Entain plc has agreed to sell a 20% stake in Entain CEE to joint venture partner EMMA Capital for approximately €425 million.
The deal implies an enterprise value for Entain CEE of €2.1 billion, equivalent to £1.9 billion, representing approximately a 10x EBITDA multiple.
The transaction is expected to complete in Q4 2026, with net proceeds of around £366 million earmarked to reduce the group’s outstanding debt.
The consideration comprises €395 million payable at completion, with an additional payment in early 2027 based on fiscal 2026 financial performance.
Upon completion, Entain’s shareholding in Entain CEE will decrease from 67.5% to 47.5%, while EMMA Capital increases its stake from 22.5% to 42.5%.
The Juroszek family foundations will maintain their existing 10% shareholding throughout the transition and subsequent ownership structure.
Under a separate voting agreement, EMMA Capital will gain majority control of the joint venture after the Juroszek family assigns full voting rights to EMMA, subject to customary exceptions.
Entain’s Board has stated the rationale clearly, saying the company aims to “pursue an exit from Entain CEE to unlock the value created within Entain’s attractive portfolio.”
Following the partial sale, Entain’s FY26 Online EBITDA margin is now projected to be between 21% and 22%, revised down from the previous 23% to 24% forecast that had included Entain CEE contributions.
Entain CEE generated £183.7 million in EBITDA in 2025, up from £170 million the prior year, demonstrating solid underlying earnings growth across the Central and Eastern European portfolio.
The CEE region had become a challenge for Entain heading into this deal, with overall net gaming revenue falling 6% in Q1 2026, including a sharp 30% drop in retail revenue.
Entain’s joint venture with EMMA Capital in the CEE region dates back to 2022, when Croatian operator SuperSport was acquired by the two parties together.
STS was subsequently acquired by Entain in 2023, with EMMA Capital funding 25% of the PLN 24.80 per share takeover, which valued STS at around £750 million at the time.
The broader context for this disposal includes significant pressure on Entain from increases in Britain’s online gambling taxes, with casino and slots levies rising to 40% from 21% and sports betting taxes climbing to 25% from 15% from April.
Entain has estimated that these tax changes will add approximately £200 million in annual costs, with plans to mitigate around 25% of that impact this year and more than 50% by 2027.
The disposal is expected to generate approximately £20 million in annual interest savings as the group reduces its debt load using the net proceeds.
Entain anticipates that proceeds from a full eventual exit from Entain CEE will reduce group reported leverage below 3x, with excess capital returned to shareholders thereafter.
