Mastering Regulated iGaming Markets: The Adaptability Advantage
This scenario plays out repeatedly across emerging iGaming markets. Tom Ustunel, CEO of Sportintech, has witnessed this firsthand. With over 20 years in the industry, he’s navigated launches in Spain, Italy, the US, and Brazil. His secret weapon isn’t sophisticated technology or massive budgets. It’s adaptability.
The Foundation of Market Entry Success
When launching in regulated markets, operators often focus on flashy features and competitor analysis. Ustunel takes a different approach. “My honest answer to that would be adaptability, especially when the market is just regulating,” he explains.
Regulators work under tight deadlines. Brazil’s December 31st deadline exemplified this pressure. Regulators draft regulations whilst asking operators to build compliant platforms simultaneously. This creates a moving target scenario.
“If you are not adaptable going into the regulation, I think you are going to be in trouble,” Ustunel warns. Companies lacking agility struggle significantly. Tech teams must prepare for sudden changes. Payment methods might need switching. KYC tools could require replacement overnight.
Strategic Market Selection Over Universal Appeal
Many platforms attempt to serve all markets. Ustunel considers this approach flawed. Sportintech deliberately focused on Latin America and Africa. The correlation between these regions made strategic sense.
“We specifically targeted Latam because we felt that our platform is actually best suited for that market,” he notes. This targeted approach prevented the common pitfall of creating mediocre solutions. Rather than acceptable products everywhere, Sportintech delivers tier-one experiences in chosen markets.
The platform works exceptionally well in both regions. Crash games prove popular across African countries. Brazil shares similar preferences. This alignment validates the focused strategy.
The Brazil Success Story: Luck Meets Preparation
Sportintech’s Brazil success wasn’t entirely planned. “I’m here to tell you the absolute honest truth, right? I’d love to say that we looked at the market, we saw the potential… then we got lucky,” Ustunel admits.
Their Lisbon office housed Portuguese-speaking team members. This linguistic advantage proved invaluable when approaching Brazilian operators. Sales, finance, and legal teams could communicate naturally. This cultural alignment became a competitive differentiator.
Sometimes preparation meets opportunity in unexpected ways. The language skills initially seemed incidental. They became crucial for market penetration.
Preparing for Future Regulation
Market analysis requires multiple factors. Population size, mobile penetration, and smartphone adoption matter. Current GGR provides baseline understanding. Regulatory complexity affects entry decisions. Existing competition levels influence opportunity assessment.
African markets share common themes. Crash games dominate. Compact sportsbooks with fast games perform well. Quick-play functionality resonates with local preferences. These insights inform product development decisions.
“The products between Africa and Brazil actually compatible,” Ustunel observes. This compatibility strengthens their market selection strategy.
Local Knowledge as Competitive Advantage
Successful operators share common traits. They understand local markets intimately. Brand recognition alone rarely suffices. Even Bet365, with superior products and marketing, relies on local expertise.
“It really was about who you knew,” Ustunel explains regarding Brazil. Regulatory questions required insider connections. Operators with local relationships could navigate complex requirements. This knowledge gap separates winners from strugglers.
Politics create additional complexity. Regulatory attitudes can shift overnight. Pro-gambling politicians might be replaced by opponents. Laws change rapidly compared to established markets like the UK.
Avoiding Common Pitfalls
Large companies often underestimate local nuances. They conduct standard analysis but miss cultural subtleties. Political volatility receives insufficient attention. Overnight regulatory changes catch them unprepared.
Cultural differences require careful consideration. Latin American countries might neighbour each other but operate differently. WhatsApp communication replaces formal emails. Contract negotiations follow local customs. These details matter enormously.
“Just being aware of that, I think it’s that kind of mindset saying, even though they are next door, approaching them exactly the same formula could be a formula for disaster,” Ustunel warns.
Building Your Regulatory Market Strategy
Success requires embracing adaptability from day one. Tech teams need flexibility for rapid changes. Local partnerships provide crucial market insights. Cultural understanding prevents costly mistakes.
Don’t attempt serving every market simultaneously. Focus on regions where your platform excels. Build deep local knowledge before expanding. Prepare for regulatory volatility.
The emerging regulated markets offer tremendous opportunities. Companies that prioritise adaptability over perfection will thrive. Those clinging to rigid strategies will struggle.
