Entain has confirmed to SBC that 500 staff reductions are set to take place worldwide, accounting for approximately 2% of the global workforce.
SBC understands that product, technology and corporate functions will be the areas of the business impacted, but the job cuts are not tied to a particular market or regulatory development.
Gambling operators globally are making adjustments to their businesses to manage the cost of tax increases, in particular in the UK market, in response to the remote gambling duty increasing in April from 21% to 40%.
An Entain spokesperson said: “As part of our ongoing focus on enhancing Entain’s operational efficiency and agility, we have begun implementing organisational changes which will regrettably impact a number of roles across the Group over the months ahead.
“These changes will help make Entain a stronger, better business and are a further demonstration of our strategic focus on maximising shareholder value. We are consulting with all those affected to support them during this process.”
SBC also understands that the reductions are not tied to the phased exit of Entain from its Central and Eastern European (CEE) operations, nor will it impact the operator’s plans to obtain three of the up to 15 licences up for auction for the New Zealand online casino market, with stage one of the three-stage licensing process, expression of interest, to open on 17 July.
Departing the CEE
Last month, Entain began the process of a phased exit of its CEE operations, STS in Poland and SuperSport in Croatia.
An initial 20% divestment of Entain CEE will take place first, agreed with EMMA Capital, its joint venture partner in the region, with an implied enterprise value of €2.1bn (£1.9bn) and c10x EBITDA multiple. It is expected to be completed in the fourth quarter of 2026, subject to regulatory approvals.
Entain’s shareholding in Entain CEE will drop from 67.5% to 47.5% once completed. After which, Entain CEE will no longer be fully consolidated into the Group’s financial statements, but until a full exit is achieved, it will continue to recognise its share of Entain CEE profits and dividends.
Taking the deal into account, Entain updated its FY26 guidance:
- Online NGR 5%-7% growth in constant currency reiterated (on a like-for-like basis).
- Online EBITDA margin in the range of 21-22% (previously 23%-24% with Entain CEE).
- Remain comfortable with market expectations for FY26 Group Underlying EBITDA.
- Remain on track to generate c£500m of annual adjusted cashflow in 2028.
Entain will provide further guidance details during its 2026 interim results on 13 August.