Shares in major betting firms Entain and Flutter fell sharply following Brazil’s recent decision to ban online gambling. The move, signed into effect by Brazilian President Luiz Inácio Lula da Silva on Friday, prohibits all sports betting and online casino operations and advertising across the country. The ban is a provisional measure aimed at addressing rising concerns over gambling addiction and requires congressional approval within 120 days to be made permanent.
Entain, the FTSE 250-listed owner of Ladbrokes and Sportingbet, expressed disappointment at the ban, criticizing the lack of consultation with industry stakeholders about its potential economic impact. The company reported that Brazil accounts for approximately 5 percent of its total online net gaming revenues this year. As a result of the ban, Entain downgraded its full-year online net gaming revenue growth forecast to between 4 and 6 percent and now anticipates underlying earnings to come in at the lower end of its target range of £910 million to £960 million. Following the announcement, Entain’s shares dropped 5.1 percent to 427 pence, their lowest since March 2020.
Similarly, Flutter, which owns Paddy Power and Betfair and is listed on the New York Stock Exchange, indicated it would face a full-year revenue impact of about $70 million and a reduction in underlying earnings by roughly $20 million if its Brazilian operations remain closed through 2026. Brazil accounted for approximately 1.7 percent of Flutter’s group revenue in the first half of 2026. Flutter described the ban as “extremely disappointing” and said it was reviewing all options, including a potential appeal. Its shares fell about 7 percent in U.S. trading to $77.73.
Online betting in Brazil had only been fully regulated since January 2025, quickly becoming a significant growth market for international operators. The sudden ban comes as Brazilian authorities seek to curb growing concerns over gambling-related harm, but industry representatives warn of substantial financial consequences from the abrupt policy change.
The ban effectively halts all licensed online sports betting and casino activities, with immediate effect. Both companies have stated that they will comply with the measure while monitoring developments as Brazil’s congress considers whether to uphold the prohibition permanently.
This latest regulatory shift highlights the ongoing tension between expanding gambling markets and government efforts to manage the social risks associated with online betting. The situation remains fluid as stakeholders await Brazil’s legislative review in the coming months.