KTO Group founder disputes reports the Brazil-focused operator is closing after the national gambling ban

Conflicting messages on social media have raised questions about the future of KTO Group, an operator that focuses on the Brazilian market. Reports emerged that the company was closing because of the online gambling ban in Brazil.

The reports began when Anthony MacKay, Head of Affiliates at KTO, posted on LinkedIn. He wrote that recent developments in Brazil had led KTO Group to close its doors, describing the post as personal and emotional. He added that many of his colleagues were now looking for new opportunities, and he thanked KTO founder Andreas Bardun for the chance to be part of the journey.

Bardun then posted shortly afterwards that reports of KTO Group's death were greatly exaggerated, casting doubt on whether the business is shutting down for good. SBC News has contacted Bardun for comment, and no further detail from him has been published so far.

Whatever the outcome, KTO is likely to be affected by the ban imposed on 25 September by Brazilian President Lula da Silva. The Malta-headquartered company counts Brazil as its only market. The president's decision followed weeks of escalating action and rhetoric against the sector.

Brazil's licensed gambling market came under regulation on 1 January 2025, and the industry has mounted a defence against the ban. Some companies, including Betano, are reported to be discussing a court challenge. Operators' central legal argument is that five-year licences, which carried a non-refundable fee of R$30m (about £4.5m), were effectively made void overnight. Trade bodies including ANJL and IBJR are leading lobbying efforts against the measure.

The Attorney General's Office and the Federal Public Prosecutor's Office have backed the president's decision. The final status of the ban is expected to be settled by the National Congress and the Supreme Court, which are due to deliberate once the presidential election cycle ends on 25 October. That vote will decide whether Lula remains in office or is succeeded by his main opponent, Flávio Bolsonaro.