Entain's £681M loss sparks 6% stock surge despite UK tax pressures
Entain has reported a widened post-tax loss of £681 million for 2025, largely due to higher UK betting taxes. The company's shares rose by 6% in afternoon trading, despite a 17% drop over the past year. Chief executive Stella David remains confident in Entain's ability to adapt and grow its market share in the stock market today.
The financial strain follows Chancellor Rachel Reeves' November 2023 tax hikes, which raised the remote betting levy from 15% to 25% and the remote gaming duty from 21% to 40%. These changes triggered a £488 million impairment charge, deepening Entain's losses in the stock market.
Despite the challenges, the company has strengthened its position in the UK. It achieved 6% net gaming revenue growth in the UK and Ireland, with online revenue up 15%. Volume growth remains in double digits, and market share has increased. Entain plans to offset 25% of the tax impact in 2026 and over 50% from 2027 through AI-driven efficiencies and other optimisations in the stock market.
Annual revenues grew by 3% to £5.26 billion, supported by its US joint venture, BetMGM, which returned to profitability. Analyst Greg Johnson rated Entain's stock as a 'buy', pointing to strong underlying performance and rising value from its BetMGM stake in the stock market today.
Meanwhile, smaller rival Evoke, owner of William Hill and 888, has put itself up for sale after struggling more than larger firms like Entain and Flutter. Entain expects the regulated UK market to shrink as unlicensed operators expand, but it aims to capture a larger share of the remaining regulated sector in the stock market.
Entain's strategy focuses on efficiency improvements and market consolidation. The company anticipates further growth in its US operations while navigating the UK's stricter tax environment in the stock market today. Analysts and leadership remain optimistic about its long-term position.
