Entain is reportedly assessing strategic options for its Central and Eastern Europe joint venture, including a possible sale. The move comes as the Ladbrokes owner faces higher costs from UK online gambling tax increases, according to three people familiar with the matter, as Reuters reported.
The London-listed company, which also owns Coral and operates BetMGM in the United States, has been seeking ways to offset the impact of the tax changes. Britain’s online gambling tax on casino games and slots is rising to 40% from 21%, while the rate on sports betting increases to 25% from 15%.
Entain has estimated that the changes will add about £200 million ($264.3 million) in annual costs, with plans to mitigate about 25% of the impact this year and more than 50% in 2027.
One option being examined is a sale of Entain’s stake in Central and Eastern Europe to EMMA Capital, the Czech investment firm that is its joint venture partner, two of the people said. Any proceeds from a sale could be used to reduce debt, one of the people added.
Talks remain at an early stage, and there is no certainty that any transaction will be reached, the people said, speaking on condition of anonymity because the discussions are private.
The review comes after Entain, which has a market value of £3.5 billion ($4.63 billion), reported adjusted net debt of £3.64 billion ($4.81 billion) at the end of 2025.
The group posted better-than-expected annual profit of £1.16 billion ($1.53 million), but recorded a £488 million ($645 million) non-cash impairment charge against its UK business following the government’s tax announcement, contributing to a loss after tax of £680.5 million ($899.5 million) for the year ended December.
Entain’s shares have fallen around 30% since November, when the new taxes were announced, according to LSEG data. The shares rose 0.8% on Friday after the Reuters report late on Thursday.
The Central and Eastern Europe venture is majority owned by Entain and was established in 2022 when Entain and EMMA Capital acquired Croatian sportsbook operator SuperSport. That transaction included a call-and-put option over EMMA’s stake, exercisable by either party from the third anniversary of completion, giving Entain a potential path to full ownership.
The venture later expanded in 2023 with the acquisition of Polish betting operator STS for about £750 million ($991.4 million). Entain CEE generated £183.7 million ($242.8 million) in earnings before interest, tax, depreciation and amortization in 2025, up from £170 million ($224.7 million) a year earlier, according to the company’s full-year results.