Brazilian president Lula banned online gambling ahead of elections, reversing the market legalisation he signed at the start of his term. Operators are preparing collective legal action, and the temporary decree requires congressional approval within 120 days.
Flutter, which acquired its Brazilian business in 2024, estimates $70 million in lost revenue and $20 million in EBITDA for 2026. As of Q2 2026, Flutter Brazil's balance sheet carried $539 million in goodwill, $127 million in customer relationships, $124 million in brand assets and $31 million in technology. The company warned the ban would destroy legal economic activity and strengthen the black market.
Entain, operating through Sportingbet and betboo, called the decision disappointing. Brazil accounted for around 5% of group online NGR in FY2026, though its EBITDA contribution remained modest due to high competition. Entain reaffirmed its EBITDA guidance of £910–960 million and a 21–22% margin, but the outcome will now trend toward the lower bound.
Allwyn, which owns 36.75% of Kaizen Gaming (Betano's parent), said it is preparing legal action to defend its five-year licence. Betano will continue expanding into new markets, with four countries planned for early 2027. Most of the company's revenue is generated outside Brazil.
Suppliers are also taking losses. Tom Light, CEO of First.bet, compared the situation to Black Friday 2006 in the US: the company lost €30 million in monthly GGR overnight. He believes online casino is unlikely to return, and that international operators will not invest in a market with such regulatory uncertainty.
Affiliate network Better Collective suspended financial guidance for the current and next year. Its Brazilian business was on track for €45 million in revenue in 2026 — 12% of consensus forecasts at a cost of €10 million. Co-founder Jesper Søgaard warned the ban will not eliminate demand, but will push millions of players to illegal offshore operators.
