Entain Could Drop Out of FTSE 100 After Valuation Decline
United Kingdom.- 28 August 2026 | www.zonadeazar.com Entain could be relegated from the FTSE 100 to the FTSE 250 in the forthcoming quarterly review of the UK index series.
The gambling group is considered one of the companies most at risk of leaving London’s blue-chip index following a sustained decline in its market capitalisation.
Shares Trading Near 530p
Entain shares are currently trading at approximately 530p.
The price is around 42% below its 52-week high of 916p.
On a year-to-date basis, the stock has fallen by close to 30%, having ended 2025 at approximately 767p.
Potential Move to FTSE 250
City analysts have identified Entain and housebuilder Persimmon as the two companies most likely to leave the FTSE 100.
FTSE Russell will determine the final composition when it completes its latest ranking of UK-listed businesses by market capitalisation.
A demotion would see Entain move into the FTSE 250.
Tax Pressure Across Gambling Sector
The fall in Entain’s valuation comes against a backdrop of increasing taxation across the UK and European gambling sectors.
In the UK, Remote Gaming Duty increased from 21% to 40% in April 2026.
General Betting Duty is also due to rise from 15% to 25% in April 2027.
Tougher Conditions Across Europe
Operators are facing higher taxes and more demanding regulatory environments in other markets including the Netherlands, France and Germany.
The environment has increased investor pressure on listed gambling companies to control costs, improve margins and prioritise profitability.
Entain is responding through efficiency and financial-discipline measures.
First-Half Revenue Growth
Despite these headwinds, Entain outperformed market expectations during the first half of 2026.
Net Gaming Revenue from continuing operations increased 7% to £2.55 billion, representing 5% growth on a constant-currency basis.
Reported revenue also increased by 7% to £2.51 billion.
UK, Australia and Spain Perform Strongly
The group recorded strong growth across several important markets.
UK and Ireland online NGR increased 13% at constant currency.
Australia also grew 13%, while Spain delivered growth of 28%.
Customer engagement during the FIFA World Cup also supported the period.
EBITDA Under Pressure
Revenue growth did not translate into higher underlying earnings.
Group underlying EBITDA declined 2% to £479.3 million.
Underlying operating profit fell 10% to £318 million, compared with £352 million in the corresponding period.
Tax Impact
Entain said its NGR outperformance was more than offset by significantly higher tax exposure.
The group recorded approximately £90 million in tax charges during the interim period.
Its tax exposure was described as having tripled.
Results Beat Expectations
Despite the decline in EBITDA, the figures were received positively by analysts.
Underlying EBITDA of £479.3 million exceeded market expectations of approximately £455 million.
This helped preserve confidence in the group’s underlying operational recovery.
Stella David Maintains Guidance
Under Chief Executive Officer Stella David, Entain has maintained its full-year 2026 guidance.
The company continues to target:
- Online NGR growth of 5% to 7% at constant currency.
- Group underlying EBITDA of £910 million to £960 million, excluding BetMGM parent fees.
- Online EBITDA margin of 21% to 22%.
Mitigating Higher Taxes
Entain is also targeting mitigation of approximately 25% of the impact from higher UK online gambling taxes during 2026.
Cost control and efficiency measures will therefore remain important in protecting margins through the remainder of the year.
Tax exposure is expected to remain a key consideration for investors.
Losses in 2024 and 2025
The company has reported statutory losses in each of the previous two financial years.
Entain recorded a £681 million loss in 2025, following a £461 million loss in 2024.
The 2025 result was heavily affected by a £488 million impairment charge linked to higher UK gambling taxes.
Six Years in FTSE 100
Entain has been part of the FTSE 100 since June 2020, when the company still operated under the GVC Holdings name.
Its development into a major listed gambling group was accelerated by the approximately £4 billion acquisition of Ladbrokes Coral in 2018.
The transaction significantly expanded the group’s scale and international profile.
Industry Context
Listed gambling businesses are operating in an increasingly difficult environment defined by higher taxation, tighter regulation and pressure from financial markets.
Investors are placing greater emphasis on profitability, cash generation, cost reduction and capital discipline.
For Entain, the challenge is to maintain operational growth while absorbing a substantially heavier tax burden.
Next Steps or Impact
FTSE Russell will determine during its next quarterly review whether Entain remains in the FTSE 100 or moves into the FTSE 250.
A demotion would primarily carry stock-market and institutional implications, particularly for passive funds tracking the composition of the index.
Entain’s share-price performance will meanwhile depend on its ability to deliver its 2026 guidance, defend margins and mitigate part of the additional tax burden.
Editó: @fonta
