Entain backs guidance but quarterly net gaming revenue growth slows

Entain PLC on Thursday stuck with its annual guidance despite customer-friendly sports results weighing on third quarter revenue growth.

Shares in the Isle of Man-based sports betting and gaming operator, which owns the Ladbrokes and Coral brands, fell 3.5% to 429.04 pence each in London on Thursday. The stock had risen on Tuesday after its BetMGM joint venture in the US reiterated guidance following a strong third quarter.

Entain said third-quarter net gaming revenue rose 2% on-year at constant currency, slowing from 7% growth in the second quarter. Online net gaming revenue was 3% higher, also at constant rates, with progress offset by "particularly customer-friendly sports results and ongoing challenges in Brazil".

Stripping out Brazil, online net gaming revenue was 5% higher and in the UK & Ireland alone, it shot up 14%, "ahead of expectations", Entain added.

For the full-year, the company still expects online net gaming revenue growth between 4% and 6% at constant currency, with underlying earnings before interest, tax, depreciation and amortisation, excluding parent fees, at the lower end of a £910 million to £960 million range.

In September, Entain guided to the lower end of the range after Brazil introduced an immediate provisional ban on online sports betting and gaming. At the time, Entain said the South American country had been expected to contribute 5% of its global online net gaming revenue in 2026.

On Thursday, Chief Executive Stella David said: "I am pleased with our Q3 performance, which reflects the strength of our execution and reinforces the resilience of our globally scaled business as well as its ability to consistently deliver high-quality growth.

"Both online and retail are important parts of our business and valued contributors to tax revenues and local communities. We strongly urge the UK government to carefully consider any further gambling tax increases which would threaten the viability of many shops, jobs and livelihoods."

On Wednesday, Sky News reported that the Betting & Gaming Council has asked UK Chancellor John Healey to delay a planned tax hike on the industry.

"Betting and gaming are woven into Britain's cultural and sporting life," bosses of top UK bookmakers said in a letter obtained by Sky News.

Healey delivers his first budget statement on October 28.

In the autumn 2025 budget, announced by previous chancellor Rachel Reeves, the UK government increased the rate of remote gaming duty to 40% from 21% with effect from the start of April. From April 2027, a new, higher rate of general betting duty will apply to remote betting at 25%.

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