Established in 2015, PG Soft is an iGaming content supplier renowned for creating innovative and breakthrough games.
Already successful in Europe and Singapore, the brand now has its sights firmly set on conquering Latin America, where it is making a lasting impression through localised game themes, knock-out maths models, and cutting-edge graphics.
In this exclusive tête-à-tête, Curtis Roach, iGF’s Head of Content, and Ken Zhang, PG Soft’s Managing Director, discuss the brand’s approach to the region, their future expectations, and the differences between Latin American and European players.
Whether you’re a game developer or an industry executive, Ken’s insights into the Latin American market are invaluable.
What are your thoughts on the progress of regulation in LatAm? How long before it reaches similar standards to its counterparts in more mature regions such as Europe, and what will it take to get there?
“Regulation across Latin America is gathering momentum, with several important countries taking big strides forward in establishing comprehensive regulatory frameworks for the iGaming industry.
“Colombia fully regulated its online gaming market in 2016 and has been the standout example ever since. They introduced a robust and clear legal framework to protect players whilst also allowing operators to grow their business with a single licence.
“Argentina is showing signs of substantial progress by opening up provinces like Buenos Aires and installing strong regulations.
“However, the picture becomes a little more complicated when you compare Latin America to more mature markets like Europe, as there are still significant gaps. European markets have benefited from years of regulatory developments, resulting in thorough player protection measures, high levels of market transparency, and well-established regulatory bodies.
Latin America is still a comparatively nascent market, going through the initial stages of regulatory development, and there is a lack of consistency across the region.
“For Latin America to pull level with Europe, countries here need to keep working on improving the processes. It’s hard to say for certain, but this could take anywhere from five to 10-years, depending on the political and economic stability of the region.
“Some considerations to help build momentum would be rolling out comprehensive legislation that covers all aspects of online gaming. This can be achieved by setting up independent regulatory bodies to oversee the enforcement of the rules. Once these are in place, then regulators and industry stakeholders need training to understand and implement best practices. Technology is another factor that will help the regulatory bodies who have a tough task monitoring and enforcing regulations effectively.
“Like technology laying a solid foundation for advancement, the political landscape must also be without instability and economic fluctuations. The massive demand for online gaming, combined with advancements in technology, provides a fertile ground for regulatory and market improvements. With sustained effort and investment, Latin America can pull level with Europe.”
What LatAm markets are you most excited about?
“Brazil, Mexico and Argentina are three markets that we’re particularly optimistic about in the region.
“Brazil has long been regarded as a brilliant opportunity thanks to its population of over 210 million, technology penetration and a rapidly growing middle class. Recent progress in regulating land-based and online sports betting signals a major shift in the market dynamics. Once the regulatory framework is fully implemented, Brazil could become one of the largest iGaming markets globally. Additionally, the country’s passion for sports, particularly football, makes it a prime target for sports betting operators.
“We also have eyes for Mexico as it has a well-established gambling industry, and the regulatory environment has been evolving in the right manner. Boasting a population of approximately 130 million and a deeply ingrained culture of online and offline gaming, the existing regulatory framework–combined with economic stability and a high internet penetration rate–makes Mexico a very attractive market for iGaming operators.
“Then Argentina has many of the characteristics of the previously mentioned countries. A solid regulatory framework exists, and Buenos Aires serves as a model for the rest of the country. After seeing the National Lottery monopoly end in 2018, Buenos Aires Province was among the first to regulate online gambling in March 2019. With the population of around 46 million people and more provinces following the capital’s example, there is scope for scaling up in Argentina.”
How different are LatAm player preferences from European players? And how does this influence the type of products you are offering within the market?
“European and LatAm player preferences differ considerably thanks to influences from cultural, economic and social factors. Quite simply, not appreciating these factors when it comes to game ideation–and creation–is a recipe for failure.
“If we look at the region’s cultural influences, it’s clear that football plays a massive role in Latin America. The sport is immensely popular and is practically a religion for its followers. This drives major demand for sports betting, particularly on local leagues and major international tournaments, like the Copa América. While football is no doubt popular in Europe, there is a far greater and more diverse interest in sports like tennis, rugby, and cricket.
“From a casino games standpoint, our research reveals there is a strong preference for traditional casino games like slots and table games; although there is a twist towards local themes and stories. Additionally, lottery and bingo are particularly popular in countries like Mexico and Brazil. European players, on the other hand, have a more diversified interest in casino games, live dealer experiences, and poker.
