Entain Divests Stake in Entain CEE; Juroszek Discusses Poland’s STS and Industry Shifts

Entain plc has agreed to sell its remaining 20% holding in Entain CEE to joint venture partner EMMA Capital for €425m, concluding a staged withdrawal from Central and Eastern Europe. The transaction values Entain CEE at €2.1bn and comes after a series of landmark acquisitions in the region, including Croatian operator SuperSport and Polish heavyweight STS. Former STS CEO Mateusz Juroszek, who remains on the Entain CEE board and whose family holds a 10% stake, views the deal as consistent with both partners’ evolving strategies but underscores the continued market leadership of STS in Poland.

Entain CEE Transaction and Valuation

Entain’s sale of its 20% Entain CEE share to EMMA Capital marks the culmination of its Central and Eastern European (CEE) venture. The agreed price of €425m signals an implied group valuation of €2.1bn. Entain CEE’s origins trace to 2022, when Entain and EMMA joined forces to acquire SuperSport in Croatia. This was followed in 2023 by the up-to-£750m acquisition of STS, Poland’s leading bookmaker by profit and turnover. The Juroszek family has had a decades-long stake in STS, with Mateusz Juroszek serving as CEO from 2012 until 2024 before transitioning to chair and retaining a board seat at Entain CEE. He told EGR that while the initial joint venture aimed to consolidate additional CEE operators, the collaboration primarily concentrated on extracting synergies between SuperSport and STS, with further acquisitions ultimately not pursued.

"If you look at STS and SuperSport, you cannot do an evaluation of these businesses based only on EBITDA because they produce so much cash. These companies have zero debt and they produce cash. I think the cash conversion is one of the best in the industry." — Mateusz Juroszek

Juroszek describes the recent deal terms as reasonable, given regional and industry dynamics, and observes that multiples across the sector have been depressed in recent years.

STS’s Market Position: Enduring Leadership in Poland

STS continues to dominate the Polish regulated gambling market despite growing competition from international brands, including Betclic and Superbet. Juroszek credits STS’s sustained leadership to its profitability and the legacy of family management. He points to varied ways of calculating market share—by turnover, profit, or gross gaming revenue (GGR)—due to Poland’s unique 12% turnover tax on sports betting. Historically, STS has accounted for up to 50% of market turnover, and Juroszek estimates the group still commands around 60% of sector profit, though GGR market share has settled near 30% as the market diversifies with new entrants.

The Polish regime’s reliance on turnover-based taxation creates challenges for further industry consolidation. Juroszek notes that while smaller operators attempt product innovation and client acquisition, most cannot rival STS’s profit scale, citing competitors’ EBITDA in the €2m–€3m range compared to STS’s dominant position.

Poland: Regulatory Outlook Amid Tax and Igaming Barriers

Poland maintains one of Europe’s highest sports betting tax burdens, with little prospect for reform. The government collects 12% of every stake, regardless of operator margin, and shows no appetite for switching to a revenue-based model. Juroszek, who has participated in policy discussions, reports that change is politically unlikely because of steady government receipts.

“They get 12% on every stake, and it’s growing every year. Why would you change it? I think it would be very difficult to convince the Ministry of Finance or politicians to change the taxation.” — Mateusz Juroszek

Juroszek expects igaming liberalisation to follow broader European movements, pointing to examples like Finland and Austria. Poland, he argues, is primed to relinquish its online casino monopoly, potentially adopting a 50% GGR tax for new entrants—still high, but opening the door to licensed private operators. He believes that expanded regulation would enhance consumer protection, increase domestic employment and tax flows, and erode the black market, particularly against foreign unlicensed sites active in Poland.

A three-year timeline for change is plausible, given upcoming elections and increasing external pressure for regulatory alignment.

Strategic Focus: Betplay Capital and Global B2B Investments

Following his CEO tenure at STS, Mateusz Juroszek has broadened his activity through Betplay Capital, investing globally across igaming and sports betting sectors. He highlights investment in DigiPlus in the Philippines, describing it as a market leader focused on core operations and returning value via buybacks or dividends. In Africa, Betplay Capital supports Super Group, identifying successful expansion after the firm’s decision to exit the US market.

Juroszek is more cautious about US opportunities, citing both unpredictable regulatory conditions and competitive challenges. He points to the volatility of prediction markets and sees the affiliate sector as less attractive than previously, though he continues to back Gentoo Media for its cash flow and operational discipline.

In public markets, Juroszek notes the shift in valuations for large listed operators such as Flutter Entertainment, Evolution, Entain, and DraftKings, but contends that companies with strong cash conversion and no debt remain attractive over the long term.

The Path Ahead: Market Structure and Prospects

Despite short-term regulatory rigidity and market fragmentation, Juroszek asserts that market-leading positions such as STS’s will persist, particularly as legislative and tax reforms slowly influence the Polish landscape. He expects increased consolidation only if the operating environment softens and holds out hope for igaming regulation ushering in new revenue opportunities for established incumbents.

Recent deal activity underscores a CEE market caught between mature Western models and idiosyncratic local barriers—a situation likely to remain fluid as regional and national policies respond to both political cycles and external competitive pressures.