Sparks - Allwyn

On 25 September, ahead of the presidential election to be held on 4 October, the Brazilian government announced a temporary measure to prohibit online sports betting and iGaming without consulting industry stakeholders. The measure has legal effect for up to 120 days plus any periods during which the Brazilian Congress is in recess.

Allwyn operates in Brazil through its associate 36.75% holding in Kaizen Gaming, which operates the Betano brand, and Brazil represents the largest of the markets in which Kaizen Gaming operates. Betano’s five-year licence to operate in Brazil was awarded on 1 January 2025, and Allwyn is preparing legal action to protect its licence. Betano has enjoyed strong growth so far in FY26 with constant-currency revenue growth of 31% in Q126 and 26% in Q226.

Based on the company’s preliminary analysis, the previously guided adjusted EBITDA margin for the group of c 37% would no longer be valid if the measure were to remain in place for the rest of FY26. Allwyn includes its contribution from associates in adjusted EBITDA, while there is no recognition of the revenue. In FY25, Kaizen Gaming reported c €2.8bn of revenue and net income of €292m, from which Allwyn received dividends of €184m.