KTO Aims for 10% Market Share in Brazil’s Regulated Betting Market

In an interview with iGB, KTO founder and CEO Andreas Bardun expressed his ambition to secure a 10% market share in Brazil’s licensed betting market, driven by the company’s diligent efforts and robust localization strategy.

KTO has been active in Brazil since its initial launch in a single state in 2019. Through rapid expansion and strategic regional and national sports sponsorships, the company has established a significant presence in the market.

“I believe anyone aiming for long-term success in Brazil should target at least a 10% market share, and we aspire to be a market leader,” Bardun states. “To be recognized among the top brands, achieving at least 10% is essential. We know we’re not there yet, but given our modest beginnings and limited initial investment, we’re confident we can compete with the big players and reach this goal.”

KTO submitted its betting license application in July, within the initial 90-day priority window, ensuring it will be among the first licenses approved and launched by the target date of January 1, 2025.

Brazil is expected to be a highly competitive market, with industry giants like Betano, Bet365, and Flutter’s Betfair also applying for licenses. A study by the International Betting Integrity Association (IBIA) in March estimated that sports betting turnover in Brazil could reach $34 billion by 2028, with an onshore gross win potentially reaching $2.8 billion.

KTO has exited the markets in Peru and Chile to concentrate its efforts on Brazil. A July survey by ENV Media on brand recognition and market share among Brazilian betting brands ranked KTO as the third most recognized and trusted brand, with 9.1% of respondents favoring the company.

KTO’s targeted sponsorships, such as its partnership with Serie B side Chapecoense, have contributed to its growing presence. ENV’s analysis, based on social media followings, website traffic, and keyword prominence, placed KTO just behind Betfair (9.5%) and Betano (9.4%).

To underscore its commitment to Brazil, KTO withdrew from both Chile and Peru earlier this year, although Bardun mentioned the possibility of launching a regionally licensed product in Peru by 2025.

Bardun believes that the progress KTO has made in Brazil, particularly with the rise of online casinos, positions the company well for continued growth. “[iGaming] is expanding, and I think it will keep growing as the Brazilian market is still in its early stages,” he says. “Betting is shifting more towards casino gaming, so there’s significant potential for growth and maturation.”

Reflecting on KTO’s journey, Bardun highlights the importance of hard work and strategic localization. “What I’m most proud of is that we are outworking everyone,” he says. “When you can’t outspend, you have to outsmart and outwork, and that’s what we’ve managed to do.”

However, Bardun also acknowledges potential challenges, particularly for larger operators. Brazil’s path to a regulated market has been complex, with final regulations published just three weeks before the August 20 deadline for prioritized applications. Bardun argues that the 90-day window was too short and should have been extended to at least 180 days or six months.

Earlier this year, over 130 companies expressed interest in the Brazilian market, but with the deadline approaching, fewer than 100 applications had been submitted, according to the latest government data. “There’s a huge list of tasks to complete before January 1,” Bardun notes. “We’re fortunate to be focused solely on Brazil, but I can imagine the challenges faced by larger organizations with extensive roadmaps.”