According to some industry insiders, London-listed company Entain, which owns brands such as BetMGM and Ladbrokes, is considering expanding its presence in Central and Eastern Europe.
Inside4rs Claim Entain Is Looking Further East
According to two sources who spoke to Reuters, one option being explored is for the company, currently valued at approximately $4.63 billion, to sell its stake to its joint venture partner, Czech investment firm EMMA Capital. One of the sources said that any proceeds from such a sale could be used to reduce the company’s debt burden.
The discussions remain at an early stage, and there is no guarantee that a deal will ultimately be reached, the sources said. They spoke on condition of anonymity due to the confidential nature of the negotiations. A spokesperson for Entain declined to comment, while EMMA Capital said it would neither confirm nor deny the existence of any discussions.
EMMA Capital, in which Entain holds a majority stake, was established in 2022 following the acquisition of Croatian sportsbook operator SuperSport by Entain. As part of the transaction, the parties agreed to a reciprocal call-and-put option on EMMA Capital’s stake, exercisable by either side from the third anniversary of the deal’s completion, giving Entain a potential path to full ownership. The venture further expanded in 2023 with the acquisition of Polish betting operator STS in a transaction valued at over $990 million.
But Why Make This Move Now?
It seems that plugging holes in its revenue stream, rather than an initiative for growth, is the main reason behind Entain eying a potential expansion into Central and Eastern Europe. Entain has faced mounting pressure to reduce costs as it seeks to mitigate the impact of higher online gambling taxes in the UK. Since April, tax rates have increased from 21% to 40% on online casino games and slots, and from 15% to 25% on sports betting.
According to LSEG data, Entain’s shares have declined by approximately 30% since November, when the new tax measures were announced. This drop has also shaken the confidence of many investors, as well and some have pulled back. For example, recently, JPMorganChase, a leading global bank, has dropped its share in Entain to just 3% from a previous high of 7%.
The UK’s new tax policy has impacted Entain quite a bit. The company expects the gambling tax increases to add approximately $264 million in annual costs and aims to offset around 25% of that impact this year, rising to more than 50% by 2027. Entain recorded a non-cash impairment charge of about $644 million against its UK operations following the government’s announcement. As a result, the group reported a post-tax loss of $898 million for the year ended December.
Despite its financial worries in the UK, Entain still prides itself on taking an active role in the country’s gambling industry. Recently, the company issued a warning over the growing influence of the illegal gambling scene in the UK, suggesting it is going to grow amid the ongoing 2026 FIFA World Cup.