As the year draws to a close, there’s still one major event ahead for the online gaming and sports betting industry in the region: the SBC Summit Latin America 2024.
Just weeks before the industry gathers at the Seminole Hard Rock Hotel & Casino in Miami, Lottery Daily sat down with Fernando Ortega, CEO of Lottofy. Ortega will participate in the panel Converging Worlds of iGaming, Sports Betting, and Land-Based Casinos on October 31, during the second day of the conference, alongside Juan José Mantese from Meridianbet, Jhon Mario Giraldo from Cornazar, and Natalia Torres from Evolution Gaming.
Ortega will offer insights and share his expertise with SBC Summit Latin America attendees. Beforehand, he reflects on the current state of online gaming and outlines Lottofy’s future plans.
LD: How do you assess the iGaming industry in 2024?
FO: The iGaming industry finds itself in a period of significant transition, not only due to stricter regulations in mature markets and emerging opportunities in regions like Latin America and Africa but also because of broader societal and technological shifts. As we navigate this evolving landscape, companies must adapt to changing regulations and embrace innovation in areas.
The trend is that AI is driving personalised gaming, blockchain is enhancing transparency and security, and mobile gaming remains dominant, demanding seamless experiences across devices. Cryptocurrencies are already in the present, but I believe they must improve in the next few years if they are to be a solid alternative to traditional money. And other technologies
such as the metaverse and virtual reality are still far away and less likely to be a game changer.
The industry moves fast and has a great ability to adapt quickly to new trends and technologies. Companies in this space are agile, always ready to pivot to meet the changing demands of players. But most regulators don’t move at the same speed. They often struggle to keep up, which can lead to outdated or overly strict rules that don’t match the reality of how the industry operates.
For the industry to keep growing and innovating, regulators need to better understand how these companies work. If they can do that, they can create rules that protect players while still allowing the industry to thrive and stay ahead of the curve.
LD: Lottofy puts lottery in a central spot of its offering. How is the segment performing? Do you think it needs to go through any transformation process or do something to stay relevant in front of the growth of live casino, slots and sports betting?
FO: The lottery segment is performing well in Lottofy’s online offerings, showing strong engagement and consistent revenue. In this sense, the revenue is much more constant than in other verticals, since it is a recursive type of game in which players maintain their bets over the
long term.
However, it’s true that traditional lotteries, often state-run, need to recognize that the audience is evolving. New types of games like live casino, slots, and sports betting are gaining traction, and lotteries must adapt to keep up with these trends.
To stay relevant, traditional lotteries should enhance their offerings by modernising the gameplay experience, making it more engaging and accessible. Partnering with private companies could be a key strategy in this transformation, as it would allow them to leverage innovative technologies and marketing approaches to better meet the needs of today’s players.
By doing so, they can ensure that lotteries remain a competitive and appealing option in the broader gaming landscape. It’s good to see that some jurisdictions are already working in this way and it has made a big difference, and there are examples in Latin America where it has revitalised state lotteries.
LD: Does the company consider shifting or prioritising more other verticals as slots and sports
betting in the future?
FO:Lottofy’s offering already includes slots, scratchcards, live casino, and other types of games in jurisdictions where we are allowed to operate these under regulatory frameworks. We’ve certainly weighed the idea of branching out into sports betting more than once, and it’s something we’ve seriously considered. However, for now, we’ve decided it’s wiser to stick to what we’re good at and keep enhancing our current offerings.
Our main focus is on polishing and refining the player experience across the verticals we’re already active in. We want to make sure we’re delivering top-notch content that keeps our players engaged and excited. This allows us to build on our strengths, stay competitive, and maintain our edge before diving into new areas like sports betting.
LD: Which are the key markets for the company in Latin America? Do you plan to expand or focus on any specific ones?
FO:Lottofy is performing well across most of the Latin American region. It’s no secret that Brazil is currently a major target for all companies in the industry. Brazil presents both a significant opportunity and a challenge due to its size and potential. Mexico is a large and vibrant country, representing a significant opportunity within the industry that holds considerable potential.
Our focus is always on providing an exceptional experience for our users, ensuring that our offerings are both engaging and reliable. At the same time, we are continually exploring new opportunities to grow and innovate, staying ahead of industry trends and adapting to theevolving needs of our audience, which also means adapting to the unique characteristics of each region.
LD: What are your expectations for SBC Summit Latinoamérica 2024?
FO: I always say that SBC Latinoamérica is probably my favourite event of the year. It’s likely because of the vibrant and open culture of the Latin American countries, where it’s easy to find common ground and exchange ideas. The energy and warmth of the region make it a truly enjoyable experience every time.
I’m looking forward to catching up with the many contacts I’ve made over the years, and of course, meeting new ones that could help us grow as a business. There’s always something new to learn, and the panels this year look particularly promising. I’m especially excited about the roundtable discussions, which are always a highlight for me.
LD: How important is it to reunite with industry leaders in such an environment ahead of new markets blooming like Brazil?
FO:Connecting with industry leaders in such an environment is crucial, especially with new markets like Brazil set for significant growth. As Brazil and other markets in Latin America begin to bloom, having the chance to engage directly with other leaders helps us to stay on top of market trends and understand the unique dynamics at play. It’s not just about gaining knowledge; it’s about leveraging the collective expertise of the industry to position ourselves for success in these new and exciting opportunities. The relationships and conversations that happen in these settings can set the stage for future growth and innovation.
Events like these offer an unparalleled opportunity to share insights, explore potential collaborations and discuss strategies. The face-to-face interactions allow us to build stronger relationships, which are essential as we prepare to enter and succeed in emerging markets.
Videoconferencing and virtual connections are a fantastic advance and help a lot, but there is still nothing like being able to be in the same room, shaking hands and being able to talk face to face with each other.
LD: What can we expect from Lottofy in the near future?
FO:We’re incredibly excited about the direction we’re heading, as we’ve been working intensely for some time now on renewing our technology, which we will launch during the following year. This effort is not just about updating our systems; it’s about fundamentally transforming how Lottofy operates. By investing in cutting-edge technology, we’re setting ourselves up to
significantly enhance our current operations, making them more efficient, reliable, and scalable. This transformation is critical as we continue to grow and adapt to the ever-evolving demands of our industry.
One of the key benefits of this technological restructuring is the substantial improvement it will bring to our existing operations. We expect to see marked increases in performance and efficiency, allowing us to better serve our customers and stay ahead of the competition. Streamlining our processes and systems will enable us to respond more quickly to market changes, reduce operational costs, and enhance the overall user experience. This will not only benefit our current markets but also provide a strong foundation for future growth and enter new markets with a higher degree of confidence and security.
Moreover, this technological upgrade allows Lottofy to introduce innovations in key areas such as artificial intelligence (AI), blockchain, and new marketing approaches. With AI, we can implement more sophisticated algorithms for personalised user experiences, predictive analytics, and improved customer support, enabling us to better understand and meet the needs of our customers, thereby enhancing their engagement and satisfaction. Blockchain, beyond its use in cryptocurrencies, offers the potential to significantly boost transparency, security, and efficiency across our platforms. This could open up new possibilities for managing data and transactions, ultimately providing added value to our customers and reinforcing our commitment to innovation.
Beyond the technological aspects, we are also eager to explore and secure new agreements with stakeholders. These partnerships are crucial as we continue to expand and innovate. By aligning with key industry players and other interested parties, we can leverage shared expertise and resources to drive our growth strategies forward, we’re always open to chatting
with potential partners and exploring new opportunities together