Ladbrokes and Sportingbet owner Entain has cut its online sales outlook and said earnings will be at the lower end of guidance after Brazil moved to ban online gambling.
The group said it was “disappointed” with the sudden decision by Brazilian President Luiz Inacio Lula da Silva on Friday to sign an order that “prohibits all sports betting and online casinos”.
It comes amid efforts to clamp down on surging levels of gambling addiction across the country.
Entain said the announcement was made “without consultation of industry stakeholders regarding its significant adverse consequences”.
The FTSE 250 firm said it would comply with the provisional ban, which must now secure congressional approval within 120 days to become permanent.
Entain downgraded its full-year online net gaming revenues outlook to between 4% to 6% as a result of the ban and said underlying earnings were now expected at the lower end of its guidance for between £910 million and £960 million.
Brazil was expected to account for around 5% of its total online net gaming revenues this year, though it said the earnings contribution was forecast to be “modest” because of the “challenging and highly competitive operating environment” in the country.
Earlier this month, Entain revealed around 400 jobs were being cut worldwide as it blamed increased gambling taxes and warned more could be at risk amid speculation the Chancellor is planning to double machine games duty in the Budget.
The group, which also owns brands including Coral, said it had launched a consultation that could see a fifth of its 2,000-strong customer care jobs go across 11 countries, including the UK, as part of ongoing efforts to “address the impact of the UK’s increased gambling taxes”.
It did not reveal how many jobs would go in the UK as part of the consultation, which is set to end by November.
