Flutter Entertainment has cut its full-year 2026 guidance after Brazil's betting ban and unfavourable sports results drove a net loss of $1.15 billion in Q3. Revenue edged up 2% to $3.87 billion, but $873 million in non-cash impairment charges tied to its Brazilian business pushed the loss well beyond the $789 million recorded in Q3 2025.
President Lula banned betting in Brazil in late September, triggering $537 million of Flutter's post-tax impairment charge against its 56% stake in Flutter Brazil — a business acquired last year for $356 million from NSX Group, owner of Betnacional. Flutter subsequently closed Betfair in the country, leaving Betnacional as its only active brand there. Adjusted EBITDA for the quarter fell 25% to $360 million. Flutter has reduced its full-year revenue guidance midpoint by $300 million to $17.61 billion and trimmed its full-year adjusted EBITDA guidance by $160 million to $2.495 billion.
Dan Taylor, who became CEO on 1 October, told shareholders the company was 'very disappointed' with the ban and has paused all discretionary and uncommitted spend. He said Flutter is 'ready to resume operating' if Brazil's regulatory environment changes.
In the US, FanDuel revenue rose 6% to $1.46 billion, with sportsbook up 4% and iGaming up 8%, but adjusted EBITDA collapsed 94% to $3 million, reflecting investment in prediction markets and the July launch in Alberta, Canada. FanDuel Predicts averaged 66,000 monthly players in Q3, a 39% quarter-on-quarter increase. Taylor noted that prediction market operators drove category-wide media spending up more than 60% year-on-year in September and more than 50% in October, adding pressure on Flutter's share of voice.
In the UK&I, Flutter's International segment adjusted EBITDA fell 14%, primarily because the UK's remote gaming duty nearly doubled from 21% to 40% on 1 April. UK&I revenue still grew 4% to $889 million, with iGaming up 12% offsetting a 6% sportsbook decline. Flutter announced a restructure last month that could remove 1,400 jobs across UK&I. Southern Europe and Africa were the standout performers, with revenue up 13% to $836 million on 17% iGaming growth; Central and Eastern Europe added 10% to reach $166 million. Asia Pacific declined 4% to $349 million after India closed its real-money gaming market. Taylor said Flutter expects to deliver an additional $500 million in gross operating cost and capital expenditure savings by 2029 through AI adoption, organisational restructuring and technology simplification.
