KTO founder denies closure claims amid Brazil gambling ban

Confusion has surrounded the status of Brazil-focused operator KTO Group after a senior staff member announced its closure online, only for the company's founder to dispute the claim, SBC News reported.

Anthony MacKay, KTO's Head of Affiliates, wrote on LinkedIn that "the recent developments in Brazil have unfortunately led KTO Group to closing down its doors". He described the post as "a very personal and emotional post for me to write" and said he still remembered his first day at the company vividly.

MacKay added that "although this may be the end of KTO as we know it, its values will always live with me both personally and professionally", and said former colleagues now job-hunting represented "a gold mine of talent which any company would be lucky to have". He singled out KTO founder Andreas Bardun for thanks over the opportunity to be "a part of the journey".

Bardun responded shortly afterwards with his own post stating that "the reports of KTO Group's death are greatly exaggerated", casting doubt on whether the business is in fact shutting down. SBC News said it had contacted Bardun for further comment.

Whatever the precise state of the company, KTO is exposed to the fallout from Brazil's abrupt prohibition of online gambling, imposed by President Lula da Silva on 25 September after weeks of escalating rhetoric against the sector. The Malta-headquartered operator counts Brazil as its only market.

Brazil's regulated betting industry, which had only been operating under a formal licensing regime since 1 January 2025, is pushing back against the ban. SBC News noted reports that operators including Betano are considering legal challenges.

Operators' central argument is that the ban effectively voids five-year licences for which they paid a non-refundable fee of R$30m, equivalent to roughly £4.5m. Trade bodies ANJL and IBJR are leading lobbying efforts against the prohibition.

Brazil's Attorney General's Office and Federal Public Prosecutor's Office have backed Lula's decision. The National Congress and the Supreme Court are expected to deliberate on the ban's future once the current presidential election cycle concludes on 25 October, a contest in which Lula faces challenger Flávio Bolsonaro.