Entain achieved a notable first half in 2026, reporting a 5% increase in net gaming revenue (NGR) year-on-year, reaching €3.0 billion. This growth resulted from strong performance in its online division and steady results from retail operations. However, increased gambling taxes and regulatory costs impacted profits, which tempered earnings expansion despite the positive revenue figures.
The company's NGR surpassed management expectations, driven by a 7% rise in online revenue on a constant-currency basis and a modest 1% growth in retail. The UK & Ireland, Australia, and Canada stood out as the top-performing markets, thanks to enhanced player engagement and continuous improvements to product offerings. Notably, Spain emerged as the fastest-growing online market for Entain, with a staggering 28% increase in constant-currency NGR.
Much of this success is attributed to product advancements made in anticipation of the 2026 FIFA World Cup, particularly improvements in the sportsbook and mobile platforms. The company experienced double-digit growth in both sports betting and gaming within the UK and Ireland, while steady expansion in Canada highlighted improved operational execution in key markets. Stella David, Chief Executive Officer, stated that the results reflect the resilience of Entain’s operational framework and underscore the advantages of investing in technology and products.
On the margins front, profitability faced challenges from new gambling tax regulations. Underlying EBITDA fell by 2% to €560.7 million, mainly due to increased gambling duties that took effect in the UK and other jurisdictions after the new remote gambling tax regime was introduced in April. As a result, Entain's effective tax rate rose significantly, climbing to 34.4% from 30.3% the previous year. The firm’s total tax liabilities soared to €108.9 million, which adversely affected operating profit despite revenue growth. Underlying operating profit dropped by 10% to €372.1 million, while the gross margin decreased to 60%. During the World Cup, the marketing investment remained high, with the company spending €18.7 million to enhance customer engagement.
Significantly, disclosed separate items amounted to €218.8 million, which included legal provisions of €112.5 million tied to ongoing player claims in Germany. Despite such pressures, Entain managed to report a pre-tax profit of €54.3 million, reversing a €77.6 million loss recorded in the first half of 2025, with a notable narrowing of the group’s after-tax loss.
In Brazil, the performance was more challenging. The newly regulated market faced stiff competition, leading to a 25% decline in constant-currency NGR, impacted by heavy promotional efforts and unfavorable sportsbook margins in the first quarter. Nonetheless, customer engagement showed improvements, with total sports wagers climbing by 10%. The company signaled that it would prioritize profitability over market share, adopting a disciplined approach to customer acquisition while positioning Sportingbet as a focal point in Brazil.
Entain is also progressing with its planned exit from Central and Eastern Europe, having agreed to sell a 20% stake in Entain CEE to EMMA Capital for €425 million, which values the regional business at about €2.1 billion. This division generated €314.7 million in NGR and €111.2 million in underlying EBITDA in the first half of the year. The completion of this transaction is anticipated in the fourth quarter of 2026. Management indicated that proceeds from a full exit would lower group leverage below three times EBITDA before factoring in future shareholder capital returns.
Looking ahead, despite the rising regulatory expenses, Entain maintained its full-year projections, continuing to anticipate online NGR growth of 5% to 7% and underlying EBITDA between €1.06 billion and €1.12 billion for 2026. The company reaffirmed its long-term goal of achieving €585 million in annual adjusted cash flow by 2028, reflecting confidence in ongoing operational efficacy and prudent capital management to facilitate sustained growth.
