Entain Reports Revenue Growth Amid Margin Pressure from New Taxes

The world of online betting and gambling is undergoing a profound transformation, as evidenced by the latest figures from industry heavyweight Entain. The group, which owns well-known brands such as Ladbrokes, Bwin, and Sportingbet, presented its report for the first half of 2026 on August 13. It is a story of two truths. On one hand, the business with players is booming, fueled by major sporting events like the World Cup. On the other hand, the taxman in core markets is hitting so hard that the bottom line is lower than in the previous year.

Particularly striking is the discrepancy between Net Gaming Revenue (NGR), which climbed 5 percent to £2.55 billion, and underlying EBITDA. The latter fell by 2 percent to £479.3 million. This decline is no coincidence but the direct result of a new fiscal reality in Europe. Primarily, the new Remote Gambling Duty (RGD tax) introduced in the UK in April 2026 has torn deep holes in the accounts. The company's underlying effective tax rate jumped from 30.3 percent to a substantial 34.4 percent.

Numbers and facts

A look at the details shows where Entain is playing to its strengths in 2026. The online segment grew by 7 percent on a constant currency basis, while retail contributed a narrow 1 percent increase. The Spanish market stood out with a 28 percent increase in NGR. Business also ran excellently in the UK and Ireland (+13 percent) and Australia (+13 percent) thanks to the World Cup. In Australia, revamped products for the Ladbrokes and Neds brands, as well as improved Bet Builder functions, helped maintain customer engagement.

In contrast is the problem child, Brazil. There, NGR slumped by 25 percent. Entain attributes this to extremely low sports margins in the first quarter and intense promotional competition. Nevertheless, management is focusing on discipline and does not want to invest in expensive marketing at any price. Parallel to this, Entain announced its phased withdrawal from Central and Eastern Europe (CEE). An initial 20 percent stake in Entain CEE is being sold to partner EMMA Capital for €425 million. This step values the division at a total of €2.1 billion and is intended to help reduce the group's leverage below three times EBITDA.

Background

Entain's balance sheet is not only weighed down by taxes but also by legal legacies. The company had to set aside £96.1 million for legal and onerous contract provisions. A significant part of this sum is allocated to claims from German players seeking to recover losses from times when the offer in Germany was still in a regulatory gray area. Despite these massive one-off charges, the group managed to narrow its loss after tax to £11.4 million, compared to £85.8 million in the previous year. Stella David, Entain's Chief Executive Officer, remains determined and optimistic about the future.

"Entain is becoming a sharper, fitter, and better connected business. I am confident our disciplined focus on growth and optimisation will deliver strong future cash-generation, and that Entain remains well positioned to be a long-term industry winner." - Stella David, Chief Executive Officer of Entain

Why it matters for German players

For customers in Germany, Entain's report is a signal of stability but also of strict regulation. Since Entain and its brands like Bwin are firmly on the whitelist of the Joint Gambling Authority of the States (GGL), the company operates strictly according to the rules of the 2021 State Treaty on Gambling. For players, this means the cross-provider monthly deposit limit of 1,000 euros remains in place and is monitored via the LUGAS system. The stake limit of one euro per round on virtual slot machines is also unshakeable. The high provisions for legal disputes also show that the industry is taking the processing of the past seriously while trying to remain profitable in the strictly regulated German market.

What it means for GGL-licensed casinos

The development at Entain illustrates the pressure all GGL-licensed providers are under. High taxes and strict player protection requirements massively reduce margins. Compared to illegal providers without a German license, often operating from Curacao or Malta, legal casinos have significantly higher cost structures. Entain is trying to cushion this pressure through technological upgrades under Project Romer, for which £16 million was spent in the half-year. The message is clear: only those who work technologically efficiently while complying with the strict German rules will survive in the long term. The GGL whitelist is the decisive seal of quality that guarantees player safety, but it comes at a high price for the corporations.