Entain Shares Fall as Brazil Betting Ban Pushes 2026 Earnings to Low End of Guidance

Shares in Entain PLC (LON:ENT) fell over 3% on Monday after the company warned that a new provisional ban on online betting in Brazil would likely push its 2026 core earnings to the lower end of its previously issued guidance.

Financial Outlook Revised

Entain announced that if the ban remains in place for the rest of the year, its full-year 2026 results would be impacted. While the company maintained its guidance, it adjusted expectations for key metrics:

• Underlying EBITDA: Now expected towards the bottom of its £910 million to £960 million range.
• Online EBITDA Margin: Also anticipated to be at the lower end of its 21% to 22% target.
• Online Net Gaming Revenue (NGR): Full-year growth is now forecast at 4% to 6%, revised down from a previous target of 5% to 7%.

Excluding the impact from Brazil, Entain stated it expects online NGR growth to be towards the top end of the 5% to 7% range on a constant-currency basis. Brazil was expected to contribute about 5% of the company's 2026 online NGR.

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Regulatory Uncertainty in Brazil

The revision follows a provisional measure published in Brazil on Sept. 25 that immediately withdraws the authority for operators to offer online sports betting and gaming. The long-term outlook remains uncertain, as the measure requires approval from the Brazilian Congress within 120 days to remain in force.

For investors, this development introduces significant regulatory risk in a key emerging market. Entain had previously flagged to the market that it expected a modest earnings contribution from Brazil, citing intense competition and challenging trading conditions.