MercoPress. South Atlantic News Agency

North America’s online gaming rules rewrite the playbook, and South America finds its lane

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As digital entertainment continues its rapid growth on both continents, North America’s methodical regulatory strategy couldn’t be more different from South America’s somewhat disparate set of regulations. It will be explored below exactly how differing legislation and market and developmental courses can offer South American gaming operators some insight.

The online gaming phenomenon has been on the rise within the Americas for some years, but not all regions have traversed a similar course. While North America, with its state-by-state structure and more comprehensive long-term strategy, presents one of the most formulated realms on earth, South America continues with its own rhythm and with factors such as politics and culture.

As someone watching from South America who has seen this process occur, it might be hard to grasp why these two regions find themselves at so different a stage within the digital paradigm. But if you look at legislation, development and the role of information platforms on each continent, there are some pretty fascinating contrasts.

How trends differ across the two markets

North America’s multi-platform culture

As a region, North America sees gaming trends online as part of a society that focuses on analysis and statistics as it relates to gaming. There is a heavy dependence on services that provide odds, gaming news and insights at once. These services allow access not just for gamers but for aficionados and enthusiasts too.

Ecosystems have enabled the development of full-featured platforms, such as Action Network, which integrates an entire host of tools and resources. It includes odds, expert picks, analysis, articles, videos, promotions, online casino apps and guides offered within online sportsbooks. There are tools and resources made for helping people, new and experienced gamblers, make better gambling decisions.

South America’s mobile-first world

South America, on the other hand, relies greatly on mobile. Smartphones have proliferated there, making them the main entry point for digital entertainment. Lite apps and clean designs rule South America because not everyone there owns high-end devices.

A prominent observable trend here within South America is community-driven development. Users disseminate tips on social networking sites, and there are discussions on platform trustworthiness and app recommendations on WhatsApp. While North America prefers structured data, South America relies on collective knowledge and online communities for platform guidance.

Development of the industry in both regions

North America’s methodical progress

North America has not introduced comprehensive digital gaming legislation without a transition period either. The United States took some time before they introduced changes. It took some significant court decisions for them to leave it up to the various states on what they wanted. The result of this transition period has been a systematic implementation as some states have been faster compared to others.

Compared to the United States, Canada took a slightly different approach but with a similar objective; they have rules as opposed to leaving it as it were.

As time passed, it enabled large telecom operators to enter with confidence because they were aware of compliance and investment opportunities. It can be concluded that North America, as a region, embraces a regulatory culture that’s organized, sometimes slow, but very deliberate nonetheless.

South America’s late but lively start

South America eventually began.

South America entered relatively late into the discussion but with ample enthusiasm. Colombia kicked off 2016 with one of the first regulated online gaming markets on the continent. Other nations, Argentina, Brazil, Chile and Perú, have begun developing blueprints on their own, but at varying rates.

Although there’s some eagerness, South America’s strategy is much more fragmented. Argentina’s provinces result in different rules applying depending on your location. And then there’s behemoth Brazil, which has been in political limbo for several years and finally began making moves relatively recently. It’s a flexible but very inconsistent region.

Nevertheless, it’s due to its late entry into the league that it will be able to learn from various experiences, including that of North America.

Legislative contrast is what sets North America apart

Frameworks with clearer guidelines versus frameworks developing

When comparing these two continents, predictability seems to be the biggest difference. In the US and Canada, it is understood who does what and how. Licensing norms and compliance and regulatory arrangements are clearly defined, even if they differ geographically.

South America does not have that level of consistency. Every country, sometimes every province, develops its own strategy. That keeps things open but can make it more difficult for businesses across borders and sometimes confusing for customers.

Priorities of governments differ

Specifically, North American authorities usually emphasize having stable, well-documented procedures for oversight. Their debates usually center on transparency and developing a model that keeps all matters aboveboard.

South American countries have more political discussions associated with government changes. Because there are shifts in priorities, it might take a relatively longer period to achieve consensus.

A continental observer from a distance

A benchmark for many South Americans is North America. Not a system they should replicate, but something they can refer to. The ordered system of state-by-state frameworks operating within the US system could demonstrate that regulated markets can thrive without descending into anarchy. A different model might be gleaned from the provinces and regions within the Canadian system.

South America might have a different scenario, but it will not be exactly like either case, and it will have an impact on lawmakers' conversations about the future.

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