Entain CEO Stella David has stated that the company is preparing for a potential reopening of Brazil’s regulated betting market, following the government’s recent ban on online gambling. During Entain’s third-quarter earnings call on 15 October, David addressed the ongoing uncertainty in Brazil and outlined how the group is positioning itself for multiple regulatory outcomes, particularly through its Sportingbet brand.
Brazil’s Regulatory Future Remains Uncertain
The Brazilian government’s provisional measure, enacted on 25 September, required licensed operators to halt activities in the country. This measure is subject to a 120-day congressional review period, during which it could be ratified, amended, or revoked. David acknowledged that while the final outcome is unclear, she expects the market to reopen in some form. Sportingbet’s established brand in Brazil, where sports betting accounts for a significant portion of its business, could offer Entain an advantage if the government allows sports wagering but maintains restrictions on online casino products.
Strategic Approach to Investment
Entain had already scaled back its investment in Brazil prior to the September shutdown, focusing on profitability rather than aggressive customer acquisition. The company’s Brazilian net gaming revenue (NGR) fell 36% year-on-year in the third quarter, and by 25% on a constant currency basis in the first half of 2026, reflecting both the regulatory changes and challenging sports betting margins. David defended this cautious approach, highlighting the risks of investing heavily in markets with significant regulatory uncertainty. The company has retained a small team in Brazil, currently supporting other business areas, and any return to the market would be managed carefully to avoid losses while regulatory clarity is awaited.
Impact on Operators, Affiliates, and Suppliers
The developments in Brazil are significant for operators, affiliates, and suppliers seeking opportunities in Latin America's largest market. The provisional ban and the possibility of selective product regulation, such as permitting sports betting but restricting online casino, mean that companies must remain flexible and prepared for rapid changes. Established brands with strong local recognition, like Sportingbet, may be better positioned if advertising restrictions tighten under a new framework. For affiliates, the uncertainty complicates planning and partnership strategies, while suppliers may need to adapt their offerings to comply with evolving regulations.
UK Performance and Regulatory Concerns
Despite the disruption in Brazil, Entain reported a 2% increase in group NGR for the third quarter, with UK and Ireland operations showing notable growth. Online NGR in these regions rose by 14%, and total revenue climbed 8%, attributed to investments in customer experience and digital products. David also warned against potential increases in the UK’s Machine Games Duty, suggesting further tax hikes could accelerate betting shop closures and job losses, although Entain’s retail networks may help it weather such changes better than some competitors.
Key takeaways
- Entain is preparing for several possible regulatory scenarios in Brazil, including a return of sports betting.
- Sportingbet’s established presence positions Entain well if the market reopens.
- The company is maintaining a cautious investment strategy due to ongoing regulatory uncertainty.
- Entain’s UK and Ireland operations helped offset losses from Brazil in the third quarter.