Entain, the powerhouse behind Coral and Ladbrokes, is set to be ousted from the FTSE 100 list of the most valuable companies in London. The decision, confirmed by the FTSE Russell, will see Entain replaced by EasyJet and Ithaca Energy come September 21. Analysts weren’t surprised—Entain’s market cap has slipped to the lowest among London’s top stocks, valued around £3.31 billion. And this adjustment places Entain in the FTSE 250, home to mid-cap firms ranked 101st to 350th on the London Stock Exchange.
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Entain’s Tumbling Stock Price
Entain joined the FTSE 100 in June 2020 after acquiring Ladbrokes Coral in a £4 billion deal—a move that spurred industry-wide consolidation. However, the downgrade follows a major drop in Entain’s stock price, now trading at around 516p, down 42% from a year ago and 70% below its 2021 high, which coincided with a takeover bid from DraftKings. That offer never materialized, and Entain’s stock has struggled since, with only brief recoveries in early 2023 and mid-2025. Investors remain cautious regarding UK and European gambling firms amid regulatory hurdles and tax hikes. The UK’s Remote Gaming Duty jumped from 21% to 40% in April, with online betting taxes poised to climb from 15% to 25% next year. These figures are substantial when considering the margins that operators typically work with.
Regulatory Background
To understand the pressures facing Entain, it’s essential to delve into the regulatory landscape that governs gambling operators in the UK and across Europe. The regulatory environment has tightened significantly over the past decade, driven by increasing concerns over gambling addiction, money laundering, and responsible gaming. The UK Gambling Commission (UKGC) has been at the forefront of this crackdown, imposing stringent requirements on operators to implement safer gambling measures and report any suspicious activities. In 2019, the commission banned credit card usage for gambling and introduced strict age and identity verification processes. These regulatory measures, while ensuring consumer protection, have added layers of compliance costs for operators like Entain.
This isn’t the first time Entain has battled regulatory challenges. The £615 million settlement over past operations in Turkey highlights the company’s ongoing struggle with compliance. The settlement was one of the largest ever imposed by the UKGC, setting a precedent and sending a clear message to the industry about the consequences of non-compliance. Regulatory pressures are not limited to the UK; similar challenges are evident in other European markets such as the Netherlands, France, and Germany, all of which have introduced or proposed stricter gaming laws.
Mixed Financial Performance
Despite the stock woes, Entain’s 2026 mid-year figures showed some promise. Net gaming revenue (NGR) rose 7% to £2.55 billion, bolstered by the FIFA World Cup and strong numbers from the UK, Ireland, Australia, and Spain. Yet, EBITDA slipped 2% to £479.3 million, while operating profit fell 10% to £318 million, as tax obligations surged—tripling to £90 million during the period. These financial results reflect the dual pressures of maintaining revenue levels while navigating increased tax and regulatory costs.
The situation is compounded by BetMGM, Entain’s U.S. venture with MGM Resorts. BetMGM has been a critical part of Entain’s strategy to diversify and tap into the growing U.S. sports betting market post the legalization of online and sports betting in various states. However, BetMGM is projecting its annual revenue and adjusted EBITDA at the lower end of forecasts, showing that even in a growing market, competition and regulatory costs can dampen growth prospects.
CEO Stella David remains optimistic, emphasizing Entain’s long-term resilience and maintaining their full-year guidance. The company targets online NGR growth of 5–7% at constant currency, with EBITDA margins between 21% and 22%. This guidance suggests a cautious optimism, reliant on effective cost management and strategic adjustments.
Market Context and Comparison
Entain’s transition from the FTSE 100 to the FTSE 250 marks a significant moment, not just for the company but for the industry at large. Historically, such movements within FTSE indices are significant indicators of a company’s market strength and investor confidence. The FTSE 100 represents the largest and most liquid companies on the London Stock Exchange, while the FTSE 250 includes mid-sized businesses, often considered growth stocks with potential for advancement into the FTSE 100. Entain’s relegation reflects broader industry challenges, including regulatory pressures and shifting market dynamics.
Comparatively, other gambling firms have faced similar fates. Flutter Entertainment, another major player, saw its share value plummet by nearly 70% following its strategic decision to move its primary listing from London to New York. This move was largely seen as an attempt to capitalize on the burgeoning U.S. sports betting market, which offers significant growth potential compared to the mature and heavily regulated European market.
Looking Ahead
As Entain prepares to shift to the FTSE 250 on September 21, the company is poised for a critical year. Keeping a close eye on tax impacts and regulatory developments will be key. The board’s next moves will be closely scrutinized, especially with the impending General Betting Duty hike next April. This increased scrutiny emphasizes the need for robust compliance and strategic agility.
Entain’s ability to adapt and strategize remains to be seen as it navigates these challenges. For operators, this means continually assessing their risk profiles and ensuring that they have clear and robust policies in place to handle these evolving regulatory landscapes. Industry watchers are keeping a close watch on how they address these hurdles and what it might mean for their long-term positioning. This situation underscores the broader narrative within the gambling sector, where the convergence of regulation, taxation, and market shifts demands innovative approaches and rigorous operational discipline. The outcome for Entain will serve as a bellwether for other operators, indicating how well they can balance growth ambitions with compliance and fiscal responsibilities.
Garry Sputnim is a seasoned journalist and storyteller with over a decade of experience in the trenches of global news. With a keen eye for uncovering stories that resonate, Alex has reported from over 30 countries, bringing light to untold narratives and the human faces behind the headlines. Specializing in investigative journalism, Garry has a knack for technology and social justice issues, weaving compelling narratives that bridge tech and humanity. Outside the newsroom, Garry is an avid rock climber and podcast host, exploring stories of resilience and innovation.
