KTO has reportedly ceased operations in Brazil, the only market where it operated, following the introduction of MP 1.394/2026, which banned online betting in the country. Posts by former employees on LinkedIn indicated that more than 200 staff were laid off on 8 October, adding to mounting job losses across Brazil’s betting industry.
Closure and layoffs
The reported shutdown came less than three weeks after MP 1.394/2026 took effect. Several former employees appeared to confirm the closure on LinkedIn. Also posts suggesting that more than 200 people were dismissed on 8 October. KTO has not officially confirmed the reports.
The cuts add to more than 3,500 betting-sector job losses since Lula signed the measure on 25 September. Following the ban, KTO CEO and founder Andreas Bardun said the company was making significant redundancies, while retaining some employees. He also said KTO’s licence remained valid until at least 25 October under the measure, as the company continued to meet its legal and regulatory obligations.
KTO’s head of affiliates, Anthony MacKay, wrote on LinkedIn:
“As many of you have heard by now, the recent developments in Brazil have unfortunately led KTO Group to closing down its doors,” said KTO head of affiliates Anthony MacKay on LinkedIn. “I’d be lying if I said that this unexpected news didn’t hurt, because it did and the heartbreak is stronger than a breakup. “But I walk away from this with my head held high, and so should everyone who has worked at KTO and was part of the story. “On a final note, although this may be the end of KTO as we know it, its values will always live with me both personally and professionally. “I also want to mention that with these recent events, many of my colleagues are now looking for their next opportunity, and it’s a gold mine of talent which any company would be lucky to have.”
KTO’s exposure to Brazil
Founded in Malta in 2018, KTO entered Brazil the following year. In August 2024, it withdrew from Peru and Chile to concentrate on Brazil’s planned regulated market. Bardun said the company intended to operate exclusively in fully regulated markets. That year, KTO also opened offices in Porto Alegre and Santa Cruz do Sul.
Brazil’s regulated betting market was launched on 1 January 2025. KTO was among the first 14 operators to receive a full licence from the Secretariat of Prizes and Betting. The company’s Brazilian B2C website now redirects visitors to brasilsembets.gov.br.
Under the ban, KTO’s licence valued at approximately €4.8m (R$30m), was terminated without a refund. Industry estimates from Blask put the company’s 2025 gross gaming revenue at around €46.2m (US$54m). Brazil was KTO’s only market.
Read Also : Brazil’s Betting Industry Faces Thousands of Job Losses Ban
Advertising scrutiny and legal challenges
Three months before the ban, KTO sponsored CazéTV’s YouTube broadcasts of all 104 World Cup matches, alongside bet365 and Betnacional. The sponsorships generated approximately €320m (R$2bn) in total, with each master package reportedly worth about €29.6m (R$185m). KTO’s specific fee was not disclosed. CazéTV’s audience reached 21m devices during Brazil v Japan and peaked at 24.2m for the France v Spain semi-final. The tournament attracted more than 2.5bn views overall.
On 24 June, Senacon launched a preliminary investigation into betting advertising on CazéTV, including a KTO promotion. Two days later, Conar recommended suspending ads from KTO, bet365 and Betnacional. On 30 June, the SPA temporarily suspended the advertisements and opened an administrative process. In addition saying they created urgency around betting and displayed warnings in text that was too small to read.
Operators could have faced fines of up to approximately €320m (R$2bn) and possible licence suspensions, but no outcome was reported before the ban. ANJL, IBJR which KTO co-founded and Anseja have challenged MP 1.394/2026 at the Supreme Court. Operators have until 15 December to settle their outstanding obligations with the SPA. Stake briefly secured an injunction allowing it to continue operating, but a federal appeals court later suspended the order.
