Entain has begun assessing strategic alternatives for its Central and Eastern Europe joint venture, including a potential divestment of its holding. The review focuses on structural options for the business built around its regional expansion into Croatia and Poland, with a possible sale of its stake to Czech investment group EMMA Capital, its existing partner. Discussions remain at an early stage and no agreement has been reached.
The review takes place as the company manages increased financial pressure from higher UK online gambling taxes and broader regulatory adjustments. Management has been working on cost control measures and balance sheet support while adapting to a more expensive domestic operating environment. Any proceeds from a transaction in the CEE business are being considered as a possible source for debt reduction.
CEE portfolio built through acquisitions
Entain CEE was formed in 2022 after the acquisition of Croatian sportsbook operator SuperSport by Entain and EMMA Capital. The structure was later expanded in 2023 with the purchase of Polish betting operator STS for approximately £750 million.
The joint venture remains majority owned by Entain and includes contractual mechanisms linked to ownership changes after the third anniversary of the original transaction. These provisions provide flexibility for either partner to adjust their position over time.
Brands within the portfolio include SuperSport, which formed the foundation of the joint venture, and STS, a leading operator in the Polish market. The integration of these assets was intended to strengthen Entain’s presence across Central and Eastern Europe, though performance trends have varied across periods.
Entain CEE generated earnings before interest, tax, depreciation and amortisation of £183.7 million in 2025, compared with £170 million in the previous year. At group level, Entain reported annual profit of £1.16 billion, supported by its international operations, while adjusted net debt stood at £3.64 billion at the end of 2025.
The company has indicated that UK tax increases are expected to add around £200 million in annual costs. It plans to offset approximately 25% of that impact in the current year, rising to more than 50% by 2027 through efficiency measures and cost management initiatives.
Following the UK tax announcement, Entain recorded a non-cash impairment charge of £488 million against its domestic business. This contributed to a reported loss after tax of £680.5 million for the year ended December.
Regional performance variability
According to Reuters, performance in Central and Eastern Europe has shown uneven development across recent reporting periods. In Q1 2026, the division recorded a 6% decline in net gaming revenue, driven by a 30% drop in retail activity and a 1% decrease in online revenue.
This represented a reversal from 2025, when the region delivered 5% revenue growth, supported mainly by Croatia. The shift in trajectory placed the region under closer review alongside wider group developments, including conditions in other markets such as Australia and the UK.
The UK market itself has been adjusting to higher tax rates, while Entain also continues to manage regulatory pressure and enforcement activity targeting unlicensed operators.
Earlier strategic decisions in Central and Eastern Europe attracted shareholder scrutiny, particularly around the acquisition of STS. The transaction involved complex financing structures and was part of Entain’s broader expansion into regulated European markets.
Investor activity around the company has also shifted over time. Eminence Capital, once a notable shareholder, exited its position in 2026 after previously holding a significant stake and engaging in public criticism of Entain’s capital allocation strategy. The fund’s departure marked a further change in the shareholder base during a period of portfolio reassessment.
Entain continues to operate across multiple regulated markets with brands including Entain plc, BetMGM, Ladbrokes, Coral, SuperSport, and STS.
The Central and Eastern Europe joint venture remains a core component of that portfolio, but rising taxation in the UK, higher cost expectations, and uneven regional performance have increased pressure to reassess asset allocation.
Any transaction involving the CEE business would form part of a wider effort to stabilise financial performance, manage debt levels, and adjust exposure across international markets.