Ladbrokes owner Entain is reportedly considering selling its profitable Eastern European gambling business, all because of a brutal UK tax increase adding £200 million to its annual costs. With shares down 30% and debt mounting, the company is exploring a stake sale to its joint venture partner in the region. One government decision. One massive financial shake-up.
The UK Tax Hike That Forced Entain’s Hand
Britain’s online gambling landscape changed permanently on April 1, 2026.
The UK government raised Remote Gaming Duty on online casino and slot products from 21% to 40%, nearly doubling the tax overnight. It is the largest single gambling tax increase in modern UK regulatory history.
And the pain does not stop there. From April 2027, online sports betting duty will climb from 15% to 25%, pulling sportsbook revenues into the same financial squeeze. For Entain, which earns significant revenue from both verticals, this amounts to a two-stage hit with no easy escape.
UK Gambling Tax Changes at a Glance:
- Online casino and slots duty: 21% rising to 40% (effective April 1, 2026)
- Online sports betting duty: 15% rising to 25% (effective April 1, 2027)
- Physical retail betting shops: no changes to existing rates
The government defended the hikes by pointing to lower operating costs and higher harm potential linked to online casino products. Officials project the combined reforms will raise over £1 billion in additional annual tax revenue from 2027 onwards. But for Entain’s finance team, those same numbers point in a very different direction.
Why a £200 Million Bill Is Driving the CEE Sale
Entain has put a precise number on the damage. The company estimates the new UK tax rates will add approximately £200 million in annual costs to its operations.
The current plan is to offset about 25% of that impact this year and more than 50% by 2027 through internal cost savings. But that strategy still leaves a sizeable financial gap. Asset sales are now actively on the table.
Three people familiar with the matter told Reuters that Entain has begun exploring strategic options for its Central and Eastern Europe joint venture, including a possible sale of its stake to Czech investment firm EMMA Capital, its co-owner in the region.
Proceeds from any deal are being considered as a direct route to reducing Entain’s debt. That context matters enormously. The company’s adjusted net debt stood at £3.64 billion at the end of 2025, which is slightly higher than its entire market value of £3.5 billion. Every pound raised from a divestment carries serious balance sheet weight right now.
Both parties stayed tight-lipped when approached. An Entain spokesperson declined to comment entirely, while EMMA Capital said it would neither confirm nor deny that any discussions are taking place. Talks are described as early-stage, with no certainty that any agreement will be reached.
The Business Entain Built and May Soon Sell
What makes this story particularly striking is that the CEE business is not a struggling unit being quietly offloaded. It is a profitable, growing venture that took years and significant investment to build.
The joint venture came together in 2022 when Entain and EMMA Capital jointly acquired Croatian sportsbook operator SuperSport. In 2023, the partnership expanded by acquiring Polish betting operator STS for approximately £750 million, giving the venture a meaningful footprint across two of Eastern Europe’s most active gambling markets.
The CEE division generated £183.7 million in EBITDA in 2025, up from £170 million the year before, making it one of Entain’s more consistent regional performers.
However, recent numbers have been more complicated. In the first quarter of 2026, the division recorded a 6% decline in net gaming revenues. Retail activity fell a sharp 30%, and online revenue edged down 1%. Poland’s football-heavy sports mix contributed to the drop, with highly customer-friendly results weighing on the overall net gaming revenue figure.
The original deal structure also creates a clear legal pathway for a transaction. The SuperSport acquisition included a call-and-put option over EMMA Capital’s stake, exercisable by either party from the third anniversary of completion. That window is already open, meaning a clean ownership change is contractually straightforward if both sides reach agreement.
What Comes Next for One of Britain’s Biggest Betting Firms
Entain enters this chapter carrying a complicated financial story.
The company posted better-than-expected annual profit of £1.16 billion for the year ended December 2025, on net gaming revenues of £5.3 billion. But sitting directly behind that headline figure is a £488 million non-cash impairment charge taken against its UK business, triggered by the government’s tax announcement. That charge pushed the group to a loss after tax of £680.5 million for the full year.
Entain CEO Stella David has publicly acknowledged the severity of the situation, warning that continued tax pressure could lead to further closures of Ladbrokes and Coral shops depending on how the full financial impact unfolds.
Entain is still forecasting net gaming revenue growth of 5% to 7% for 2026 and group EBITDA of £1.3 billion, suggesting a company under real pressure but not in free fall.
The wider industry context only deepens the concern. An EY analysis commissioned by the Betting and Gaming Council estimated that higher UK gambling taxes could trigger more than 40,000 job losses, reduce Gross Value Added by £3.1 billion, and push £8.4 billion in stakes toward unlicensed operators. Industry analysts expect the tax environment to accelerate merger and acquisition activity across the UK gambling sector through the second half of 2026.
Entain’s shares have fallen roughly 30% since November 2025, when the new tax rates were first announced. The news of the potential CEE sale prompted a modest 0.8% rise in the stock, a small sign that investors see debt reduction as a step in the right direction heading into a very difficult operating environment.
Entain’s potential CEE sale tells a story that goes far beyond one corporate deal in Eastern Europe. A profitable business built over years across Croatia and Poland may change hands not because it fell short, but because a tax policy change back home created pressure too big to absorb any other way. For shareholders, employees, and anyone watching the future of British gambling, the real consequences of the government’s tax overhaul are only just beginning to show. What do you think? Did the UK government go too far with these gambling tax hikes, or was it the right call? Drop your opinion in the comments below.
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