Entain Mulls Sale of CEE Joint Venture Following UK Gambling Tax Increases
Entain Explores Strategic Options Amid Tax Pressures
By Amy-Jo Crowley
Background and Current Situation
LONDON, June 18 (Reuters) - Ladbrokes-owner Entain has begun exploring options for its joint venture in Central and Eastern Europe, including a possible sale, three people familiar with the matter said.
Entain, which operates BetMGM in the United States, has been under pressure to cut costs to offset the impact of increases in Britain's online gambling taxes - to 40% from 21% on casino games and slots and to 25% from 15% on sports betting from April.
Its shares have fallen around 30% since November when the new taxes were announced, according to LSEG data.
Potential Sale and Financial Implications
One option under consideration is for the London-listed company, which has a market value of £3.5 billion ($4.63 billion) to sell its holding to Czech investment firm EMMA Capital, its joint venture partner, two of the people said. Proceeds raised could be used to pay down debt, one of the people added.
Discussions are in the early stages and there is no certainty that a transaction will be agreed, the people said, speaking on condition of anonymity because the talks are private.
A spokesperson for Entain declined to comment. EMMA Capital did not immediately respond to a request to comment.
History of the Joint Venture
Formation and Expansion
The joint venture, majority owned by Entain, was formed in 2022 when the two companies bought Croatian sportsbook operator SuperSport. The deal included a call-and-put option over EMMA’s stake, exercisable by either party from the third anniversary of completion, providing Entain with a potential route to full ownership.
Acquisition of STS
The joint venture expanded in 2023 with the acquisition of Polish betting operator STS for about £750 million.
Financial Performance
Entain CEE generated £183.7 million of earnings before interest, tax, depreciation and amortisation in 2025, up from £170 million the previous year, according to the company’s full-year results.
The overall group posted better-than-expected annual profit of £1.16 billion. Adjusted net debt stood at £3.64 billion at end-2025.
Impact of UK Gambling Tax Hikes
Cost Increases and Mitigation Plans
The company said it expects about £200 million in additional annual costs from the UK gambling tax hikes and plans to mitigate about 25% this year and more than 50% in 2027.
Impairment Charge and Losses
The company, which also owns Coral, booked a £488 million non-cash impairment charge against its UK business after the government's announcement, resulting in a loss after tax of £680.5 million in the year ended December.
Additional Information
($1 = 0.7557 pounds)
(Reporting by Amy-Jo Crowley in London. Additional reporting by Jan Lopatka. Editing by Anousha Sakoui, Kirsten Donovan)
