In a trading update, Entain reported its Q3 total group NGR had increased 6% year-on-year or 7% on a constant currency (cc) basis. This figure includes its 50% share in the US-facing BetMGM business, although the operator did, for the second time, break its earnings down to also exclude its US figures.
During its Q3 update, Rob Wood, CFO and Deputy CEO of Entain, highlighted that while group online revenue grew 15%, international results were affected by customer-friendly sports outcomes in September. In Brazil, net gaming revenue (NGR) declined 11% year-on-year, even as volumes increased by 14%, reflecting robust player activity.
“The impact of adverse results was most pronounced in Brazil, where Q3 NGR was down 11% year on year despite volumes growing by a pleasing 14%,” Wood said. “We of course expect sports margins to normalize over time, and the volume growth shows why we continue to be excited about the future in Brazil.”
Notably NGR in Brazil was down 11% year-on-year during the period due to unfavourable sporting results which offset 14% volume growth.
Wood said that, despite this drop in revenue, the company is “excited” by Brazil’s potential. He also dubbed the Brazil results as “genuine bad luck from sports results” as the market has a high football mix and was impacted by both Champions League and local league results.
The executive insisted that, despite the dip, the market was “trading on the right side of expectations on a volume basis.”
Sports results and margin volatility
Executives explained that the margin hit was driven primarily by a sequence of football outcomes that favored bettors, both in local leagues and European competitions.
Entain’s popular “Two Up” promotion, which rewards players when their team goes two goals ahead, also paid out on multiple matches in September.
“In Brazil, we have a strong Two Up offer, and that paid out on a few matches,” Wood said. “Overall in Q3, Brazil's GGR margin was in single digits — something we rarely see. Hopefully that’s just an exception.”
Stella David, CEO of Entain Group, added that Brazil’s betting market remains complex and dynamic, requiring agility from operators: “Brazil is a multi-component market. There are factors like parlay mixes, local football, and evolving regulation, but we’re confident in our strategy and product performance.”
Regulatory stability and positive signals
Entain’s management also welcomed recent news that the Brazilian government withdrew a planned increase in betting tax, a move that provides a modest benefit to 2025 performance.
The company reported no expected adverse regulatory changes in 2026, helping maintain a stable environment for growth.
“The withdrawal of the intended Brazil tax increase had a small benefit to 2025 as well,” Wood explained. “FX was slightly more favorable than expected, and together those helped offset margin headwinds.”
Despite the short-term challenges, Entain maintained its EBITDA guidance and continues to target 5% to 8% online NGR growth on a multi-year basis. Early signs in October indicate a recovery, with margins and player volumes back on track.
Brazil: A core growth market
Analysts widely regard Brazil as one of the world’s most promising regulated iGaming markets, with its massive sports audience, mobile adoption, and maturing regulatory framework.
Entain’s continued investment in the country underscores its commitment to responsible, sustainable growth in Latin America’s largest economy.
“Brazil continues to deliver strong underlying fundamentals,” Wood concluded. “The recent margin impact was a temporary setback in an otherwise exciting growth story.”
Source: GMB
