No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Ladbrokes and Coral-owner Entain trimmed its full-year guidance on Monday, after Brazil banned online sports betting and gaming.
President Luiz Inacio Lula da Silva announced the ban late last week, with a provisional executive order coming into force immediately. In a brief update, Entain - which also owns Eurobet, bwin and Foxy Bingo, among other online brands - said it was "disappointed by this sudden development", but confirmed its operations in the country were complying.
Around 5% of Entain's online net gaming revenue (NGR) was expected to come from Brazil in the 2026 full year, although the contribution to group earnings before interest, tax, depreciation and amortisation had been expected to be "modest...given the challenging and highly competitive" market.
It therefore reiterated guidance for underlying EBITDA, of between £910m and £960m, and the margin, for between 21% and 22%, but warned both would now likely come in towards the lower end.
Online NGR is now set to grow by between 4% and 6%, "reflecting Brazil's year-to-date performance and assuming the immediate ban is upheld for the remainder of 2026", or by 5% and 7% once Brazil is excluded. Both forecasts are on a constant currency basis.
Online gambling in Brazil was legalised in 2018 but critics have long pointed to high addiction levels and the impact on household finances.
Congressional approval is required for the executive order, and must be gained with 120 days. Entain noted that as a result, the long-term outcome was set to remain "uncertain" during this period, and that it would provide updates "as appropriate".
See latest RNS on Investegate
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.