Entain (LSE: ENT), the owner of Ladbrokes and Coral, is evaluating strategic alternatives for its Central and Eastern Europe joint venture, including a potential sale of its stake.
Sources familiar with the matter indicate that one option under consideration involves selling the stake to existing partner EMMA Capital, a Czech investment group with a current ownership position in the venture.
Discussions are understood to be at an early stage, and no agreement has been reached between the two parties as of this writing.
The strategic review has been driven in part by Entain’s need to manage the financial impact of significant increases in UK online gambling taxes introduced by regulators.
Any proceeds generated from a potential transaction are expected to be directed toward reducing the company’s debt load, according to people familiar with the discussions.
Entain CEE was established in 2022 following the acquisition of Croatian sportsbook operator SuperSport, before expanding further in 2023 through the purchase of Polish betting company STS for approximately £750 million.
The joint venture includes contractual options that could allow either partner to alter the ownership structure after the third anniversary of the original transaction.
The CEE business has delivered solid recent financial results, generating earnings before interest, tax, depreciation and amortisation of £183.7 million in 2025, up from £170 million the year prior.
At the group level, Entain reported better-than-expected annual profit of £1.16 billion, though adjusted net debt stood at £3.64 billion at the end of 2025, reflecting ongoing balance sheet challenges.
Management has warned that recent UK gambling tax increases are expected to add around £200 million in annual costs to the business going forward.
The company aims to offset approximately 25% of that tax impact during the current year, with a target of offsetting more than 50% by 2027 through cost-saving initiatives and operational improvements.
Following the government’s tax announcement, Entain recorded a non-cash impairment charge of £488 million against its UK operations, contributing to a loss after tax of £680.5 million for the year ended December.
A transaction involving the CEE business could form part of a broader strategy to optimise Entain’s international portfolio and improve financial flexibility across the group.
Entain operates a wide portfolio of brands globally, including bwin, Sportingbet and a part ownership stake in BetMGM in the United States, positioning it across multiple regulated markets worldwide.
