Entain’s UK and Ireland business delivered stronger growth during the first half of 2026, although higher UK online gambling tax contributed to a fall in group underlying earnings.
Entain reported group net gaming revenue growth of 5% at constant currency for the six months to 30 June, with online net gaming revenue up 7% and retail up 1%.
The UK and Ireland division outpaced the group, with net gaming revenue increasing by 8% at constant currency. Online revenue rose by 13%, while retail increased by 2%.
Group underlying EBITDA nevertheless fell 2% year-on-year to £479m. Entain said the revenue outperformance was more than offset by the effect of increased UK online gambling tax.
The company reported a loss after tax of £11.4m from continuing operations, compared with an £85.8m loss in the same period last year. Adjusted diluted earnings per share fell to 20.3p from 25.2p.
Net debt stood at £3.599bn at the end of June, with reported leverage of 3.1 times and available cash of £0.9bn. Entain declared an interim dividend of 10.3p per share, an increase of 5% year-on-year.
Online remains the strongest growth area within the group. Online net gaming revenue increased by 7% at constant currency, supported by a 9% increase in volumes, while UK and Ireland online growth reached 13% across both gaming and sports.
The first-half figures show how a higher tax burden can change the economics of revenue growth. Digital operations can add customers and wagering volumes without producing the same rate of earnings expansion when duties rise at the same time.
Tax is only one part of the cost structure. Online gambling groups also carry significant spending on technology, compliance, customer protection, product development, marketing, data, and regulatory controls across multiple jurisdictions.
The result leaves operational performance and fiscal policy pulling in different directions. Entain’s UK digital business is gaining revenue, but a larger share of that income is being absorbed before reaching EBITDA.
The group is addressing its balance sheet at the same time. Entain has begun a phased exit from Entain CEE and agreed the initial sale of a 20% interest for €425m, implying an enterprise value of €2.1bn for the business.
Completion of the initial transaction is expected early in the fourth quarter. Entain said proceeds from a full exit would be used to reduce reported leverage below three times, after which excess capital would be returned to shareholders.
That sequence places debt reduction ahead of additional capital distribution. With leverage still above the stated threshold, the disposal programme could alter the balance between refinancing risk, investment capacity and shareholder returns.
International trading was mixed. Australia recorded 13% online net gaming revenue growth at constant currency, while Canada, New Zealand, and Spain produced double-digit increases. Brazil’s net gaming revenue fell 25%, reflecting adverse sports margins earlier in the year despite stronger wagering volumes.
The geographic spread reduces dependence on a single market but also exposes the group to differing regulatory and tax regimes. Gambling policy can change quickly, and increases in duties or player-protection requirements can alter expected returns even where underlying customer activity remains strong.
Entain has maintained guidance for full-year online net gaming revenue growth of 5% to 7% at constant currency. The company’s second half will therefore test whether continued digital growth is sufficient to absorb the UK tax increase while it progresses the CEE disposal and reduces leverage.
The first-half results show the underlying business expanding in several key markets, particularly online. They also show the limit of using revenue growth alone to judge performance in a regulated sector where tax, compliance costs and capital structure can materially affect how much of that growth reaches earnings.
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