Revenue Drop and Job Retention
Antonio Forjaz, head of Latin America at Entain, which operates the Sportingbet brand in Brazil, says the company is maintaining its local team despite a significant downturn in the market. Forjaz took over his role in February 2024, shortly before the regulatory landscape shifted. In a recent interview with Next.io, he confirmed that Entain currently employs around 50 people in Brazil. Many of these staff members also work across other markets, a flexibility that has helped the company protect jobs while competitors have reduced headcount.
The financial impact of the current regulatory environment has been substantial. Entain reported that its net revenue in Brazil fell by 36% in the third quarter, year on year. Forjaz attributed this decline to a combination of factors, including seasonality and the implementation of a betting ban that took effect at the end of the third-quarter period. While the company suspended contracts with some outsourced agencies, Forjaz emphasized that almost all core functions remain active due to ongoing work on contract reviews and marketing adjustments.
Legal Uncertainty and the Supreme Court
The future of Entain’s operations hinges on the outcome of proceedings before Brazil’s Supreme Court (STF). Justice Luiz Fux, the rapporteur for the cases, has stated that he will wait until after the second round of elections on October 25 to rule on Provisional Measure (MP) 1.394. Forjaz believes the decision will come after that date, likely through a judicial ruling. “We believe the decision will come after 25 October, and that the justice will probably rule on the matter,” Forjaz said.
The company obtained an injunction regarding the ban, which now needs to be heard through normal legal procedures. Forjaz noted that if the ban remains in place, it would be “very difficult, if not impossible” for Entain to continue operating, as it runs against the company’s strategy of avoiding unregulated markets. The regulatory timeline in Brazil has been compressed, with initial regulation beginning in January 2025 and the issuance of the Provisional Measure in September 2026.
Industry Impact and Consumer Protection
The sector has faced widespread job losses, with Forjaz noting that approximately 15,000 jobs have been lost. O Globo reported that these cuts have primarily affected smaller companies and domestic operators, which were more dependent on Brazilian cash flow. In contrast, Entain has been able to protect its team due to its global revenue mix, which is less reliant on the Brazilian market.
Forjaz highlighted the risks associated with the lack of regulation, stating that the sector has migrated to the illegal market. “Without regulation, the sector migrates to the illegal market, which is probably the greatest danger for Brazilian consumers, where there is no age verification, no limits and no protection whatsoever,” he said. Sportingbet has implemented several responsible gaming measures, including deposit and time limits, self-exclusion options, ID verification via CPF, and a prohibition on betting with credit cards.
The government cited gambling disorder, household debt, and advertising concerns as reasons for the measure. Forjaz acknowledged that the sector failed to better clarify myths and facts regarding indebtedness and coordinate with public bodies. However, he expressed confidence in the market’s potential, stating, “I saw it exactly as I still see it: a market with immense potential, in which we strongly believe.” Entain is currently analyzing several plans for a potential reopening, including options for sports-only operations, advertising limits, or different tax models, and remains open to dialogue with Congress, the SPA, and the regulator.
Why It Matters
Entain's ability to retain staff and maintain operations in Brazil is directly tied to the Supreme Court's ruling on Provisional Measure 1.394. The 36% revenue drop illustrates the immediate financial impact of the ban, while the loss of 15,000 sector jobs highlights the broader economic stakes. For readers tracking iGaming operators, this case determines whether Entain will exit or restructure its Brazilian presence, setting a precedent for other international operators navigating the region's volatile regulatory environment.
Karine Gomez is an enthusiastic writer and avid gamer with a particular love for PlayStation and casino gaming. Her deep knowledge of gaming trends and casino dynamics makes her articles both informative and engaging. Karine’s passion for PlayStation games and her firsthand experience with casino play shine through in her writing, offering readers authentic insights and valuable tips.
