Inspired Entertainment, Inc. (NASDAQ: INSE) said Brazil's government has issued a provisional measure prohibiting regulated online betting and gaming operations in the country, a decision the company expects to reduce its fourth-quarter 2026 revenue by approximately $3 million if the ban remains in effect through year-end.

The company stated that substantially all of its existing revenue from Brazil will be affected for as long as the prohibition is in place. Inspired said it is complying with the new regulatory requirements and is working with its operator partners on the required changes.

The provisional measure is subject to review by the Brazilian Congress within 120 days. Inspired noted that industry participants and trade associations are evaluating legal challenges to the measure, including potential requests for injunctive relief. The company said it is not assuming a reversal of the prohibition in its current outlook.

"We are disappointed by the provisional executive measure issued in Brazil, particularly following the industry's substantial investment in developing a regulated market with appropriate consumer protections," said Brooks Pierce, President and Chief Executive Officer of Inspired Entertainment. "We respect the regulatory process and are complying with the new requirements alongside our operator partners."

Inspired said it plans to update its full-year 2026 financial outlook when it reports third-quarter results, at which point it expects to have greater visibility into the potential impact of the situation.