Entain and Flutter Warn of Financial Hit From Brazil Betting Ban

^{Entain, which owns Ladbrokes and Sportingbet, has cut its online revenue outlook after Brazil's ban on fixed-odds betting. (Photo: Jaggery / Wikimedia Commons)}

Entain has downgraded its full-year online revenue guidance after Brazil's sudden ban on fixed-odds betting, joining Flutter Entertainment in warning investors of a financial hit from the market's abrupt closure.

In a regulatory announcement to the London Stock Exchange on 28 September 2026, the Ladbrokes and Sportingbet owner said it now expects full-year online net gaming revenue growth of 4% to 6% on a constant currency basis, down from a previous guidance range of 5% to 7% excluding Brazil.

The downgrade follows Brazilian President Luiz Inácio Lula da Silva's decision to sign a provisional measure on 25 September 2026 banning the exploitation, offer and advertising of fixed-odds betting across the country, a move that also affects the online casinos sector operating there.

Entain Holds Earnings Guidance, Flutter Reviewing Options

In the announcement, Entain said it was 'disappointed' by the 'sudden development without consultation of industry stakeholders regarding its significant adverse consequences'. The group confirmed it is complying with the provisional measure while it remains in force.

Brazil had been expected to account for around 5% of Entain's total online net gaming revenue this year, though the group said its earnings contribution was always forecast to be 'modest' given the 'challenging and highly competitive operating environment' in the country. Entain reconfirmed its full-year underlying EBITDA guidance of £910 million to £960 million, but now expects to land towards the lower end of that range because of the ban.

Flutter, the Dublin-founded owner of Paddy Power and FanDuel, said separately it was 'extremely disappointed' by the development and is 'reviewing all available options, including the potential to appeal'. Brazil accounted for around 1% of Flutter's total revenue at the end of 2025, but the company has said the ban could cut about $70 million from its 2026 revenue and $20 million from adjusted core profit.

Provisional Measure Needs Congressional Approval

The ban is not yet permanent. Under Brazilian law, a presidential provisional measure takes immediate effect but must secure congressional approval within 120 days to remain in force, meaning the shutdown could still be amended or rejected by lawmakers before it becomes permanent.

'Excluding Brazil, Entain remains on track to deliver FY26 online net gaming revenue growth at the top end of its guidance of 5% to 7% on a constant currency basis,' the group said in its 28 September announcement, framing Brazil as an isolated, if painful, disruption to an otherwise resilient year.

The reaction in the two companies' share prices diverged in early trading, with Flutter's US-listed stock up 1.1% while Entain's shares fell 4.2%, reflecting the market's read on the relative sizes of each group's Brazilian exposure.

The wider timing is notable for both companies. Entain revealed plans earlier this month to cut around 400 jobs worldwide, citing rising UK gambling taxes, while Flutter has previously said fears over an Irish gambling tax rise were overblown. Entain said it will continue to monitor the Brazilian situation and provide further updates as appropriate.

The full regulatory announcement is available via the London Stock Exchange's regulatory news service. Congress is now expected to debate the measure over the coming months, with the outcome likely to shape how quickly, if at all, either operator can return to the Brazilian market.