Allwyn notes that a provisional measure was published and entered into force in Brazil on 25 September 2026, introducing a prohibition on online sports betting and iGaming. The Company participates in the Brazilian market through its 36.75% shareholding in Kaizen Gaming, operator of the Betano brand.

At this stage, the 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, i.e., to early March 2027. 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. 

Betano is evaluating potential mitigants to the impact of the provisional measure, and is preparing legal action to protect its rights in Brazil in consideration of its five-year licence to operate, issued under the current government on 1 January 2025.

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. 

Betano, in turn, represents only one component of Allwyn’s highly diversified lottery and gaming operations. 

The Company’s interest in Betano is equity-accounted, hence, any impact on its 2026 financial performance related to the provisional measure would principally be reflected through the share of profit from equity method investees. 

Based on the preliminary analysis performed to date and the Company’s current understanding of the provisional measure, the Company currently expects that, should the measure remain in place for the remainder of 2026, while the impact on its Adjusted EBITDA marginin 2026 would be limited given the relative contribution of Betano to its consolidated financials, its previously-communicated guidance of an approximately 37% 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. The exact impact would be dependent on, among other factors, the timing and effectiveness of measures to reduce certain costs that are not typically variable in the short term. Any impact on subsequent periods would depend on the duration for which the provisional measure remains in force, as well as further revenue and cost optimisation initiatives.