Flutter Entertainment Warns of €60m Hit as Brazil Bans Online Gambling
Flutter Entertainment, the owner of Paddy Power and Betfair, has suspended its online betting and gaming operations in Brazil and warned that the country’s sudden ban on the sector could cost the group more than €60 million in lost revenue if it remains in place for the rest of 2026. The move, announced by Brazilian President Luiz Inácio Lula da Silva on 25 September, has sent ripples across the global gambling industry, prompting rival Entain to cut its guidance and pushing Flutter shares to fresh lows.
The Ban and Its Context
President Lula signed a provisional executive measure on Friday banning all online sports betting and iGaming in Brazil. The order took effect immediately but requires congressional approval to remain in force, leaving operators, investors, and analysts navigating a period of significant regulatory uncertainty ahead of the country’s presidential election in October.
The decision reverses course less than two years after Brazil completed the regulation of its online betting market, which had been legalised in 2018 and became one of the most closely watched openings in the global industry. Prior to the ban, Brazil was regarded as the third-largest regulated online gambling market in the world, with approximately 25 million people losing an estimated $7.1 billion to licensed operators last year.
Flutter halted its Brazilian online sports betting and iGaming operations on 28 September in response to the measure. In a statement, the company said it “continues to engage constructively with the Brazilian authorities on sensible, effective regulation to protect customers from the risks” associated with gambling, and indicated it is considering its options, including a possible appeal.
Industry-Wide Impact
The consequences extend well beyond Flutter. Entain, the owner of Ladbrokes and Coral, warned that its 2026 online net gaming revenue growth would be affected if the ban is upheld, cutting its full-year guidance for online net gaming revenue growth to 4–6 per cent from 5–7 per cent. Brazil had been expected to account for roughly 5 per cent of the company’s online net gaming revenues this year. Entain maintained its underlying EBITDA guidance of £910 million to £960 million but said results are likely to come in at the lower end of the range.
Sports media group Better Collective also reduced its 2026 organic growth guidance, noting that Brazil had been expected to generate approximately €45 million in revenue this year.
The timing of the ban has drawn scrutiny from industry observers, coming days before a closely contested presidential election. President Lula has framed the measure as a public health intervention, citing the harm caused by gambling addiction, and has signalled he would take “immense pleasure” in ending betting in the country. Betting operators had also become prominent sponsors of Brazilian football clubs, a relationship now disrupted by the measure.
