Why Are Emerging Markets Important for the iGaming Industry?

The iGaming industry has experienced rapid development in the last decade, with emerging markets contributing significantly to this growth. As the global gambling landscape evolves and is driven by tech advancements, online gaming is expected to benefit considerably from this transformation. Introducing innovative digital technologies in new markets has opened up even more opportunities.

This article discusses the specifics of the leading emerging markets, their unique characteristics, and their role in the growth of the iGaming industry. We’ll also examine the potential challenges and opportunities for operators and players in these areas.


What are Emerging Markets?
Emerging markets refer to countries or regions experiencing rapid economic growth and development. These economies have often been characterized by a growing middle class, increasing overall income, and more technologies entering everyday life.

From Africa to Latin America and Eastern Europe to Asia, fresh opportunities are emerging for gaming providers and gamblers. These markets are being considered by companies like iGaming.com and other platforms that are shaping the industry with websites that provide transparent and helpful information in different languages.

These regions have just begun embracing online gambling and have shown high potential for fast adoption thanks to the younger population and improved internet access. 
As traditional markets in Europe and America have become saturated, emerging markets promise exciting opportunities for industry expansion. These regions are crucial parts of the world economy, accounting for 50.1% of Global GDP in 2023. Here are some of the major players. 

India

Boasting a population of over 1.3 billion people, 45% of which are below 35 years old, India tends to be a force to reckon with in the online gambling space. The young citizens are tech-oriented and 78% of them use mobile devices constantly.

According to Digital Reports, there are over 751.5 million internet users in the country. Online gambling regulations in India vary from state to state, creating different opportunities and challenges for operators.

Cricket betting is most popular in the country, backed up by the increased usage of mobile phones and affordable internet. Cricket fans and gamblers often follow the World Test Championship (WTC) Points Table  in support of the Indian national team.

Cultural and legal aspects surrounding gambling in the country and the shortage of payment processing options are the main challenges regarding the full-scale adoption of iGaming in India.

However, as the regulatory framework evolves and tech advancements continue, India could become a leading iGaming market globally. Reputable game operators with strategies to navigate the unique challenges of this market can benefit from its vast potential.

Latin America

Latin America, commonly called LatAm in the gambling world, is a vibrant region with massive potential for iGaming activities. Although only a few countries have legalized and regulated online gambling in their territories, there are signs of more extensive growth in this region.

The market will expand as more countries start recognizing the positive impact of iGaming industry on their neighbors. Brazil, Argentina, and Columbia have taken early steps to allow and regulate online gambling, each adopting its own approach.

With a population exceeding 200 million, Brazil is supposed to be a sleeping giant and the largest undeveloped iGaming market in the region. The country is on the verge of enacting a bill that could open up a vast regulated market for online gambling.

Columbia has already allowed regulated gambling and serves as a learning model for other countries in the region. On its part, Argentina has started to allow iGaming activities in some of its provinces.

Sports betting is the most popular iGaming activity in the region, with football dominating the space. The interest in online casinos and virtual sports is also rising. Latin America's iGaming market has been characterized by a growing young, tech-savvy population and increased internet and smartphone access.

Challenges regarding payment processing remain the most significant issue to iGaming in the region. However, the continuous adoption of globally accepted payment methods and cryptocurrencies promises to solve these hurdles in the near future.

Africa

With the youngest population in the world, Africa provides a solid ground for the iGaming industry. Data from the African Union shows the continent has over 400 million young people aged between 18 and 35, a prime population for iGaming activities. Mobile phones are widely used across the region, offering massive potential for online mobile gaming. 

Kenya, Nigeria, and South Africa take charge of this highly-potential area. The Kenyan market is well-regulated, offering various options like sports betting and online casinos. Nigerian iGaming landscape is dominated by sports betting, with football and virtual sports taking center stage. 

On its part, the South African online gambling scene is still at a formative stage, with stakeholders facing legal challenges in their attempt to create laws that allow and regulate the industry. However, their land-based gambling sector is well-regulated, and the government is regularly trying to improve the environment for online gaming activities.

The challenges regarding mobile gambling include various regulations across countries and limited access to traditional banking options. Innovations in mobile transaction services implemented by processors, such as the Kenyan M-Pesa, have been crucial for addressing processing-related issues related to the iGaming sector in Africa.


Drivers in Emerging iGaming Markets

With a predominantly young population and increased smartphone usage, mobile-optimized games are essential in the new markets. The majority of users prefer playing games on their mobile phones.

Innovations in payment solutions are vital in dealing with challenges related to limited bank accessibility in emerging markets. Mobile payment solutions, cryptocurrencies, and e-wallets are bridging this gap.

Partnerships and collaborations between international game providers and local operators are essential for accessing these emerging markets. These partnerships help navigate regulatory requirements and create efficient distribution channels. Successful operators understand the benefits of adapting their iGaming products to local cultural preferences.


Challenges to Market Access

Strict regulations and different cultural beliefs sometimes hamper smooth entry into emerging markets. Operators must be agile and able to navigate the various requirements that exist in these areas. Partnerships with local operators also help in dealing with these regulations.

Competition in the iGaming industry is stiff. Leading operators need to design unique offers to meet local players’ preferences and take a step ahead of their competitors. Responsible gambling is an essential concern in this space, demanding operators implement proactive measures for player protection. This builds trust with regulators and players.

The Future of iGaming Landscape in the Emerging Markets

While traditional markets are reaching their full potential, the growth of the global iGaming industry will boosted by the emerging markets. Latin America, Africa, and India could witness the fastest expansion soon.

Market consolidation is likely to occur as the industry matures, with renowned international iGaming platforms acquiring local small operators to access these regions faster.
Internet connectivity is expected to expand in emerging markets, with 5G technology revolutionizing the mobile gaming experience. These developments would enable the integration of the latest cutting-edge technologies.

Regulations in the new areas where online gambling evolves will become necessary as governments will be willing to benefit from controlling the iGaming ecosystem. This could open up new possibilities for operators, create job opportunities, and boost income by tax collection.


Conclusion

Emerging markets are essential for the growth of the global iGaming industry. Operators and gamblers need to understand the dynamics of these areas to align with the regulatory and consumer demands. By entering these markets, operators could cover a bigger target audience, increase revenues, and stay competitive in the fast-paced iGaming world.