Entain has been downgraded from the FTSE 100 to the FTSE 250, as announced in the latest quarterly update from the London Stock Exchange Group (LSEG). Since joining the FTSE 100 index on June 22, 2020, Entain established itself among the UK’s top 100 highest capitalized companies listed on LSEG.
Effective from September 21, Entain will transition to the FTSE 250, although it will still maintain presence on this secondary index. This change follows a substantial reevaluation by the company, which earlier transitioned from GVC Holdings and committed to achieving 100% of its revenues from regulated markets.
The company has faced a considerable share price drop, plummeting by 37% since September 2025, and currently holds a market capitalization of £3.39 billion. Entain first appeared on LSEG’s main market in February 2016, operating under its prior name GVC Holdings following its delisting from the Alternative Investment Market (AIM).
Entain's stock decline began after hitting a peak in September 2021 and has seen a drastic fall of 73% over five years, settling at 530p. The operator has endured a challenging phase defined by the succession of four CEOs in a short time. In November 2023, Entain consented to a £585 million financial penalty for a bribery case linked to its historical operations in Turkey, which also included a £20 million charitable contribution and £10 million in costs to the Crown Prosecution Service (CPS) and HMRC.
Continued troubles have persisted as the company reported reduced growth in its digital sector, facing issues with integration amid numerous acquisitions. This prompted Entain to establish a significant recovery plan aimed at cost-cutting and revitalizing its digital business operations. Efforts to modernize its legacy technology commenced, with former CEO Gavin Isaacs emphasizing the modernization of the core platform as his primary challenge at ICE in January 2025.
While Entain declined to comment on its removal from the FTSE 100, recent trends from senior management have indicated optimism regarding its turnaround efforts, suggesting a positive performance in core markets despite various regulatory and tax challenges throughout Europe.
In Q1 2025, the group reported double-digit growth in its digital segment, driven by strong performances in the UK, Brazil, and the US. Stella David, who assumed the role of full-time group CEO during this quarter, expressed cautious optimism regarding the company’s performance. Key growth drivers for H1 included Australia, New Zealand, Spain, and the UK.
On the cost-saving front, the company has reduced staff at retail locations and operational roles and is exiting its Central and Eastern European market, divesting a significant share. Newly appointed CFO Michael Snape indicated that this strategic exit would help decrease reported leverage below 3x, allowing for the return of excess capital to shareholders.
After reviewing the H1 earnings report, analysts have shown continued confidence in Entain’s prospects. A note from Goodbody on August 13 described the earnings report as “another positive update,” with H1 adjusted EBITDA exceeding expectations. The UK & I market was highlighted as a standout performer, positioning Entain favorably in comparison to its competitors amid the UK’s remote gaming duty tax hike in April.
UBS also reiterated a buy rating on August 14, asserting that Entain shares present substantial theoretical upside potential in the European gaming sector, despite maintaining a higher risk profile relative to its industry peers.
The drop in Entain’s share price is part of a broader trend affecting gaming stocks in recent years, occurring alongside a general decline in interest in the LSEG, where many listed companies, including Flutter, have exited recently to pursue higher valuations in the more liquid US equity market. Analysts have also noted Flutter’s share price struggles, cautioning that its move might convert its status to that of a mid-tier consumer stock.
Ben Robinson from Corfai articulated this concern recently, stating that, "Deeper water doesn’t help if the current is moving somewhere else," reflecting the uncertainty of Flutter’s stock trajectory.
