Entain PLC (LSE:ENT) and Flutter Entertainment PLC (LSE:FLTR, NYSE:FLUT) have had their price targets cut by Deutsche Bank following Brazil’s decision to ban online betting and gaming.
Deutsche Bank analyst Richard Stuber reduced Entain’s target to 872p from 914p, while retaining a ‘buy’ rating on the stock.
Flutter Entertainment also kept its ‘buy’ rating, but its price target was lowered to $141 from $148 as the Brazilian market faces a period of significant disruption.
The cuts follow a provisional measure signed by Brazilian president Luiz Inácio Lula da Silva on 25 September that ended the operation, advertising and intermediation of fixed-odds betting across the country.
The measure is set to force betting websites and applications offline from 6 October, with licensed operators given a short period to wind down their businesses and return customer balances.
Stuber noted the prohibition was particularly significant because Brazil had only become a regulated betting market in January 2025 but had already developed into one of the world’s largest regulated gaming markets.
Despite the severity of the move, Stuber argued the ban remained far from certain to become permanent, citing congressional scrutiny, legal challenges from licensed operators and the risk of pushing customers toward unregulated platforms.
The Brazilian government also stands to lose substantial tax revenues from a sector that has generated significant investment and supported sports sponsorships, while the country’s football industry has warned of a financial hit.
Entain has estimated that Brazil accounts for about 5% of its expected 2026 online net gaming revenue, while Flutter has put the direct effect of the ban at roughly $70 million of 2026 revenue and $20 million of adjusted core profit if it persists.
The broader impact on both companies ultimately depends on whether Brazil moves to restore a regulated market or leaves demand to flow toward illegal operators, which would strip away consumer protections and tax receipts alike.
Deutsche Bank also cut its target for lottery operator Allwyn to €10.20 from €13.20, retaining its Hold rating and extending a more cautious stance across the wider gaming sector.
The situation remains fluid, with the regulatory and legal landscape in Brazil likely to shape the long-term revenue prospects of major international operators still holding significant positions in the market.
