The start of the World Cup in the second quarter brought both opportunities and challenges for online gambling operators throughout Latin America. While companies like Betsson and Codere Online reported positive results, Brazil's market remained problematic due to fierce competition and uncertain regulations.
In Brazil, Flutter Entertainment reported a 64% year-on-year revenue increase to $72 million in Q2, primarily due to its acquisition of Betnacional, completed in midway through Q2 2025. Yet, the company also noted a 14% decline in organic revenue, pointing to overall market weaknesses and Brazilian government socio-economic initiatives as contributors to its struggles. Despite these hurdles, Flutter maintains a positive outlook, describing Brazil as a "highly attractive growth market" and pledging to establish a leading platform in the region. CFO Rob Coldrake expressed optimism about Flutter's potential, citing product and pricing strategies while acknowledging the regulatory context impacting market growth. He stated, "We’re still really excited about our potential in this market," emphasizing mid- to long-term opportunities.
Entain faced a similar plight in Brazil, reporting a 25% decrease in net gaming revenue (NGR) on a constant currency basis for the first half of the year, attributed in part to a challenging sports margin throughout Q1. CEO Stella David noted that, despite adverse conditions, the company managed to hold its market share in the quarter and saw a 10% increase in sports wagers during that period. CFO Michael Snape described Brazil's gaming environment as "incredibly difficult and unpredictable," indicating that the company is not engaging in aggressive spending amidst this competition. "In Brazil, I’d say we very much hope that we’ll see some recovery in the second half," he remarked, emphasizing a sustainable business approach rather than pursuing short-term revenue gains.
Betsson, on the other hand, is enjoying substantial success in the region, making Latin America its largest market in Q2. The company reported €112.1 million in revenue from Latin America, a 32.3% increase year-on-year, driven by record revenues in Argentina, Peru, and Colombia. Group CEO Pontus Lindwall stated that the World Cup provided a boost, but underlying growth was the key narrative, noting that factors such as product development contributed significantly to their success. Lindwall believes that there are more opportunities for expansion within Latin America.
Codere Online continues to highlight Mexico as its leading market, generating €36.1 million in NGR during Q2, a 24% increase from the previous year. CEO Aviv Sher remarked that the competitive Mexican market poses challenges, stating, "We cannot ignore the competitive environment. It is getting crowded, and they are heavy spenders over there." Codere Online's other regions, including Argentina, Panama, and Colombia, have also shown positive growth, with NGR exceeding €5.7 million—up over 50% year-on-year. The company aims to sustain investments in Mexico while exploring potential opportunities in Uruguay and Chile.
Rush Street Interactive (RSI) had a particularly strong quarter, recording record figures in revenue, net income, and adjusted EBITDA. CFO Kyle Sauers highlighted the effectiveness of the company's strategies across all sectors, particularly in online casino and Latin America, where active users increased 62% to about 653,000. The World Cup was influential, leading to an over 80% rise in active users in June and July. CEO Richard Schwartz acknowledged ongoing discussions about future market expansions but did not provide specific updates. Sauers mentioned that RSI is effectively gaining market share in its currently active regions.
MGM Resorts International continues to regard Brazil as an important market despite a "dynamic and fluid" environment, according to CEO Bill Hornbuckle. The company recently signed a deal with Grupo Globo to launch BetMGM Brazil in the regulated market this August. MGM reiterated its target of 10% market share in Brazil, with CFO Jonathan Halkyard noting positive signs in key metrics like first-time deposits and active players. Gary Fritz, CCO and president of MGM Digital, stated that potential self-funding from LeoVegas could support MGM's Brazil investment as they move forward with budgeting for 2027.
Overall, progress in the Latin American market varied across operators, reflecting a combination of growing opportunities and the challenges brought by local conditions.
