Entain prioritizes profitability over growth in Brazil

CFO Michael Snape indicated that Entain does not seek to grow at any cost in Brazil, after reporting a 25% year-on-year decline in net gaming revenue (NGR) in the first half of 2026. During a call with analysts on August 13, Snape highlighted that despite intense competition, Entain will remain disciplined in this unpredictable market.

Market Performance and Strategic Focus

The sports betting and iGaming industry in Brazil is highly competitive, and Entain has noted that competitors have spent "aggressively" in the lead-up to the 2026 World Cup. Despite this, product and pricing initiatives have increased betting by 10% year-on-year in H1. Sportingbet, owned by Entain, maintains sponsorships with Brazilian football clubs such as Palmeiras and Vasco da Gama.

Adapting to Changing Regulations

The regulated sector in Brazil faces challenges, including an increase in taxes from 12% to 15% by 2028 and restrictions on registration bonuses and other incentives. Additionally, there is a tax on winnings exceeding BRL2,824 (£404). This adds to President Luiz Inácio Lula da Silva's opinions against the growth of the sector.

Innovations and Customer Loyalty

Entain implemented a loyalty program in Brazil and continues to enhance its AI-based betting assistant. According to Snape, the aim is to maintain profit contributions rather than push revenue figures. "We will focus on smart investments, not compete at any cost," Snape stated.

Competition and Market Outlook

Among the main licensed players in Brazil are Betano, market leader according to H2 Gambling Capital, bet365, Superbet, Esportes da Sorte, and Betnacional. Snape emphasized that while they have managed investment carefully, they are satisfied with maintaining market share. "We expect recovery opportunities in the second half, but the environment remains difficult from a competitive and regulatory standpoint."

Entain continues its strategic course, seeking long-term sustainability while facing a challenging market environment, working to maintain its position without compromising its financial principles.