Flutter Entertainment has halted its operations in Brazil due to a new nationwide ban on online betting, which could lead to a revenue decrease of around $70 million in 2026. This decision comes just days before the company undergoes a leadership transition, with Dan Taylor set to succeed Peter Jackson as CEO.
The ban was initiated by a provisional measure from the Brazilian government on September 25, which prohibits all forms of online gambling. Flutter has stated that if it cannot resume operations by the end of the year, it anticipates a significant financial impact, with adjusted EBITDA expected to drop by $20 million.
In response to this situation, Flutter is currently evaluating its options, including the possibility of appealing the ban. The provisional measure needs congressional approval or modification within 120 days to remain valid, and Flutter believes that operations could resume if Congress decides against it.
While the potential $70 million loss is relatively minor for Flutter, which is projected to earn nearly $18 billion in revenue in 2026, the broader implications of this sudden shutdown are concerning.
In its Q2 earnings call, Peter Jackson had previously described Brazil as a promising long-term market. However, this abrupt closure follows recent reductions in guidance, a costly reset of the FanDuel sportsbook, and significant changes in leadership.
Flutter had acquired a 56% stake in NSX in 2025, merging its Betfair Brazil operations with NSX’s Betnacional business for a total of $674 million. This summer, Flutter still viewed Brazil as a growth market.
In Q2, Brazil generated $72 million in revenue, a significant increase from $44 million the previous year, and $146 million in the first half of 2026, largely due to the NSX acquisition and increased investment around the FIFA World Cup.
Despite the recent challenges, Flutter's CFO Rob Coldrake expressed optimism about Brazil's market potential, stating that the company remained excited and confident about its future in the region, even as regulatory changes loom.
The government’s move to impose a nationwide ban was somewhat anticipated, as President Luiz Inácio Lula da Silva had previously hinted at such actions if regulations did not effectively address gambling-related issues. However, the shift from a regulated market to an outright ban has been swift.
There may also be accounting repercussions from this ban, as Flutter's regulatory filings indicated that its Brazilian operations held approximately $539 million in goodwill, $127 million in customer relationships, $124 million in trademarks, and $31 million in software and technology as of Q2.
Additionally, this shutdown coincides with Flutter's efforts to revitalize its FanDuel brand, which has faced its own challenges. Following the departure of FanDuel CEO Amy Howe in May, Flutter has been restructuring its U.S. leadership, with Christian Genetski stepping in as the new CEO of FanDuel and Dan Taylor taking on the role of Flutter President, overseeing both U.S. and international operations.
Flutter's recent performance has shown signs of pressure, with a 6% decline in U.S. revenue and a 15% drop in sportsbook revenue in Q2, leading to a significant reduction in its full-year revenue outlook.