Malta-based KTO Group winds down operations following Brazil gaming ban

KTO Group has ceased operations in Brazil following the introduction of a nationwide ban on online betting, with more than 200 employees reportedly losing their jobs on 8th October.

Former employees have shared updates on LinkedIn describing the closure and its impact on the company’s workforce. KTO has not officially confirmed the closure.

“Following the recent regulatory changes to the betting sector in Brazil, KTO Group has wound down its operations, and I was one of the people affected,” Head of Data Robert Mifsud Bonnici wrote.

He said he had spent just over a year at the company, leading the data team and shaping its data strategy and platform.

“It’s been just over a year of great learning, leading the data team and shaping our data strategy and platform,” he wrote, thanking his team and colleagues for helping him grow professionally and personally.

Anthony MacKay, KTO’s head of affiliates, wrote on LinkedIn: “As many of you have heard by now, the recent developments in Brazil have unfortunately led KTO Group to close its doors.”

He added: “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.”

Mr MacKay also reflected on the company’s future, writing: “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.”

Head of BI and Analytics at KTO Group Simon Bugeja also addressed the situation in a LinkedIn post, describing the week as one of the most difficult of his career.

“Last week was one of the toughest weeks of my career,” Mr Bugeja wrote. “The ban on online gaming in Brazil has unfortunately had a devastating impact on the KTO team, with too many talented people losing their jobs.”

KTO’s Brazilian Market Presence

Founded in Malta in 2018, KTO entered the Brazilian market in 2019. In August 2024, the company withdrew from Peru and Chile to focus exclusively on Brazil.

KTO subsequently opened offices in Porto Alegre and Santa Cruz do Sul, in the southern Brazilian state of Rio Grande do Sul.

The company was among the first 14 operators to receive a full licence when Brazil’s regulated betting market launched on 1st January 2025.

At the time of the licensing process, founder and CEO Andreas Bardun described the authorisation as “like a stamp of approval on how disciplined we are as an organisation”. He also set the objective of making KTO one of Brazil’s top three betting brands.

Brazil’s Online Betting Ban

On 25th September 2026, Brazilian President Luiz Inácio Lula da Silva introduced a ban on online betting in the country.

The measure prohibits the operation, offering, intermediation and advertising of fixed-odds betting, covering both sports betting and online casino gaming.

Brazil’s Congress has 120 days to approve or reject the measure.