Next week sees the start of one of the most exciting European iGaming events this year, SBC Barcelona — taking place from 20th – 22nd September.
The event will serve as a dynamic hub, purpose-built for global leaders in sports betting and iGaming to assemble and discuss the future of the industry, exchange knowledge and build powerful connections.
Gonzalo Rossell, CEO of leading Peruvian operator La Tinka, will be one of the many top-tier speakers partaking in the Barca summit. IGF caught up with Gonzalo to understand why events like this are so important for him to be a part of and, most importantly, ask how the audience will benefit from attending his panel session.
Why is it so important for you to make the long trip from Peru to attend a show like SBC Barcelona? What do you hope to achieve by attending?
“The Peruvian market will soon be regulated as the bill is already in the process of being approved. That means that we will finally have clear rules and will be able to increase our investment to maximize our company´s value and comply with the applicable regulation. To do that we need to understand the latest trends, meet the best providers and talk about potential learning opportunities with other operators. Events such as SBC Barcelona are key to achieving these goals.
“We believe that not only Peru has great potential, but also the wider Latin American region. We view the European market as a key centre for innovation and find events like SBC Barcelona a great opportunity to assess developed market trends and evaluate how they can be implemented in Peru and across Latin America. For example, given recent regulation, understanding and learning from the European markets that have been regulated for a long time will help us navigate our own journey towards a fully regulated market.”
What are some of the key topics you plan to focus on during your panel session at the Conference? What key learnings will attendees hopefully walk away with?
“The key learning is that Latin America represents the next big opportunity. It is a market that is either recently regulated, or undergoing regulation – literally as we speak. Hence, in the next 6 to 12 months the region should emerge as a fully regulated market with a global player presence. What a great opportunity for growth.
“That said, the region has its nuances, and they need to be understood to tap its potential. For instance, the Latin American client mostly focuses on football. In Peru, where I come from, 90 per cent of bets are allocated to this sport. That means that to have an attractive value proposition, our football markets need to provide depth, as well as a width of alternatives.
“Another important market characteristic is the mix between retail and online. Even more nuanced are the differences that exist between data plans and how they affect our clients who access a website or download an app. Understanding all the market dynamics will determine who gets the biggest piece of the pie.”
Peru is still a relatively young online gaming jurisdiction, compared to more established markets in Europe. What will it take to reach similar levels of online/mobile penetration while still having to compete with the hugely popular retail sector?
“La Tinka operates both in the retail and online sector and, in our view, both channels complement each other to offer the best value proposition to our clients. We don´t see the online sector as a substitute of the retail experience. Rather, it is a compliment to what our shops offer.
“The gaming experience in Peru, and in most of Latin America, continues to be a social experience where customers like to engage with each other at the retail shops La Tinka and other local operators manage. They even use their mobile phones within the shops, demonstrating that they know how to interact with online and retail simultaneously.
“As a result, we view the future as the integration of online and retail. The best operators will be those that manage to offer the best seamless experience between online and retail. The market will continue to develop in this direction and La Tinka will continue to invest in its online presence as well as its social retail platform.”
Which gaming verticals do you expect to offer the best opportunities for growth going forward and why? For example is it live casino, in-play sports betting, mobile casino, esports or something else?
“Given the Peruvian market is still relatively young, new product categories will offer the highest growth rates. For instance, the introduction of esports betting and new types of markets will likely offer the fastest growth. That said, the Peruvian and Latin American market will continue to develop around football-related bets. The operators present in the region need to explore product offerings that directly or indirectly benefit from football´s popularity.
“We have also seen that live casino and other online instant games can attract a new client base not always engaged with football. This new market space is under development and, although it is experiencing high growth, it is too early to tell if it will surpass at some point football´s popularity on a comparative NGR basis.”
After hearing from Gonzalo, it’s easy to understand why there is so much buzz around Latin American growth opportunities, especially in countries like Peru.
However, as with any regional market, it’s important to understand the subtle nuances that can make all the difference to an operator’s chances of real financial success.
By attending Gonzalo’s session next week, you will be able to get an insightful view into these important market penetration factors, helping you to expand your operations with confidence.
It’s surely a session not to be missed.