Exclusive-Ladbrokes-owner Entain explores options for CEE unit, sources say

By Amy-Jo Crowley and Milana Vinn

LONDON, ‌June 19 (Reuters) - Ladbrokes-owner ​Entain ​has begun exploring options for its joint venture in Central and Eastern Europe, including a possible sale, three people familiar with the matter said.

Entain, which operates BetMGM ‌in the United States, has been under pressure to cut costs to ⁠offset the impact of increases in Britain's online gambling taxes - to 40% from 21% on casino games and slots ‌and to 25% from 15% on ‌sports betting from April.

Its shares have fallen around 30% since November when the new taxes were announced, according to LSEG data.

One option under consideration is for the London-listed company, which ​has a market value of £3.5 billion ($4.63 billion), to sell its holding to Czech investment firm EMMA Capital, its joint venture partner, two of the people said. Proceeds raised could be used ⁠to pay down debt, one of the people added.

Discussions are in the early stages and there is no certainty that a ​transaction will be agreed, the people said, speaking on condition of anonymity because the talks are private.

A spokesperson for Entain declined to comment. EMMA ​Capital said it would neither confirm nor deny any ‌talks. Entain shares rose 0.8% on Friday after the Reuters report late on Thursday.

The joint venture, majority owned by Entain, was formed in 2022 when ⁠the two companies bought Croatian sportsbook operator SuperSport. The deal included a call-and-put option over EMMA’s stake, exercisable by either party from the third anniversary of completion, providing Entain with a potential route to full ownership.

The ⁠joint venture expanded in 2023 with the acquisition of Polish betting operator STS for about £750 million.

Entain CEE generated £183.7 ​million of earnings before interest, tax, depreciation and amortisation in 2025, up from £170 million the previous year, according to the company’s full-year results.

The overall group posted better-than-expected annual profit of £1.16 billion. Adjusted net debt stood at £3.64 billion ‌at end-2025.

The company said it expects about £200 million in additional annual costs from the UK gambling tax hikes and plans to mitigate about 25% ‌this year and more than 50% in 2027.

The company, which also owns Coral, booked a £488 million non-cash impairment ⁠charge against its UK business after ‌the government's announcement, resulting in ​a loss after tax of £680.5 million in the year ended December.

($1 = 0.7557 pounds)

(Reporting by Amy-Jo Crowley in London. Additional reporting by Jan Lopatka; Editing by Anousha Sakoui, ‌Kirsten Donovan)

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