Watch: Ed Birkin outlines how market intelligence will define gambling’s growth in Latin America
Latin America’s gambling sector is set for transformation, yet many operators are navigating without a compass. In a compelling interview, Ed Birkin, Managing Director at H2 Gambling Capital, shares critical insights on the region’s regulatory flux, player behaviour, and what operators must prioritise to gain long-term traction, especially in Brazil.
Uncertainty in market size and data visibility
Birkin begins by identifying a fundamental issue: data scarcity. Despite the visible growth of regulated frameworks in countries like Colombia and, gradually, Brazil, many markets still lack reliable information on both legal and illegal gambling activity. “There’s very little official data. In Colombia, there is some, but in Brazil, no one really knows the size of the black market,” Birkin observes.
This absence of transparency complicates market entry and performance benchmarking. According to Birkin, effective regulation should consider the full spectrum of gambling activity, including both licensed and unlicensed activities. Only then can policymakers and stakeholders implement mechanisms to transition players to legal platforms. “You don’t just want to regulate, you need to get players actually to move to regulated operators,” he asserts.
From regulation to migration
Brazil serves as a focal point in the conversation, with its protracted legislative evolution finally bearing fruit. However, Birkin cautions that passing legislation is only half the battle. “The challenge now is player migration to licensed platforms,” he says. Regulation must strike a balance: protective without being overly restrictive, so as not to drive users to offshore operators.
While acknowledging the complexity regulators face in crafting protective frameworks, Birkin warns that overly rigid rules could alienate users. Issues such as cumbersome Know Your Customer (KYC) processes and limited product flexibility are prompting consumers to turn to illegal channels, particularly those offering bets on credit or through cryptocurrency. “We need to work together, not just as operators but as market intelligence providers, to improve outcomes,” he adds.
Competitive advantage through customer intelligence
When discussing competitive strategy, Birkin underscores the limitations of conventional marketing. “The days of entering a market with a generic product and simply spending on brand awareness are gone,” he declares. Instead, the edge lies in customer understanding and product differentiation. Using granular player segmentation, operators can identify high-value users and tailor offerings accordingly. “Low-spend players prioritise ease of use, while high-value ones look for product quality and choice,” he explains.
Birkin also highlights the importance of share-of-wallet metrics. With a majority of high-value users holding multiple accounts, retention becomes paramount. “It’s not about acquiring just any player, it’s about acquiring the right player and keeping them through quality and relevance,” he says. This requires sophisticated market tracking, competitor benchmarking, and a keen understanding of evolving customer needs.
Product and localisation as pillars of long-term success
Looking ahead, Birkin sees product as the primary driver of sustainable growth. Operators need to focus investment not just on user acquisition, but on refining the customer experience. “In the long term, product wins,” he states. This includes localising interfaces, curating culturally relevant offerings, and empowering regional teams with autonomy and insight.
Hyper-localisation, not global branding, will be the hallmark of success in Latin America. According to Birkin, international operators cannot simply transpose strategies from the UK, US, or Europe and expect the same results. “There are leading brands in Brazil and across LATAM that succeed because they have a strong local team that understands the market’s nuances,” he says.
Building sustainable frameworks through collaboration
Despite the hurdles, Birkin remains optimistic that collaborative, data-driven strategies will lead to sustainable growth in the industry. Regulatory bodies, operators, and intelligence firms must align to ensure that player protection does not come at the cost of compliance fatigue or market regression.
The Latin American gambling industry is in the midst of recalibration. As Birkin articulates, success in this region will not favour the loudest brands but the most informed and culturally attuned. Through robust data, regulatory finesse, and product excellence, operators can position themselves to win, not just temporarily, but in perpetuity.
