The migration of bettors to licensed platforms represents one of the main growth opportunities for the Brazilian market, but the advance of the tax burden and excessive advertising restrictions could favor illegal operators, said Andreas Bardun, CEO and founder of KTO Group. interview with G&M News published on August 18.
Bardun says that a significant portion of betting in the country still occurs outside the regulated environment. For the executive, each percentage point transferred to authorized companies expands the formal market without requiring the acquisition of new bettors.
The CEO also sees room for expansion of online casinos and live casinos, in addition to advances in payment methods and applications. Artificial intelligence appears among the technologies that could gain importance in personalization, fraud prevention, and compliance processes.
Taxes and advertising concern KTO
Among the main risks for the coming years, Bardun highlighted possible increases in taxation on licensed companies. In the executive's assessment, a higher tax burden could reduce the ability of regulated operators to compete with platforms that operate outside the rules.
Advertising restrictions are also cited as a concern. Bardun supports measures aimed at protecting vulnerable audiences, but considers that limitations capable of excessively reducing the exposure of licensed brands could benefit unauthorized sites.
Another problem, according to him, is the difficulty that consumers and part of the public coverage have in distinguishing regulated operators from illegal platforms. The executive argues that failures in the sector could result in stricter rules for licensed companies, while irregular operators remain beyond the reach of the same requirements.
KTO bet on Brazil before regulation
KTO entered the Brazilian market in 2019, before the implementation of the current regulatory environment. Bardun said that from the start the company chose to offer product and customer service in Brazilian Portuguese and adapt payments and content to the behavior of local users.
The early adoption of Pix was part of that strategy. The company also structured customer identification procedures, money laundering prevention, responsible gambling, and report generation following standards associated with licensed operations.
According to Bardun, this approach limited the speed of expansion at certain times, but reduced the need for structural changes when the new rules came into effect.
The strategy also prioritized retention and user experience rather than relying mainly on bonuses to acquire customers. For KTO, payment speed, app stability, and customer service are factors directly linked to bettor retention.
World Cup reinforced mobile behavior
The 2026 World Cup also served as a test for the company's strategy in the regulated market. Bardun said the tournament received the largest brand investment KTO has ever made.
During the competition, the company identified behavior strongly concentrated on mobile devices. Another movement drew attention: the migration of users from sports betting to casino products during and after the tournament occurred more quickly and consistently than KTO's internal models predicted.
For Bardun, major competitions can quickly increase an operator's exposure, but retaining those users depends on the experience offered by the platform.
Responsible gambling should be part of the product
The executive also argued that measures of responsible gambling be developed as part of the user experience, and not treated only as compliance requirements.
Among the mechanisms cited are deposit limits, self-exclusion, and indicators related to the client's financial capacity. KTO also keeps customer support in-house, a decision Bardun links to building trust with users.
For the CEO, the industry itself should seek higher standards as Brazilian regulation matures. He assesses that operators, suppliers, and regulators are still defining in practice issues related to advertising, responsible gambling, and reporting obligations in the new market.
