Report: UK Tax Pressure Forces Ladbrokes Owner Entain to Weigh Central Europe Exit

• Entain is looking to defray costs related to U.K. gaming tax increases, according to multiple media reports
• The Central and Eastern European unit is EBITDA-positive
• Speculation suggests Entain could sell its stake in the business to its Czech joint venture partner

Entain Plc (OTC: GMVHY) is reportedly exploring a potential sale of its Central and Eastern European business, scrambling to raise cash to offset crippling new online gambling tax hikes in the United Kingdom.

Citing three unidentified sources with knowledge of the matter, Reuters reports the Ladbrokes Coral owner is examining cash-raising possibilities for a unit that’s largely comprised of Croatian and Polish sports wagering assets. Like rivals, Entain is contending with an increasingly onerous tax regime in its home country of the U.K.

In April, the government there nearly doubled the online gaming tax pertaining to slots and table games to 40% from 21% while reducing the sports wagering levy to 25% from 15%.

The increased taxes have been a drag on UK-based gaming companies with shares of some smaller operators hit the hardest. For its part, Entain lost nearly a third of its value since the new tax schemes were unveiled last November.

Options for Entain Central European Biz

While Entain hasn’t publicly confirmed it is shopping its Central and Eastern European (CEE) business, the division’s core value rests on two major assets: Croatian sportsbook SuperSport and Poland’s STS, acquired in 2022 and 2023, respectively.

According to Reuters, one likely exit path involves Entain selling its majority stake back to Czech investment firm EMMA Capital, its current joint venture partner. Ironically, the original deal included contractual call-and-put options designed to give Entain a clear path to full, 100% ownership of the business down the road—but mounting debt pressures may force an early exit instead

The report doesn’t speculate on other potential buyers, but the Ladbrokes owner could potentially entice several prospective suitors for a simple reason: the Central and Eastern European business is profitable. It generated nearly $243 million in 2025 earnings before interest, taxes, depreciation and amortization (EBITDA).

Prior rounds of speculation pertaining to potential asset sales by Entain stirred speculation that large, well-known private equity firms, including Apollo Global Management (NYSE: APO) and CVC Capital, could be bidders. It remains to be seen if the rumor mill turns in that direction regarding Entain’s Eastern European business.

Consolidation Afoot in U.K. Gaming Space

Higher taxes in the U.K. are crimping some smaller, heavily indebted operators and may be a contributing factor in industry consolidation. For example, Bally’s-controlled Bally’s Intralot (ATHEX: BYLOT) recently swooped in to acquire William Hill owner Evoke (OTC: EIHDF) for $328 million.

While Entain—which owns 50% of BetMGM—does not need to sell itself outright to absorb the UK tax hikes, the operator has admitted the new levies will inflate annualized costs by roughly £200 million ($264 million). That hefty price tag strongly signals that the company has become a highly motivated seller of what it deems non-core international assets.