Entain Sells 20% of Entain CEE to EMMA Capital; Juroszek Reaffirms STS Leadership in Poland

British company Entain agreed in June to sell a 20% stake in Entain CEE to its joint venture partner, EMMA Capital, for €425 million, thus initiating its phased exit from Central and Eastern Europe (CEE). The price of the transaction values Entain CEE at €2.1 billion. Mateusz Juroszek, former CEO of STS and current Chairman of the Board, supported the deal and defended STS's leadership position in the Polish market, anticipating regulatory changes for iGaming but not expecting any short-term tax relief.

Entain CEE: Structure, Valuation, and Context of the Sale

Entain CEE emerged in 2022 following the joint acquisition of SuperSport by Entain (listed in London) and EMMA Capital. In 2023, they included STS — the leading operator in Poland — for up to £750 million. The recent sale agreement for 20% to EMMA Capital grants Entain CEE an estimated valuation of €2.1 billion. The Juroszek family retains a 10% stake.

Mateusz Juroszek recounted that the alliance aimed for an ambitious consolidation process of operators in the CEE region, particularly family-owned businesses with strong national presence. However, the strategy focused on the integration of STS and SuperSport, with no significant new acquisitions anticipated after 2023.

"There is still space for a company to consolidate the region, as privately managed family businesses predominate," Juroszek stated.

Entain's decision to adjust its geographical focus responds, according to Juroszek, to objectives of debt reduction and global strategic reorientation.

STS Remains the Leader of the Polish Market

Despite the rise of competitors like Betclic and Superbet, Juroszek insisted that STS continues to be the benchmark in Poland. Depending on the measurement criterion, the market share varies: historically, STS accounted for up to 50% of gaming measured by betting volume, and 60% of total profit according to data from the National Judicial Register (KRS). Although competition has implemented aggressive promotions — such as Betclic covering the betting tax — STS retains about 30% of market share measured by GGR.

Juroszek highlighted that STS operates with high profitability, has zero debt, and generates substantial cash flows compared to smaller competitors achieving only €2-3 million in annual EBITDA.

Taxation and Regulatory Prospects in Poland

The Polish tax framework imposes a 12% tax on betting volume for bookmakers, one of the most burdensome in Europe. Juroszek was skeptical about a change in the short term, noting that the government perceives guaranteed and growing revenues and shows little interest in revising the model:

"In 15 years of discussions, a change has never been proposed. It’s guaranteed income, and the state has no incentives to modify it."

In contrast, he sees the likelihood of the online casino monopoly being dismantled, currently under exclusive state control. Juroszek anticipates that Poland will follow the path of countries like Finland or Austria towards open regulation, albeit with still high taxation (possibly 50% GGR). He believes this would enhance market control, increase employment and national revenue, and reduce illegal activity by foreign operators.

Investment Strategies: Betplay Capital and Global Markets

Through Betplay Capital, Juroszek diversely invests in global gaming, with positions in the United States, United Kingdom, Scandinavia, Malta, and Asia. He particularly highlights the case of DigiPlus in the Philippines, a leading operator that he believes should prioritize share buybacks and dividends over external acquisitions.

His vision regarding the affiliate business has changed: he observes solid cash flows but a sharp decline in valuations. In the private segment, he reveals a majority stake in Gentoo Media and reiterates that despite the volatility of the public sector, companies with leadership and strong EBITDA conversion remain attractive.

Opinion on the United States and Evolution of Prediction Markets

Juroszek remains cautious about expanding investments in the U.S., citing regulatory uncertainties and the emergence of prediction markets like Kalshi or Polymarket. He criticizes the disparity faced by traditional operators who must meet more stringent requirements. He believes that investors are often swayed by emotions, highlighting Evolution's solidity as an example of a business well-valued for its strong EBITDA conversion and absence of debt.

Conclusion: Leadership and Future in the CEE Region

Mateusz Juroszek plays an active role in the gaming industry from various positions, defending STS's robustness and the potential of the CEE region in light of regulatory and competitive challenges. Although he expects few changes in tax burdens in the short term, he foresees an imminent greater opening of the online casino market in Poland that will consolidate the positioning of leading operators.