Antonio Forjaz, head of Latin America at Entain, discusses protecting staff through the market shutdown and the conditions needed to maintain Brazilian operations.
Entain has kept its workforce in Brazil intact despite widespread redundancies across the sector following a nationwide betting ban, according to Antonio Forjaz, head of Latin America at the operator.
Justice Luiz Fux, rapporteur handling the Supreme Court (STF) cases, confirmed he will delay any ruling on Provisional Measure (MP) 1.394 until after the second round of elections on 25 October.
While industry bodies ANJL and IBJR call for the measure to be suspended, and operators continue to cut jobs because of the prohibition, Entain says it has managed to keep its internal team intact for now. Forjaz spoke to industry media about the future of operations in Brazil and the potential routes to a market reopening.
Contracts with some outsourced agencies have been suspended, Forjaz acknowledged, but he attributed the company’s capacity to protect internal roles to its scale and to global revenue that is less reliant on the Brazilian market.
February Optimism to September Shutdown
When Forjaz took charge at Sportingbet in February 2024, regulation was seen as the beginning of a new phase for betting in Brazil. Asked how he viewed the market then and whether he anticipated a ban like the current one, he said he saw the market exactly as he still does: one with immense potential in which the group believes strongly.
“Entain and Sportingbet have always treated Brazil as a long-term bet, with investment in people, resources and sponsorships,” Forjaz said. “And no, I confess I never imagined a total ban. Ideally, regulation evolves and develops rather than stopping and restarting, because that creates a great deal of instability in a market that is already volatile by nature.”
He added that while he did not expect the measure, the group’s commitment has not changed and it hopes to reverse the situation.
Market Return Required to Continue Operations
Entain prioritises regulated markets or those progressing towards regulation. On how that principle applies to Brazil and what the group would need to see to keep the country in its strategy, Forjaz was direct.
What is happening in Brazil is very particular, he explained, and the group will need to see the market return at some level in order to continue operating. If it stays banned, it will be very difficult, if not impossible, and would run against Entain’s strategy of avoiding unregulated markets.
“Our expectation is that the market returns at some level. We will wait to see how things unfold over the coming weeks and months, confident and committed,” he said.
Entain CEO Stella David previously stated the team in Brazil is relatively small and that some employees have moved to other areas of the business.
50 Employees Kept On as Outsourcing Suspended
Asked how many people Sportingbet employs in Brazil today and how many have been reassigned, Forjaz said the priority has been ensuring that people keep their jobs for now while the final decisions are awaited.
Today the operation has around 50 people in Brazil, and many of them also work across several markets. Some are fully focused on Brazil as part of the operator’s own team, and the company also had a relatively large outsourced team at agencies.
“With some of those agencies, unfortunately, we had to suspend contracts,” Forjaz said. “These are difficult decisions, but we had to take them because the market was shut down so abruptly. Our priority is to protect our people and keep the jobs of those who work with Entain.”
Ruling Expected After Licence Deadline
Justice Fux’s decision may come after 25 October, the date on which the licences expire. On what Sportingbet will do if the ruling comes after that deadline, and whether there is a plan for such a scenario, Forjaz said the belief is that the decision will come after 25 October and that the justice will probably rule on the matter.
The legal team and industry associations are working on it, he said, so the company feels well prepared to defend its case. The plan remains the same: to find, through legal channels, a path to an operational, long-term market.
“Our priority is, above all, to comply with the law and protect the interests of our customers,” Forjaz said.
Leading the team day to day without being able to promise a timeline is complicated, he acknowledged, because the reality changed enormously overnight. People are mature and understand the situation.
Almost all functions remain active at this stage, because there is still a lot of work to do: contract reviews and adjustments to marketing and investment. Through its corporate decisions, the company is trying to show that it supports employees, in the hope they can get through this together.
“We believe that is how people should be treated,” he said.
Third Quarter Net Revenue Down 36%
The group reported that Entain’s net revenue in Brazil fell 36% in the third quarter year on year, even though the ban only took effect at the end of the period. Asked to explain the drop before the MP, Forjaz said there are several factors behind that, including seasonality in the business, so there is no simple, direct way of explaining the fluctuations.
