The stock performance of major betting operators has weakened significantly this week, primarily due to the impending nationwide betting shutdown in Brazil. Brazil's MP 1.394/2026 has prohibited the operation, offering, intermediation, and advertising of fixed-odds betting, including online sports betting and gaming. Starting October 6, betting platforms will be inaccessible, following a deadline of October 5 for customers to withdraw their balances.
In this week’s analysis of the iGaming sector, here’s how the stocks ranked:
| Rank | Ticker | Company | Market Cap | Change | Volume | Revenue |
|——|——–|—————————————|————|———|————|———-|
| 1 | FLUT | Flutter Entertainment plc | 12.98B | -2.17% | 2,509,892 | 17.16B |
| 2 | DKNG | DraftKings Inc. | 9.23B | -3.93% | 17,857,186 | 6.22B |
| 3 | SGHC | Super Group (SGHC) Limited | 5.72B | -0.97% | 3,391,497 | 2.43B |
| 4 | CHDN | Churchill Downs Incorporated | 5.30B | 1.64% | 1,194,510 | 2.99B |
| 5 | RSI | Rush Street Interactive, Inc. | 4.64B | 0.30% | 1,859,083 | 1.37B |
| 6 | BRSL | Brightstar Lottery PLC | 1.81B | -0.40% | 2,419,389 | 2.47B |
| 7 | ACEL | Accel Entertainment, Inc. | 880.14M | 2.36% | 422,852 | 1.39B |
| 8 | CDRO | Codere Online Luxembourg, S.A. | 431.96M | -1.86% | 29,675 | 262.52M |
| 9 | MRDN | Meridian Holdings Inc. | 151.20M | 3.64% | 48,931 | 197.19M |
| 10 | INSE | Inspired Entertainment, Inc. | 91.33M | -5.59% | 406,364 | 281.40M |
| 11 | ROLR | High Roller Technologies, Inc. | 53.93M | -0.61% | 31,151 | 15.63M |
| 12 | GRSD | Grandstand Limited | 53.75M | 2.72% | 145,010 | 163.42M |
| 13 | BRAG | Bragg Gaming Group Inc. | 37.48M | 3.45% | 9,053 | 117.71M |
| 14 | SEGG | Sports Entertainment Gaming Global Corp. | 7.64M | 1.96% | 26,596 | 559.59K |
**Large-Cap Leaders**
– **Flutter Entertainment plc** (-2.17%): The impact of the Brazilian shutdown is heavily felt by Flutter. The operator, which owns Betfair, has confirmed it will cease operations in Brazil. If the suspension lasts until the end of 2026, Flutter estimates that it could incur a revenue loss of $70 million and a $20 million hit to adjusted EBITDA. This circumstance aligns with a notable weekly stock decline, reducing Flutter's capitalization to $12.98 billion and revenues to $17.16 billion.
– **DraftKings** (-3.93%): DraftKings experienced the most significant decline among well-known operators, down 3.93% with a substantial trading volume of 17.86 million shares. The company's market cap now stands at $9.23 billion, down from $12.28 billion just a round ago. As for DraftKings, its relationship with the Brazilian market is more complicated than that of Flutter, as it has a stronger focus on the U.S. market.
– **Super Group** (-0.97%): This operator's stock dipped by 0.97%, making its market value $5.72 billion. Super Group's brand, Sportingbet, has a robust international presence, including Brazil, making the Brazilian shutdown pertinent for them as well.
– **Rush Street Interactive** (0.30%): In contrast to the negative trends of larger competitors, RSI's stock rose by 0.30%. The company recently reported impressive growth, with Q2 2026 revenues hitting $393.8 million, illustrating a 46% year-over-year increase.
**Mid-Tier**
– **Churchill Downs** (+1.64%): Churchill Downs performed the best among the largest companies, with business exposure less affected by Brazil’s online betting ban.
– **Brightstar Lottery** (-0.40%): The company saw only minor changes, consistent with its lottery-focused business model.
– **Accel Entertainment** (+2.36%): This operator showed resilience, gaining 2.36% while others struggled.
– **Codere Online** (-1.86%): Similar to others with international exposure, Codere is likely to be affected by Brazil’s restrictions.
– **Meridian Holdings** (+3.64%): Meridian registered the strongest gains among lower-cap companies.
**Small-cap**
– **Inspired Entertainment** (-5.59%): This operator faced the largest decline in the small-cap group.
– **High Roller Technologies** (-0.61%)
– **Grandstand** (+2.72%)
– **Bragg Gaming** (+3.45%)
– **Sports Entertainment Gaming Global** (+1.96%)
The recent numbers highlight considerable declines among several key gambling stocks, primarily the principal online operators. The overall risk appears to stem from the uncertainty surrounding a rapid shift from regulation to prohibition rather than the immediate revenue losses stemming from Brazil. Proposed legislative changes await congressional approval within the next 120 days, with 42 proposals already submitted, ensuring a highly unpredictable future for the sector.
