Entain maintains earnings outlook despite "sudden" Brazil betting ban

Entain PLC on Monday said it is maintaining its 2026 earnings guidance, despite Brazil introducing an immediate provisional ban on online sports betting and gaming.

Entain shares were down 1.7% to 442.10 pence early Monday in London.

Isle of Man-based Entain is a sports betting and gaming operator, which owns the Ladbrokes and Coral brands.

It said the South American country had been expected to contribute 5% of its global online net gaming revenue in 2026. However, the earnings contribution of that business was expected to be "modest", due to being a very competitive market.

On Friday, an executive order by Brazil President Luiz Inacio Lula da Silva provisionally withdrew all authority for gambling firms to operate online sports betting and gaming with immediate effect. Lula's order requires approval by Congress within 120 days to remain valid.

The order came as Brazilians vote in presidential elections this coming Sunday, October 4. The leftist incumbent faces right-wing senator Flavio Bolsonaro in a close election, and the ban on online betting was one of several last-ditch bids by Lula for working class support, AFP reports.

Entain said its continues to expect underlying earnings before interest, tax, depreciation and amortisation of £910 million to £960 million in 2026 and an online underlying Ebitda margin of 21% to 22%, although it now expects both to be towards the lower end of their respective ranges. The Ebitda result would be down from £1.16 billion in 2025.

Assuming the Brazil ban remains in place for the rest of the year, Entain now expects online NGR growth of 4% to 6% at constant currency. Excluding Brazil, it expects growth at the top end of its 5% to 7% guidance.

Entain said it is "disappointed by this sudden development without consultation of industry stakeholders". However, its operations in Brazil are complying with the provision measure, the company said.

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