Entain reported a group-wide loss after tax of £681 million ($844 million) for 2025, highlighting a challenging period for the company ahead of upcoming tax hikes in the UK in just a few weeks.
The London Stock Exchange (LSE)-listed group said this £681 million ($844 million) figure includes £488 million ($605 million) of impairment related to changes in UK gambling taxes. This marks an increase of £220 million ($273 million) compared with the 2024 loss, marking Entain’s third consecutive year of multi-million losses.
UK Chancellor of the Exchequer Rachel Reeves stated in the Autumn Statement last November that the new tax framework will effectively double the online gaming tax from 21% to 40% starting April 2026. This is expected to significantly impact margins for both large and small operators.
Excluding tax effects, Entain’s 2025 performance remained broadly stable: net gaming revenue (NGR) rose 3% to £5.33 billion ($6.61 billion) (2024: £5.16 billion/$6.40 billion), while group-wide revenue also increased 3% to £5.25 billion ($6.51 billion) (2024: £5.98 billion/$7.41 billion). Underlying EBITDA grew 7% year-on-year from $1.08 billion to $1.16 billion.
Entain CEO Stella David said: “2025 has been a successful year for Entain. We continue to demonstrate strong underlying momentum, and I am immensely proud of our strategic and operational progress and the results it is delivering.
Entain’s diverse and globally scaled portfolio of leading positions is more important than ever to ensure long-term success in our industry. The business has never been in better shape and is well positioned not only to navigate tax and regulatory challenges but also to turn them into opportunities.”
International Scale vs UK Taxes
The UK and Ireland were the most closely watched markets by analysts and investors during Entain’s earnings call, particularly the UK, with the upcoming tax hikes — less than a month away — a key focus of attention.
Total revenue in the UK and Ireland rose 6% year-on-year to £2.19 billion ($2.72 billion) (2024: £2.05 billion/$2.54 billion), driven by 9% growth in gaming operations and 2% in sports, exceeding company expectations. Online betting and gaming saw the sharpest growth, up 15% to £1.14 billion ($1.41 billion) (2024: £985 million/$1.22 billion).
Retail revenue, however, fell 2%, from £1.07 billion ($1.33 billion) to £1.05 billion ($1.30 billion), with gaming revenue down 1% and sports betting down 3% across the Ladbrokes Coral estate. As one of the UK’s largest retail operators, Ladbrokes Coral’s decline could signal broader sector challenges.
Recent UKGC data, including quarterly gross gaming yield (GGY) reports and the Gambling Survey for Great Britain (GSGB), show declining consumer interest and volume in retail gaming.
In fairness, Ladbrokes Coral’s declines were not as severe as they could have been, and other retail heavyweights like Betfred have recently reported positive results. The impact of the new taxes on retail has yet to be fully felt, as operators may consider closing shops to offset the costs associated with online businesses.
International revenue saw modest growth of 2% on a constant currency basis to $2.64 billion (£2 billion). Entain’s international footprint spans Europe, North and South America, and Australia, with bwin being a key global asset.
NGR in Italy rose 6%, another positive outcome for the re-regulated market launched in November 2025. Operators have been particularly receptive to Italy’s tax framework, the second-largest betting market in Europe. Croatia was another European highlight, helping drive 5% NGR growth for Entain CEE.
In Brazil, where Entain’s key assets are Sportingbet and Betboo, NGR fell 1% YoY. The regulated market launched on 1 January 2025 with much fanfare, but tax discussions emerged faster than expected, presenting challenging conditions for operators in 2026.
In Australia, where Entain operates Ladbrokes Australia and Neds, NGR declined 6%, attributed to customer-friendly sports results and soft wagering conditions, though regulatory restrictions and political pressure could make Australia another challenging market going forward.
The US continues to stand out as a key revenue driver for Entain. The company holds a 50% stake in the BetMGM joint venture, while MGM Resorts operates the brand across other markets via LeoVegas.
In 2025, BetMGM (US) generated net revenue of $2.8 billion, up 33% YoY. Entain highlighted “profitable growth” across both online sports and iGaming for the brand — growth of 63% and 24%, respectively.
Looking ahead to 2026, the company faces significant challenges, primarily due to the UK tax changes. Nonetheless, Entain remains confident, forecasting online NGR growth of 5–7% on a constant currency basis, excluding the US.
Underlying online EBITDA margins are expected to be 23–24%, including mitigation of around 25% of the UK tax impact. No guidance was provided for UK-specific or retail revenue.
The group also expressed confidence in its global scale, relying on international assets to help offset UK profitability pressures. BetMGM, for example, expects revenue of $3.1–3.2 billion and Adjusted EBITDA of $300–350 million.
Finally, the company noted that group-wide underlying EBITDA, UK&I revenue, and adjusted cash flow of £151 million ($187 million) all exceeded expectations.
CEO Stella David concluded: “I am excited about the future as we evolve our strategic priorities, accelerate performance, and maintain focus on sustainable growth and cash generation. I am confident in Entain’s ability to deliver at least £500 million ($620 million) of annual adjusted cash flow from 2028.”
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