On October 15, 2025, Entain published its Q3 trading update, revealing a 6% increase in total group Net Gaming Revenue (NGR) year-on-year, or 7% on a constant currency basis. This figure notably includes its 50% stake in the US-based BetMGM venture. For the second time, Entain provided figures excluding the US market, showing a 4% rise in NGR, or 5% on a constant currency basis, with notable contributions from a 10% increase in the Central and Eastern Europe (CEE) region.
In the UK, NGR rose by 8%, which the company noted was in line with expectations. This growth was primarily driven by a 15% increase in online gaming, attributed to enhanced player values and increased market share. However, the Brazilian market presented challenges, with a 10% year-on-year decline in NGR, adversely affected by unfavorable sporting outcomes that overshadowed a 14% growth in volume. Despite this setback, Entain’s Group CFO Rob Wood expressed optimism about Brazil’s future potential, attributing the decline to “genuine bad luck from sports results,” particularly due to the high football mix and outcomes from both the Champions League and local leagues. Wood maintained that the market was performing well on a volume basis, even if the immediate financials seemed disappointing.
The discussion then turned to the potential impact of a possible increase in the remote gambling tax in the UK. During an earnings call, Entain CEO Stella David highlighted the possible adverse effects on several business areas. “There are a number of levers we could pull,” she noted, suggesting adjustments in bonus generosity, odds competitiveness, and marketing spend might be necessary to mitigate the effects of any tax increase.
Wood added that the sports sector could be significantly affected, as operators might scale back on sponsorship deals and associated advertising. “Sponsorships are an obvious place operators will go because of the long payback period and their role in brand awareness,” Wood remarked. He warned that such moves would potentially benefit the black market, which would face fewer competitive disadvantages, while the sports sector would suffer.
Despite these challenges, David emphasized that the company is actively planning for such eventualities and is not taking a passive approach. The potential tax increase in the UK has been a central topic of discussion within the industry, with other companies, such as Rank, also addressing it in recent updates. In April, the UK government initiated a consultation on a new tax framework for remote gambling, with an update expected in the autumn budget on November 26.
Analysts queried whether a tax hike might accelerate industry consolidation and eliminate smaller competitors. Wood acknowledged that this was likely, noting that smaller operators could be squeezed out, as they currently comprise up to 25% of the UK’s iGaming market. This could inadvertently benefit larger players like Entain.
Turning to legal matters, David provided an update on Entain’s ongoing proceedings with Australia’s AUSTRAC. She expressed satisfaction with the company’s current compliance framework, describing it as potentially market-leading. While there is no set timeline for these proceedings, which could be resolved in court, the process is currently in mediation with the regulator, a phase that began during the summer. Entain has appointed Andrew Vouris as the permanent CEO of its Australian business, following a two-month interim period.
In summary, while Entain reported solid financial growth in certain regions, it faces potential challenges from regulatory changes and market-specific issues. The company’s leadership remains proactive in addressing these concerns, indicating a strategic approach to navigating the evolving landscape. The potential for tax increases in the UK, coupled with the need to maintain competitive advantages in diverse markets, underscores the complex dynamics Entain must manage as it continues to expand its global footprint. Meanwhile, the situation in Brazil serves as a reminder of the uncertainties inherent in the gaming and sports betting industries, where outcomes can be influenced by factors beyond strategic control.
4.4/5
