LatAm a growing esports market

As you prepare for ICE 2024, iGB is your essential guide, diving deep into the latest trends and developments in the gambling industry since last year’s show.

The esports landscape will be a focal point at ICE 2024. Though the momentum seen during the Covid-19 pandemic has ebbed, Latin America (LatAm) stands out as a burgeoning market with substantial growth potential in esports. Its transformation into a global powerhouse is evident as stakeholders increasingly recognize the value of engaging with this dynamic sector.

Brazil, being the most populous nation in the region, is projected to be a major contributor to esports revenue, with estimates suggesting that by 2027, the total earnings across LatAm could soar to approximately $300 million. Mexico is also expected to play a pivotal role in this revenue projection, making the region a hotbed for investment and innovation.

Prominent esports platforms such as Unikrn, Stake, and Rivalry are making significant strides in LatAm, positioning the region to emerge as a dominant force on the global esports stage. The intensity of competition is on the rise, supported by the ascension of Brazilian organizations like FURIA and MIBR, which are redefining the landscape and amplifying interest in esports.

Unikrn’s Inaugural Launch in Brazil

Following its acquisition by Entain in October 2021, Unikrn has taken decisive steps to establish a foothold in Brazil, with its official launch taking place in December 2022. The company’s Chief Executive Justin Dellario expressed enthusiasm about tapping into the region’s immense potential, stating, “Esports betting is quite large in Brazil,” also noting the strong market presence they maintain in Canada.

Unikrn is not stopping at Brazil; the company seeks opportunities to expand into new markets. However, Dellario emphasized the importance of confidence in operational sustainability and customer safety before venturing into any new territory.

In February, Unikrn forged a significant partnership with the renowned esports organization Team Liquid, enhancing both companies’ visibility and influence in Brazil. This collaboration is one of several strategic alliances made in 2023, including a global partnership with Blast, an esports entertainment pioneer, announced in March, and a cooperative effort with Gamers Club, where Unikrn provides tailored odds for Gamers Club players.

Despite its promising trajectory, Unikrn faced challenges in October when Entain revealed plans to scale back its business-to-consumer (B2C) operations in the Unikrn esports division, necessitating a reevaluation of strategies.

Rivalry’s Strategic Growth in LatAm

Rivalry, a specialized esports betting platform, emerged as one of 2023’s success stories, generating notable revenue growth and gaining traction within the competitive landscape. As a key participant in ICE 2024’s esports conference, Rivalry proudly reported impressive figures, including $8.7 million in Q3 revenue—a 22.5% increase year-on-year—and a cumulative $29.2 million for the first nine months of the year, marking a remarkable 69.8% year-on-year growth.

The company’s initiatives in Brazil in 2023 further solidified its position within the region. A strategic marketing campaign featuring well-known esports influencer Gustavo “Baiano” Gomes was launched in October, significantly enhancing Rivalry’s engagement with Brazilian esports enthusiasts. Additionally, Rivalry secured an exclusive partnership with Tribo, a Brazilian CS:GO content group, further expanding its market footprint.

Challenges Facing the Growth of Esports in LatAm

While Latin America presents compelling growth opportunities in the esports sector, it is not without its challenges. Regulatory hurdles are a significant barrier, especially in Argentina, which remains unregulated for esports betting.

Moreover, technological disparities pose obstacles, as highlighted by Maria Bashkevich, Head of Marketing at Uplatform. She noted, “The technical infrastructure varies not only from country to country but even within different regions of a single country.” For instance, Brazil’s north and south exhibit stark differences in smartphone penetration and accessibility to payment solutions—two critical factors in ensuring a smooth user experience. Bashkevich emphasized that thorough research is essential for operators to fully harness the vast potential of the region.

As ICE 2024 approaches, these trends and challenges will likely catalyze discussions among industry leaders, providing insights and strategies for navigating the evolving gambling landscape in Latin America.