Flutter received Brazil ban with surprise, great concern; analysts flag uncertainty
Entain maintained its 2026 group underlying Ebitda guidance of between £910 million ($1.21 billion) and £960 million, and its online underlying Ebitda margin guidance of between 21% and 22%. The company said it expects both metrics to come in at the lower end of those bands because of the ban.
Entain previously expected Brazil to represent around 5% of online net gaming revenue in 2026, though its Ebitda contribution from the market was forecast to be modest. 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 online NGR growth between 4% and 6%.
The betting operator said it is disappointed by the Brazilian measure, but noted that its operations in Brazil are complying with the new rules.
A spokesperson for Flutter Entertainment, parent of online sports-betting platform FanDuel, said the company 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.” Flutter said it noted “the challenges associated with gambling and the need to continually improve player-protection policies.”
Berenberg analysts Jack Cummings and Luka Trnovsek wrote in a note to clients that the outlook for gambling in Brazil is “highly uncertain” following the provisional ban. While the measure does not entail a permanent closing-off of the Brazilian market, operators will likely have to cease their operations in the meantime, the analysts said.
Entain shares were down 3.2% at 4.35 pounds in London trading on Monday. Year-to-date, the stock has fallen more than 40%.
The Brazilian executive order was signed last week with immediate effect. The measure requires approval from the Brazilian Congress to remain in force beyond the initial 120-day window.