Entain, the owner of Ladbrokes and Sportingbet, has cut its online sales outlook and said earnings will land at the lower end of guidance after Brazil moved to ban online gambling. The FTSE 250 firm said it was disappointed by Brazilian President Luiz Inacio Lula da Silva's sudden decision on Friday to sign an order prohibiting all sports betting and online casinos, a move made without consultation of industry stakeholders. Entain said it will comply with the provisional ban, which must secure congressional approval within 120 days to become permanent. As a result, the group downgraded its full-year online net gaming revenues outlook to between 4% and 6% and said underlying earnings are now expected at the lower end of its guidance range of between £910 million and £960 million. Brazil was expected to account for around 5% of Entain's total online net gaming revenues this year, though the company said the earnings contribution was forecast to be modest given the challenging and highly competitive operating environment there. Earlier this month, Entain revealed around 400 jobs were being cut worldwide as it blamed increased gambling taxes, and said a consultation could see a fifth of its 2,000-strong customer care jobs go across 11 countries including the UK.
Entain PLCBrazil's sudden ban on online gambling forces Entain to cut its online sales outlook and guides earnings to the lower end of guidance.
