Following Brazilian President Luiz Inácio Lula da Silva's provisional measure prohibiting iGaming and fixed-odds sports betting, Betano is preparing legal action to protect its rights under its five-year license to operate.
Allwyn has announced this development, as it participates in the Brazilian market through its 36.75% shareholding in Kaizen Gaming, which operates the Betano brand.
At the same time, Betano is evaluating other potential mitigants to the measure's impact.
Under the measure, operators currently authorized to conduct online gambling business in Brazil must shut down their platforms by October 6.
At this stage, the measure is temporary, with legal effect for up to 120 days, plus any periods during which the Brazilian Congress is in recess, meaning it could remain in effect until early March 2027.
The measure will automatically cease to be in force if either house of Brazil’s Congress rejects it during this period, or if both houses have not ratified it by the end of the applicable period.
While Brazil is Betano's largest market, international operations generate most of its revenue and are growing faster than Brazil, with plans to enter four additional markets in early 2027. As Betano is equity-accounted within Allwyn, any impact from Brazil’s provisional measure would mainly be reflected through its share of profit from equity-method investees.
If the measure remains in place through 2026, Allwyn expects the impact on its 2026 Adjusted EBITDA margin 1 to be limited.
However, this assessment remains preliminary and is subject to ongoing review as the company keeps evaluating the measure's implications and possible mitigating actions.
The ultimate impact will depend on the measure's duration and the effectiveness of cost-saving and revenue-optimisation measures.
Global Gaming Insider examined Brazil’s provisional ban in depth, highlighting how the industry’s rapid expansion, aggressive marketing and failure to build public trust contributed to the current backlash.
Brazil collected $1.87bn in federal taxes from businesses classified as gambling during the first eight months of 2026, according to Receita Federal data
