Entain has officially been downgraded from the FTSE 100 to the FTSE 250, as revealed in the latest quarterly update from the London Stock Exchange Group (LSEG). This demotion takes effect on September 21 and follows the operator's admission that it would continue to be part of the FTSE 250 index.
After joining the FTSE 100 on June 22, 2020, Entain, which rebranded from GVC Holdings and pledged to derive 100% of its revenues from regulated markets, has seen its share price plummet over the past year. Since September 2025, its stock has dropped by as much as 37%, leaving its market capitalization at £3.39 billion.
Entain initially started trading under the GVC Holdings name in February 2016 after moving from the Alternative Investment Market (AIM). However, following a peak in share value in September 2021, the company has endured a difficult period, with its stock down 73% to 530p over the past five years.
During this time, the gambling operator has experienced significant leadership instability, cycling through four CEOs in just a few years. In November 2023, Entain agreed to a £585 million financial penalty linked to a bribery case concerning its historic operations in Turkey, alongside a £20 million charitable donation and £10 million in costs related to the Crown Prosecution Service (CPS) and HM Revenue and Customs (HMRC).
Entain has also faced mounting challenges within its digital sector, with setbacks stemming from failed integrations amid a series of acquisitions. In light of this, the company has committed to a major turnaround strategy aimed at cutting costs and revitalizing its digital business. Efforts to modernize its legacy technology have been initiated, with former CEO Gavin Isaacs earlier stating that upgrading the core platform was his primary challenge.
While Entain declined to comment on its removal from the FTSE 100, recent comments from senior management have expressed optimism as turnaround efforts seem to be yielding positive results despite continuing regulatory and tax challenges in Europe. In the first quarter of 2025, the company reported strong digital growth driven by robust performances in the UK, Brazil, and the US. Stella David, in her first quarter as full-time group CEO, described the outlook for Q1 as “optimistic but prudent.”
The growth pattern has held steady for Entain, with various markets such as Australia, New Zealand, Spain, and the UK recognized as key drivers. Simultaneously, cost-cutting measures this year have led to retail store closures and operational role reductions, alongside plans to exit the Central and Eastern European (CEE) market and opt for a significant sale.
In August, newly appointed CFO Michael Snape indicated that the decisions were aimed at de-leveraging the company and returning capital to shareholders. Funds from completely exiting the CEE operations are set to help reduce group leverage below 3x.
In light of these developments, analysts have maintained a positive outlook on Entain following its H1 earnings report. A note from Goodbody on August 13 praised the company’s strong performance, with H1 adjusted EBITDA surpassing expectations. The UK and Ireland market was highlighted as a standout performer, as Entain has managed to capture additional market share amid the aftermath of a remote gaming duty tax increase in April.
UBS reiterated its buy rating for Entain in a note dated August 14, projecting that the company’s shares hold the greatest potential upside within the European gaming sector, although with a heightened risk profile compared to peers.
Entain’s share price decline reflects a broader trend seen within gaming stocks, coinciding with waning investor interest in the LSEG. This trend is exemplified by Flutter, which exited its secondary listing with LSEG in August to concentrate its efforts in the US equity market, where it hopes for more favorable valuations. Nonetheless, analysts have pointed out that Flutter’s stock has also faced downward pressure.
Since its peak, Flutter’s shares have dropped by approximately 60% within a year, and there are concerns it might be relegated to a mid-tier consumer stock within a larger exchange. As financial analyst Ben Robinson noted about Flutter’s situation, "Deeper water doesn’t help if the current is moving somewhere else."
