KTO has ceased operations in Brazil less than three weeks after the implementation of Provisional Measure 1,394/2026, which outlawed online betting. The decision resulted in the dismissal of more than 200 employees on October 8. While KTO has not publicly confirmed the closure, the layoffs have contributed to a total of over 3,500 job losses in Brazil's betting sector since President Lula enacted the measure around September 25. Andreas Bardun, founder and CEO of KTO, indicated that while many employees would be let go following the law's enactment, not all workers would face termination.
Anthony MacKay, KTO’s head of affiliates, expressed on LinkedIn that the recent changes in Brazil made it untenable for a company like KTO to continue its operations in the country.
Founded in 2018 and headquartered in Malta, KTO ventured into the Brazilian gambling market in 2019. In August 2024, the company withdrew from both Peru and Chile to concentrate solely on Brazil. Market estimates from Blask project KTO's gross gaming revenue for 2025 to be approximately €46.2 million (US$54 million), exclusively from Brazil.
Prior to the ban, KTO had secured sponsorship agreements with CazéTV to broadcast over 100 World Cup matches on YouTube around three months before the prohibition. The sponsorship deals reportedly brought in €320 million (R$2 billion). Although KTO did not disclose the cost of each sponsorship agreement, they were estimated to be valued at around €29.6 million (R$185 million). CazéTV garnered significant viewership, with 21 million tuning in for the Brazil vs. Japan matches and 24.2 million for the France vs. Japan match, contributing to a total of 2.5 billion views throughout the tournament.
Regulatory scrutiny followed swiftly:
– On June 24, Senacon launched a preliminary investigation into betting advertising on platforms including CazéTV involving KTO.
– On June 26, Conar proposed the cancellation of advertising campaigns from KTO, Bet365, and Betnacional.
– By June 30, SPA suspended these campaigns as a precaution and initiated administrative proceedings due to concerns that the advertisements prompted urgent betting and were inadequately displayed.
Operators faced potential fines nearing €320 million (R$2 billion) and possible license suspensions, but no official outcomes were reported prior to the ban. In response, ANJL and IBJR, organizations partially founded by KTO, along with Anseja, challenged the measures before the Supreme Court of Brazil, with operators required to adhere to SPA requirements until December 15.
