Flutter Exits Brazil After Betting Ban, Facing $70M Hit Before CEO Handover
Flutter halted Brazilian betting after a nationwide ban, risking $70M in lost 2026 revenue days before its CEO transition takes effect.
This article was produced with AI assistance and edited by the ON360 newsroom.
Flutter Entertainment has stopped taking sports bets and online casino wagers in Brazil after the government imposed a nationwide ban on Sept. 25, a move the company says could cost it roughly $70 million in 2026 revenue and $20 million in adjusted EBITDA if the shutdown lasts through year-end.
The exit lands just days before Flutter’s own leadership changes hands. Peter Jackson steps down as chief executive on Sept. 30 after nearly nine years, with Dan Taylor taking over Oct. 1.
A Brief Reprieve on the Table
The Brazilian measure needs congressional approval or amendment within 120 days to stay in force. Flutter has said it expects to resume operations if lawmakers reject it, and the company is reviewing its options, including a possible appeal.
President Luiz Inácio Lula da Silva had previously flagged the possibility of a ban if regulation failed to address gambling-related harms. Even so, the shift from a newly regulated market to an abrupt shutdown surprised observers who had watched Flutter deepen its bet on the country.
In 2025, Flutter acquired a 56 per cent stake in NSX, merging NSX’s Betnacional business with its existing Betfair Brazil operation in a deal worth $674 million, including $348 million in cash. Brazil generated $72 million in second-quarter revenue this year, up from $44 million a year earlier, and $146 million over the first half of 2026, helped by the NSX addition and extra marketing spend around the FIFA World Cup.
On the Q2 earnings call in August, CFO Rob Coldrake said Flutter was “still really excited” about Brazil and “quite confident” heading into 2027. Jackson had called the market “an attractive long-term opportunity” the same quarter.
Regulatory filings show Flutter’s Brazilian business carried about $539 million in goodwill, $127 million in customer relationships, $124 million in trademarks and $31 million in software and technology as of Q2, exposure that could face further scrutiny depending on how long the ban holds.
One More Problem in a Rough Year
The $70 million figure is modest against a company expected to post nearly $18 billion in annual revenue this year. But it arrives on top of a difficult stretch for Flutter’s core U.S. business.
FanDuel’s sportsbook handle fell nine per cent in the first quarter, with average monthly players down six per cent. Things worsened in the second quarter: U.S. revenue dropped six per cent, sportsbook revenue fell 15 per cent, and U.S. adjusted EBITDA sank 70 per cent to $119 million.
Flutter responded by cutting its full-year revenue guidance midpoint by $395 million, to $17.91 billion, and reducing its adjusted EBITDA outlook by $210 million, to $2.655 billion. Executives say much of that reduction reflects deliberate spending on loyalty programs and customer value rather than pure demand weakness.
Leadership also shifted at FanDuel. Amy Howe departed as CEO in May, replaced by Christian Genetski, while Taylor was promoted to the newly created role of Flutter President overseeing both U.S. and international operations, a role that positioned him for the top job.
Prediction Markets Complicate the Picture
Flutter is also navigating the rapid rise of U.S. prediction markets. Management has called the sector “an attractive opportunity,” projecting roughly $50 million in revenue this year from FanDuel’s market-making arm.
FanDuel Predicts is being used to reach customers in states without legal online sportsbooks. Jackson told an Oppenheimer investor event in August that Flutter would benefit either way: wider availability of prediction markets helps FanDuel expand, while tighter restrictions on sports-event contracts would ease competitive pressure on its traditional sportsbook.
Analysts remain cautious regardless. Following the Q2 results, several cut their price targets, with UBS describing Flutter as increasingly a “show me” story tied to execution rather than guidance.
Ontario operators watching Flutter’s Brazil exit will note the reminder it offers: regulatory goodwill can shift quickly, even in markets that appear newly settled. Players in Ontario continue to have access to deposit limits, self-exclusion tools and other safeguards through the province’s regulated iGaming market.
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