Brazil betting ban hits Czech billionaire Komárek's empire

Brazil has unexpectedly suspended the operations of licensed bookmakers — a move that has also hit the business empire of Czech billionaire Karel Komárek. His investment group KKCG owns more than a third of Betano, for which Brazil was the largest market, and parent company Allwyn has already warned investors that its previous financial forecasts may no longer hold.

Brazilian President Luiz Inácio Lula da Silva signed a provisional decree on 25 September that immediately bans the operation, offering and advertising of fixed-odds betting. The ban covers both sports betting and online casinos, and the restrictions also apply to foreign operators serving Brazilian customers. Authorities say the decision is meant to protect public health: according to official figures, in 2023 almost 11 million Brazilians showed risky or problem gambling behaviour.

The Brazilian government’s decision doesn’t only affect the local market — major European operators, including Entain, Evolution and Flutter, have also been hit. But the situation is proving most painful for Betano, which is run by Kaizen Gaming with significant involvement from Komárek’s group. Federal licences will be revoked thirty days after the decree is published, and the authorities have no plans to refund the licence fees already paid or pay any compensation — even though each of the 85 licences issued cost companies around 121.5 million crowns.

Allwyn has already indicated that its previous target of around 37% adjusted EBITDA margin for 2026 will likely need to be revised. Betano, meanwhile, is preparing to challenge the decision in court, citing the five-year licence the company received on 1 January 2025.

An additional blow to the business comes from new payment restrictions: banks and payment services are now barred from processing new betting-related transactions, with only account-closing operations and refunds to players allowed. The fate of the ban now rests with Brazil’s Congress, which must approve the decree within 120 days or it will lapse — and the final decision could coincide with the country’s presidential election, where a tight race is expected between the incumbent and his challenger.