Finding the winning combination for the Mexican market

Without stating the obvious, we all know that Latin America has been a key market for gaming companies to focus on throughout 2024. From Brazil to Buenos Aires, and Colombia to Peru, it would be an understatement to say that this region is an absolute goldmine for companies looking to expand their international footprint.

But one market that doesn’t get enough time in the spotlight is Mexico.

Mexico relaxed its gambling laws back in 2004, paving the way for the country’s gambling sector to undergo tremendous growth. In fact, in 2022, the Mexican real-money gaming market was estimated to be valued at about $1.2bn, with that number projected to grow by 13.1% in 2023, as per ENV.

Since igaming has been around for nearly 20 years now, players are very well educated on this industry. They know who the big players are, what the interesting products are and, ultimately, what they want to bet on.

There are high rates of smartphone and internet penetration, alongside a large demographic of younger, tech-savvier bettors who enjoy the occasional flutter. So, with that in mind, you might start to understand why Mexico is a key focus market for Winpot. But that isn’t to say that succeeding in this market is straightforward.

Regulatory knowledge is essential

As with any market, there are so many different considerations that you need to make before entering the Mexican market.

For example, back in November 2023, President Andrés Manuel López Obrador issued a decree which issued a blanket ban on slots in both casinos and other gambling facilities. This was a major decision and one that forced many land-based operators across Mexico to reconsider how they might engage with players.

For us at Winpot, we have been weighing up the options to ensure that bettors still have engaging, enjoyable products to bet on across all of our brick-and-mortar venues.

From virtual table games to an enhanced sports betting and esports roster, we have identified new ways to fill that gap that will be left by the retail ban on slots. For our online offering, however, we are still awaiting clarification on how this is going to be implemented.

One possible option is that there may be a limitation on the number of licences that can be renewed. For us, that is a good thing – it will allow us to gain a larger market share and deliver new experiences and products to bettors that they might not have seen before.

Winpot is very fortunate to have already established a strong relationship with the local regulator. We also have boots-on-the-ground knowledge, enabling us to stay well ahead of any upcoming regulatory developments. This is so important given how quickly regulations can change.

It is absolutely essential that gaming companies – both on the B2B and B2C side – remain proactive and adaptable to any legislative changes. Ultimately, everyone’s worst nightmare is having the regulator come knocking on your door.

We try and have an open conversation with the regulators as often as possible. Those open conversations mean that we can remain proactive for any changes that may be coming down the line, allowing us to set the wheels in motion before the starting gun is even sounded.

Technology is king

In addition to the regulatory considerations, gaming companies really need to make sure they are deploying the best-in-class technology should they wish to succeed in the Mexican market.

While the government may decide to curb the number of licences in the future, this market is becoming increasingly competitive.

There is very little differentiation between the products being offered by operators – many of our competitors also offer products such as live dealer, slots or even table games – so partnering with the right technology provider can really be the defining factor for why a player may choose to gamble with your brand.

Now more than ever, players are looking for a streamlined user experience. They don’t want to jump through hoops just to verify their ID or to receive their winnings. If these processes are long and convoluted, they are just going to leave your site and visit your competitor instead.

At Winpot, we work alongside Wiztech to remain at the forefront of any technological developments. Their platform allows us to keep pace with the relentless rates of technological innovation. 

What next?

As we see new markets such as Brazil and Peru begin to regulate, I think that Mexico has an opportunity to really establish itself as a leading powerhouse within the Latin American market.

At Winpot, we already have big plans to capitalise on the lucrative opportunities that the Mexican market presents for us, and we are confident that we will continue to go from strength to strength.

Yoni Sidi is a seasoned igaming professional specialising in marketing and business development with 21 years of industry experience.

Having worked for some of the largest brands in Europe and Latam, he is known for devising and executing innovative marketing strategies that drive player acquisition, engagement and retention.

Adept at analysing market trends and identifying opportunities for business growth, Sidi has a proven track record of forging strategic partnerships and alliances to expand market reach.