Entain says Sportingbet suited to sports-only reopening in Brazil

Entain chief executive Stella David has told investors that Sportingbet would be well positioned in Brazil if the country's market reopens for sports betting alone, without online casino.

David made the remarks on the London-listed group's third-quarter earnings call, as reported by EGR, addressing the fallout from Brazil's sudden market closure.

Brazil's online sports betting and igaming sector was suspended on 6 October, days after President Luiz Inacio Lula da Silva signed a provisional measure to ban the industry on 25 September. Lula had described the sector as "a cancer" in the period before the first round of the country's presidential election.

His leading challenger, Flavio Bolsonaro, criticised the closure as "desperate". Bolsonaro is understood to support legalising sports betting while keeping online casino prohibited. The presidential race goes to a runoff on 25 October after no candidate secured a majority in the first round. He is the son of former president Jair Bolsonaro, who is serving a 27-year sentence at home over his part in an attempted coup in 2022.

Entain's own figures show the Brazilian disruption has already hit trading. The group reported third-quarter net gaming revenue from the country down 36%, with management citing what it called an increasingly challenging operating environment.

David told the call that Brazil had turned into a volatile and difficult market, and that the closure of the entire sector without warning had affected operators across the board. She said Entain had already been taking a pragmatic approach by prioritising sustainable customer value over chasing volume, adding that this now looked like the right call given the risk of markets closing abruptly.

The company's earnings report described its response as a disciplined approach to marketing and player engagement following the shutdown.

Asked about the prospects of Bolsonaro winning the presidency and restoring sports betting, David argued Sportingbet's long history and brand strength in Brazil would count in its favour, noting the brand draws roughly 70% of its business from sports rather than casino.

She said that in a sports-only market, Entain believed it would be "well set" to compete.

David added that Entain intends to resume operations in Brazil once it can assess the regulatory framework, applying what she called a proportionate and sensible level of investment rather than rushing back in.