Profitability, not growth, defines next phase for Latin America, says Zenith's Moral

Latin America’s regulated gambling sector is shifting from a growth-at-all-costs mindset to one focused on sustainable profitability, according to Karina Moral, Senior Business Development Manager for Latin America at Zenith. In an interview with SBC News, Moral outlined how intensifying competition, rising customer acquisition costs, and more demanding players are reshaping the region’s dynamics.

Brazil, despite its recent regulation, already possesses the scale and investment to rival mature European markets within a few years, Moral said. She pointed to Colombia as the region’s most established regulated market and noted Mexico’s sophistication in operator presence and payment infrastructure. However, she cautioned that maturity in Latin America must be judged on more than just regulation—factors like mobile penetration, product localisation, and operator professionalism are equally critical.

Margins have tightened considerably compared to three or four years ago, Moral explained. “The days of relying solely on aggressive bonuses and broad marketing campaigns are fading,” she said, noting that operators now need sophisticated retention and operational efficiency strategies. She highlighted that customer acquisition spend remains the biggest profitability challenge, though taxation and compliance costs are growing in importance, particularly in Brazil.

Platform performance has become a key differentiator, with slow-loading sites, unstable experiences during peak traffic, and fragmented user journeys being common shortcomings. “Players have more choices than ever and they are far less tolerant of technical issues,” Moral observed. She stressed that operators investing in speed and seamless user experiences gain a competitive edge without necessarily increasing marketing budgets.

A frequent mistake Moral sees is operators entering a market with a strong acquisition plan but weak retention strategy. “The consequence is predictable; strong initial growth followed by declining player activity, increasing acquisition costs and shrinking profitability,” she said. She advised treating retention as equally important from day one.

Looking ahead, Moral believes success over the next three to five years will hinge on localisation, operational efficiency, and player retention. Operators that understand local nuances, offer localised content and payment methods, deliver outstanding mobile experiences, and build long-term relationships will outperform those focused solely on rapid growth. She added that working with partners offering scalable technology and competitive commercial terms—such as Zenith’s OneAPI and GamesAPI—gives operators a structural advantage from launch.