Betano preparing legal action to protect its rights in Brazil, major iGaming operator says

Betano, an online gambling platform operated by Malta-based Kaizen Gaming International Limited, is evaluating potential mitigants to the impact of the recent announcement banning online betting in Brazil.

The company is preparing legal action to protect its rights in Brazil in consideration of its five-year licence to operate, which had been issued on 1st January 2025.

The announcement was made by Allwyn AG, which has a 36.75 per cent shareholding in Kaizen Gaming.

Brazil's President Luiz Inacio Lula da Silva recently announced a ban on online betting operations in the Latin American country. It took immediate effect, but needs to be approved by Congress.

Allwyn said that at this stage the Brazil Government's measure is temporary, having legal effect for a period of up to 120 days plus any periods during which the Brazilian congress is in recess. “The measure will automatically cease to be in force if it is rejected by either house of Brazil’s Congress during that period, or if it has not been ratified by both houses before the end of the period.”

The company said that while Brazil is Betano’s largest market, the business benefits from a broad international footprint, with its operations in other countries contributing the majority of its revenues and delivering a significantly higher growth rate than Brazil in recent periods.

“Betano will continue to progress its pre-existing plans to enter new markets, targeting entry into four additional countries in early 2027.”

Allwyn said that Betano, in turn, represents only one component of its "highly diversified lottery and gaming operations.”

Describing the impact of the measure, Allwyn said that based on the preliminary analysis performed, it expects that, should the measure remain in place for the remainder of 2026, while the impact on its Adjusted EBITDA margin in 2026 would be limited given the relative contribution of Betano to its consolidated financials, its previously-communicated guidance of an approximately 37 per cent adjusted EBITDA margin in 2026 would no longer be applicable. “This assessment remains preliminary and is subject to ongoing review as the company continues to evaluate the implications of the measure and potential mitigating actions.”

Entain 'disappointed by sudden development'

Entain, an international igaming company which has an office in Malta, said it is “disappointed by this sudden development without consultation of industry stakeholders regarding its significant adverse consequences. However, Entain’s operations in Brazil are complying with the provisional measure.”

It said that in the Financial Year 2026, Entain expected Brazil to represent approximately 5 per cent of the group’s online net gaming revenue.

In terms of the impact of the news, it reconfirmed FY26 group underlying EBITDA guidance of between £910m to £960m and online underlying EBITDA margin guidance of 21-22 per cent, while now expecting to be towards the lower end of both ranges due to Brazil’s provisional executive measure.