Flutter Entertainment halted operations in Brazil after the government imposed a nationwide ban on online betting on 25 September. The company estimates potential losses of $70m in revenue and $20m in adjusted EBITDA for 2026 if it cannot resume operations by year-end.
The ban requires congressional approval within 120 days. Flutter is reviewing legal options and expects to return if congress rejects the measure. For a company with projected annual revenue near $18bn, the direct hit is modest, but timing is poor. Flutter acquired a 56% stake in NSX for $674m in 2025 ($348m in cash), merging Betnacional with local Betfair. Second-quarter revenue in Brazil reached $72m, up from $44m a year earlier; first-half revenue totalled $146m. Outgoing CEO Peter Jackson called the country an attractive long-term opportunity as recently as August.
President Luiz Inácio Lula da Silva had warned of a possible ban if regulation failed to address gambling concerns. The shift from a recently opened market to a full shutdown was abrupt. Flutter's balance sheet carries $539m in goodwill, $127m in customer relationships, $124m in trademarks and $31m in technology tied to the Brazilian business as of the second quarter.
The shutdown coincided with efforts to restore momentum at FanDuel in the US, where sportsbook revenue fell 15% in the second quarter and adjusted EBITDA dropped 70% to $119m. Flutter lowered its full-year revenue guidance by $395m to $17.91bn and EBITDA by $210m to $2.655bn. The company is investing in prediction markets through FanDuel Predicts, a segment expected to deliver around $50m in revenue this year.
Dan Taylor takes over as CEO on 1 October, replacing Jackson after nine years. Flutter shares dropped 4% on the Brazil news and have lost more than half their value over the past year. Analysts at UBS, J.P. Morgan and Rothschild Redburn cut estimates or ratings, pointing to four consecutive downgrades in 2026.