“Another takeaway from our extensive exploration into LatAm markets is that these players are generally more inclined towards placing smaller bets, more frequently, partly due to economic factors. Mobile gaming is also more prevalent in LatAm, driven by the high penetration of smartphones and the increasing availability of affordable mobile internet.
“In Europe, while mobile gaming is also popular, desktop usage remains significant, particularly for more complex games like poker and strategy-based games.
“Being armed with these data points and analysis has allowed PG Soft to make meaningful adjustments to our product offerings in the LatAm market. A core focus is developing games with local themes and culturally relevant stories to resonate more with LatAm players. Two recent examples are Chicky Run being set on the streets of Rio de Janeiro, and Futebol Fever – both games have been very well received since launch.
“Mobile is our expertise, so we need to ensure our games can be enjoyed on all devices and are fully optimised for mobile use to accommodate the high mobile penetration rates. We also provide a variety of local payment methods, such as cash-based systems and local e-wallets, to facilitate easier transactions for players.
“Looking ahead, as a company, we’ll constantly be monitoring and adapting our growth strategy to ensure we’re engaging with players.
“Market research will continue to receive considerable investment as it’s vital to be agile to deliver changes quickly. The regulatory challenges will always exist, and our Compliance teams will keep their finger on the pulse with requirements to ensure all our games meet the stringent but necessary requirements. Understanding and catering to these unique preferences means PG Soft is positioned to serve the LatAm market and drive growth in the region.”
What does the future hold for PG Soft in LatAm? What are the best opportunities for PG Soft to grow in this region?
“Thanks to our extensive work in understanding the region before launching here, we have established strong roots, and those efforts are paying dividends. With the foundation in place, we’ve created a portfolio of innovative and engaging gaming solutions that resonate with players.
“These solutions have rapidly gained popularity thanks to the high-quality graphics, engaging storylines, and mobile device compatibility in LatAm.
“Our longer-term outlook is to become a leader in providing mobile-first gaming titles that meet the unique preferences of LatAm players. We will deepen our market penetration and expand our player base by innovating and adapting our offerings.
“As mobile penetration gains more momentum, it will present a significant growth opportunity. We see tremendous potential to engage with a larger share of this market by developing mobile-optimised games that offer a seamless experience.
“Another key element of our approach is to launch games that are inspired by local themes, culture, and folklore, which will help us make a lasting connection with LatAm players. This approach not only enhances player engagement but also nurtures loyalty to the PG Soft brand.
“When more countries make steps towards regulation, it helps set out a clear framework for PG Soft to follow. These moves create more opportunities for legal and compliant market entry to construct a safer environment for investment and growth.
“Of course, countries have different regulations, and Compliance is a complex matter. We will work closely with local legal authorities to guarantee the correct Compliance parameters in every market of interest.
“As our presence amplifies, we’ll collaborate with more local operators, payment providers and marketing consultancies that can help us navigate the regional nuances to effectively reach our target audience.
“Focusing on mobile gaming, localised content, regulatory compliance and strategic partnerships, we are perfectly positioned to seize the growth opportunities and strengthen our presence in this vibrant market.”
Editor’s Note:
Most multinational gambling brands are focusing on Latin America’s emerging iGaming industry. But what does it take to succeed in this market?
In Ken’s view, the foundations of success for game creators in LatAm are thorough research, understanding local conditions and preferences, and staying agile to market changes. This approach ensures suppliers are well-prepared for the unique challenges and opportunities in the market.
Ken emphasises the significant differences between European and Latin American players–including bet sizes, frequency of play, mode of play, and game preferences–, noting that transferring content from one region to another won’t work because of these differences.
Based on his experience, brands must create products that align with local tastes, culture, and patterns of play. He cautions that not doing so is a “recipe for failure”.
Which LatAm markets is PG Soft most excited about?
Like many other brands, Brazil, Mexico, and Argentina offer the most compelling prospects due to their large populations, love of sports and casino games, and high mobile penetration rates, complementing PG Soft’s mobile-first ethos.
Does Ken believe the Latin American gambling industry will catch up to Europe?
Not in the next five- to 10-years, unless concerted efforts are made to establish clear regulations covering all aspects of online gambling.
Even then, he sees the region’s success contingent on political, regulatory, and economic stability.
