Entain Set to Leave FTSE 100 Amid Tax and Market Value Pressures

Entain is set to leave the FTSE 100 in September 2026 after a sustained decline in its market value. FTSE Russell has confirmed that Entain and Persimmon will be removed from the benchmark index as part of its latest quarterly review, with EasyJet and Ithaca Energy joining the FTSE 100 in their place. Entain will move into the FTSE 250, with the change taking effect from the start of trading on Monday, 21 September 2026.

The move represents an important change in the listed profile of one of the United Kingdom’s best-known gambling groups. It is also taking place against a difficult backdrop for the sector, including higher gambling duties, continued regulatory scrutiny and pressure from investors for stronger earnings conversion and tighter capital discipline.

FTSE 100 change reflects market value

FTSE Russell’s quarterly review is rules-based and does not constitute a regulatory decision or a judgement about the operational conduct of an individual company. Constituents are determined according to the index methodology and market data. For Entain, the immediate issue is its position in the UK equity market following a material fall in its share price and corresponding market capitalisation.

The London Stock Exchange reported Entain’s market capitalisation at approximately £3.30 billion on 2 September 2026. Its shares closed at 517.6p that day, while the exchange’s published 52-week range stood at 500.4p to 915.6p. Those figures illustrate the extent of the valuation adjustment that has occurred over the past year.

Entain had been a member of the FTSE 100 since 2020, following the earlier expansion of the group through the acquisition of Ladbrokes Coral by GVC Holdings. The transaction, completed in March 2018, materially expanded GVC’s scale before the company later adopted the Entain name.

The upcoming index change therefore marks a reversal of part of the market-value gains that had previously supported Entain’s inclusion among the UK’s leading listed companies.

Share performance remains a central concern

Entain’s share-price performance has been closely watched by investors as the company works through a period of strategic and financial adjustment. The stock has traded well below the levels recorded during the takeover interest seen in 2021, when DraftKings considered a potential offer but did not ultimately submit a firm proposal.

The decline should not be viewed in isolation. Gambling operators across the UK and Europe are dealing with increased taxation and evolving regulatory requirements. For listed businesses, higher costs can affect margins even when customer activity and revenue continue to expand.

Entain’s recent financial results demonstrate that tension clearly. The company reported solid first-half revenue growth in 2026, yet underlying earnings remained under pressure from the higher UK tax burden. That combination is important for investors because market valuations are influenced not only by top-line growth but also by the ability to convert revenue into sustainable cash generation.

H1 results show stronger revenue but mixed profitability

Entain’s official results for the six months ended 30 June 2026 showed group Net Gaming Revenue of £2.545 billion, representing 5% growth on a constant-currency basis. Online NGR increased 7% on the same basis, with particularly strong performance in the UK and Ireland and Australia.

The UK and Ireland business delivered 8% NGR growth on a constant-currency basis, while online NGR in the region rose 13%. Australia also recorded 13% online NGR growth. Spain was among the faster-growing international markets, with online NGR increasing 28%.

The company also highlighted strong player engagement during the Men’s World Cup, saying first-time depositors were double the level seen during the 2022 tournament. While sporting events can provide temporary boosts to betting activity, Entain’s management has positioned product improvements and stronger underlying volumes as important parts of the wider performance.

Despite the revenue gains, group underlying EBITDA was £479 million, down 2% year on year. Entain reported that the impact of higher UK online gambling tax more than offset the benefit from stronger NGR. Online underlying EBITDA was £395 million while retail underlying EBITDA was £142 million.

The figures indicate why the market may remain cautious. Revenue expansion is continuing, but the incremental value generated from that growth is being constrained by taxation and other cost pressures.

UK gambling tax adds to earnings pressure

The UK’s revised gambling duty framework has become one of the most significant issues for operators with material online exposure. Remote Gaming Duty increased from 21% to 40% from 1 April 2026. A new 25% rate for remote betting is scheduled to apply from 1 April 2027, subject to the exclusions set out by the government.

For Entain, the implications extend beyond headline tax rates. The company has said it expects to mitigate approximately 25% of the impact of the higher UK online gambling tax during 2026 while maintaining an online EBITDA margin in the range of 21% to 22%.

This places greater importance on operating efficiency, product performance and disciplined marketing. Management is effectively being asked to protect margins while continuing to invest in growth and maintain competitiveness in major regulated markets.

BetMGM remains an important part of the picture

Entain also continues to benefit from its 50/50 BetMGM joint venture with MGM Resorts International. The US business recorded net revenue of $711 million in the second quarter of 2026 and adjusted EBITDA of $74 million. For the full year, BetMGM maintained guidance for net revenue of $2.9 billion to $3.1 billion and adjusted EBITDA of $300 million to $350 million, with both measures expected towards the lower end of those ranges.

For Entain, BetMGM remains strategically significant because of its position in the North American market and its contribution to the broader group economics. The venture’s progress therefore remains an important factor in assessing the group’s longer-term growth profile.

At the same time, Entain has continued to reshape its portfolio. The company announced a phased exit from Entain CEE, with an initial 20% divestment agreed at €425 million. Entain said future proceeds from a full exit would be used to reduce reported leverage below 3x with excess capital potentially returned to shareholders.

Management maintains its full-year outlook

Despite the difficult market backdrop, Entain has retained its principal 2026 guidance. The group continues to expect online NGR growth of 5% to 7% on a constant-currency basis and group underlying EBITDA of £910 million to £960 million excluding parent fees.

