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Entain may have another major asset sale option after its Central and Eastern Europe deal. Rothschild & Co Redburn analyst Andrew Tam said the group could unlock £1.2 billion to £1.6 billion by selling its Italian business, which includes Eurobet and Gioco Digitale.
Good To Know
- Entain agreed on June 25, 2026, to sell 20% of its CEE joint venture to EMMA Capital for €425 million.
- Rothschild & Co Redburn sees Italy as a possible next disposal, with an 8x to 9x EBITDA valuation range.
- A sale could help Entain cut leverage faster and make BetMGM easier for investors to value.
BetMGM Sits Behind The Disposal Case
Tam frames BetMGM as the main value angle inside Entain. The US betting and iGaming joint venture with MGM Resorts International still sits partly hidden by debt, tax exposure and a mixed international portfolio.
“BetMGM remains the main prize within Entain,” Tam said.
A smaller Entain, with lower debt and fewer regional units, could make that valuation cleaner. Tam said more disposals could “cut Entain’s leverage to the bottom end of management’s targeted 2-3x range earlier than expected”.
That is where Italy enters the story. Entain holds an estimated 8% Italian market share through Eurobet and Gioco Digitale. It ranks behind Lottomatica and Flutter Entertainment, which have more scale in the country. For a buyer, that position still offers a strong regulated market base in one of Europe’s larger online gambling markets.
Italy Could Follow The CEE Sale
The CEE deal gave Entain a valuation reference. The operator agreed to sell an initial 20% stake in Entain CEE to EMMA Capital for €425 million, or about £366 million. The transaction values the CEE unit at about £1.83 billion, based on Tam estimates, or 9.3x EBITDA.
Entain CEE includes STS in Poland and SuperSport in Croatia. In FY2025, the unit produced £522 million in net gaming revenue, up 7% year on year, with EBITDA of £183.7 million. After completion, expected in the fourth quarter of 2026 subject to regulatory approval, Entain will fall from 67.5% to 47.5%. EMMA Capital will rise to 42.5% and gain majority voting control through a voting agreement covering the Juroszek family 10% stake.
Chief executive officer Stella David called the sale “a decisive first step towards Entain fully exiting Entain CEE”.
Tam said the existing put and call structure made CEE “naturally became the easiest part of Entain to divest”. Italy may now offer the next cleanest capital release.
“In our view, Entain’s Italian assets would be highly coveted by both financial and strategic buyers. An Italian divestment would represent the next leg of the ongoing consolidation of the online gambling market in Italy. We see potential for a further £1.2-1.6bn of capital to be unlocked, once again at similarly attractive multiples (8-9x).”
UK tax gives the balance sheet plan extra urgency. Remote Gaming Duty increased from 21% to 40% on April 1, 2026, while a new 25% General Betting Duty rate for remote betting starts on April 1, 2027. For operators with large UK online exposure, that changes profit forecasts and makes debt reduction more valuable.
Tam said the CEE exit plus a possible Italy sale could reduce Entain net debt to around £1.5 billion. That figure would fall further after payment of the £219 million UK deferred prosecution agreement.
FAQ
Which Entain assets could be sold next?
Rothschild & Co Redburn analyst Andrew Tam pointed to Entain Italy, including Eurobet and Gioco Digitale, as a possible next disposal after the CEE deal.
How much could Entain raise from Italy?
Tam estimated a possible £1.2 billion to £1.6 billion capital release, based on an 8x to 9x EBITDA multiple.
What did Entain sell in CEE?
Entain agreed to sell an initial 20% of its CEE joint venture to EMMA Capital for €425 million. The business includes STS in Poland and SuperSport in Croatia.
Why is the importance of BetMGM for Entain valuation?
BetMGM is Entain 50/50 US joint venture with MGM Resorts International. Tam said lower debt and a simpler group structure could help investors assign more value to it.
How does UK gambling tax affect Entain?
The UK raised Remote Gaming Duty to 40% from April 2026 and will apply a 25% remote betting duty rate from April 2027. Higher tax makes debt reduction and portfolio simplification more important for Entain.
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