Entain Sees Q3 Growth But Warns For UK Tax Rise

Entain has posted solid third-quarter results with steady group growth and resilient performance across key markets, even as the company faces challenges in Brazil and prepares for possible tax changes in the UK.

Good to Know

• Q3 group NGR up 6% year-on-year, or 7% on a constant currency basis
• UK online NGR climbed 15%, while Brazil revenue dropped 10%
• Entain continues AUSTRAC mediation and anticipates UK tax developments

The group reported a 6% increase in total net gaming revenue (NGR), or 7% on a constant currency basis, including its 50% share in BetMGM. Excluding U.S. results, NGR rose 4% (5% cc), driven by a 10% rise in Central and Eastern Europe.

The UK market remained strong with NGR up 8%, led by a 15% increase in online activity. Entain attributed the gains to higher player values, strong volumes, and additional market share.

In contrast, Brazil’s NGR fell 10%, with unfavorable sporting outcomes erasing the benefits of higher player engagement.

Group CFO Rob Wood described the downturn as “genuine bad luck from sports results,” noting that the football-heavy market was affected by both local league and Champions League outcomes. He added that volumes were “trading on the right side of expectations” and reaffirmed confidence in the country’s long-term potential.

UK Tax Discussions and Industry Impact

Entain executives also addressed concerns about a potential remote gambling tax hike under government review. CEO Stella David said the company would likely adjust bonuses, odds, and marketing to manage higher costs.

“There are a number of levers we could pull which include being less generous on bonusing, odds [could] be not quite as good, a reduction in marketing,” said David.

Wood added that the sports sector would be affected as operators scale back sponsorships and advertising.

“The only winner in that situation is the black market because they have less competitive disadvantage. The loser of course is sports,” he said.

The UK government is currently consulting on tax changes for remote gambling, with an update expected in the November 26 autumn budget. Analysts also asked whether higher taxes could prompt industry consolidation, to which Wood noted that smaller firms — which make up about 25% of the UK iGaming market — would face the most pressure.

Update on AUSTRAC Mediation

Regarding the company’s ongoing proceedings with AUSTRAC in Australia, David said Entain remains confident in its compliance framework.

“I think we’re probably market leading [with the system we have in place now],” she said.

The process remains in mediation, which began in the summer, with no fixed timeline for resolution.

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