Flutter and Entain, two of the world’s largest gambling companies, have issued profit warnings after Brazil moved to ban online sports betting and casino gaming.
Brazilian President Luiz Inacio Lula da Silva signed an order on Friday that “prohibits all sports betting and online casinos,” sending shockwaves through the global gambling industry.
Paddy Power and Betfair owner Flutter, which is listed in New York, said it faces a full-year revenue impact of around 70 million US dollars if its Brazilian operations remain shut for the rest of 2026.
Flutter also warned of a blow to underlying earnings of approximately 20 million dollars should the shutdown persist through the remainder of the year.
Ladbrokes and Sportingbet owner Entain cut its online sales outlook and said earnings will land at the lower end of its guidance as a direct result of the Brazilian decision.
Entain said it was “disappointed” with the announcement, which it said was made “without consultation of industry stakeholders regarding its significant adverse consequences.”
The London-listed firm confirmed it would comply with the provisional ban, which must secure congressional approval within 120 days to become permanent.
Entain downgraded its full-year online net gaming revenues outlook to between 4% and 6%, with underlying earnings now expected at the lower end of its guidance range of between £910 million and £960 million.
Brazil had been expected to account for around 5% of Entain’s total online net gaming revenues this year, though the company noted the earnings contribution was forecast to be “modest” due to the “challenging and highly competitive operating environment” in the country.
Shares in FTSE 250-listed Entain fell 4% in Monday afternoon trading, reflecting investor concern about the ban’s financial consequences.
Flutter said it was also “extremely disappointed” with the Brazilian betting ban and was “reviewing all available options, including the potential to appeal.”
The company stated: “Flutter continues to engage constructively with the Brazilian authorities on sensible, effective regulation to protect customers from the risks of the unregulated market.”
Flutter revealed that Flutter Brazil’s carrying value was largely made up of 539 million dollars in goodwill, 127 million dollars in online customer relationships, 124 million dollars in trademarks, and 31 million dollars for computer software and technology.
The Brazilian ban compounds a series of headwinds already facing both companies, which have been under mounting pressure from tax rises in the United Kingdom.
Earlier this month, Entain revealed that around 400 jobs were being cut worldwide, citing increased gambling taxes in the UK and warning that more positions could be at risk.
The company, which also owns brands including Coral, launched a consultation that could see a fifth of its 2,000-strong customer care jobs eliminated across 11 countries, including the UK.
Entain framed the job cuts as part of ongoing efforts to “address the impact of the UK’s increased gambling taxes,” with the consultation set to conclude by November.
The Brazilian government’s decision was driven by efforts to clamp down on surging levels of gambling addiction that have become a growing social concern across the country.