“We remain focused, and if we believe in this market it is because we believe we can grow and keep consolidating our position as one of the market leaders in the country,” he said.
According to O Globo, the cuts have hit mainly smaller companies and domestic operators. Asked if there is a difference in capacity to withstand this scenario between Brazilian operators and international groups, Forjaz said being a large group whose revenue is less dependent on Brazil helps protect people, and that partly explains why the company has been able to keep its teams.
Smaller and domestic companies were more dependent on Brazilian cash flow. Overnight their reality changed while their costs stayed the same, and they had to make hard decisions.
From what the company has heard, around 15,000 jobs have already been lost. Forjaz called it a highly complex and unfortunate situation, adding he hopes these people, many of whom are very capable, find their place and return to the job market as soon as possible.
Short Timeline Between Regulation and Ban
Other markets where Entain operates have already gone through regulatory tightening. On what is different about Brazil and what the group’s experience teaches about how the sector should react, Forjaz said Brazil has many particularities, starting with the short time between regulation in January 2025 and the MP in September 2026.
It is highly surprising, he said, because the company believes the regulation was well written, although of course there can always be adjustments. Experience helps the company understand that very recent markets have this learning curve and that every market is different.
“So we have to face it and, above all, try to focus on what matters to Brazilian consumers, always complying with the law,” he said.
On which of the institutional fronts described recently has already produced concrete results and which has advanced less, and what adjustment Entain would defend in Congress so that the measure can be put to a vote, Forjaz said he cannot comment. The company is advancing on many fronts and is always open to talking to Congress, SPA and the regulator, and it wants that dialogue to be more constant.
“We want to be sure that Brazilian consumers feel, and are, protected. So we understand that this cooperation is absolutely fundamental,” he said.
Focus on Dialogue, Not Pressure
The sector and the clubs have been putting pressure on the STF. Asked if Sportingbet is involved in that effort and whether the company would consider seeking compensation for the licence fees paid, Forjaz said almost all activity goes through an association, the IBJR. The company has direct relationships with clubs, not least because it sponsors two of them.
But right now the focus is on finding channels for dialogue, not on pressuring the STF. The company obtained an injunction, and it needs to be heard through the normal legal procedures.
As for refunds and compensation for the licence fees, that is a last resort. “We continue working so that the market returns and we can operate again,” Forjaz said.
The government cites gambling disorder, household debt and advertising as reasons for the measure. On what regulation failed to resolve and what the sector could have done differently, Forjaz said these are legitimate concerns, and the sector must treat them seriously.
Gambling disorder is a public health issue, and household debt requires attention from government, regulators and operators. But regulation did bring tools to mitigate these problems.
At Sportingbet, for example, the operator has deposit and time limits, breaks, self-exclusion, ID verification (CPF) and blocking, and betting with credit cards is not allowed.
“What the sector perhaps did not do so well was communicate this: we failed to clarify the myths and facts around indebtedness and to coordinate better with public bodies and associations,” he said. “Without regulation, the sector migrates to the illegal market, which is probably the greatest danger for Brazilian consumers, where there is no age verification, no limits and no protection whatsoever.”
Several Scenarios Under Review
On which forms of reopening Sportingbet considers viable such as sports only, advertising limits or a different tax model, and what minimum conditions would make Brazil viable for Entain, Forjaz said the company is looking at several plans and scenarios, but it is not yet the moment to say whether it will be sports only, advertising limits or some other model.
Each scenario will be analysed independently, and then the company will understand the viability for the industry.
“Our appetite remains the same, we strongly believe we can operate, grow and make this market sustainable in the long term,” he said. “But we need the legal and regulatory framework to allow us to operate in the country. We will be open to understanding what emerges, and we hope the market returns at some level.”
Entain’s net gaming revenue climbed 2% in Q3 as UK online surge offset Brazil shutdown impact, the group reported in recent results.