Entain cuts outlook after Brazil’s provisional online gambling ban

Entain has cut its online sales outlook and said its earnings are expected to be at the lower end of guidance after Brazilian President Luiz Inacio Lula da Silva signed an order prohibiting all sports betting and online casinos.

The group said it was “disappointed” by the decision, which it said was made “without consultation of industry stakeholders regarding its significant adverse consequences”. Entain said it would comply with the provisional ban, which must secure congressional approval within 120 days to become permanent.

Entain downgraded its full-year online net gaming revenue outlook to between 4% and 6%. It now expects underlying earnings to be at the lower end of its guidance range of £910 million to £960 million.

Brazil had been expected to account for around 5% of Entain’s total online net gaming revenue this year. However, the company said the earnings contribution was forecast to be “modest” because of the “challenging and highly competitive operating environment” in the country.

The measure was introduced amid efforts to clamp down on surging levels of gambling addiction across Brazil.

Shares in FTSE 250-listed Entain fell 4% in Monday afternoon trading, according to the report.

Flutter, the owner of Paddy Power and Betfair, also warned of an impact from the order. It said that, if its Brazilian operations were shut down for the rest of 2026, it would face a full-year revenue impact of around 70 million US dollars (£52.8 million) and a reduction in underlying earnings of about 20 million dollars (£15.1 million).

Flutter said it was “extremely disappointed” and was reviewing all available options, including a potential appeal. It added that it continued to engage with Brazilian authorities on regulation intended to protect customers from the risks of the unregulated market.

The developments add to pressure on Entain, which earlier this month announced around 400 job cuts worldwide, blaming increased gambling taxes. The group has also launched a consultation that could affect a fifth of its 2,000 customer-care jobs across 11 countries, including the UK.

Entain said the consultation was part of efforts to address the impact of increased UK gambling taxes. It did not disclose how many UK jobs could be affected, and the consultation is due to end by November.