Entain is set to be removed from the prestigious FTSE 100 index following a brutal period of share price decline and regulatory pressure.
FTSE Russell has indicated that Entain, alongside Persimmon, is expected to leave the index as part of its latest scheduled reshuffle.
Entain’s shares have fallen by a painful 39.5% since August last year, reflecting a dramatic erosion of investor confidence in the business.
The company’s market capitalisation currently sits at approximately £3.5bn, a figure lower than the top 14 companies in the FTSE 250.
The root cause of the decline is a sweeping change to UK gambling taxation that caught the entire sector off guard.
The government announced it would hike remote gaming duty from 21% to 40% and raise online sports betting duty from 15% to 25%, dramatically increasing the tax burden on operators.
Entain estimated the combined impact of these changes would cost the company around £200m annually going forward.
As a direct consequence, the company booked a substantial £488m non-cash impairment charge against its UK business, further weighing on its valuation.
Entain has long been the sole gambling company represented within the FTSE 100 index, a distinction it now appears likely to lose.
Flutter Entertainment was also a FTSE 100 constituent for many years before it exited the index when it relocated its primary listing to New York in 2024.
Despite its difficulties, Entain’s market cap of £3.55bn still sits more than £2bn higher than its nearest LSE-listed industry rival, Playtech.
The scale of the longer-term share price collapse is stark, with Entain stock having dropped by over £13.75, representing a fall of 71.3%, to just £5.54 over the past five years.
The anticipated FTSE 100 exit would mark a significant moment for the UK gambling sector and its representation among the country’s most prominent listed companies.
