Entain Expects Brazil Betting Market to Reopen, CEO Says
Entain CEO Stella David believes Brazil’s regulated betting market could reopen in the future. The company is preparing for a possible return through its Sportingbet brand after the government suspended licensed online gambling operations.
Speaking during Entain’s third-quarter earnings call on 15 October, David acknowledged the uncertainty surrounding Brazil’s regulatory future. However, she said she did not expect the current restrictions to mark the permanent end of the regulated market.
The situation follows a provisional measure issued by President Luiz Inácio Lula da Silva on 25 September. The measure forced licensed operators to suspend their activities in Brazil.
The shutdown has already affected Entain’s financial performance. The company reported a 36% year-on-year decline in Brazilian net gaming revenue (NGR) during the third quarter.
Despite the setback, David believes Sportingbet’s established presence and strong brand recognition could help Entain regain ground if the market reopens under a revised regulatory framework.
Entain Prepares for Different Regulatory Outcomes
Brazil’s provisional measure remains subject to congressional consideration. The 120-day period allows lawmakers to approve, amend or revoke the restrictions.
Entain is preparing for several possible outcomes. These include a scenario in which sports betting resumes while online casino gaming remains prohibited.
“We don’t know exactly what’s going to happen,” David told analysts. She explained that the provisional measure could be ratified, changed or revoked after the 120-day period.
“Ask me for my best guess. I think the market will reopen in some form or another and we will be back there,” she added.
David also highlighted Sportingbet’s established position in Brazil. Around 70% of the brand’s business comes from sports betting, she said.
This could give Entain an advantage if authorities allow sports wagering to resume but maintain restrictions on online casino products.
The company also believes Sportingbet’s existing brand recognition could be valuable if a future regulatory framework introduces stricter advertising rules. However, Entain plans to assess the conditions before committing additional investment.
Sportingbet Maintains a Cautious Investment Strategy
Entain had already adopted a more cautious investment strategy in Brazil before the shutdown. The company prioritised profitability over aggressive customer acquisition in a market executives considered unpredictable.
Brazilian NGR fell 25% on a constant-currency basis during the first half of 2026. The decline was partly attributed to unfavourable sports betting margins.
David defended the company’s approach during the earnings call. She said the sudden suspension highlighted the risks of investing heavily in markets facing regulatory uncertainty.
“Prior to the market being shut down, we were already taking what we would call a pragmatic approach to making sure that we were investing in the right sort of customer and not chasing volume at any cost,” she said.
Entain has retained a relatively small team in Brazil while waiting for greater clarity. Some employees are currently supporting other parts of the business.
David indicated that any return would be carefully managed. The company wants to avoid operating at a loss while the long-term regulatory outlook remains uncertain.
UK Growth Supports Entain’s Third-Quarter Results
Despite the disruption in Brazil, Entain reported a 2% increase in group NGR during the third quarter. Online revenue grew by 3%, rising to 5% when Brazil was excluded.
The UK and Ireland delivered particularly strong results. Online NGR increased by 14%, while total regional revenue rose by 8%.
David attributed the growth to investments in customer experience and digital products. These included a refreshed Ladbrokes application and further improvements to the Ladbrokes and Coral platforms.
The company also reported continued market share gains in the region. Online volume grew by 15%, despite unfavourable sporting results.
Read Also: Brazil Sees Surge in Suspicious Gambling Sites After Betting Ban
However, Entain expects full-year EBITDA to reach the lower end of its previously announced £910 million to £960 million guidance range. The impact of Brazil’s closure has contributed to this outlook.
Excluding Brazil, the group expects full-year online NGR growth to approach the upper end of its 5% to 7% constant-currency forecast.
Entain CEO Warns Against Further UK Gambling Tax Increases
David also reiterated concerns about a possible increase in the UK’s Machine Games Duty (MGD). The comments came amid speculation that the government could double the standard rate to 40% in the Autumn Budget.
She warned that higher taxes could lead to more betting shop closures and job losses. David cited industry-commissioned analysis suggesting that around 1,500 shops and 16,000 jobs could be at risk.
She also claimed that 630 betting shops had closed across the industry over the previous year, before any further increase in MGD.
“The most important point is that we get our message across that putting the taxes up closes shops, reduces jobs, and reduces tax intake,” David said.
Although she warned of the potential impact on the wider retail betting sector, David said Entain was comparatively well positioned to manage further disruption.
She pointed to the company’s established Ladbrokes and Coral retail networks. Their scale and operational strength, she suggested, could help Entain gain market share even if additional tax increases are introduced.
