Malta-founded betting operator KTO Group has reportedly wound down its operations following Brazil’s ban on online betting, with more than 200 employees said to have lost their jobs.

The closure emerged through LinkedIn posts by former members of the company’s workforce. KTO Group has not publicly confirmed the shutdown.

Robert Mifsud Bonnici, KTO’s former Head of Data, confirmed that he was among those affected, writing: “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.”

Anthony MacKay, the company’s former Head of Affiliates, also addressed the closure, writing: “As many of you have heard by now, the recent developments in Brazil have unfortunately led KTO Group to close its doors.”

Reflecting on the unexpected development, Mr MacKay 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.”

Simon Bugeja, KTO’s former Head of Business Intelligence and Analytics, described the impact on employees as particularly severe.

“Last week was one of the toughest weeks of my career,” he wrote, adding that the Brazilian ban had “unfortunately had a devastating impact on the KTO team, with too many talented people losing their jobs.”

Founded in Malta in 2018, KTO entered the Brazilian market in 2019 and gradually shifted its focus towards the country.

In August 2024, the company withdrew from Peru and Chile to concentrate its resources exclusively on Brazil. It subsequently established offices in Porto Alegre and Santa Cruz do Sul, in the southern Brazilian state of Rio Grande do Sul.

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

The reported closure follows Brazilian President Luiz Inácio Lula da Silva’s introduction of a measure to ban online betting on 25th September 2026.

The measure targets the operation, offering, intermediation and advertising of fixed-odds betting, covering both online sports betting and casino-style gaming. Brazil’s Congress has 120 days to approve or reject it.