Inspired Entertainment cuts forecast as Brazil gambling ban bites
Gaming technology supplier Inspired Entertainment has reduced its full-year earnings forecast after the suspension of regulated online gambling in Brazil affected its virtual sports business.
The Nasdaq-listed company reported third-quarter revenue of $61.4 million, with adjusted EBITDA reaching $28.2 million.
Inspired lowered its 2026 adjusted EBITDA guidance to between $109 million and $112 million, compared with its previous forecast of $112 million to $118 million.
“Our third-quarter results highlight our progress in building a higher-margin, more digital business, with record Adjusted EBITDA margins and market share gains in Interactive,” said Brooks Pierce, President and Chief Executive Officer of Inspired.
“Retail Solutions delivered another strong performance in the UK and Greece, with further opportunities to refresh our installed base in Greece next year. In Interactive, revenue grew 3% year over year as UK volume growth offset the higher gaming tax and our U.S. business outpaced the U.S. iGaming market.
The company attributed the downgrade primarily to the suspension of regulated online gambling in Brazil, which has affected its virtual sports operations.
Inspired said its Brazilian business represented approximately 5% of total revenue before the suspension.
The company also faces increased gambling taxation in Britain, where higher Remote Gaming Duty has affected its financial performance.
“The UK Budget removes a major overhang and gives us and our customers a clearer foundation for investment and planning,” Pierce said.
“The increase in machine games duty from 20% to 25%, effective April 2027, is disappointing but manageable and we will pursue disciplined mitigation measures to limit the effect on our business.
However, Inspired reported underlying growth across its continuing operations.
Excluding the impact of previously divested and restructured businesses, revenue increased approximately 4% year-on-year.
Adjusted for higher UK gambling taxes, like-for-like revenue growth reached approximately 9%.
The company recorded operating income of $10.3 million and a net loss of approximately $100,000 during the quarter.
Inspired also reported progress in the United States, including virtual sports launches involving the Massachusetts Lottery and FanDuel during the fourth quarter.
The iGaming supplier said the latest British Budget had provided greater clarity about future taxation, with Machine Games Duty scheduled to increase from 20% to 25% in April 2027.
Inspired’s revised forecast demonstrates the financial consequences of regulatory changes in major gambling markets, particularly for suppliers operating across multiple jurisdictions.
