As the World Cup kicked off in the second quarter, online gambling operators in Latin America, including Betsson and Codere Online, experienced a mix of outcomes, particularly in Brazil, where competition and regulatory challenges persisted.
Flutter Entertainment reported a 64% year-on-year increase in revenue in Brazil, totaling $72 million in Q2. This growth, however, masked an organic revenue drop of 14%. The surge was primarily attributed to Flutter's acquisition of Betnacional, completed midway through Q2 2025, resulting in a favorable yearly comparison.
The company's operational progress was noted, but Flutter pointed to overall market weakness and the Brazilian government's socio-economic policies as key issues impacting their performance. Despite these setbacks, Flutter remains bullish on Brazil, describing it as a "highly attractive growth market" and with plans for a market-leading platform. CFO Rob Coldrake expressed optimism during the earnings call, emphasizing confidence in their product and pricing capabilities. “We’re still really excited about our potential in this market,” he stated. Coldrake acknowledged the regulatory challenges but maintained a positive outlook for medium to long-term opportunities in Brazil.
In contrast, Entain faced difficulties in Brazil as well, with net gaming revenue down 25% in the first half of the year, driven by a tough sports margin in Q1. Nevertheless, CEO Stella David noted that the company had managed to retain market share despite these hurdles. Wagering on sports increased by 10% across the first half of 2026. CFO Michael Snape characterized the Brazilian market as "incredibly difficult and unpredictable" and asserted that Entain aims to avoid aggressive spending. He stated, "We will compete, but we won’t compete at any cost. We will make sure that we invest really wisely." David echoed this sentiment, emphasizing a disciplined approach to profitability in Brazil.
On a more positive note, Betsson saw its focus on Latin America pay off, with the region becoming its largest revenue source in Q2, contributing 36% of total revenue. The company reported €112.1 million in revenue from Latin America, a 32.3% increase compared to the previous year, buoyed by strong performance in Argentina, Peru, and Colombia. Group CEO Pontus Lindwall noted that while the World Cup offered a temporary boost, the underlying growth was crucial. Lindwall highlighted further expansion potential in the region, stating, "We see more structural growth to come from LatAm than from Western Europe."
Mexico remains the leading market for Codere Online, with CEO Aviv Sher calling it a significant contributor to company growth. Codere generated €36.1 million in net gaming revenue from Mexico in Q2, up 24% from the previous year. Sher emphasized the need for continued investment to navigate the increasingly competitive landscape. The company’s geographical segment, which includes Argentina, Panama, and Colombia, showed signs of recovery, generating €5.7 million in net gaming revenue, a more than 50% year-on-year increase.
Rush Street Interactive (RSI) celebrated a strong Q2, achieving records in revenue, net income, and adjusted EBITDA. CFO Kyle Sauers credited the success to the company’s execution strategy, particularly in the online casino and LatAm sectors. Monthly active users in LatAm surged by 62% year-on-year, while average revenue per user rose by 82%. The World Cup contributed to a notable increase in user engagement, with over 25% of new depositors engaging with casino games post-World Cup. CEO Richard Schwartz noted there are plans for further market expansion, although specific details were not disclosed during the call.
MGM Resorts International also remains optimistic about the Brazilian market. Despite the complexities described by CEO Bill Hornbuckle, MGM sees potential for growth. In August 2024, MGM partnered with Grupo Globo to introduce BetMGM Brazil. The company continues to target a 10% market share in Brazil, with CFO Jonathan Halkyard reporting promising metrics without specifying figures. He expressed that losses related to MGM Digital’s EBITDA are expected to decrease compared to last year. Gary Fritz, CCO and president of MGM Digital, indicated that investments in Brazil might soon be supported by internal funding from MGM’s LeoVegas operations, stating they are currently calibrating their budget for 2027.
