Strategizing for success in emerging markets as a gaming operator

Emerging markets are crucial for the future of the gaming industry, with regions like Africa and Latin America set to experience strong growth in the coming years. How can operators lay the groundwork for success in such markets?

There is no such thing as a ‘typical’ emerging market: each nation has its own cultural, economic, and regulatory backdrop. Nonetheless, there are three broad themes an operator must consider when looking at the growth of the gaming sector around the world.

Regulation and growth in emerging markets

First, they must focus on regulation. This is perhaps the most complex and costly element for operators, particularly in emerging markets, where the regulatory environment is often only in the process of being established, creating a range of uncertainties for operators to navigate. Additionally, large operators face the added complication of addressing such issues across multiple jurisdictions.

Second, there is growth through mergers and acquisitions (M&A) and other approaches that could help companies streamline their processes, add efficiencies, and secure growth in new markets. Third is business growth, the natural expansion of the gaming operation in a new market, which must be done in a safe and compliant manner.

Defining and implementing localization

For many operators, emerging markets offer the ability to grow in a much more level playing field, one that is not yet dominated by the big names in the industry. With young populations who are increasingly interested in gaming, the appeal is obvious.

In this diverse and complex market environment, localization is essential. Big brands may struggle when entering emerging markets if they do not take the time to understand the local landscape. For example, in many African markets, customers will bet very small amounts. To add to the challenge, consumers could see gaming as a way to make money and fund their lifestyle. This is a very different attitude and culture to that prevalent in many mature markets, and operators must take this into consideration.

Each market will bring its own idiosyncrasies, rules and customer preferences. How, then, can operators increase their ability to adapt and personalize their offering?

Optimizing processes through digital innovation

Technology is a major part of the answer. In any market worldwide today, verification and identity tools – supporting know your customer (KYC) and anti-money laundering (AML) – will be key.

Products like Veriff’s Identity Verification (IDV) solution can support customers in striking the right balance. Not only will the right approach ensure that operators are compliant with the regulations in any region, but these technologies can also help deliver a positive user experience, making it as easy as possible for players to sign up and use a gaming service. Such user experience is key to differentiate any brand, wherever they are seeking growth.