Lottery and gaming group Allwyn said its previously issued 2026 Adjusted EBITDA margin guidance would no longer apply if Brazil’s ban on online sports betting and iGaming remains in place for the rest of the year.
The company said it is assessing the impact of the measure on its 36.75% stake in Kaizen Gaming, operator of the Betano brand.
Allwyn said the impact on its 2026 Adjusted EBITDA margin should be limited because of Betano’s relative contribution to its consolidated financials. However, if the prohibition continues through the rest of 2026, its previous guidance for an Adjusted EBITDA margin of approximately 37% will no longer apply.
Brazil introduced the restriction on 25 September through Provisional Measure No. 1,394. It bans fixed-odds betting nationwide, including sports betting and online games, as well as the promotion and facilitation of such services. The rules took effect upon publication.
The move reverses the direction of Brazil’s regulated betting market, which began operating under a new federal regulatory framework on 1 January 2025.
The Brazilian Ministry of Finance oversees the regulated betting sector through its Secretariat of Prizes and Betting (SPA/MF). Before the measure was introduced, the ministry listed Kaizen Gaming Brasil as an authorised operator, with Betano operating through the betano.bet.br domain under SPA/MF Ordinance No. 246, dated 7 February 2025.
Allwyn said Betano is assessing measures to mitigate the ban’s impact and preparing legal action to protect its rights in Brazil. It highlighted Betano’s five-year licence, putting the status of previously authorised operators at the centre of the regulatory fallout.
Allwyn’s exposure to the disruption differs from that of an operator that fully consolidates its Brazilian business. Its 36.75% interest in Kaizen Gaming is accounted for using the equity method, meaning the impact would principally flow through its share of profit from equity-method investees rather than directly reducing consolidated revenue.
The group said the impact on its 2026 Adjusted EBITDA margin should therefore remain limited given Betano’s contribution to the wider business. However, it has withdrawn the applicability of its previous margin guidance if the ban remains in force for the rest of the year.
The final financial impact will depend partly on how quickly Betano can reduce costs that are not normally variable in the short term and how effective other measures are in offsetting lost revenue. Future reporting periods will also depend on the duration of the ban and any additional revenue and cost initiatives.
Brazil is Betano’s largest individual market but does not account for most of its revenue, Allwyn said. Other international markets collectively generate more revenue and have recently recorded significantly higher growth.
Kaizen also plans to continue its expansion, with entry into four additional countries targeted for early 2027.
The Ministry of Finance’s register was updated on 24 September, one day before the provisional measure, and continued to list companies authorised under Brazil’s regulated betting legislation.
Allwyn said its assessment remains preliminary and will continue to evolve based on the duration of the prohibition and Kaizen’s ability to mitigate its effects.