Key facts
- Entain is exploring options for its Central and Eastern Europe unit, including a potential sale.
- EMMA Capital, Entain's joint venture partner, is a potential buyer.
- The move follows increased pressure from higher UK online gambling taxes.
- Entain CEE generated £183.7 million in EBITDA in 2025.
- Entain shares rose 0.8% after the report.
Entain, the owner of Ladbrokes and operator of BetMGM in the U.S., is reportedly exploring strategic options for its joint venture in Central and Eastern Europe, including a potential sale. The move comes as the company faces financial pressure from increased UK online gambling taxes, which have led to a significant drop in its share price since November.
One of the primary options under consideration is the sale of Entain's stake to its joint venture partner, Czech investment firm EMMA Capital. Proceeds from such a sale could be used to pay down Entain's debt. Discussions are in their early stages, and there is no certainty that a deal will be reached.
The joint venture, which Entain majority owns, was established in 2022 with the acquisition of Croatian sportsbook operator SuperSport. It was further expanded in 2023 with the approximately £750 million acquisition of Polish betting operator STS. Entain CEE reported earnings before interest, tax, depreciation, and amortisation (EBITDA) of £183.7 million in 2025, an increase from £170 million the previous year.
Overall, Entain posted better-than-expected annual profit of £1.16 billion, with adjusted net debt standing at £3.64 billion at the end of 2025. The company anticipates approximately £200 million in additional annual costs due to the UK gambling tax hikes and plans to mitigate about 25% of these costs this year and over 50% by 2027. Following the announcement of these tax increases, Entain recorded a £488 million non-cash impairment charge against its UK business, resulting in a net loss of £680.5 million for the year ended December.