KTO Shuts Down After Brazil Online Gambling Ban

KTO Group is shutting down following Brazil's ban on online gambling, ending the operations of a brand that had been active in the country since 2019.

Former employees disclosed the closure through LinkedIn posts, while Brazilian publication Baguete reported that more than 200 people had been laid off.

KTO's Head of Affiliates Anthony Mackay confirmed that the group was ceasing operations entirely following the latest developments in Brazil.

The company itself has not publicly issued a detailed closure announcement and did not respond to media requests for comment.

Brazil Had Become KTO's Only Market

KTO's exposure to the Brazilian shutdown was particularly high because the company had already withdrawn from other Latin American jurisdictions.

The operator exited Peru and Chile in 2024, leaving Brazil as its only active market.

KTO had operated in Brazil since 2019 and later became part of the country's regulated betting market.

That concentration meant the company had no remaining operating jurisdiction to absorb the impact when Brazil ordered licensed betting and online casino businesses to stop operating in October 2026.

Unlike larger international groups that can shift resources between multiple regulated markets, KTO's revenue base had become dependent on Brazil.

More Than 200 Employees Reportedly Affected

Baguete reported that the shutdown resulted in more than 200 redundancies.

Posts from former employees described teams being dissolved as KTO wound down operations.

The layoffs add to a growing employment impact from Brazil's gambling prohibition, with several previously licensed operators reducing local headcount or closing Brazilian operations entirely.

Jobs affected across the industry include roles in customer support, technology, compliance, marketing, payments and affiliate management.

KTO's case goes further than a local restructuring because the group is reported to be ending operations altogether.

Brazil Ban Continues to Reshape Former Licensed Market

Previously authorised Brazilian betting and online casino platforms were required to go offline from October 6 following the introduction of the federal gambling prohibition.

The shutdown has forced operators to refund player balances, reduce staffing and reconsider investments made during the regulated market's short lifespan.

Some companies with international operations can continue serving customers elsewhere. Operators focused almost exclusively on Brazil face a much more difficult adjustment.

KTO demonstrates that difference.

After leaving Peru and Chile, the operator effectively concentrated its business on a single jurisdiction. Once Brazil closed, the company no longer had another active market to fall back on.

The reported closure therefore represents one of the clearest corporate consequences so far of Brazil's decision to dismantle its regulated online gambling market.