Latin America’s regulated gambling sector is entering a new phase. While markets such as Brazil continue to attract global investment, operators are also facing rising acquisition costs, tighter margins and increasingly demanding players, making long-term profitability harder to achieve than ever before.
Against this backdrop, SBC News spoke to Karina Moral, Senior Business Development Manager for Latin America at Zenith, about how the region is evolving beyond its “emerging market” label.
From which jurisdictions are beginning to rival Europe’s established markets to the growing importance of localisation, platform performance and player retention, Moral explains what will separate the operators that thrive from those that struggle as competition intensifies across Latin America.
SBC News: Latin America is often described as an emerging region, but are there markets that you believe have now reached a level of maturity comparable to established European jurisdictions?
Karina Moral (KM): While Latin America is still widely considered an emerging region, some markets have clearly moved beyond the early-growth stage. Brazil, despite being newly regulated, has the scale, level of investment and competitive dynamics to become one of the most mature gaming markets globally within the next few years.
Colombia remains the most established regulated market in the region, having provided operators with regulatory certainty for several years. Mexico, although operating under a different regulatory framework, has also reached a level of sophistication in terms of operator presence, player behaviour and payment infrastructure.
That said, maturity in Latin America should not be measured solely by regulation. Factors such as payment adoption, mobile penetration, responsible gaming frameworks, product localisation and operator professionalism are equally important.
While some markets are approaching European standards in these areas, the region still presents unique operational challenges that require genuine local expertise to navigate effectively.
SBC News: As more operators enter regulated markets across the region, how much pressure are margins coming under compared to three or four years ago?
KM: Margins are significantly tighter today than they were three or four years ago. In the past, operators could enter a market with limited localisation and still acquire players profitably. Today, customer acquisition costs have increased substantially, competition for traffic is more intense and regulatory requirements have added new operational expenses.
The days of relying solely on aggressive bonuses and broad marketing campaigns are fading. Operators now need a much more sophisticated approach to player acquisition, retention and operational efficiency to maintain healthy margins. This is where having the right commercial agreements in place from day one makes a real difference. Access to competitive rates on tier-one content through a solution like GamesAPI directly helps offset the margin pressure that builds as markets become more competitive.
SBC News: Which factors are having the greatest impact on profitability today: taxation, compliance costs, acquisition spend or something else entirely?
KM: All three factors are important but acquisition spend remains the biggest challenge for most operators. In highly competitive markets, marketing costs continue to rise while player loyalty becomes increasingly difficult to secure.
Taxation and compliance costs are becoming more relevant as markets regulate, particularly in Brazil, where operators must adapt to new licensing requirements and tax structures. The operators achieving sustainable profitability, however, are usually those that can control acquisition costs through strong retention strategies, effective CRM programmes and a diversified product offering.
Another factor that is often underestimated is operational efficiency. Delays in integrations, poor platform performance and inefficient payment flows can significantly impact revenue without always being immediately visible in financial reports. Streamlining content access through a single integration like OneAPI removes a layer of that complexity, freeing up operational resources for the things that actually drive performance.
SBC News: How important has platform performance become as a competitive differentiator in Latin America, and where do you see operators falling short?
KM: Platform performance has become one of the most important competitive differentiators in the region. Players have more choices than ever and they are far less tolerant of technical issues.
The most common shortcomings include slow-loading websites, unstable gaming experiences during peak traffic periods, fragmented user journeys and payment processes that require too many steps. Mobile optimization is another area where some operators still underestimate player expectations, despite mobile accounting for the vast majority of gaming activity across Latin America.
Operators that invest in stability, speed and seamless user experiences often gain a significant competitive advantage without necessarily increasing their marketing budgets.
SBC News: How often do operators enter a market with a strong acquisition strategy but a weak retention plan, and what are the consequences?
KM: This happens very frequently. Many operators allocate significant budgets to acquisition while underinvesting in retention and customer lifecycle management.
The consequence is predictable; strong initial growth followed by declining player activity, increasing acquisition costs and shrinking profitability. Without effective retention programmes, operators find themselves constantly replacing churned players rather than building long-term value.
The most successful operators treat retention as equally important as acquisition from day one.
SBC News: Where do operators typically lose momentum six to twelve months after entering a new market?
KM: Momentum is often lost when operators fail to evolve their strategy beyond the initial launch phase. Marketing campaigns that worked during market entry become less effective, competitors increase their investment and player expectations continue to rise.
Operators also lose momentum when they do not refresh content frequently enough, fail to introduce new payment methods or neglect VIP and loyalty programmes. The market evolves quickly and maintaining relevance requires continuous adaptation. Having access to a broad, regularly updated content portfolio through a platform like OneAPI makes that process considerably more manageable.
SBC News: What separates operators that are protecting margins effectively from those that are struggling to achieve sustainable profitability?
KM: The operators protecting margins most effectively are those that focus on operational excellence rather than simply increasing marketing spend.
They have efficient acquisition channels, strong CRM programmes, optimised payment flows, reliable platforms and a disciplined approach to cost management. They also make data-driven decisions and closely monitor player behaviour. From a content perspective, securing the best possible commercial terms on high-performing titles is a lever that is often underutilised. It is something Zenith prioritises through both OneAPI and GamesAPI, giving operators a structural advantage on cost from the moment they go live.
Operators that struggle often rely too heavily on bonuses and paid acquisition without addressing the underlying retention and operational challenges that ultimately determine long-term performance.
SBC News: As competition increases and markets mature, what do you think will define successful operators in Latin America over the next three to five years?
KM: Success will increasingly depend on three core areas: localisation, operational efficiency and player retention.
The operators that win will be those that understand the nuances of each market, offer localised content and payment solutions, deliver outstanding mobile experiences and build long-term relationships with players rather than focusing solely on acquisition. Working with partners who can provide that localised content infrastructure at scale and at genuinely competitive commercial terms will be a defining factor for the operators who come out on top.
As markets mature, sustainable profitability will become more important than rapid growth. Operators that combine strong technology, efficient operations and customer-centric strategies will be best positioned to succeed across Latin America over the next three to five years. At Zenith, our focus is on helping operators achieve that long-term success by providing scalable technology, localised solutions and the operational flexibility needed to compete across Latin America.
