Flutter Entertainment reported a significant revenue growth from its Brazilian operations in Q3 2025, with earnings reaching $87 million. This represents an impressive 412% increase from the same quarter last year when it stood at $17 million. This surge was largely driven by their acquisition of a 56% stake in NSX, the parent company of Betnacional, finalized in May. Despite this growth, the company noted a decline of 18% in revenue from pre-acquisition levels, attributing this to ongoing challenges Betfair Brazil faced with re-registration requirements introduced at the beginning of the year.
Peter Jackson, CEO of Flutter, expressed confidence in Brazil’s potential, stating that the market presents an exciting growth opportunity. He emphasized the belief that operators with scale and superior products will dominate the market share.
Entain, on the other hand, experienced a rocky quarter. Although it reported a 21% increase in net gaming revenue (NGR) for H1, Q3 saw an 11% decline in Brazil despite a 14% growth in betting volumes. Entain’s deputy CEO, Rob Wood, attributed this to an unfortunate streak of bad sports results impacting the sports margin. He remained optimistic, suggesting that margins would normalize, and highlighted the volume growth as a positive indicator of future success in Brazil.
In iGaming, Entain faced setbacks due to slow game authentication processes, which hindered their expansion efforts. Wood noted that, while current growth is primarily from sports, there is significant potential in gaming, though 2025 has seen sluggish progress so far.
Meanwhile, BetMGM has been aggressively expanding in Brazil, aiming for a 10% market share target, as reiterated in its Q3 presentation. The company, through its partnership with Grupo Globo, reported strong growth without specifying figures. However, CFO Jonathan Halkyard warned of an anticipated $100 million EBITDA loss for the year due to substantial investment efforts in the region. Despite this, he highlighted encouraging trends in growth metrics such as active players and deposits.
Betsson also reported success in LatAm, recording a 10.2% increase in Q3 revenue to €76.5 million. A significant contributor was record casino revenue, which jumped from €46.1 million in Q3 2024 to €56.6 million this year. However, sportsbook revenue declined due to comparisons with last year’s sports events like the European Championship and Copa America.
Codere Online, operating in Mexico, Colombia, and Panama, projects a future expansion into Brazil, Peru, and Uruguay, expanding its addressable market significantly. Mexico remains its largest market, with €26.8 million in revenue for Q3, although fiscal challenges loom with a proposed tax hike potentially impacting their investment strategy. Oscar Iglesias, the outgoing CFO, acknowledged potential implications for future market investments.
Rush Street Interactive, another player in the region, anticipates the Colombian VAT to be scrapped, a stance contrary to Codere Online’s expectations. Despite facing challenges with absorbing the tax through player bonuses, which led to a 27% drop in net revenue, the company remains optimistic. CEO Richard Schwartz emphasized the untapped potential in Latin America, citing a 30% increase in monthly active users and listing Brazil, Ecuador, Argentina, and Chile as attractive expansion opportunities.
Kambi, however, announced a revision of its full-year 2025 guidance due to Brazil’s slower-than-expected market development. CEO Werner Becher expressed some industry-wide disappointment, attributing slow growth to the remaining influence of the black market, which hinders the regulated market’s expansion.
Overall, while the Brazilian market shows promise, its development has been uneven across different companies, reflecting broader challenges and opportunities within Latin America’s rapidly evolving iGaming landscape.
4/5
