Entain has agreed to sell a 20% stake in its Central and Eastern European joint venture to EMMA Capital for approximately €425 million. The transaction, confirmed on 25 June, marks the initial phase of the company’s planned full withdrawal from the region.
Transaction Structure and Exit Timeline
Under the agreement, Entain’s ownership in the joint venture decreases from 67.5% to 47.5%, while EMMA Capital’s share rises to 42.5%. The Juroszek family retains its 10% stake, but voting rights transfer to EMMA Capital, granting the firm effective control upon completion. Management expects the transaction to close in the fourth quarter of 2026. The existing put-and-call arrangement with EMMA Capital and the Juroszek family enabled the execution of the sale.Financial Drivers and UK Tax Changes
The divestment follows an increase in British taxation, with remote gaming duty rising from 21% to 40% and sports betting duty climbing from 15% to 25% starting in April. Entain’s effective tax rate on UK profits now exceeds 80%, and the company’s shares have declined roughly 30% since the announcement. CEO Stella David stated the deal represents a decisive first step toward fully exiting Entain CEE and reflects robust capital allocation discipline. Proceeds will reduce corporate debt, cutting annual interest expenses by an estimated £20 million. Analyst Andrew Tam of Rothschild & Co Redburn valued the transaction at £1.83 billion, representing a 9.3x EBITDA multiple, and noted that a reduced balance sheet would allow investors to focus on BetMGM as the primary asset.Regional Operations and Market Conditions
Entain CEE generated £522 million in net gaming revenue during 2025, a 7% increase year-on-year, with EBITDA rising proportionally to £183.7 million. STS and SuperSport have maintained their number-one market positions throughout the period. Marek Plota, a gambling lawyer at RM Legal, described Poland as a paradoxical market where the licensing framework functions effectively despite an unfavourable tax regime. He noted that the sector has expanded since the 2017 reform, with betting channelisation reaching approximately 78%. The online casino segment continues to present distinct operational conditions.Entain initially entered the Central and Eastern European market in 2022 by acquiring a 75% stake in Croatia’s SuperSport for roughly €690 million. The following year, the company purchased Poland’s STS for £750 million and integrated both operators into the Entain CEE joint venture with EMMA Capital.