KTO Shuts Down Brazil Operations: Over 200 Staff Laid Off After Betting Ban

The betting industry was shocked as KTO, an operator that had focused its entire strategy on the Brazilian market, pulled the plug. Less than three weeks after President Luiz Inácio Lula da Silva signed provisional measure MP 1.394/2026 banning online betting, the company faces its end. Reports from former employees on LinkedIn indicate a grim reality, suggesting that more than 200 staff members were let go on October 8.

Founder and CEO Andreas Bardun had previously indicated that while some redundancies were inevitable, a skeleton crew might remain to handle regulatory duties. However, the signals point toward a total withdrawal. Since KTO had previously exited Peru and Chile to focus exclusively on a regulated Brazil, the company is now left without any operating market. Anthony MacKay, Head of Affiliates at KTO, expressed his heartbreak publicly.

“As many of you have heard by now, the recent developments in Brazil have unfortunately led KTO Group to closing down its doors. 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.” - Anthony MacKay, Head of Affiliates at KTO

Numbers and facts

The economic impact on the company and the sector is massive. KTO had paid approximately 4.8 million Euro (R$30m) for its license. This amount was terminated without refund under the new ban. Industry estimates from Blask placed KTO's 2025 Gross Gaming Revenue (GGR) at roughly 46.2 million Euro. In total, the Brazilian betting industry has lost more than 3,500 jobs since the measure was signed on September 25. The company’s B2C website now redirects to a government portal.

Marketing efforts also face a void. KTO was a major sponsor for CazéTV’s World Cup coverage, where master packages were valued at about 29.6 million Euro per partner. Despite reaching over 2.5 billion views during the tournament, KTO faced scrutiny from Senacon and Conar regarding advertising standards, specifically regarding the font size of warning messages and the urgency of the ads, which led to administrative processes before the total ban took effect.

Background

KTO was founded in Malta in 2018 and launched in Brazil in 2019. Its strategy was to operate exclusively in fully regulated markets. During 2024 and 2025, the firm opened offices in Porto Alegre and Santa Cruz do Sul. When the regulated market launched on January 1, 2025, KTO was among the first 14 operators to receive a full license from the SPA. However, the political shift rendered these investments worthless. Organizations like ANJL and IBJR are currently challenging MP 1.394/2026 in the Supreme Court.

Why it matters for German players

For German players, this case illustrates the risks of unstable regulatory environments. While Brazil swung from a full market opening to an abrupt ban, the German Interstate Treaty on Gambling 2021 (GlüStV 2021) provides a reliable foundation. Players at GGL-licensed casinos in Germany do not need to worry about sudden shutdowns or the loss of their funds. Legal certainty is guaranteed through strict rules such as the 1,000 Euro monthly deposit limit and the 1 Euro stake limit per spin on slots.

Furthermore, the LUGAS system ensures central monitoring of these limits, providing a level of security that has just collapsed in Brazil. German customers should strictly avoid operators without a GGL license. The KTO case proves that even massive license investments can become worthless if political oversight acts unpredictably. In Germany, the GGL whitelist remains the only safe reference for legal play.

What it means for GGL-licensed casinos

German licensed casinos can learn that close cooperation with authorities is essential. The criticism KTO faced regarding ad formats mirrors the strict guidelines in Germany. The GGL ensures that gambling ads are not misleading and do not suggest guaranteed winnings. While high standards might deter some international giants, they protect the domestic market from the chaotic conditions currently seen in Brazil.