Brazil’s betting ban sparks backlash from world’s biggest bookies

By jili tutorial · September 29, 2026

Brazil’s Online Betting Ban: A Comprehensive Guide to the Sudden Prohibition and Its Fallout

In a dramatic policy reversal, Brazilian President Luiz Inácio Lula da Silva declared an outright ban on online betting on Friday, effectively dismantling a regulated market that had only been legalized two years earlier. The decision sent shockwaves through the global gambling industry, affecting major operators, suppliers, and sports leagues that had invested heavily in the country. This guide unpacks the ban, its immediate and projected consequences, and the reactions of key stakeholders.

1. Background: The Rise and Fall of Brazil’s Regulated Betting Market

Brazil’s gambling market had grown exponentially since legalization in early 2024. By the first half of 2026, the competitive earnings baseline stood at $9.5 billion according to the Blask Index, with over R$8.7 billion (£1.2 billion) in betting taxes declared. The market attracted global heavyweights, including:

Operators: Flutter Entertainment (Betnacional), Betano, Superbet, bet365
Suppliers: Playtech, Kambi, Evolution Gaming

These companies viewed Brazil as a critical growth region. Flutter, for instance, had acquired NSX (operator of Betnacional) in May 2025, forming Flutter Brazil. The division generated US$74 million (£55.7 million) in H1 2026, a staggering 722% year-on-year increase.

President Lula, however, had long been cynical about the sector. Despite signing the initial regulation in December 2024, he moved swiftly to impose a ban on Friday, citing concerns over consumer protection, money laundering, and social harm.

2. The Ban: Immediate Reactions from Industry Giants

Flutter Entertainment: “Huge Growth Opportunities” Crushed

During a recent fireside chat, Flutter’s CFO Rob Coldrake had highlighted “huge growth opportunities” in Brazil. The ban effectively nullified those prospects. A Flutter spokesperson expressed “surprise and great concern,” calling it “a measure that could represent the prohibition or dismantling of an activity authorised and regulated by the Brazilian State itself.”

Flutter argued that the ban would not eliminate demand but push users to illegal platforms lacking consumer safeguards:

“A ban tends to push consumers toward illegal platforms, where mechanisms such as user identification, deposit limits, transaction monitoring, self-exclusion, and anti-money laundering prevention are not guaranteed.”

The company now faces the potential loss of its entire Brazil segment, a blow that comes amid a leadership change and a significant year-to-date drop in share price.

Entain: Disappointment and Financial Projections

UK-based Entain, which cited Sportingbet’s strong performance in Brazil (fourth-largest by online traffic per Blask), estimated that Brazil would represent around 5% of its online net gaming revenue (NGR) for FY26. However, EBITDA from the region was expected to be modest due to high competition.

Following the ban, Entain revised its expectations:

Group revenue range: £910m–£960m (low end)
Online underlying EBITDA margin: 21–22% (low end)
Online NGR growth: 4–6% (factoring in year-to-date Brazil performance and assuming ban remains for 2026)

Entain stated: “Entain is disappointed by this sudden development without consultation of industry stakeholders… However, Entain’s operations in Brazil are complying with the provisional measure.”

Betano (Allwyn): Legal Action Considered

Allwyn, holding a 36.75% minority stake in Kaizen Gaming (operator of Betano), noted that Brazil is Betano’s largest market. Blask ranked Betano first in market share (~25%), and it was the most downloaded sports app in Brazil in 2025.

Betano is evaluating all legal options, including a lawsuit to protect its five-year licence issued by the Secretariat of Bets and Prizes (SPA) under the Ministry of Finance, effective 1 January 2025. Allwyn warned that if the ban remains through 2026, its previous FY26 Adjusted EBITDA guidance of 37% would no longer apply, subject to ongoing review and cost-mitigation measures.

Better Collective: Guidance Suspended

Better Collective CEO Jesper Søgaard announced the suspension of FY2027/28 guidance, citing “insufficient visibility.” Before the ban, the company was on track for €45 million in domestic 2026 revenue (~12% of expected group total). The ban is expected to wipe out €15 million in projected revenue from Q3 2026 onward.

Better Collective’s revised 2026 guidance assumes zero betting and casino revenue from Brazil. The company also suspended its share buyback programme to preserve flexibility. Søgaard warned:

“Removing that regulated market will not eliminate the underlying demand for betting… It risks pushing millions of players toward illicit offshore operators.”

He noted that a potential victory for Flávio Bolsonaro in the 4 October elections could be “a good outcome,” given the Bolsonaro family’s historical support for sports betting.

Suppliers: Kambi Feels Limited Pain

Kambi CEO Werner Becher expressed disappointment, pointing out that “prohibition risks driving consumers towards black market alternatives.” However, Brazil represents only a low single-digit percentage of Kambi’s revenue, so the financial impact is limited. The company had recently launched its Odds Feed+ product with Rei do Pitaco in Brazil.

Flutter used its own analysis to challenge the logic of the ban, citing estimates that the illegal market share had actually fallen from 41–51% in 2025 (first year of regulation) to 38–44% in 2026, demonstrating that regulation was curbing black-market activity.

The company also warned of widespread economic damage:

Tax revenue loss: Between R$58 billion and R$73 million (note: likely R$73 billion, per original? The original says R$58bn-R$73m – a possible typo. We’ll keep as stated but clarify: likely R$58bn-R$73bn) between 2027–2030
Job losses: Approximately 15,000 direct and indirect positions
Media spending loss: Around R$3 billion in advertising by the 15 largest betting companies

Impact on sports was also highlighted:

18 out of 20 Brasileiro Série A clubs had betting partnerships worth R$1.1 billion in 2025
Brazilian sports overall (including Olympic and Paralympic) received R$1.6 billion from fixed-odds betting that same year

Flutter’s spokesperson concluded:

“Flutter Brazil advocates for the maintenance of the regulated market… protecting society means strengthening oversight, responsible gaming, and the fight against illegality.”

4. Legal and Regulatory Uncertainty: A Provisional Measure

The ban was enacted via a provisional measure, a temporary decree that can be converted into law by Congress or lapse within 60 days. This creates a window for legal challenges and potential political reversal. Several companies are exploring lawsuits based on existing licences and the principle of regulatory stability.

The political landscape is also crucial. The 4 October elections could shift the balance of power, with candidates like Flávio Bolsonaro historically supportive of the sector. Industry leaders are watching closely.

5. What Happens Next? A Timeline of Potential Outcomes

Scenario	Likelihood	Implications
Ban upheld after elections	Moderate	Permanent loss of regulated market; black market expansion
Ban reversed or modified	Uncertain	Operators resume; losses mitigated but confidence damaged
Legal challenge succeeds	Possible	Individual licences protected; broader ban may still stand
New government after October	Low (if Bolsonaro wins)	Pro-betting policies could reverse ban

6. Key Takeaways for Investors and Stakeholders

The ban is a major setback for operators that had already invested millions in licences, technology, and marketing.
Illegal operators are likely to gain, undermining consumer protection and tax collection.
Brazil’s sports ecosystem, heavily reliant on betting sponsorship, faces a funding crisis.
The decision was made without consultation, alarming global regulators and industry bodies.
Short-term market volatility is expected, with potential recoveries if the political climate changes.