Global gambling operators count the cost of Brazil’s online betting ban
Major operators expect significant hits to annual results as they evaluate how to respond to the ban on online betting and gaming in Brazil.
Key takeaways
- Brazil’s provisional betting ban has dealt a significant blow to major gambling firms, which evaluate legal, regulatory or commercial responses.
- Flutter warns of a potential $70m revenue hit and $20m reduction in adjusted EBITDA for 2026, while Entain has cut its online growth outlook and expects earnings at the lower end of guidance.
UK.- Some of the world’s biggest gambling operators have been left counting the cost after the abrupt announcement of an immediate online gambling ban in Brazil. Operators including NYSE-listed Flutter Entertainment and Switzerland-based Allwyn say they are reviewing options while London-listed Entain has cut its forecast for online gaming revenue growth.
Flutter Entertainment, which owns Paddy Power and FanDuel, estimates that the shutdown of its Brazilian betting operations could cost the group around $70m in revenue and approximately $20m in adjusted EBITDA during 2026. The New York-listed gambling giant confirmed it has stopped offering sports betting and igaming services in Brazil as ordered on Friday and is assessing its next steps.
The Brazilian business carries significant assets on Flutter’s balance sheet, including $539m in goodwill, $127m in online customer relationships, $124m in trademarks and $31m in software and technology. The company said it’s evaluating the related non-cash accounting implications of the measures and will provide further details in due course.
In said in a statement: “Flutter is extremely disappointed by this development and is reviewing all available options, including the potential to appeal. Flutter continues to engage constructively with the Brazilian authorities on sensible, effective regulation to protect customers from the risks of the unregulated market.”
Meanwhile, Brazil’s online gambling shutdown adds to the woes of Entain, whose shares were removed from the FTSE 100 this month after a 42 per cent decline in 12 months. Less than two weeks ago, plans were confirmed for 400 layoffs at Entain. The owner of Ladbrokes and Sportingbet has now cut its forecast for full-year online net gaming revenue growth to between 4 per cent and 6 per cent as a result of the shutdown in Brazil. The company said underlying earnings are now expected to be at the lower end of its previously forecast range of £910m to £960m.
Brazil had been expected to contribute roughly 5 per cent of Entain’s total online net gaming revenue in 2026. However, the company said the earnings contribution from the market was forecast to be modest because of the country’s “challenging and highly competitive operating environment”.
The company complained that the Brazilian government had announced the provisional gambling ban “without consultation of industry stakeholders regarding its significant adverse consequences”. While it said it would comply with the provisional restrictions, it noted that the measure must still secure congressional approval within 120 days before becoming permanent.
Elsewhere, Switzerland-based Allwyn owns a 36.75 per cent minority stake in Betano operator Kaizen Gaming. It says the company is examining legal avenues, including potential litigation, to defend the rights granted under its five-year licence issued by Brazil’s Secretariat of Bets and Prizes (SPA), part of the country’s Ministry of Finance.
Betano has become one of the leading operators in Brazil since the regulated market opened at the start of 2025, topping market share and recognition. Allwyn warned that if the ban remains in force until the end of 2026, its previous forecast of a 37 per cent adjusted EBITDA margin for the financial year would no longer apply.
It said it continues to evaluate the implications of the measure and potential mitigating actions, and that “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.”
Marketing groups also affected. Copenhagen-based Better Collective has suspended its guidance for the 2027 and 2028 financial years. Chief executive Jesper Søgaard had expected €45m in Brazilian revenue during 2026, representing about 12 per cent of all group revenue. The company now expects to lose around €15m in projected revenue across the remainder of the year, although it warned that the situation in Brazil makes it currently impossible to provide reliable forecasts.
President Luiz Inacio Lula da Silva announced an immediate suspension of online gambling in Brazil on Friday (September 25) less than two years after the regulated market was launched in January 2025. The announcement comes ahead of presidential elections on October 4.
Under a provisional measure signed on Friday, online betting operators are no longer permitted to accept customer deposits with immediate effect. Customers have until October 5 to withdraw any remaining balances. Licensed betting websites and apps will be blocked from October 6, while operators must reconcile customer balances between October 7 and October 8 and return funds between October 9 and 14.
The provisional measure must be approved by Congress within 120 days if it is to remain permanently in force. Opposition candidate Flavio Bolsonaro, the eldest son of former president Jair Bolsonaro, has criticised the measure but a member of his own Partido Liberal (PL) introduced a bill seeking a ban on sports betting just last month.
FAQs
How much could Flutter lose if its Brazilian operations remain suspended for the rest of 2026?
Flutter said a shutdown in Brazil for the rest of 2026 would reduce revenue by approximately $70m and lower adjusted EBITDA by around $20m. The company is also assessing potential non-cash accounting impacts.
How has the Brazilian betting ban affected Entain’s outlook?
Entain has reduced its full-year online net gaming revenue growth forecast to between 4 per cent and 6 per cent and now expects underlying earnings to come in at the lower end of its £910m to £960m guidance range. Brazil had been expected to contribute around 5 per cent of the group’s online net gaming revenue this year.
