Flutter Entertainment plc (FLUT) has ceased its sports betting and iGaming operations in Brazil following a provisional executive order by the Brazilian government banning online betting. The company is reviewing all available options, including a potential appeal, and has quantified the expected negative financial impact for the remainder of 2026.
Key Details
- Financial Impact: The cessation is expected to reduce 2026 revenue by approximately $70 million and adjusted EBITDA by approximately $20 million if operations remain suspended for the rest of the year.
- Regulatory Action: The halt is in compliance with a provisional executive measure announced on September 25, 2026, which requires Congressional approval within 120 days to remain in effect.
- Company Response: Flutter is assessing non-cash accounting implications, noting that its Brazil unit had a carrying value including $539 million in goodwill as of Q2 2026. The company hopes to recommence operations if the measure is rejected by Congress.