KTO targets 10% market share in competitive Brazil market
In an engaging interview with iGB, KTO founder and CEO Andreas Bardun articulated the company’s ambitious goal of seizing a 10% share of the burgeoning licensed Brazilian betting market. With a firm belief in the efficacy of their extensive localization strategy, he expressed confidence that KTO’s diligent efforts will ultimately yield substantial rewards.
KTO has been a player in the Brazilian market since 2019, initially launching operations in just one state. Through strategic expansion and robust regional and national sports sponsorships, the company has steadily established a significant presence.
“I firmly believe that any operator should set their sights on capturing at least 10% market share in Brazil over the long term, and we aspire to lead the market,” explains Bardun. “To be recognized among the elite brands, achieving a 10% share is essential.”
“While we acknowledge that we are currently working toward that goal, when you consider what we have accomplished in Brazil—coming from modest origins with limited investment—we are optimistic about our capability to compete with the industry’s giants,” he added.
KTO submitted its application for a betting license in July, within the critical 90-day preference window that will expire at midnight on August 20. This positions KTO among the first operators expected to receive approval ahead of the January 1, 2025 launch date.
The Brazilian market is poised for intense competition, with industry leaders such as Betano, Bet365, and Flutter’s Betfair all vying for licenses alongside KTO.
According to a March study by the International Betting Integrity Association (IBIA), the sports betting turnover in Brazil could soar to $34 billion (£26.8 billion/€31.1 billion) by 2028, with onshore gross wins potentially reaching $2.8 billion. This projected growth underscores the significant opportunities available within this emerging landscape.
KTO Exits Peru and Chile to Concentrate on Brazil
A July survey by ENV Media highlighted KTO as the third most recognized and trusted brand in Brazil, with a commendable 9.1% of respondents acknowledging the company. This competitive awareness speaks to KTO’s effective marketing strategies.
ENV utilized metrics such as social media engagement, website traffic, and keyword visibility on Google to arrive at their findings, which focused on brand recognition rather than the number of active user accounts.
KTO’s brand awareness trailed closely behind Betfair (9.5%) and Betano (9.4%), demonstrating a strong competitive edge in a crowded marketplace.
In a strategic move to focus its resources on Brazil ahead of its licensed betting launch, KTO exited the markets in both Chile and Peru earlier this year. However, Bardun mentioned that a re-entry into Peru with a regionally licensed product could be reconsidered in 2025.
Bardun is optimistic about KTO’s current positioning in Brazil, especially given the rapid growth of the online casino segment. “The iGaming sector is expanding, and I believe it will continue to flourish, as the Brazilian market is still in its nascent stages,” he stated. “We are observing the shift towards casino betting, indicating significant room for growth.”
The Fruits of Diligence in Brazil
With an eye on market share, Bardun credits the company’s modest beginnings and targeted localization strategy as key advantages in the competitive landscape.
“What I take the most pride in is our relentless work ethic,” Bardun asserts, emphasizing the ethos that drives KTO forward. “If you can’t outspend your competitors, you must outsmart and outwork them. That’s precisely what we’ve been able to achieve thus far.”
Regulatory Delays Affecting Larger Operators?
The journey toward establishing a legal betting market in Brazil has been fraught with challenges, and the publication of final regulations came only three weeks before the August 20 deadline for prioritized applications.
In Bardun’s opinion, the initial 90-day window was inadequate and should have extended to at least 180 days, or ideally six months, to accommodate the complexities of the regulatory process.
Earlier this year, interest was high, with over 130 companies expressing intent to enter the market. However, with limited time remaining, it appeared unlikely this number would be met, as government data indicated fewer than 100 applications had been submitted at the time of reporting.
“There remains a considerable list of tasks that must be addressed prior to January 1,” Bardun warns. “Fortunately, we are solely focusing on Brazil, allowing us to direct all our resources here. However, I can foresee significant challenges for larger organizations managing extensive operational roadmaps.”
