Allwyn has withdrawn its 2026 adjusted EBITDA margin guidance after Brazil banned online sports betting and iGaming. The lottery and gaming group is assessing the impact on its 36.75% stake in Kaizen Gaming, which operates the Betano brand.
Allwyn said the previous margin target of around 37% will no longer apply if the ban remains in place through the end of 2026. The effect on group-level figures should be limited: Kaizen is accounted for under the equity method rather than consolidated, so the hit falls on the share of profit from investments rather than revenue.
Brazil imposed the ban on 25 September through provisional decree № 1394, blocking fixed-odds betting, online gaming and advertising for such services nationwide. The measure took immediate effect and reversed the direction of a market that had just begun operating under a new federal licensing system from 1 January 2025. Before the ban, Kaizen held authorised operator status with a five-year licence — Betano operated via the domain betano.bet.br under Ministry of Finance order SPA/MF № 246 dated 7 February 2025.
Kaizen is preparing legal action to protect its rights in Brazil. The Brazilian market is Betano's largest by country but does not account for most of the operator's revenue: other international markets together contribute more and are growing faster. Kaizen plans to continue expansion, with entry into four more countries scheduled for early 2027. The final financial impact will depend on how long the ban lasts and whether Betano can cut fixed costs.