CEO Stella David has described the business as becoming more focused and more disciplined as management works to improve future cash generation.

“I am pleased with Entain's start to 2026 with strong momentum and volume growth continuing as well as strong player engagement across the Group throughout the World Cup tournament. This performance reflects our strengthening operations and focused execution which reinforces the resilience of our globally scaled business and its ability to consistently deliver high-quality growth.

We have continued to take decisive strategic actions to deliver shareholder value, including our phased exit of Entain CEE^{6}. Entain is becoming a sharper, fitter and better connected business. I am confident our disciplined focus on growth and optimisation will deliver strong future cash-generation and that Entain remains well positioned to be a long-term industry winner.”

The company has also reiterated its expectation of generating £500 million in annual adjusted cash flow in 2028.

Historic legal matters remain part of the corporate record

Another factor in the group’s longer-term investor narrative is the deferred prosecution agreement entered into in December 2023. The agreement concerned alleged failure by GVC, Entain’s predecessor, to prevent bribery in connection with historical operations, with the alleged conduct occurring primarily in Turkey between July 2011 and December 2017. GVC had disposed of its Turkish business in December 2017.

Under the agreement, Entain agreed to payments totalling £615 million, comprising financial penalties and disgorgement, a charitable donation and contributions towards costs. The arrangement was a corporate legal resolution concerning historical conduct and should not be characterised as a finding of personal wrongdoing by current executives.

The company’s 2025 financial statements also recorded a statutory loss after tax of approximately £681 million. Entain said this included a £488 million impairment charge related to changes in UK gambling taxes announced in November 2025.

What the FTSE 100 exit means for Entain

Leaving the FTSE 100 does not by itself alter Entain’s licences, operating model or ability to compete in regulated markets. The more immediate significance is financial and reputational. Membership of the FTSE 100 provides visibility among global investors and can affect how a company is perceived by funds and institutions whose mandates or benchmarks are linked to large-cap UK equities.

The move to the FTSE 250 therefore gives investors another measure of the scale of the challenges facing the group. However, it does not determine Entain’s future performance. The company continues to report revenue growth, maintain its guidance and pursue portfolio changes designed to improve leverage and cash generation.

The central question for investors is now whether these measures can produce stronger earnings and sustainable returns in an environment where taxation is taking a larger share of operating economics. Entain’s H1 2026 numbers suggest that demand remains resilient, but the cost of serving regulated markets is becoming increasingly material.

Conclusion

Entain’s scheduled move from the FTSE 100 to the FTSE 250 is best understood as a market-capitalisation development occurring during a broader period of transition for the company and the wider gambling sector. FTSE Russell’s decision follows the index methodology and reflects where Entain now ranks within the UK listed equity market rather than representing an operational sanction.

The group nevertheless faces a demanding period. Stronger NGR, improving market performance in several jurisdictions and continued progress at BetMGM provide evidence of underlying commercial resilience. Against this, higher UK gambling taxes, pressure on EBITDA and the need to manage leverage create a more complex financial environment.

The coming months are likely to remain important as Entain seeks to turn revenue growth into stronger profitability and cash generation. Its September 2026 move into the FTSE 250 will be a visible milestone, but the more meaningful measure of recovery will be whether management can strengthen margins, execute its portfolio strategy and deliver the financial targets it has reaffirmed.

FAQs

Why is Entain leaving the FTSE 100?
Entain is leaving the FTSE 100 because its market capitalisation has fallen sufficiently for it to move into the FTSE 250 under FTSE Russell’s rules-based quarterly review process.

When will Entain move into the FTSE 250?
The change will be implemented after the close of business on Friday, 18 September 2026 and will take effect from the start of trading on Monday, 21 September 2026.

Is Entain being removed from the stock market?
No. Entain will remain listed on the London Stock Exchange. The change concerns movement between the FTSE 100 and FTSE 250 indices.

What is Entain’s market capitalisation?
The London Stock Exchange reported Entain’s market capitalisation at approximately £3.30 billion on 2 September 2026.

Has Entain’s share price fallen significantly?
Yes. Entain’s share price has traded substantially below its 52-week high. The London Stock Exchange reported a 52-week range of 500.4p to 915.6p as of 2 September 2026.

How did Entain perform in H1 2026?
Entain reported £2.545 billion in Net Gaming Revenue for H1 2026, with NGR up 5% on a constant-currency basis. Underlying EBITDA was £479 million, down 2% year on year.

What is putting pressure on Entain’s profitability?
A major factor is the increase in UK Remote Gaming Duty from 21% to 40% from 1 April 2026. Entain has said the higher tax burden is affecting its earnings performance.

What is Entain’s 2026 EBITDA guidance?
Entain has reaffirmed group underlying EBITDA guidance of £910 million to £960 million for 2026, excluding parent fees.

What role does BetMGM play for Entain?
BetMGM is a 50/50 joint venture between Entain and MGM Resorts International. It remains a strategically important asset with substantial exposure to the North American sports betting and iGaming markets.

Does the historic DPA mean current Entain management was found personally responsible for wrongdoing?
No. The deferred prosecution agreement concerned historical conduct involving GVC, Entain’s predecessor and was resolved at the corporate level. It should not be presented as a finding of personal wrongdoing by current executives.