Zona de Azar Argentina – Argentina: Study Predicts that Online Gaming Will Quadruple its Growth

Argentina.-  September 12, 2024 www.zonadeazar.com  The online gambling market in Argentina is a dynamic and rapidly evolving sector, shaped by cultural preferences, regulatory changes and technological advancements. Football, a national obsession in Argentina, drives the dominance of sports betting, especially during relevant tournaments. Despite this, online casinos continue to set the tone for the entire market, establishing themselves as key players in the industry.

Atlaslive , a B2B software development company for the online gaming business, provides  with an overview of the Argentinian market , based on recent data from Statista , exploring the current status, trends and challenges, while highlighting how Atlaslive’s dynamic online gaming platform is perfectly suited to capitalize on these opportunities.

Significant leap: online market growth and revenue trends

Argentina’s online gambling market has demonstrated a strong upward trajectory in revenue generation. The period between 2019 and 2020 saw a significant jump in revenue, from $0.3 billion to $0.58 billion. This increase was largely catalyzed by the pandemic.

The COVID-19 pandemic significantly accelerated the adoption of online gambling in Argentina, as brick-and-mortar casinos closed their doors, pushing consumers towards digital alternatives. It was in 2020 that the online casino category emerged as a result of the pandemic, becoming the primary revenue driver that year.

This shift has had a lasting impact, as many users continued to favour online platforms even after restrictions were lifted. The post-pandemic period has seen continued growth, underlining the market’s resilience and long-term potential. We see a strong growth trend across all categories, with sports betting and casinos showing the most substantial increases. The data suggests that while online lottery is growing steadily, betting and casinos are the main drivers of revenue growth in Argentina’s online gambling market from 2017 to 2028.

In 2020, casinos entered the market and by the end of the year, they contributed more than 77 percent of revenue growth and began to gain more and more popularity in the Argentine market. It is expected that from 2026, the contribution of online casinos to revenue growth will be more than 53 percent and will gradually increase in the following years.

Argentina: Steady growth and market share in South America

Despite its impressive growth, the online gaming market is not expanding as rapidly as the South American region as a whole. This discrepancy points to untapped opportunities that could be leveraged by adopting more proactive growth strategies.

ARPU trends highlight the changing dynamics within the market. Sports betting is steadily increasing in ARPU, indicating its growing popularity and potential for sustainable growth. Casino is also on a positive growth trajectory in terms of ARPU, although starting from a lower base. Online lottery ARPU peaked in 2018-2019 and then declined, indicating potential market saturation or changes in user behavior.

The chart highlights that while Argentina is experiencing steady growth in ARPU, it is not keeping pace with the broader South American market, where ARPU is increasing more rapidly. Here we can see that not only are growth rates lagging, but the absolute numbers are also 45 percent lower in 2024 – this is something to keep in mind.

We note that the percentage gap between Argentina’s ARPU and the South American region has widened since 2023. Revenue growth in Argentina has slowed, particularly after 2022, indicating that the market may be approaching a saturation point and will soon require new strategies to stimulate both market and player participation.

This suggests that while the market is improving, there are potentially untapped opportunities or strategies that could further boost revenue per user, bringing it closer to the regional average.

Football and convenience: customer preferences and market trends

Argentine consumers are increasingly turning to online gaming due to its convenience, accessibility and the wide variety of options available. The proliferation of smartphones and improved internet infrastructure have been instrumental in this shift, with mobile gaming emerging as a dominant force. This trend is in line with global developments, where consumers prefer the flexibility and on-the-go accessibility offered by mobile platforms.

Sports betting, especially football, remains a major draw for Argentine punters. The cultural passion for football has made sports betting one of the most popular forms of online gambling, and this segment continues to grow as more operators introduce sophisticated and engaging betting features.

Expanding the player base and market penetration

From 2017 to 2023, the total number of unique players increased steadily each year. Starting at 2.25 million in 2017, the number rose to 3.99 million in 2023. The most significant growth occurred between 2019 and 2021, where the percentage change in unique players was over 10 percent annually, peaking at 11.83 percent in 2021.

