Entain Slashes 2026 Revenue Forecast After Brazil Bans Online Betting

Entain, the British gambling company behind Ladbrokes and BetMGM, has lowered its growth forecast for 2026 after Brazil moved to ban online sports betting and casino gaming.

The company now expects online net gaming revenue to grow by just 4% to 6%. Entain blamed Brazil’s regulatory change for the lower outlook.

The company also expects earnings before interest, taxes, depreciation, and amortization (EBITDA) to finish near the lower end of its previous £910 million to £960 million guidance range.

The decision is a major setback for Entain, which had viewed Brazil as an important part of its international growth strategy.

Brazil’s Ban Hits Entain’s Latin America Strategy

Entain had invested heavily in Brazil as part of its expansion into Latin America. The company saw Brazil as a major opportunity after the country moved toward regulating online betting.

That outlook has now changed. Entain had built operations in Brazil and expected the market to help drive future revenue. With online betting facing a ban, those investments now have an uncertain future.

The setback is especially significant because Brazil had become one of the gambling industry’s most attractive emerging markets. Its population of more than 200 million people and strong interest in sports made it a major target for international betting companies.

Entain operates in more than 20 countries. Its brands include Ladbrokes, Coral, and PartyCasino. In the United States, Entain is also partnered with MGM Resorts through the BetMGM joint venture.

Brazil’s decision highlights one of the biggest risks of entering emerging gambling markets. A country can offer strong growth opportunities, but changes in government policy can quickly change the outlook.

Wider Implications for Global Betting Operators

Entain is not the only gambling company with an interest in Latin America. Other major operators have also looked at the region for future growth.

Brazil had appeared especially promising because the country was moving toward a regulated betting system. A ban would represent a major change in direction and could make operators more cautious about investing in similar emerging markets.

The situation also shows why geographic diversification can be important for large gambling companies. Entain operates across several markets, which could help limit the impact of losing business in one country.

Investors may also pay closer attention to how much gambling companies rely on emerging markets. Markets with less predictable regulations can offer major growth, but they can also create greater financial risks.

That could affect where international operators decide to invest in the future.

What This Means for the U.S. Market

Brazil’s regulatory change could put more focus on Entain’s U.S. business through BetMGM.

With Brazil becoming a less certain growth opportunity, Entain could decide to put more resources into North America. BetMGM already has a large presence in the U.S. and competes with major operators such as FanDuel and DraftKings.

More investment could go toward BetMGM’s technology, promotions, and product features as Entain looks for growth elsewhere.

However, there is no guarantee Entain will redirect money from Brazil directly into its U.S. operations.

The larger lesson is that gambling regulations can have a major impact on international operators. Entain’s reduced forecast shows how quickly a promising market can become a financial challenge when government policy changes.