishers.
However, the winners include large gaming corporations and increasingly smaller indie studios.
Another Latin American country where gamers particularly like to gamble online in Mexico.
Due to its proximity to the US, the country is attracting more developers, making Mexico indispensable as a location for the gaming industry.
Across the continent, the industry can currently generate over US$5 billion annually.
ONLINE CASINOS CONQUER THE MARKET
Many offers originate from local think tanks.
One reason for this is the sometimes high import duties, making it easier for regional developers to establish their own products on the market.
Virtual casinos represent a share that should not be underestimated.
The South American market for online casinos offers gambling fans from all over the world attractive virtual gaming venues and shows great potential for development studios based in the southern part of the continent.
In Germany, it is necessary to have a corresponding German or a European-wide license, but in Latin America, the laws vary from country to country.
Some of the best casinos without a German license today are located in Curacao, Mexico, and Brazil.
But the iGaming boom has also become an absolute godsend for traditional Argentina, Colombia, and Chile studios.
Although these countries are still far behind industry giants such as Brazil and Mexico in their market shares, some titles have celebrated real surprise successes in recent years – and across continental borders.
The partly very liberal Latin American gambling laws, which give providers much freedom, are also advantageous.
THE CLONE CONSOLE BUSINESS
Especially the already mentioned customs regulations have often not made it easy for Latin American gamers.
It was much harder to get a current console from Sony or Nintendo than in North America or Europe.
If they were available, import duties would drastically increase the price.
However, local producers recognized the potential and imitated the business model of large console manufacturers and their products.
The age of clone consoles produced some highly sought-after gaming systems like the Phantom System, now one of the classics.
Manufacturers cooperated with regional suppliers to keep a piece of the pie.
In this way, the Sega Master System, for example, could be produced locally and thus offered at an affordable price.
Other console sizes followed, but a noticeable release delay accompanied this sales tactic.
As a result, many last-gen models were considered big sellers in South America not so long ago.
NFT GAMING AND PLAY-TO-EARN TAKE OFF
In the gaming industry, trends rarely come alone, so blockchain technology is also shaping regional gaming in South America.
Along with India and Hong Kong, South American countries are among the hotspots for concepts such as play-to-earn and NFT gaming.
Behind the Play-to-Earn slogan hides a very attractive model to many gamers, which remunerates invested game time or achievements with tokens of specific cryptocurrencies or NFTs.
These rewards can also be converted into fiat currencies through digital marketplaces and crypto exchange sales.
Sometimes the term NFT gaming is used as a synonym, although this buzzword covers all gaming concepts that use NFTs.
eSPORTS AS AN EXPANSION DRIVER
The eSports segment is one of the most important factors driving the gaming industry’s rising revenues – worldwide.
This is all the more true for Latin American countries.
Brazil alone has around 2,000 active professional gamers, some of whom have impressive track records.
Major eSports events like ESL-One attract thousands of gamers, and gaming influencers are among the national superstars.
YoDa, Alanzoka, and other streamers are particularly successful, with millions of followers watching them play on platforms like Twitch.
The interaction between the industry and social media will likely continue to ensure a growing eSports fan base and even more passionate gamers.
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error