Flutter Reveals Cost of Brazil Ban as Supreme Court Hearings Begin
Brazil.- November 06, 2026 www.zonadeazar.com Flutter Entertainment is projecting net losses of more than US$1 billion in the third quarter of 2026, largely due to the financial impact of Brazil’s online betting prohibition. Meanwhile, the country’s Supreme Court has begun public hearings on the government’s decision.
Brazil’s Betting Ban Impacts Flutter’s Results
Flutter Entertainment revealed the financial consequences of Brazil’s decision to shut down online sports betting and iGaming operations in October, following a Provisional Measure introduced by President Luiz Inácio Lula da Silva.
The company recorded a US$873 million non-cash impairment charge related to Brazil, including US$296 million in long-lived assets and US$541 million associated with goodwill.
Flutter’s new CEO, Dan Taylor, confirmed the closure of Betfair Brazil, with Betnacional remaining the group’s sole focus in the country while awaiting a final decision.
“We are very disappointed with the Government Provisional Measure banning online sports betting and iGaming in Brazil,” Taylor stated.
“In response, we have acted decisively; our operations are currently closed, and we have paused all discretionary and uncommitted spend.”
Even before the prohibition, Flutter had struggled with slower-than-expected growth due to government socioeconomic measures.
Brazilian revenue declined 31% year-on-year to US$60 million, compared with US$87 million in Q3 2025.
Despite expected savings from closing Betfair Brazil and restructuring operations in the UK, international revenue remained flat at approximately US$2.42 billion, while group revenue increased just 2% to US$3.87 billion.
Supreme Court Examines the Prohibition
Flutter and the wider gaming industry are closely following public hearings at Brazil’s Supreme Court concerning the betting ban.
The measure has faced strong criticism and legal challenges from industry associations, including the National Association of Games and Lotteries (ANJL).
Brazilian football clubs warned that the prohibition could threaten employment and commercial revenues, particularly sponsorship agreements with betting operators.
Government representatives defended the decision, arguing that restrictions were necessary to protect public health and household finances.
Operators remain uncertain as the Supreme Court considers legal challenges and Congress evaluates whether the prohibition should become permanent.
Flutter Targets $500 Million in Cost Savings
Facing regulatory and financial pressures, Flutter aims to generate more than US$500 million in cost savings by 2029 by simplifying operations, reducing expenses and expanding the use of artificial intelligence.
“By using AI, removing layers and duplication, and simplifying our technology infrastructure, we can make decisions faster and direct greater investment towards our customers,” Taylor explained.
However, profitability remains under pressure.
Flutter’s adjusted EBITDA declined from US$478 million to US$360 million year-on-year. US operations recorded a 94% drop to US$3 million, while international adjusted EBITDA fell 14% to US$435 million.
Group sportsbook revenue increased 1% to US$1.78 billion, while iGaming revenue rose 3% to US$1.95 billion.
These results came despite strong customer engagement during the 2026 FIFA World Cup, particularly in Europe and Asia.
FanDuel and Prediction Markets Offer Growth Opportunities
Taylor outlined Flutter’s priorities: maintaining FanDuel’s leadership in the United States, unlocking value across its international portfolio and expanding into prediction markets.
Flutter reported that October prediction market volumes almost tripled compared with July.
During Q3, FanDuel Predicts recorded an average of 66,000 monthly players and US$119 million in trading volume.
“Prediction markets represent a significant incremental growth area,” Taylor stated.
“Our priority is to build a strong position now, investing with discipline and maintaining flexibility to adapt quickly as regulation develops.”
Taylor added that prediction markets have had a limited impact on existing customers’ betting activity, although aggressive advertising spending by competing platforms is increasing media costs.
Future Outlook
Flutter continues to face regulatory uncertainty in Brazil while pursuing operational efficiencies, international growth and new opportunities in prediction markets.
The company’s strategy remains focused on strengthening FanDuel, improving profitability and adapting to regulatory developments across its markets.
Edited by @pererarte www.zonadeazar.com
