Entain delivers strong FY25 as BetMGM swings to profit

• Entain’s full-year underlying EBITDA reaches £1,160m, up 8% on a constant currency basis, ahead of guidance.
• BetMGM delivers $220m EBITDA in its first full year of profitability, distributing $270m cash to parent companies.
• Group records £681m statutory loss after tax, driven by a £488m impairment charge linked to UK gambling tax increases.

Entain has declared itself better positioned than ever to weather the regulatory and tax storm facing the UK gambling industry, publishing full-year 2025 results on 5 March 2026 that beat expectations across the board.

The FTSE 100 operator struck a confident tone despite booking a £488m impairment charge tied to the UK government’s decision to sharply raise gambling taxes.

Stella David, CEO of Entain, said:

“2025 has been a successful year for Entain. We are continuing to drive strong underlying momentum and I am immensely proud of our strategic and operational progress and the results it is delivering.”

She added:

“Entain’s diverse and globally scaled portfolio of podium positions, is more important than ever to ensure we are a long-term winner in our industry. The business has never been in better shape and is well positioned to not only navigate the tax and regulatory challenges facing our industry, but to seize them as opportunities.”

The operator’s global scale and the profitability inflection at BetMGM, its US joint venture with MGM Resorts International, underpin that confidence. Total group net gaming revenue, including Entain’s 50% share of BetMGM, rose 7% year-on-year to £5.33 billion. Group underlying EBITDA hit £1,160m, up 8% in constant currency terms and above the previous guidance range of £1,100m to £1,150m.

BetMGM reaches profitability milestone

The standout performer was BetMGM. Net revenue reached $2.8 billion, representing 33% constant currency growth. The business swung to $220m in EBITDA, a $464m improvement on the prior year.

That profitability milestone enabled BetMGM to distribute $270m in cash to its parent companies for the first time. The joint venture now expects FY26 revenue of $3.1 to $3.2 billion and adjusted EBITDA of $300 to $350m. It remains on track for its target of $500m adjusted EBITDA in 2027.

Online sports betting was a particular driver, surging 63% on a constant currency basis. iGaming revenue rose 24%.

UK and Ireland leads core business growth

Entain’s UK & Ireland division delivered 6% NGR growth, ahead of expectations. The online segment was especially strong, climbing 15% on a constant currency basis with continued double-digit volume growth supporting further market share gains.

Retail NGR in the UK slipped 2%, though on a like-for-like basis the performance was broadly flat, with the company claiming stable market share.

Elsewhere, the international division was up 0% reported / +2% constant currency. Italy contributed 6% growth. Double-digit online NGR increases came from Georgia, Spain, Canada, Greece and New Zealand. Brazil dipped 1% as strong volume growth was offset by unfavourable sports margins in the second half.

The Central and Eastern European division was up 7% reported / +5% constant currency, with Croatia delivering double-digit volumes through H2. Australia declined 6%, weighed down by customer-friendly sports results.

Online EBITDA margin expanded to 25.7%, reflecting scaled growth and improved operational efficiency across the portfolio of brands including Ladbrokes, Coral and bwin.

UK tax burden casts a long shadow

Despite the operational progress, the group recorded a statutory loss after tax of £681m. The main drag was the impairment charge related to the UK government’s November 2025 decision to increase gambling taxes.

That policy change raises Remote Gaming Duty from 21% to 40% from 1 April 2026 and introduces a new 25% online General Betting Duty from March 2027. Entain estimates the changes will add approximately £200m in annual costs to its UK & Ireland online business before mitigations.

Stella David has previously warned the tax increases could force shop closures and push smaller operators out of the market. In the FY25 results, Entain upgraded its mitigation expectations, now targeting a reduction of over 50% of the incremental tax burden from 2027 through group-wide optimisation initiatives.

CFO transition and outlook

The results also mark a leadership transition in the finance function. Michael Snape officially takes over as Group CFO and Executive Director on 6 March 2026, succeeding Rob Wood, who departs after 13 years with the group. Snape joins from International Distribution Services, where he led the company’s delisting and sale.

The board declared a final dividend of 9.8p per share, a 5% year-on-year increase, with a payment date of 24 April 2026.

Looking ahead, Entain expects FY26 Online NGR (exc. US) growth of 5 to 7% on a constant currency basis. Online EBITDA margin is expected to moderate to 23 to 24%, reflecting the initial absorption of the UK tax hike. The company reaffirmed its confidence in generating at least £500m of annual adjusted cashflow from 2028, a target that now incorporates the heavier UK tax burden.

The results show a central tension in the UK betting market. Strong consumer demand and consolidation moves, together with the sharpest tax increases the industry has faced, will shape the market in 2026.

Entain’s global scale and BetMGM’s accelerating US performance give it more room to absorb the blow than many competitors, but the margin compression in 2026 will be closely watched.