Brazilian president Lula signed an executive order banning online betting. The measure took effect immediately on 6 October, blocking all licensed sites. Players were given one day to withdraw funds; operators must return unclaimed deposits between 9 and 14 October. The decree requires congressional ratification within 120 days.
The market, two years old, generated $5.7bn in net gaming revenue. First-quarter 2026 GGR had been forecast at $6.3bn. Between January and August, gambling taxes brought the federal budget 2.11trn reais ($411.2mn), 12% more than the same period in 2025. Industry estimates had pointed to 16bn reais in revenue by the end of 2026.
Betano, for whom Brazil is the largest market, is already preparing a lawsuit to protect its five-year licence. Parent company Allwyn said its 37% EBITDA margin forecast for 2026 no longer holds. Entain confirmed its group guidance of £910–960mn EBITDA but expects to hit the lower end. Flutter warned that if the ban runs through year-end, revenue will fall $70mn and EBITDA $20mn. The company acquired local operator NSX for $350mn in September 2024 and had targeted an 11% market share.
Regulus Partners analysts put the probability of a full ban remaining at 5%, a months-long blackout at 85%. Courts may overturn the measure: it threatens tax receipts, part of which fund education, healthcare and sport. The decision came two days before elections — Lula's anti-gambling stance is tied to the campaign. Kambi said Brazil accounted for less than 5% of its revenue and the financial impact on the group is limited.
