Entain Considers CEE Business Sale as UK Tax Costs Rise

Higher UK Taxes Create New Challenges

Entain faces a difficult situation after recent UK tax changes. According to the company, the new measures could increase annual costs by around £200 million. That figure has caught investors' attention. It has also raised questions about how the group plans to protect profits.

Management now appears to be reviewing several options. One possibility stands out — the sale of its Central and Eastern European business. The move would mark a significant shift for the company. Yet it may help offset some of the expected tax burden.

A Business Built Through Major Acquisitions

The company formed a joint venture with EMMA Capital after acquiring Croatian bookmaker SuperSport in 2022. A year later, the business expanded further. In 2023, Entain added STS, one of Poland's largest betting operators. The company paid £750 million for that acquisition.

Together, these businesses helped strengthen Entain's position across several growing markets. Key developments included:

• Acquisition of SuperSport in 2022.

• Creation of a joint venture with EMMA Capital.

• Purchase of STS for £750 million in 2023.

• Expansion across Central and Eastern Europe.

Early Discussions Raise Questions

Reports suggest Entain could sell its stake to EMMA Capital. However, discussions appear to remain at an early stage. No final agreement has been announced. Both companies may still be evaluating their options.

That uncertainty adds a layer of intrigue to the story. Investors often expect companies to sell weaker assets first.

Profitable Asset Could Be on the Market

The CEE business remains one of Entain's stronger divisions. Financial results highlight its importance. In 2025, the region generated £183.7 million in EBITDA. That represented roughly 15% to 16% of the group's total EBITDA.

Those numbers suggest the company is not looking to exit a struggling operation. Instead, Entain may be weighing whether a profitable sale could help balance future costs. Nevertheless, selling such a business would not be an easy choice. The region has delivered steady earnings and growth opportunities.

Beyond the financial impact, any deal could reshape Entain's long-term strategy. Hence, market observers will likely watch developments closely in the coming months. For now, the company faces a delicate balance — protecting profits while deciding the future of one of its strongest regional assets.