Entain (ENT.L) has revised its 2026 net gaming revenue guidance downward after Brazil’s government issued an executive measure banning online sports betting and gaming across the country.
The London-listed sports betting and gambling company now forecasts online net gaming revenue growth of 4% to 6% on a constant currency basis, including Brazil, a reduction from its previous outlook.
Brazil had been expected to account for approximately 5% of Entain’s total online net gaming revenue in 2026, making the ban a meaningful blow to the company’s near-term growth projections.
Excluding Brazil from the equation, Entain said it still expects to achieve the top end of its 5% to 7% online net gaming revenue growth outlook on a constant currency basis.
The provisional measure was published by the Brazilian government on September 25 and immediately revoked all permits to operate online sports betting and gaming in the country.
The regulation took effect immediately upon publication, though its long-term validity depends on approval from the Brazilian Congress within a 120-day window.
Entain characterised the move as a “sudden development” that was enacted without consulting industry stakeholders about its potential negative effects on the sector.
Despite expressing disappointment, the Ladbrokes owner confirmed it would comply fully with the provisional measure as required under the new regulatory framework.
Analysts at Berenberg weighed in on the financial implications, noting that “Brazil did contribute positively to [Entain’s] EBITDA in FY25 and is expected to do the same in FY26, although we expect this to be at a low margin.”
Berenberg added that “we estimate this could be a 0-1% headwind to revenue and EBITDA in FY26 and a 5%/1.5% respective headwind in FY27,” pointing to steeper consequences in the following year.
The Berenberg analysts also flagged significant uncertainty surrounding the future of Brazil’s broader online gambling sector, given opposition from both President Lula and former President Bolsonaro.
Markets reacted swiftly to the news, with Entain shares falling more than 3% on Monday morning, reflecting investor concern over the loss of a key growth market.
The ban underscores the regulatory risks facing international gambling operators that have moved aggressively into emerging markets like Brazil over recent years.
