The second quarter of the year saw the World Cup igniting excitement across Latin America's online gambling scene, particularly benefiting operators like Betsson and Codere Online. However, Brazil's environment remained tough, hampered by intense competition and regulatory hurdles.
Flutter Entertainment reported a substantial 64% year-on-year increase in revenue for Brazil, bringing the total to $72 million in Q2. This surge primarily resulted from the company’s acquisition of Betnacional midway through the quarter, contributing positively to the year-on-year figures. However, Flutter noted a 14% dip in organic revenue, mainly due to broader market weaknesses and socio-economic measures imposed by the Brazilian government. Still, Flutter’s management maintains a positive outlook on Brazil as a promising growth market, with CFO Rob Coldrake expressing optimism about the company’s capabilities and upcoming initiatives targeted for 2027. He acknowledged the complexities of Brazil's regulatory environment and emphasized Flutter’s commitment to sustainable growth despite current challenges.
Similarly, Entain faced its share of difficulties in Brazil during the first half of the year, experiencing a 25% fall in net gaming revenue on a constant currency basis due to unfavorable sports margins. CEO Stella David mentioned that despite these challenges, the company managed to retain its market share and saw a 10% increase in sports wagers for the first half of 2026. CFO Michael Snape characterized the market as “incredibly difficult and unpredictable,” stating that Entain is focused on building a sustainable business in Brazil rather than engaging in expensive competitive tactics. The emphasis is on careful investment rather than aggressive spending as the company navigates the current economic landscape.
In contrast, Betsson thrived in the region, with Latin America emerging as its largest market, accounting for 36% of its total revenue in Q2. The company recorded €112.1 million in LatAm revenue, marking a 32.3% increase from the previous year. Group CEO Pontus Lindwall highlighted strong performances in Argentina, Peru, and Colombia, attributing this growth partly to the World Cup while underscoring the “underlying growth” achieved through the company’s initiatives and product development. Lindwall noted the considerable potential for further expansion in Latin America.
Codere Online's performance remained anchored in Mexico, which CEO Aviv Sher described as essential for both growth and profitability. The company achieved €36.1 million in net gaming revenue from Mexico in Q2, representing a 24% year-on-year rise. Sher acknowledged the increasingly competitive landscape but is committed to further investment in the market. The company also saw positive results from other Latin American countries, including Argentina, Panama, and Colombia, with a notable year-on-year increase of over 50% in their combined revenue segment. CFO Marcus Arildsson indicated ongoing exploration of expansion opportunities, particularly in Uruguay and Chile.
Rush Street Interactive (RSI) experienced remarkable growth in Q2, hitting record levels in revenue, net income, and adjusted EBITDA. CFO Kyle Sauers credited a well-executed strategy, particularly in online casinos and Latin America, where monthly active users surged 62% year-on-year to around 653,000. The average revenue per user also saw an 82% increase to $55. The World Cup significantly boosted activity, and RSIs engagement with new users has outperformed previous events.
MGM Resorts International continues to hold a positive outlook for Brazil, with CEO Bill Hornbuckle referencing the market as dynamic and evolving. In August 2024, MGM formed a partnership with Grupo Globo to establish BetMGM in Brazil's burgeoning regulated market. The company remains focused on achieving a 10% market share in Brazil and has observed encouraging metrics, with CFO Jonathan Halkyard indicating that losses for MGM Digital would be lower this year. CCO Gary Fritz added that the investments in Brazil would soon receive financial support from MGM's other operations, particularly LeoVegas, as the company refines its budgeting strategies for future profitability.
