Kaizen Gaming Guarantees Brazilian Jobs and Warns Against Black Market Risks in Response to Betting Ban

Kaizen Gaming has pledged to keep its Brazilian employees in their jobs despite the ban on online betting. The parent company of Betano issued the assurance in a LinkedIn statement after weeks of public silence on the regulatory change announced on September 25.

The operator stated it remains committed to Brazil and is here for the long run. Betano was the biggest bookmaker in the country with 26% Brand Accumulated Power according to the Blask Index. The statement highlighted effects reaching beyond betting companies to small and medium businesses in technology, telecommunications, media, services, education, and the wider sports economy.

It noted the regulated market opened less than two years ago. Tax income from the industry had supported healthcare, tourism, and public security. A ban does not 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.

Illegal iGaming operators rose from 331 to 575 in the 24 hours after the ban, an increase of 74%. This shift was reported alongside the statement.

Statement on Rule of Law and Employee Protections

Kaizen pleaded with President Lula’s Workers’ Party government not to follow through with the measures. The statement continued that the measure is not final. The company believes in the rule of law, in Brazil’s institutions and in dialogue. It hopes the country builds on the progress it has made rather than loses it.

In the meantime Kaizen is complying fully with the law and will honor the social investment commitments already made. It guaranteed that jobs are safe until the end of the process before the National Congress of Brazil for the validation or not of the Provisional Measure. The statement added that betting carries real risks. Prohibition is not protection. Rules, oversight and education are.

Market Position and Next Steps

Allwyn, which owns a 36.75% stake in Kaizen Gaming, is evaluating potential mitigants to the impact of the provisional measure and preparing legal action to protect its rights in Brazil in consideration of its five-year licence. George Daskalakis, Co-Founder and Chief Executive Officer, oversees operations across 20 markets. These include an extended UEFA partnership making Betano an official sponsor of EURO 2028. That does not mean the impacts that Brazil’s betting ban will have on Kaizen and Betano can be understated.

As reported by SBC News, the backlash includes criticism from opposition figures such as Flavio Bolsonaro. The ban may lapse in Congress, be rejected by the Chamber of Deputies or Federal Senate, or be overturned by the Supreme Federal Court.

Reporting: SBC News

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