Entain, the owner of Ladbrokes, is reviewing strategic options for its Central and Eastern Europe joint venture, including a potential sale, according to people familiar with the matter.
The London-listed gambling group, which also operates BetMGM in the United States, is facing mounting financial pressure following sharp increases in UK gambling taxes. The tax changes, introduced in April, raised duties on online casino and slot games from 21 percent to 40 percent and increased sports betting tax from 15 percent to 25 percent.
The policy shift has weighed heavily on the company’s market performance. Entain’s shares have fallen by around 30 percent since the announcement of the tax increases in November, based on LSEG data. The company currently holds a market value of about £3.5 billion.
Among the options being considered is a sale of Entain’s stake in the joint venture to its partner, Czech investment firm EMMA Capital. Two of the people familiar with the discussions said the potential transaction could help strengthen Entain’s balance sheet by reducing debt levels.
The joint venture was established in 2022 following the acquisition of Croatian sportsbook operator SuperSport. The structure included call-and-put options allowing either partner to initiate a full buyout from the third anniversary of the deal, giving Entain a possible route to full control or exit.
The partnership expanded in 2023 with the acquisition of Polish betting operator STS in a deal valued at around £750 million, further strengthening its position in the region.
Entain CEE reported earnings before interest, tax, depreciation and amortisation of £183.7 million in 2025, up from £170 million the previous year, according to the company’s financial results. Across the wider group, Entain posted better-than-expected annual profit of £1.16 billion, although adjusted net debt stood at £3.64 billion at the end of 2025.
The company has estimated that recent UK tax increases will add approximately £200 million in annual costs. It expects to offset around a quarter of that impact in the current year, rising to more than half by 2027 through cost-cutting and operational adjustments.
Following the government’s tax announcement, Entain also recorded a £488 million non-cash impairment charge against its UK operations, contributing to a reported after-tax loss of £680.5 million for the year ending in December.
A spokesperson for Entain declined to comment on the potential sale. EMMA Capital also said it would not confirm or deny whether discussions were taking place.
Industry analysts say the review reflects broader pressures on gambling operators in the UK, where rising taxation and tighter regulation are reshaping business strategies and forcing companies to reassess international portfolios.
