Swedish affiliate Gentoo Media revised its 2026 revenue guidance after Brazil banned sports betting and online gambling with fixed odds. The company now expects annual revenue around €92m, down from €97–100m. Adjusted EBITDA is forecast at €40m against €44–47m previously, and operating cash flow at €30m against €32–36m.
Brazil delivered €3.8m in net revenue to Gentoo from January through August. Due to market investment, the country's contribution to EBITDA and cash flow was proportionally lower than to revenue. The company had expected growth in the fourth quarter, but the revised guidance assumes zero income from betting and online gambling in Brazil through year-end.
Brazil's government introduced a temporary measure on 25 September banning operations, offers and advertising of fixed-odds betting. Licensed platforms were required to shut down offerings by 6 October. The measure must pass through Congress to become permanent law, so the outcome remains uncertain.
Gentoo also cited declining sports margins late in the third quarter, which hit revshare income. The company is preparing to repay €91.5m in bonds maturing in December. It is securing a €50m loan from a major shareholder and planning a €50m share issue, subject to approval at a meeting on 2 November.
CEO Jonas Warrer said the financing package will allow the company to repay the bonds in full, reduce debt and regain control over cash flow. Rival Better Collective lost over 30% of its market capitalisation after Brazil announced the ban.
