Entain has reportedly been weighing the future of its CEE business, with one prominent analyst offering a clear-eyed view of what a potential sale could mean.
David Brohan, head of gaming research at Goodbody, spoke to NEXT.io about the key drivers that could push Entain toward divesting its CEE operations.
While the impact of UK tax rises is a significant factor in the wider conversation, Brohan believes it is just one of several motivating forces behind any potential deal.
In his assessment, a sale would likely be “quite straightforward” and “well-received” by the market, suggesting investor appetite for such a move is already there.
Entain established the CEE joint venture in 2022 alongside investment management group EMMA Capital, taking a 75% stake in Croatian operator SuperSport for approximately €690m.
That stake was acquired from EMMA Capital, which retained a 22.5% share of the business, and the portfolio expanded further in 2023 with the addition of STS Poland for £750m.
Since then, Entain’s stock market performance has been under sustained pressure, with its share price falling by nearly 46% from its Summer 2025 high of £10.22.
The company also carries an adjusted net debt of £3.64bn, which now exceeds its market cap of £3.56bn, placing additional pressure on management to act decisively.
A newly enforced 40% GGR tax rate for online casino in the UK has compounded these challenges, with Entain already stating it expects around £200m in additional annual costs as a result.
Freeing up capital through a CEE sale could allow Entain to pay down debt and reinvest more aggressively in its core UK market, where competition and regulatory demands remain intense.
Brohan’s case for the sale goes beyond pure financial necessity, pointing to the structural convenience of the CEE unit itself.
“CEE sits on its own tech stack, making a sale quite straightforward,” Brohan said, highlighting that operational separation makes the process considerably less complex than it might otherwise be.
He also points to the presence of EMMA Capital as a “natural buyer,” given the two parties entered into the original deals together and EMMA could feasibly buy back a larger stake in a now more developed business.
Brohan further noted his belief that Entain holds more latent value than its current market position implies, stating: “I think there are lots of potential assets in play for Entain to sell.”
Entain currently trades at around six times its expected 2027 operating earnings, a figure lower than many major competitors, though not so distressed as to suggest a business in freefall.
A successful CEE sale at a multiple exceeding six times could act as a meaningful confidence signal to investors who have grown wary of the group’s trajectory.
As Brohan outlined to NEXT.io, such a deal could “facilitate a reduction in leverage, potential for cash to be returned to shareholders, and increased investment in key organic markets.”
On the subject of investment strategy more broadly, Entain opted to offer no comment when approached for a response.
