Sept 28 (Reuters) – Ladbrokes owner Entain warned on Monday that its 2026 online net gaming revenue growth (NGR) would take a hit if Brazil’s ban on online sports betting and gaming is upheld for the rest of the year.
Brazilian President Luiz Inacio Lula da Silva announced a ban on online betting operations last week, less than two years after the government kicked off a legal framework allowing the industry to operate.
“Entain is disappointed by this sudden development without consultation of industry stakeholders regarding its significant adverse consequences,” the British company said in a statement, adding that its operations in Brazil were complying with the provisional measure.
The provisional measure revokes online betting licences and requires congressional approval within 120 days to remain in force. It adds to a bruising stretch for the betting industry, which has absorbed UK tax hikes and faces a growing threat from prediction market firms muscling onto its turf.
Entain had expected Brazil to represent about 5% of its online net gaming revenue in 2026.
Its shares were down 1.7% at 441.9 pence at 0836 GMT.
MODEST BRAZILIAN EARNINGS CONTRIBUTION
Entain expects annual online net gaming revenue growth of 4% to 6% if the ban is maintained. Excluding Brazil, the company said it remains on track to deliver online NGR growth at the top end of its guidance of 5%-7% on a constant currency basis.
It expects underlying core profit to land at the lower end of its previously guided £910 million to £960 million ($1.2 billion to $1.3 billion) range and margin forecast to also be at the lower end of a 21% to 22% range due to the ban, as Brazil’s earnings contribution is expected to be modest.
Brazil, one of the sector’s most promising growth areas, is a key market for operators like Entain, Flutter Entertainment and bet365.
Swiss lottery and betting group Allwyn AG scrapped its annual profit margin guidance following the betting ban. Analysts at Peel Hunt forecast a marginal impact on Playtech’s 2026 earnings.
“With much reduced regulatory visibility in Brazil, we expect ‘shoot first’ share price reactions initially, with subsequent sifting through idiosyncratic exposures,” Jefferies analysts said in a note.
($1 = 0.7537 pounds)
(Reporting by Anushka Chourasia and Yamini Kalia in Bengaluru; Editing by Nivedita Bhattacharjee, Rashmi Aich and Emelia Sithole-Matarise)
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