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Latin America is a region of contrast with so many countries sharing the same financial problems. In many countries of the region traditional financial services are out of reach for millions of people due to various reasons. But what’s important, the mobile connectivity is way better than in other parts of the world. In Brazil, Argentina and Venezuela, millions of people live in a cash-based reality and own no credit cards at all. This lack of banking access has excluded millions from doing business online and even placing bets in online casinos. But the region’s high mobile and Internet usage means there is a workaround for these people. Blockchain and cryptocurrencies change the world but can they be a path to financial inclusion in Latin America?
In the past few years, crypto adoption in the world has surged so it does in LATAM fueled by economic instability. Around 70% of Latin America’s population is unbanked or underbanked, while crypto usage has grown over 200% from 2018, reaching more than $500 billion in annual transactions. When nations face hyperinflation or strict currency controls like in Argentina and Venezuela, citizens tend to use Bitcoin and stablecoins to preserve their savings. This trend is helping the online gaming field because when people hold digital currencies for savings, they can use disposable income to play casino games. When you want to use crypto, you only need a smartphone and internet connection – no bank account or paperwork needed. Nobody will want to see your ID or approve and decline your transactions: you are free to do whatever you like. With its banking limitation, Latin America has become one of the fastest-growing markets for crypto usage and become a natural target for blockchain-based businesses, including online casinos like 777bet fun.
How Blockchain and Crypto Casinos Overcome Barriers
Crypto-based online casinos are very different from what we used to when we hear the word casino. They not only work online but are designed specifically to serve people who hold crypto and know how to use it. The core difference here when it comes to financial transactions is using cryptocurrency for top ups and withdrawals to avoid banks. Rather than working with VISA and Master Card, crypto casinos allow deposits and withdrawals in stablecoins as well as in BTC and ETH. This means that anyone with a smartphone can play in a matter of minutes even if they don’t have a crypto wallet installed. For those who don’t have a bank account, this is a breath of fresh air: they can top up their crypto wallet through local P2P sites and then use those funds to gamble right away. Just use crypto and you will never face declined transactions due to quasi cash codes.
Cryptocurrencies are helpful for cross-border payments. In hyperinflationary economies players may use stablecoins to hold their savings rather than storing the local fiat in banks. Crypto casinos typically support USDT and USDC allowing users to deposit say 100 USDT and while they play with US dollars, they are protected from currency exchange rate fluctuations. That is why stablecoins have gained significant adoption in Venezuela and Colombia as a way to store and spend money avoiding traditional banking systems and their limitations.
From a user experience perspective, crypto casinos reduce the number of steps you need to take to start playing. It is very easy to create an account: most crypto casinos let users register with just an email because crypto deposits don’t require linking a bank account. When the KYC barrier is low it’s great for both parties: the players and the casinos especially in the Latin America’s context where onboarding new players is not that easy when they don’t have bank accounts or credit cards. The easier onboarding, the more players a casino can get from the same marketing efforts. As simply as that.
Crypto Incentives and Promotions
Aggressive is another aspect of working with the unbanked segment. Crypto casinos tend to offer generous bonuses and loyalty rewards that are often bigger than you can find in traditional casinos, especially for those trying online betting for the first time. Welcome bonuses can be very different from site to site: some casinos offer welcome bonuses for up to 100%. On a regional level, 777Bet gives new Brazilian players a package of welcome rewards up to R$7,777 spread over multiple deposits, a sum far larger than most of local casinos. Ongoing promotions are tailored to keep players engaged with weekly cashback rewards up to R$15,000 back, monthly tournaments with prize pools or R$300,000 and even a “relief fund” bonus for players on losing streaks (up to R$15,555).
One of the best approaches that work in Latin America and helps local brands onboard even more new players is using social media and messaging platforms to distribute their promotions. Many unbanked users spend a lot of time on WhatsApp, Telegram, and Facebook so these methods tend to be far more effective compared to emails and SMS. Some crypto casinos test push notifications as well. For example, 777Bet offers a “WhatsApp Free Redeem Code” promotion, where users in a WhatsApp broadcast list can quickly claim a daily bonus up to R$888 if they act fast. The iGaming brands also use Telegram channels to distribute bonus codes or make important announcements related to tournaments and exclusive bonus code only available to Telegram users. By using social networks and messengers for marketing, casinos build way better communication with their audience and save budget on PPC campaigns that can rip off any marketing budget even if you are in a casino business. This approach increases engagement among users who might not be accustomed to traditional email newsletters but are very responsive on WhatsApp.
- B.E. Delmer, Gambling911.com
