Entain CEO Stella David expects Brazil to reopen in some form after betting ban, warns against UK MGD hike

Entain chief executive Stella David said she is confident Brazil's licensed gambling market will return, speaking on the operator's third-quarter earnings call on Thursday. Brazil's president, Luiz Inácio Lula da Silva, imposed an immediate ban on licensed gambling through a provisional measure in late September, and Entain's Sportingbet brand is among the businesses affected.

The measure has not yet been voted on by Brazil's Congress, which will decide whether the ban becomes permanent. David said it runs for 120 days, after which it is ratified, changed or revoked, and that Entain is planning for several scenarios. Asked for her best guess, she said she believes the market will reopen in some form and that Entain will be back. One possible outcome mentioned in the coverage is a return limited to sports betting. Brazil's Supreme Federal Court has also been pressed to overturn the ban, which has left thousands of local employees without work.

Entain said Brazil's group net gaming revenue fell 36% in the quarter. It attributed the fall to disciplined marketing and player engagement in an increasingly challenging market before the 25 September ban. David said the company had already been investing in the right type of customer rather than chasing volume, and that a market closing without notice makes a sensible approach to any reopening essential. She described Sportingbet as a long-established brand that is about 70% sports, which she said would leave it well placed if the market returned as sports-only or with advertising restrictions. Entain intends to reopen in Brazil once the framework is clear, with investment it called proportionate. The company said last month that full-year EBITDA is expected at the lower end of its £910 million to £960 million range. Excluding Brazil, it expects FY26 online NGR growth at the top end of 5-7% in constant currency.

Elsewhere, online NGR in the UK and Ireland rose 14% in the quarter, ahead of expectations, with volume growth of 15% despite unfavourable sports results. Group NGR grew 2% and online NGR 3%, or 5% excluding Brazil. David credited the gains to improvements in brands and digital products, including a refreshed Ladbrokes app.

David also addressed speculation that machine games duty could double to 40% in the Autumn Budget, a idea that followed a call from the Social Market Foundation think tank for higher taxes on retail operations. She said 630 betting shops have closed across the industry since this time last year, before any tax rise. According to independent analysis she cited, a hike could mean around 1,500 closures and about 16,000 job losses, and could reduce the Treasury's net take.