- Entain still guides to £910 million to £960 million of 2026 earnings but now expects to land at the floor of that range.
- Brazil’s president signed a measure Sept. 25 that outlawed fixed-odds sports betting and online gaming from that day.
- About 5% of Entain’s online revenue this year was meant to come from Brazil, with only a modest slice of profit.
- Entain’s shares fell about 4% in London trading Monday, and the update carried no new BetMGM figures.
LONDON – Brazil’s nationwide ban on fixed-odds betting will push Entain plc to the floor of its 2026 earnings range, the gambling group that co-owns BetMGM with MGM Resorts International said Monday, in a market that had been penciled in for about 5% of the company’s online revenue this year.
The Brazil Order
Provisional Measure 1.394, which Brazil’s federal government published Sept. 25, bars anyone from running, offering, brokering or advertising fixed-odds betting anywhere in the country, online or in person, and reaches offshore operators that take bets from customers in Brazil. Licenses granted under the country’s 2023 betting law are extinguished 30 days after publication, and operators must take their betting sites and apps offline within 10 days.
The order took effect on publication but is provisional: Brazil’s Congress has 120 days to make it law, change it or throw it out, and it dies if lawmakers do nothing. The timing is electoral. President Luiz Inácio Lula da Silva, who signed the measure, is on the ballot Oct. 4 seeking another term, nine days after it took effect, with Sen. Flávio Bolsonaro among his challengers.
The Numbers Entain Cut
Two ranges survived Monday’s update, group underlying EBITDA between £910 million and £960 million, and an online margin on the same measure of 21% to 22%. What changed is where Entain expects to land inside them, which is now toward the bottom of both ranges if the ban lasts through December. Online revenue growth took a real cut. Without Brazil, Entain said it would have reached the top of its 5% to 7% growth target; with Brazil’s shutdown counted, the new range is 4% to 6%.
Brazil’s profit contribution was already expected to be modest going into the ban, which Entain attributed to a challenging and highly competitive operating environment, so the hit shows up mainly as a slide toward the bottom of the guidance ranges rather than a deeper earnings cut. Entain said it was disappointed by a “sudden development” taken without industry consultation, and it has brought its Brazilian business into line with the measure. The company’s London-listed shares traded about 4% below Friday’s 449.60 pence close on Monday.
No New Word On BetMGM
Entain’s online revenue figures, the ones revised Monday, do not include BetMGM. The sportsbook and casino brand is a 50-50 joint venture with MGM Resorts International that operates inside legal U.S. sports betting under state licenses, and Entain reports its share of the venture’s results separately rather than folding BetMGM’s revenue into its own online business. Monday’s release referred to BetMGM only in its standard company description and in a footnote noting that the guidance excludes BetMGM parent fees, and it carried no BetMGM figures.
Advertising Disclosure
USAOnlineSportsbooks.com provides you with the most current information regarding sports betting and fantasy with the help of commissions we receive from links you may click on our site.
BetMGM had already absorbed its own guidance reset earlier this year, unrelated to Brazil. In its second-quarter update in July, BetMGM said it expected to deliver toward the low end of its $2.9 billion to $3.1 billion revenue range and its $300 million to $350 million adjusted EBITDA range, guidance Entain repeated in its Aug. 13 interim results.
For sportsbooks that accept USA players and the operators behind them, Monday’s Brazil-driven cut does not touch those already-reduced U.S. figures.
Flutter Faces The Same Order
Flutter Entertainment, FanDuel’s parent, said Monday it “has ceased operating sports betting and iGaming in Brazil” and is “reviewing all available options, including the potential to appeal.” Flutter, which called itself “extremely disappointed,” put the cost of a full-year shutdown at roughly $70 million of 2026 revenue and $20 million of adjusted EBITDA.
What Happens Next
Brazil’s Congress must act on the provisional measure within 120 days of its Sept. 25 publication, and the licenses it extinguishes lapse on Oct. 25. Flutter said it would expect to restart its Brazilian sports betting and iGaming if Congress rejects the measure; Entain built its new numbers on the opposite case, a shutdown that runs to Dec. 31.