Starting in 2024, the growth rate began to decline sharply, from 8.40 percent in 2024 to 3.18 in 2028. Although the absolute number of players continued to grow, reaching 5.13 million in 2028, the pace of growth slowed considerably. For example, between 2023 and 2024, the growth rate fell to 8.40 percent, followed by further declines in the following years. The steady decline in growth rates, especially the drop to 3.18 percent in 2028, suggests that the market may be close to saturation, with fewer new unique players joining each year.

The period from 2017 to 2021 was marked by strong and accelerated growth, indicating a phase of rapid market expansion. The subsequent decline in growth rates, particularly from 2024 onwards, points to a maturing market in which the influx of new players is slowing down. Despite reaching over 5 million unique players by 2028, the declining growth rate suggests challenges in maintaining high levels of growth.

To maintain or accelerate growth, strategies may need to be adjusted. This could involve exploring new markets, improving player retention strategies, or innovating product offerings to appeal to a broader audience.

At the same time, the online gambling market in Argentina continues to expand, with all three categories experiencing positive growth in player numbers. Online casinos remain the most popular, with a significant and constantly growing player base.

Sports betting is also on a strong upward trajectory, indicating growing interest and market penetration. Lottery, although smaller in scale, continues to attract players each year and shows steady growth. These trends suggest a healthy and expanding online gambling market across all categories.

The chart highlights the expanding reach of online gaming categories in Argentina. Casinos lead market penetration, followed by sports betting, which is quickly catching up. Lottery, while still the smallest category, demonstrates steady growth in penetration.

These trends suggest an increasing adoption of online gaming across the population, with all categories showing positive dynamics over time.

The penetration rate has shown a steady growth from 2017 (5.12 percent) to 2028 (10.62 percent). The growth trajectory is smooth, with no dips, indicating a steady increase in market penetration over the years. During the period, the penetration rate more than doubled, suggesting a significant expansion of the online gambling market within the country.

The penetration rate in South America as a whole has increased at the same rate as Argentina’s, but slightly lower. Starting with 1.19 percent in 2017, it will reach 2.46 percent in 2028. Therefore, there is still a huge gap between Argentina and the South American market as a whole. In 2017, Argentina’s penetration rate was about 4.3 times higher than South America’s (5.12 percent vs. 1.19). By 2028, this gap will remain the same, with a difference of more than 8 percentage points.

This significant outperformance suggests that Argentina could be seen as a leading market within South America, potentially offering more mature or lucrative opportunities compared to other countries in the region.

Companies operating in the online gaming sector may want to consider focusing more resources on Argentina to capitalize on its high penetration, while also exploring strategies to boost market share and penetration in the broader South American market, where there appears to be room for growth.

Driving online gaming in South America: Atlaslive’s dynamic platform

The online gaming market in Argentina is poised for continued growth, driven by favourable consumer trends and technological advancements. However, to make the most of these opportunities, operators must address the challenges of slower growth relative to the broader South American region.

Atlaslive aims to deliver exceptional experiences and customized solutions that align with the specific demands of the markets in which it operates. The Atlaslive platform stands out for its speed, scalability, and reliability. Atlaslive allows for quick modifications and customizations to meet the unique needs of any market.

By integrating gamification elements and expanding the range of casino games and customizable betting options, Atlaslive creates new avenues for partners to engage a wider audience and improve retention rates. A standout feature driving this innovation is the Atlaslive Bet Builder, which allows users to create custom bets across multiple markets within a single event, significantly increasing user engagement and satisfaction. The Platform’s customization capabilities allow partners to design bespoke bonuses and betting experiences for each user, ensuring they not only meet user expectations, but exceed them. Atlaslive’s strategy is focused on adapting to the needs of its partners and staying ahead of the curve in the ever-changing Argentine market, offering dynamic, real-time technology that adjusts to the demands of both partners and the market.

Editó: @_fonta www.zonadeazar.com