Entain Maintains Earnings Guidance Despite Brazil's Online Betting Ban

Dow Jones
Sep 28
 
 

Entain said it expects to meet earnings guidance for 2026 despite a new ban on online betting in Brazil.

Last week, Brazilian President Luiz Inacio Lula da Silva signed an executive order banning online sports betting and gaming with immediate effect. The measure will need Congressional approval to remain in effect after an initial 120-day period.

The U.K. sports-betting and gambling group said it is disappointed, but noted that its operations in Brazil are complying.

A spokesperson for Entain peer Flutter Entertainment, parent of online sports-betting platform FanDuel, said the company noted the challenges associated with gambling and the need to continually improve player-protection policies, but that it received "with surprise and great concern a measure that could represent the prohibition or dismantling of an activity authorized and regulated by the Brazilian State itself."

The outlook for gambling in Brazil is highly uncertain following the provisional ban, Berenberg analysts Jack Cummings and Luka Trnovsek wrote in a note to clients. While the measure doesn't entail the permanent closing-off of the Brazilian market, operators will likely have to cease their operations in the meantime, they said.

Entain previously expected Brazil to represent around 5% of online net gaming revenue in 2026, though its earnings before interest, taxes, depreciation and amortization contribution was forecast to be modest.

The betting company backed its 2026 group underlying Ebitda guidance of between 910 million pounds ($1.21 billion) and 960 million pounds, and online underlying Ebitda margin guidance of between 21% and 22%.

However, the company expects both to be at the lower end of the ranges due to the ban.

Excluding Brazil, Entain said it remains on track for 2026 online net gaming revenue growth at the top end of its guidance of between 5% and 7% on a constant currency basis. Including Brazil, the company now expects 2026 online NGR growth between 4% and 6%.

Entain shares are down 3.2% at 4.35 pounds. Year-to-date shares have fallen more than 40%.

 
 

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