Topic: Spotlight on US Stock Market Q2 2026 Earnings. The company previously estimated that the Brazilian market would account for 5% of its 2026 online betting net revenue. Entain Group, which owns the Coral brand, stated that its Brazilian operations are complying with the presidential executive order.

Summary

Brazilian President Lula signed an executive order, effective immediately, imposing a comprehensive ban on online sports betting and online gaming. Despite Brazil's newly introduced online betting ban, British gambling group Entain still stated that it expects to meet its 2026 annual profit targets.

Last week, Brazilian President Lula signed an executive order immediately prohibiting online sports betting and online gaming. The decree is a temporary measure valid for 120 days; to take permanent effect, it would require approval from the Brazilian Congress. The British sports betting group expressed disappointment over this but said its Brazilian operations are being conducted in compliance with the decree.

A spokesperson for Entain's competitor Flutter, the parent company of the FanDuel online sports betting platform, said the company understands the various risks present in the gambling industry and agrees on the need to continuously improve player protection policies. However, the spokesperson added, "We are surprised and highly concerned about a decree that seeks to ban and dismantle an industry already licensed under Brazil's own regulatory framework."

Analysts Jack Cummings and Luka Ternovsek of Berenberg Bank noted in a client research report that following the temporary ban, the outlook for Brazil's gambling industry is highly uncertain. The analysts said the decree does not permanently close the Brazilian market, but betting operators will most likely have to suspend business operations during this period.

Entain previously forecast that the Brazilian market would account for 5% of the group's 2026 online betting net gaming revenue (NGR), though the market was expected to contribute limited amounts to the group's EBITDA. The group maintained its full-year 2026 underlying EBITDA guidance of £910 million to £960 million (approximately US$1.21 billion); its online business underlying EBITDA margin guidance remains at 21% to 22%. However, due to the impact of the ban, the company stated that actual results will most likely fall at the lower end of the above range.

Excluding Brazilian operations, Entain's 2026 online betting net gaming revenue growth at constant currency is still expected to reach the upper end of the guidance range of 5% to 7%. Including Brazilian operations, the group now expects 2026 online betting net gaming revenue growth of 4% to 6%.

Market Performance

Entain shares fell 3.2% to £4.35; the stock has declined more than 40% year-to-date.