News

Entain and Kambi outline impact of Brazil betting ban

Entain and Kambi have outlined the expected repercussions of Brazil’s provisional betting ban, with both operators confirming compliance and anticipating a limited financial impact.

· 2 min read
Share this article
Follow us on Google
AI Summary
Sign in to listen
Entain and Kambi Brazil ban
Key Points
Entain will comply with Brazil’s provisional ban and now expects FY 26 EBITDA and Online EBITDA margin to be at the lower end of its guidance ranges
Brazil was expected to contribute around 5% of Entain’s FY26 Online NGR, with a modest EBITDA contribution
Kambi expects limited financial impact, as Brazil currently accounts for a low single-digit percentage of its revenue

Entain and Kambi have responded to Brazil’s provisional ban on iGaming and fixed-odds sports betting. While operators are complying with the measure, they have also provided updates on its potential financial impact. Meanwhile, as Global Gaming Insider already reported, Betano is preparing legal action.

Entain confirms compliance, updates outlook

Entain announced that its operations in Brazil will comply with the provisional measure that prohibits iGaming and fixed-odds sports betting.

Nevertheless, the operator expressed disappointment at the sudden development, which occurred without consultation with industry stakeholders.

For its 2026 financial year, Entain expected Brazil to account for about 5% of the Group’s online net gaming revenue (NGR). However, given the challenging and highly competitive operating environment, it expected a modest EBITDA contribution.

The Group emphasized its strong, globally diverse portfolio and reconfirmed its FY26 Group Underlying EBITDA guidance of £910m ($1.2bn) to £960m, as well as its Online Underlying EBITDA margin guidance of 21–22%.

However, it now expects it to be towards the lower end of both ranges due to Brazil’s provisional measure.

Excluding Brazil, Entain expects FY26 Online NGR growth at the top end of its 5–7% guidance, on a constant currency basis. Including Brazil, growth is expected at 4–6%, assuming the ban remains in place through 2026.

Kambi expects limited financial impact

Kambi CEO Werner Becher said the operator will fully comply with the order. He added that the Group expects financial impacts to be limited, considering Brazil currently represents a low single-digit percentage of Kambi’s revenue.

Becher also expressed disappointment, noting that a well-regulated market "provides the best framework for protecting players."

Betano prepares legal action

Meanwhile, 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.

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.

Provisional measure remains subject to further developments

Under the measure, operators currently authorized to conduct online gambling business in Brazil must shut down their platforms by October 6.

For now, the measure is temporary. It could remain in effect until early March 2027, but will lapse if either house of Congress rejects it or both houses fail to ratify it within the applicable period.

Brazil collected $1.87bn in federal taxes from businesses classified as gambling during the first eight months of 2026, according to Receita Federal data.

Good to know

At the time of writing, there are currently 188 authorized betting operators in Brazil – each of which were required to pay roughly $5.8m for a five-year license

Reaction Board

News Analysis

View All
Upgaming Editorial Interview

Upgaming CEO: When enterprise platforms outperform white labels

Tornike Tvauri, Founder and CEO of Upgaming, highlights what makes tier 1 operators stand out.

4 min read • • By Patrick Fasolis
buffon1

Superman at SiGMA: Buffon names best goalkeepers in the game

Gianluigi Buffon is one of the most storied names in football – and recognised by many as the greatest goalkeeper of all time. Last week, he provided an exclusive interview with Global Gaming Insider reflecting on key highlights from his playing career.

2 min read • • By Will Underwood
Allwyn x Kambi Updated Analysis

How the Allwyn-Kambi source code model will be structured

Kambi CEO Werner Becher believes model could provide "attractive alternative solution to larger operators." Crucially, Kambi's AI trading system lies outside of Allwyn deal.

3 min read • • By Patrick Fasolis

In The News

View All