Entain is reportedly considering selling its stake in its Central and Eastern Europe business to joint venture partner EMMA Capital, according to Reuters.
The potential sale would significantly affect major brands operating under the Entain CEE banner, including Croatian sportsbook SuperSport and Polish market leader STS.
SuperSport formed the foundation of the joint venture when Entain purchased EMMA Capital’s 75% stake in the Croatian operator four years ago in 2022.
STS was acquired by Entain in 2023, with EMMA Capital funding 25% of the PLN 24.80 per share takeover, which valued the Warsaw-based firm at around £750 million at the time.
Not all Entain shareholders were supportive of the company’s CEE expansion strategy, particularly its decision to acquire STS back in 2023.
Ricky Sandler is no longer an Entain shareholder or board member, with his firm Eminence having shut down in April 2026 after 27 years of activity, at which point it held a 6.5% stake in Entain.
The CEE region has presented growing challenges for Entain, with overall net gaming revenue falling 6% in Q1 2026, driven by a sharp 30% decline in retail revenue.
Croatia has undergone significant gambling regulatory changes, including a nationwide advertising curfew banning gambling promotions between 6am and 11pm from the start of 2026.
A new tiered tax framework on player winnings and increased annual licensing fees have further squeezed Entain’s CEE financials, despite the division generating EBITDA of £183.7 million in 2025, up from £170 million the prior year.
At group level, Entain reported annual profit of £1.16 billion, though adjusted net debt stood at £3.64 billion at the end of 2025, adding pressure to its balance sheet.
UK tax increases are expected to add approximately £200 million in annual costs for Entain, with the company planning to offset around 25% of that impact during the current year.
Entain also recorded a non-cash impairment charge of £488 million against its domestic business, contributing to a reported loss after tax of £680.5 million for the year ended December.
Any proceeds generated from a potential CEE transaction are being actively considered as a source for reducing the company’s substantial debt burden.
Discussions between Entain and EMMA Capital remain at an early stage, and no formal agreement has been reached between the two parties.
With regional underperformance, a challenging UK tax environment, and ongoing efforts to combat illegal gambling, Entain appears to be reassessing its CEE priorities heading deeper into 2026.
