Entain Likely to Exit FTSE 100 Due to Share Price Decline

Entain is likely to exit the FTSE 100 index after the latest quarterly review, according to various industry reports. The largest listed gaming operator in the UK is experiencing a significant decline in its market value and facing regulatory challenges, tax pressures, and lower-than-expected growth in the U.S.

Entain and the Reconfiguration of FTSE 100

Entain's participation in the FTSE 100 index, which has been in place since June 2020, is at risk after its market capitalization fell to £3.3 billion, nearly half of what the parent company of Ladbrokes, Coral, and bwin was worth just a year ago. Shares are currently trading a bit above £5, accumulating a one-third decline just in 2026. The adjustment in the index is a response to Entain's loss of value, partly motivated by regulatory changes and lower recent financial results.

Impact of Taxes and Slower Growth in the U.S.

Two specific factors are affecting Entain's outlook:

• The almost doubling of the remote gaming duty, which rose to 40% in April 2026.
• A slower growth rate in the U.S. market, where competition and unmet expectations have decreased the sector's overall appeal.

Entain's management responded with cost-cutting measures, including the dismissal of 500 employees from online operations (2% of the workforce of 28,000) in July.

Strategic Moves and Recent Financial Performance

In June, management announced the sale of a 20% stake in the Central and Eastern Europe joint venture (including STS and SuperSport) to its partner EMMA Capital for €425 million. This transaction values that unit at €2.1 billion.

In the first half of 2026, Entain reported net gaming revenues of £2.5 billion, a 5% year-on-year increase (adjusted for currency exchange). This result is attributed to a “better-than-expected performance” in the UK and Australian markets. However, EBITDA fell 2% to £479.8 million during the same period.

“The decline in EBITDA contrasts with the initial optimism following revenue results,” states the latest earnings announcement.

Stock Market Context: Pressure on Gaming Stocks

Entain is not alone in facing difficulties. Flutter has seen its shares fall nearly 55% in New York during 2026, while DraftKings has lost 28% in the same period. Investor fears surrounding prediction markets have intensified the phenomenon. In contrast, Entain is somewhat less exposed thanks to its North American joint venture, BetMGM, which primarily focuses on casinos and leverages physical synergies with MGM Resorts International.

Regulatory Changes and Tax Threats to the Retail Network

Entain operates approximately 2,300 betting shops in Great Britain. The UK government announced this month the end of the “aim to permit” rule, allowing local councils to veto the opening of new premises, a change received negatively by the industry.

Another regulatory danger: anti-gambling groups are pressing to double the Gaming Machine Duty (MGD) on Category B machines in retail locations, casinos, bingo halls, and Adult Gaming Centres from 20% to 40%. According to Regulus Partners, if the increase is approved, approximately 4,000 of the just over 5,000 existing betting shops would close.

In July, Betfred announced the closure of more than 130 locations, putting 600 jobs at risk of redundancy. The debate over the tax burden was revisited by Vaughan Lewis, former strategy director at evoke, in a recent post on EGR.

Outlook for the Sector and Entain's Position

Entain's decline in the FTSE 100 list encapsulates the volatility of gaming stocks in 2026, with structural factors—taxes, social pressure, and a slowdown in key markets—creating a context of urgent strategic review for all major operators. Under the continued presence of strong regulations and tax adjustments, both operators and suppliers must closely monitor the implications for profitability and employment. More updates and industry analysis can be found in the news section.