Entain PLC (LON: ENT) shares fell more than 3% on Monday after Brazil introduced a provisional ban on online sports betting and gaming operations.
The ban, published on September 25, immediately withdraws operators’ authority to offer online sports betting and gaming services in the country.
The provisional measure requires Congressional approval within 120 days to remain in force, leaving the longer-term regulatory outlook uncertain for operators.
Entain retained its full-year 2026 underlying EBITDA guidance of £910 million to £960 million but now expects to land towards the bottom of that range if the ban holds through year-end.
The company also maintained its online underlying EBITDA margin target of 21% to 22%, while similarly flagging it now expects to finish at the lower boundary of that range.
Entain revised its full-year online net gaming revenue growth forecast to 4% to 6% including Brazil, down from its previous target of 5% to 7%.
Excluding Brazil entirely, the company said it expects growth towards the top end of the 5% to 7% range on a constant-currency basis, suggesting the underlying business remains on track.
Brazil had been expected to contribute approximately 5% of Entain’s total 2026 online net gaming revenue, representing a meaningful slice of the company’s international growth story.
However, Entain had previously flagged a modest earnings contribution from the Brazilian market, citing intense competition and challenging trading conditions in the region.
The sudden regulatory intervention highlights the ongoing risk that gambling operators face when expanding into emerging and newly regulated markets around the world.
Brazil’s fast-growing online betting sector had attracted significant investment from global operators following the country’s move to regulate the market, making the provisional ban a notable setback for the industry.
The situation adds pressure to Entain at a time when the company is managing a broader strategic agenda across its international portfolio of sports betting and gaming brands.
Investors will be watching closely for any Congressional developments over the coming 120 days that could determine whether the ban becomes permanent or is reversed.
