Brazil's Lula Bans Online Betting, Shaking Global Operators

President Luiz Inácio Lula da Silva declared an outright ban on online betting in Brazil on Friday.

The move surprised major international operators who had invested heavily in the regulated market, which generated over R$8.7bn (£1.2bn) in betting taxes in the first half of 2026.

A Flutter spokesperson said the company received the news with "surprise and great concern", describing it as "a measure that could represent the prohibition or dismantling of an activity authorised and regulated by the Brazilian State itself".

Flutter, which entered Brazil via the acquisition of NSX in May 2025, saw its Brazilian division deliver revenue of US$74m (£55.7m) in H1 2026, growing 722% year-on-year.

The company argues a ban will push consumers toward illegal platforms and lead to widespread economic consequences, including the potential loss of R$58bn-R$73bn in tax revenue between 2027-2030 and around 15,000 jobs.

"Given this scenario, Flutter Brazil advocates for the maintenance of the regulated market and believes that protecting society means strengthening oversight, responsible gaming, and the fight against illegality," the spokesperson added.

Entain revealed it expected Brazil to represent around 5% of its online net gaming revenue for the 2026 financial year.

"Entain is disappointed by this sudden development without consultation of industry stakeholders regarding its significant adverse consequences," the company said in a statement, adding that its operations are complying with the provisional measure.

It expects both group revenue and online underlying EBITDA margin to fall at the lower end of their guided ranges due to the ban.

Allwyn, which holds a 36.75% stake in Kaizen Gaming, operator of the Betano brand, said its Betano unit is evaluating all legal options, including a lawsuit to protect its five-year licence issued by the Secretariat of Bets and Prizes.

Brazil is a major market for Betano, which Blask Index places first in market share at around 25%.

Allwyn noted that if the ban remains, its previous FY26 guidance of 37% in Adjusted EBITDA would no longer be applicable due to the impact on Betano.

Better Collective CEO Jesper Søgaard announced the suspension of the company's FY 2027/28 financial guidance, citing insufficient visibility.

Søgaard said the company was heading towards €45m in domestic 2026 revenue from Brazil before the ban, which is now expected to wipe out around €15m of projected revenue for the rest of the year.

Better Collective's revised 2026 guidance includes no betting and casino revenue from Brazil, and it has temporarily suspended its share buyback programme.

The regulated market was first made legal two years ago, with Lula having greenlit it in December 2024.