Entain has announced the withdrawal of the first phase of its business in Central and Eastern Europe, agreeing to sell a 20% interest in Entain CEE to joint venture partner EMMA Capital in a transaction valued at approximately €425 million.
The global betting and gaming group said the deal includes an initial payment of €395 million upon completion, followed by an additional amount in early 2027 that will depend on the unit’s financial performance during fiscal 2026. The agreement places an enterprise value of around €2.1 billion at Entain CEE, equivalent to about 10 times EBITDA.
The company expects the transaction to close in the fourth quarter of 2026, pending regulatory approval. Entain intends to use the funds to reduce debt, a move it estimates will result in annual interest savings of around £20 million.
The sale marked the beginning of a broader strategy to exit the business completely. Entain said it continues to review options to dispose of its remaining shares and plans to direct future earnings to lower its reported leverage below three times EBITDA before returning excess capital to shareholders.
Strategy Focuses on Value Creation and Simplification
Management said the decision reflects its aim to increase shareholder value while simplifying the group’s corporate structure. Entain believes the transaction will enable it to realize the value generated since the founding of Entain CEE in 2022.
The venture was founded after Entain acquired a 75% stake in Croatian operator SuperSport from EMMA Capital. The business then expanded with the addition of Polish sportsbook operator STS, which it acquired in a deal worth £750 million.
Since becoming part of Entain CEE, SuperSport and STS have maintained leading positions in their respective domestic markets. The company also highlighted operational progress, including the migration of STS sportsbooks to the SuperSport platform.
Entain CEE generated net gaming revenue of £522 million during the 2025 fiscal year, an increase of 7% on the previous year. EBITDA also rose 7% to £184m. On a pro forma basis, the company said online gaming revenue and EBITDA achieve double-digit compound annual growth between 2023 and 2025.
Stella DavidChief Executive Officer of Entain, said: "Our initial divestiture is a decisive first step towards Entain’s complete exit from Entain CEE and reflects our continued focus on maximizing value for shareholders. This allows us to unlock the value created by our businesses in Croatia and Poland and demonstrates our strong capital allocation discipline.”
He added: "Driven by structural growth across our global portfolio and improved operational execution, I am confident in our ability to generate strong cash generation in the future. Entain remains well positioned to be a long-term industry winner.”
Change of Ownership After Transaction
Upon completion, Entain’s stake in the venture will fall from 67.5% to 47.5%. EMMA Capital’s ownership will increase from 22.5% to 47.5%, while the remaining 10% will remain with the Juroszek family.
According to the details of the arrangement, the Juroszek family has granted EMMA voting rights attached to its shares, effectively giving EMMA control over its business. In return, the family will receive a put option covering its ownership, exercisable in three tranches over three years after completion.
As a result of this transaction, Entain CEE is no longer fully consolidated into Entain’s financial statements. Until full exit is achieved, Entain will continue to recognize its share of profits and dividends from the venture as a minority shareholder.
Financial Guidance Adjusted After Divestiture
The company updated its fiscal 2026 outlook to reflect Entain CEE’s deconsolidation plans. Entain maintained its expectations for online net gaming revenue growth of between 5% and 7% in constant currencies on a like-for-like basis.
However, online EBITDA margin projections have been revised to a range of 21% to 22%, compared with the previous forecast of 23% to 24% covering the CEE business. Despite the adjustments, Entain said it remained comfortable with market expectations for the group’s underlying EBITDA, which analysts currently estimate is around £1.13 billion.
The company also reiterated that it remains on track to generate approximately £500 million of adjusted annual cash flow in 2028. Additional details regarding guidance are expected when Entain publishes interim results on August 13, 2026.
These discharges follow a period of mixed performance in the region. Although Entain CEE delivered annual revenue and profit growth through 2025, net gaming revenue from its Central and Eastern European operations declined 6% year-over-year during the first quarter of 2026.
Nevertheless, Entain continues to view the transaction as a key element of its capital allocation plan, thereby positioning the company to strengthen its balance sheet while achieving its long-term goal of a complete exit from the Central and Eastern European venture.
