Betano’s parent company, Kaizen Gaming, is committing to keeping its Brazilian employees in a job despite the ban on online betting.
In a statement posted on LinkedIn, the company pleaded with President Lula’s Workers’ Party government to not follow through with the measures as it risks pushing punters to the black market.
Kaizen also stated: “we remain committed to Brazil, and we are here for the long run”.
Betano, Kaizen’s flagship brand, is arguably the biggest operator to suffer from Lula’s abolishment of the Bets Law at the end of September.
The company was the biggest bookmaker in Brazil, according to the Blask Index, with Brand Accumulated Power (a brand’s share of total user interest within the country) of 26%.
The butterfly effect has been in full swing following the developments. Allwyn, which owns a 36.75% stake in Kaizen Gaming, stated shortly after the ban was announced that Betano is “evaluating potential mitigants to the impact of the provisional measure, and is preparing legal action to protect its rights in Brazil in consideration of its five-year licence to operate”.
Kaizen picks its moment
But Kaizen itself had, at least publicly, kept schtum on what is likely to be a hugely detrimental situation for the business – until this week.
“Since Brazil’s betting ban was announced on September 25, there have been several posts about the people who have lost their jobs,” a company statement posted to LinkedIn read.
“The effect reaches well beyond betting companies, to small and medium businesses in technology, telecommunications, media, services and education, and to the wider sports economy, affecting thousands of people.
“The regulated market in Brazil opened less than two years ago… The tax income from the industry had been supporting areas such as healthcare, tourism and public security.
“A ban doesn’t make demand disappear, as international experience has shown. It risks pushing bettors back to illegal operators, with no protections and no contribution to the country.”
The migration of Brazilian players to illegal operators is a huge concern and was a hot topic at the SBC Summit two weeks ago.
With the appetite for betting in the country clearly there – it is listed as the fifth-largest gambling market worldwide according to Blask – many consumers are highly likely to find a way to place bets.
This shift became evident almost immediately after the initial ban on 25 September. SBC Noticias Brasil reported that illegal iGaming operators had risen from 331-575 between 25-26 September – an increase of 74% in 24 hours.
Hopes for a reversal
The backlash has been astronomical, ranging from political figures to gambling operators, and from sports teams and organisations to the general public.
There are many ways in which a regulated market could return – for starters, Lula’s opposition, Flavio Bolsonaro, has been critical of the blanket ban, arguing for the preservation of sports betting.
The ban may also lapse in Congress, be rejected by either the Chamber of Deputies or the Federal Senate, or even be overturned by the Supreme Federal Court.
These three examples are clearly something that Kaizen is hopeful of.
The statement continued: “The measure is not final. We believe in the rule of law, in Brazil’s institutions and in dialogue, and we hope the country builds on the progress it has made rather than loses it.
“In the meantime, we are complying fully with the law, and we will honor the social investment commitments we have already made.
“To our colleagues in Brazil: we have guaranteed that your jobs are safe until the end of the process before the National Congress of Brazil for the validation or not of the Provisional Measure. Thank you, and thank you to our customers, partners and everyone who helped build this industry.
“Betting carries real risks. Prohibition is not protection. Rules, oversight and education are.”
Of course, Kaizen is not limited to Brazil. The group is active across 20 markets and the pockets of Co-Founder and Chief Executive Officer, George Daskalakis, run deep.
Examples of this are the CEO’s rumoured attempt to take a stake in EFL Championship club Bristol City, and the fact that Kaizen has extended its relationship with UEFA for Betano to become an official sponsor of EURO 2028.
But that does not mean that the impacts that Brazil’s betting ban will have on Kaizen and Betano can be understated.
