Brazil Gambling Ban Hits Ladbrokes Owner Entain

After Brazil’s sudden online gambling ban, Entertain has warned of potential ripple effects. The Ladbrokes and Coral owner suspects the ban will hit its previously forecasted growth this year.

Brazilian President Luiz Inácio Lula da Silva signed a provisional measure on Friday banning fixed-odds betting across the country. The measure covers both online sports betting and casino games, bringing Brazil’s recently regulated gambling market to an abrupt halt.

Entain operates in Brazil through its Sportingbet brand and had expected the country to account for around 5% of its online net gaming revenue in 2026.

However, the FTSE-listed gambling group has now reduced its expected online net gaming revenue growth for the year to a range of 4% to 6%. This assumes the Brazilian ban remains in place for the rest of 2026.

Even without Brazil, Entain says it remains on track to deliver growth at the top end of its previous 5%-7% guidance.

What Has Brazil Banned?

Brazil’s new provisional measure prohibits the operation, offering, intermediation, and advertising of fixed-odds betting.

This includes all online gambling and applies to both federal operators and those authorised by individual Brazilian states.

The decision is so shocking as it represents a dramatic reversal. Brazil had only recently established a fully regulated online betting market. It introduced its current federal licensing system at the beginning of 2025, thereby attracting some of the biggest international gambling companies.

However, concerns about gambling-related financial harm and household debt have increasingly dominated political debate. As such, the betting ban was announced alongside wider measures to provide debt relief to Brazilian households.

Brazilian authorities said on Sunday that a government task force had taken down 506 websites suspected of continuing to offer betting after the measure was introduced.

Brazil Ban Is Not Necessarily Permanent

At present, Brazil’s gambling ban is only a provisional measure. This means that it is not yet permanent legislation and could be reversed.

Entain says the executive measure immediately withdrew operators’ authority to provide online betting and gaming. However, it must be approved by Brazil’s Congress within 120 days to remain in force. Congress can approve, reject or amend the measure during that period.

This means the long-term future of Brazil’s regulated gambling industry remains uncertain, even though operators are currently required to comply with the ban.

Entain said it was disappointed by the decision and criticised the lack of consultation with gambling operators before the measure was introduced.

How Much Will the Brazil Ban Cost Entain?

Entain has not provided a specific figure for the amount of revenue it expects to lose as a result of the ban. Though, Brazil was expected to generate approximately 5% of the group’s online net gaming revenue this year.

Entain said the country was expected to make only a ‘modest’ contribution to underlying EBITDA due to the highly competitive Brazilian market. The company has therefore maintained its overall 2026 underlying EBITDA guidance of £910-£960 million.

The company's online revenue guidance has taken the clearest hit. Including Brazil, Entain now expects online NGR to grow by between 4% and 6% this year, compared with its previous guidance of 5% to 7%.

Why Does a Brazilian Gambling Ban Matter in the UK?

Entain is headquartered and listed in the UK and owns some of Britain’s most recognisable gambling brands, including Ladbrokes, Coral and Gala Bingo.

The company operates across more than 30 territories. This means that regulatory changes thousands of miles away can still affect its financial performance.

Brazil had become an increasingly important growth market for international gambling companies following the introduction of its regulated system. For Entain, that expansion centred on Sportingbet.

The impact of Friday’s decision demonstrates the risk that comes with international gambling groups relying on newly regulated markets for future growth.