Entain Cuts Revenue Outlook After Brazil Online Betting Ban
Entain, the London-listed operator behind Ladbrokes, Coral and bwin, has lowered its full-year revenue outlook following the Brazilian government’s decision to ban online betting operations, a move that dismantles one of the company’s most significant recent growth markets.
Brazilian President Luiz Inácio Lula da Silva announced the ban on Friday, reversing a regulatory framework introduced less than two years ago. The executive order takes immediate effect but must be approved by Congress within 120 days. Licensed betting websites will remain accessible to users until 5 October to allow them to withdraw remaining funds, with app stores and network providers required to block access from 6 October.
The decision directly affects Entain, which secured a Brazilian online gambling licence as the market opened on 1 January 2025 and has since invested in building a local presence. Brazil had been identified by the group as a key driver of international expansion, with net gaming revenue in the market posting double-digit growth during the first full quarters of the regulated regime.
Scale of the Affected Market
The ban closes what had become Latin America’s largest regulated online betting market. According to government and industry figures, approximately 85 licensed operators were active in Brazil, serving an estimated 25.2 million bettors in 2025, with reported losses of around R$9.95 billion (approximately US$7.1 billion) over the year.
Announcing the measure, Brazilian Finance Minister Dario Durigan said: “It is no longer possible to deposit money into betting sites in the country.” The government framed the ban as a response to rising household indebtedness, with gambling spending cited as a contributing factor to record levels of consumer debt. The announcement was paired with a separate debt-relief program under which the government will spend R$15 billion to purchase delinquent household loans at substantial discounts.
The move comes weeks before a presidential election, and analysts note the timing reflects the government’s efforts to respond to public concern over gambling-related harms.
Industry Response and Outlook Impact
The announcement has prompted a strong reaction from operators. Betting companies have indicated they will pursue compensation for licences issued under the previous framework, and the Brazilian Secretariat of Prizes and Bets has not yet clarified how existing licences will be treated. Nine Brazilian gambling entities have jointly opposed the ban, warning that prohibiting licensed operators risks accelerating the growth of the unregulated market – an outcome that would undermine the consumer protections and tax revenues the regulatory framework was designed to deliver.
The ban also carries wider implications beyond operators. Betting companies have become the largest sponsors of Brazilian football clubs, and the country’s football sector has publicly opposed the measure over concerns about lost commercial revenue. For international groups such as Entain, the reversal raises broader questions about regulatory risk in newly opened markets, particularly where regulatory frameworks remain politically contested.
