{"id":11137,"date":"2025-10-16T12:55:20","date_gmt":"2025-10-16T11:55:20","guid":{"rendered":"https:\/\/sbceurasia.com\/en\/?p=11137"},"modified":"2025-10-16T12:55:25","modified_gmt":"2025-10-16T11:55:25","slug":"entain-shows-steady-performance-as-the-industry-braces-for-new-taxes-in-the-uk-and-australia","status":"publish","type":"post","link":"https:\/\/sbceurasia.com\/en\/2025\/10\/16\/entain-shows-steady-performance-as-the-industry-braces-for-new-taxes-in-the-uk-and-australia\/","title":{"rendered":"Entain Shows Steady Performance as the Industry Braces for New Taxes in the UK and Australia"},"content":{"rendered":"\n

Entain\u2019s<\/strong> performance in the UK remained stable in the third quarter of 2025, with both online and retail revenues growing year-over-year. However, company leadership continues to warn about the potential impact of upcoming gambling tax increases in the country.<\/p>\n\n\n\n

Revenue in the UK and Ireland rose 8% year-over-year<\/strong>, with online revenue up 15%<\/strong> and retail revenue up 2%<\/strong>. The latter continues a trend seen in the second quarter and the first half of the year, despite an overall decline in retail betting across the UK.<\/p>\n\n\n\n

According to data from the UK Gambling Commission (UKGC)<\/strong> and the latest Gambling Survey for Great Britain (GSGB)<\/strong>, retail betting revenues and participation have decreased. Nevertheless, Entain\u2019s brands – Ladbrokes<\/strong> and Coral <\/strong>– appear to have been less affected than many of their competitors.<\/p>\n\n\n\n

The UK Treasury<\/strong> has stated that tax increases have not yet been finalized, but hints about potential changes continue to appear. Chancellor of the Exchequer Rachel Reeves<\/strong> said at the Labour Party Conference that \u201cgambling companies should pay their fair share.\u201d She added that the new budget will be presented on November 26<\/strong>.<\/p>\n\n\n\n

Amid this tax debate, Entain\u2019s CEO, Stella David,<\/strong> has been busy speaking to the mainstream press. Last week she spoke with The Times warning of the unintended consequences of raising gaming taxes, and now she has spoken with The Observer about the same topic.<\/p>\n\n\n\n

\u201cFor every \u00a31 of profit we make, over two-thirds is paid out in tax,\u201d she told the newspaper. \u201cPiling on yet more taxes won\u2019t raise more money \u2013 it will shrink the regulated market, cost jobs, and hand yet more business to illegal operators who pay no tax and protect no one.\u201d<\/p>\n\n\n\n

David had previously told The Times<\/strong> that Entain may have to consider closing up to 200 of its Ladbrokes Coral betting shops should tax raises impact its bottom lines. Overall, it seems that UK revenue is in good stead \u2013 but with tax raises on the horizon in both the UK and Ireland, the big question marks will hang over EBITDA and profit.<\/p>\n\n\n\n

\u201cIt is very well proven that every time you increase tax, the black market increases in size,\u201d David told analysts on the group\u2019s investor call this morning. \u201cPut extra regulation in place that limits opportunity for players, they tend to go to black market as well.\u201d<\/p>\n\n\n\n

She added: \u201cThe objective is to raise more taxes, then the best opportunity is to reduce the amount of black market that exists in the UK. Today, over 500 sites exist. They look very professional, and they promise great rates, no protections, no guarantee you get paid out.<\/p>\n\n\n\n

\u201cAnd from a customer point of view, they pose a real risk. And for the government, they pose a real risk of accelerating the bleeding away of tax revenues to people who pay no tax at all.\u201d<\/p>\n\n\n\n

Entain <\/strong>operates across multiple markets, including Europe (through brands such as Bwin<\/strong> and SuperSport<\/strong>), Australia <\/strong>(via Ladbrokes<\/strong> and Neds<\/strong>), and the United States<\/strong> (through its 50% stake in the BetMGM<\/strong> joint venture).<\/p>\n\n\n\n

By the end of the third quarter, total group NGR<\/strong> (net gaming revenue) had grown by 4%<\/strong>, with online NGR up 5%<\/strong> and retail NGR up 3%<\/strong>. US figures were not included, but since BetMGM<\/strong> has turned profitable, it now provides a stable revenue stream from the American market.<\/p>\n\n\n\n

Group CFO Rob Wood<\/strong> stated that Entain is \u201cpleased with the cash coming from <\/strong>BetMGM.\u201d<\/p>\n\n\n\n

Elsewhere, performance has been mixed<\/strong>. The International division<\/strong> posted a 1% NGR increase<\/strong> (online +1%, retail +1%). Double-digit online growth<\/strong> was recorded in Austria, Canada, Georgia, Greece, Spain, and New Zealand<\/strong>, where Entain holds exclusive sports betting rights<\/strong>.<\/p>\n\n\n\n

Italy<\/strong> saw a 6% revenue increase<\/strong>, while the Central and Eastern Europe (CEE)<\/strong> region grew by 10%<\/strong> (online +9%, retail +11%), driven primarily by Croatia\u2019s SuperSport<\/strong>, acquired in 2022.<\/p>\n\n\n\n

However, in Brazil<\/strong>, despite high expectations ahead of the market\u2019s regulation, Entain\u2019s revenue fell by 11%<\/strong>, while Australia<\/strong> also saw a 6% decline<\/strong>.<\/p>\n\n\n\n

In Australia, Prime Minister Anthony Albanese\u2019s government<\/strong> faces mounting pressure from MPs and reform advocates<\/strong> to implement the recommendations from the Murphy Report<\/strong> on gambling reform.<\/p>\n\n\n\n

\u201cIn Australia, we were a shade positive in Q3 and that\u2019s really how we see the market going forward,\u201d Wood told an interested analyst on the group\u2019s earnings call.<\/p>\n\n\n\n

\u201cLow single digits positive is our best guess of what we see from the volumes perspective in Australia in 2026. From our perspective, it\u2019s stable, albeit when you look at NGR in the quarter, obviously, it looks adverse.\u201d<\/p>\n\n\n\n

Entain faces growing regulatory pressures worldwide<\/strong> \u2014 from Europe to Brazil, where tax increases are also being discussed.<\/p>\n\n\n\n

In recent years, the company has had to overcome significant challenges: in 2023<\/strong>, non-US markets showed weak results, but recovery began in 2024<\/strong>, and growth momentum has since been maintained.<\/p>\n\n\n\n

\u201cEntain\u2019s Q3 trading shows steady delivery in an increasingly difficult macro environment as consumer spending remains constrained across key markets,\u201d observed Russell Pointon,<\/strong> Director \u2013 Consumer at investment research firm Edison Group.<\/strong><\/p>\n\n\n\n

\u201cAgainst that backdrop, mid-single-digit NGR gains in the non-US businesses point to operational resilience rather than acceleration, albeit there is some dampening of growth due to customer friendly sports results.<\/p>\n\n\n\n

\u201cFor investors, BetMGM\u2019s upgraded outlook is obviously encouraging. The shift to cash distributions is a positive signal, though the near-term earnings impact is modest. With guidance unchanged, the update is unlikely to alter sentiment materially. Entain\u2019s focus on cost control and cash generation remains sound.\u201d<\/p>\n\n\n\n

Nevertheless, the company maintained its guidance for the 2025 financial year<\/strong>:<\/p>\n\n\n\n