TLDR
- Brazil’s government issued a provisional measure on Sept. 25 banning online betting, and Flutter Entertainment stopped operations in the country.
- Flutter estimates staying out of Brazil through the end of 2026 would cut revenue by about $70 million and adjusted EBITDA by around $20 million.
- SOFTSWISS released its 2027 iGaming Trends Report near Lisbon, putting global online gambling revenue at $349 billion in 2026.
- The report says 85% of betting and gaming companies use AI, but the industry’s AI maturity score is only 45 out of 100.
- Brazil’s Congress must approve or amend the ban within 120 days, and Flutter is reviewing its options, including a possible appeal.
SOFTSWISS released its fifth annual iGaming Trends Report at an invite-only media event near Lisbon, Portugal. The launch took place on the eve of the SBC Summit.
Speakers from SOFTSWISS, AWS, Pentasia and Google joined the panel. CNN’s Elliott Gotkine moderated the discussion, which covered AI, compliance and new growth markets.
The report puts global online gambling gross gaming revenue at $349 billion in 2026. SOFTSWISS forecasts the market will keep growing.
Alexandra Kavelich, Deputy CMO at SOFTSWISS, said the industry’s fast growth is starting to slow. The company views this as a sign that the sector is maturing.
Brazil Ban Hits Flutter Entertainment
Much of the discussion turned to Brazil. On Sept. 25, President Luiz Inácio Lula da Silva’s government issued a provisional measure banning online betting.
Flutter Entertainment responded by stopping both sports betting and iGaming operations in the country. Congress must approve or amend the measure within 120 days for it to stay in effect.
Flutter estimates that staying out of Brazil through the end of 2026 would cut revenue by about $70 million. It would also reduce adjusted EBITDA by around $20 million.
The company bought a 56% stake in NSX in 2025, combining Betnacional with Betfair Brazil. The deal carried total consideration of $674 million.
Brazil generated $146 million for Flutter in the first half of 2026. In August, outgoing CEO Peter Jackson called the country “an attractive long-term opportunity.”
The SOFTSWISS report, written before the ban, lists Brazil among the world’s largest online betting markets. It names Betano, Superbet and Bet365 as the top brands by market share.
Robin Harrison, Global Content Director B2B at WorldGaming, said the ban would bring “a lot of pain and a lot of wasted investment.” Asked where the next growth market might be, he replied, “Last year we said Brazil.”
SOFTSWISS CBDO Olga Resiga declined to name specific markets. “Big market doesn’t mean profitable market, but ready market,” she said.
Report Tracks AI and Compliance Shifts
The report says 85% of betting and gaming companies worldwide have adopted AI. However, the industry’s AI maturity score is only 45 out of 100.
Kristina Medvedeva, Head of Marketing at Google, said generative AI makes it cheaper and faster to test new markets. Resiga said AI can speed up decisions, but the final call remains human.
The report also says compliance is moving from periodic reporting to continuous, data-driven oversight. Resiga said compliance should be built into products from the start rather than added later.
Harrison said real-time monitoring could give regulators a clearer picture of how operators behave. He added that regulation often moves slower than the industry it oversees.
Flutter has said it is reviewing its options, including a possible appeal. Harrison noted that, as of Oct. 6, “we don’t have a market anymore” in Brazil.
