Kaizen Gaming announced that its subsidiary brand Betano will retain its Brazilian employees despite the ongoing ban on online gambling. The company issued a statement on LinkedIn urging President Lula's Workers' Party government to carefully consider the decision, warning that the move could drive gamblers to the illegal market.
Kaizen insisted, "We remain committed to supporting Brazil and will be based here for the long term." As Brazil's largest betting company, Betano was the first to be affected after Lula repealed the gambling law at the end of September.
According to data from the Blask Index, Betano holds a 261% market share of brand user interest in Brazil, making it the market leader. However, shortly after the bill was passed, Allwyn, who controls Kaizen, stated that Betano is assessing measures to counter the ban and is prepared to take legal action to protect its rights within its five-year operating license.
Kaizen finally speaks out.
While Kaizen initially remained silent after the ban was announced, the company finally spoke out this week as the situation developed. The statement noted, "Many people have lost their jobs due to the news of the gambling ban."“
The impact of the ban will extend far beyond the gaming industry, affecting small and medium-sized enterprises in sectors such as technology, telecommunications, media, and education, and impacting thousands of people. The regulatory market, implemented over two years ago, has driven tax revenue and provided support for areas such as healthcare, tourism, and public safety.
The statement also warned: “Banning gambling will not eliminate demand. International experience shows that this will drive gamblers to unprotected illegal betting operators.” Illegal betting operators increased rapidly after the ban was announced; SBC Noticias Brasil reported that the number of illegal online betting operators surged by 741 TP3T from September 25 to 26.
Looking forward to change
The ban has drawn strong reactions from all sectors of society, with politicians, betting companies, sports teams, and the general public expressing their dissatisfaction. Lula's opponent, Flavio Bolsonaro, has opposed a complete ban and called for the preservation of sports betting.
This injunction could be delayed or rejected by Congress, or even overturned by the Supreme Court. Kaizen is hopeful about this.
Furthermore, the statement said, "These measures are not final. We believe in the rule of law and the Brazilian system, and we hope the country can continue to move forward on the progress already made, rather than regress." Kaizen also assured employees of workplace safety until Congress's decision on the temporary bill is released.
Of course, Kaizen is not limited to Brazil; it operates in 20 markets. CEO Jorge Dascalakis is rumored to be looking to acquire a stake in English Football League champions Bristol City, and Kaizen's relationship with UEFA extends to Betano becoming an official sponsor of Euro 2028.
common problems
Why is Kaizen Gaming opposing Brazil's online gambling ban?
Kaizen Gaming claims the ban could lead gamblers to turn to unregulated illegal markets, impacting thousands of employees and related industries.
What is Betano's position in the Brazilian market?
According to the Blask Index, Betano has a brand user interest share of 26% in Brazil, making it the market leader.
What is the current situation of Kaizen Gaming's employees in Brazil?
Kaizen Gaming has pledged to retain its Brazilian employees as much as possible until Congress makes a final decision on the temporary bill.
What changes have occurred in illegal gambling after the ban?
Following the announcement of the ban, the number of illegal online gambling operators surged by 74% within 24 hours, demonstrating the continued existence of market demand for gambling.
