Listed operators detail Brazil exposure after Lula gambling ban order
Allwyn, Entain, Better Collective and Flutter have updated investors on the financial impact of Brazil's provisional measure suspending online gambling from 6 October, according to EGR.
Publicly listed operators and affiliates with exposure to Brazil have begun briefing shareholders on the likely cost of President Luiz Inácio Lula da Silva's provisional measure banning online gambling in the country from 6 October, as reported by EGR.
Athens-listed Allwyn, which holds a 36.75% stake in Kaizen Gaming's Betano brand, said Betano is preparing legal action to protect its rights under its five-year Brazilian licence while evaluating ways to mitigate the impact. Allwyn described Brazil as Betano's largest market and said the brand ranks as the country's number one operator, adding that Betano intends to press ahead with plans to enter four further markets in early 2027.
Because Betano is equity-accounted, Allwyn said any 2026 impact would show up through its share of profit from equity method investees rather than direct revenue. It cautioned that its previously guided adjusted EBITDA margin of roughly 37% "would no longer be applicable" should the ban remain in force for the rest of the year, calling the assessment preliminary and subject to ongoing review. Allwyn shares fell almost 3% to €11.38 on the Athens Stock Exchange.
London-listed Entain, owner of Sportingbet in Brazil, kept its full-year guidance of £910m to £960m in revenue and an online underlying EBITDA margin of 21% to 22%, but said it now expects to land at the lower end of both ranges because of the measure. Entain shares dropped more than 3% to 435p in early London trading.
Brazil accounts for around 5% of Entain's group online net gaming revenue, with the company noting its EBITDA contribution from the market was always expected to be modest given a challenging, highly competitive environment. Excluding Brazil, Entain said the business remains on track for the top end of its 5% to 7% constant-currency growth guidance; including Brazil, that range falls to 4% to 6%. The group said it was "disappointed by this sudden development without consultation of industry stakeholders regarding its significant adverse consequences" and pledged further updates.
Copenhagen-based affiliate Better Collective saw its shares fall by a quarter in Stockholm trading, its primary listing. The company halted its share buyback programme immediately and suspended 2027-2028 guidance, citing current uncertainty. It now expects organic revenue growth of 3% to 8%, down from a prior 7% to 12%, and EBITDA growth before special items of between -7% and +3%, against an earlier forecast of 8% to 18%. Net debt to EBITDA guidance of below 3x was unchanged.
Better Collective said its Brazilian operations had been tracking towards roughly €45m in 2026 revenue, about 12% of current analyst consensus for group revenue, with some €15m of that expected in the remainder of the year mostly via revenue-share deals with licensed operators. The unit carries an annual cost base of about €10m. Co-CEO Jesper Søgaard warned that "removing that regulated market will not eliminate the underlying demand for betting" and said the measure risks pushing players towards unlicensed offshore operators that pay no local tax.
New York-listed Flutter Entertainment, which runs Betfair and domestic brand Betnacional in Brazil, said that if its Brazilian business is unable to operate for the rest of the year, it expects 2026 revenue to fall by approximately $70m and adjusted EBITDA to decline by roughly $20m, EGR reported.