Key Highlights

  • Entain PLC (LSE:ENT), owner of Ladbrokes and Coral, is a constituent of the FTSE 250 index.
  • Third-quarter group net gaming Revenue rose 2% at constant currency, with UK and Ireland up 8%.
  • Full-year 2026 underlying EBITDA is expected at the lower end of a £910 million to £960 million range, reflecting a provisional ban on online gambling in Brazil.
  • US joint venture BetMGM grew third-quarter net revenue 7% to $710 million and reiterated guidance.

Why Entain Is in Focus Today

Entain PLC (LSE:ENT) remains on investors' radar in early November 2026 as the betting and gaming group navigates a year of mixed fortunes. The shares have fallen sharply over the past 12 months, down about 46% by mid-October, and the stock is now part of the FTSE 250. Recent updates have shown resilience in its core UK Business and progress at its US joint venture, but these have been overshadowed by the sudden loss of revenue in Brazil.

Wednesday, 4 November, brought a supportive backdrop for UK equities. The FTSE 250 rose 1.0% to 24,915.69 and the FTSE 100 climbed 1.8% after the US midterm elections boosted risk appetite. For Entain, US politics also matter because of BetMGM, its 50/50 joint venture with MGM Resorts, which operates in a market where state-level regulation and taxation shape growth.

Third-Quarter Trading

Entain reported group net gaming revenue up 2% at constant currency for the three months to 30 September 2026. Online net gaming revenue rose 3%, or 5% excluding Brazil. Within that, online casino revenue grew 8%, while sports betting revenue declined 3% because of unfavourable sporting results. The UK and Ireland business stood out with 8% growth, ahead of expectations.

Chief executive Stella David said the performance reflected disciplined execution and the resilience of a globally scaled business. The group reiterated full-year guidance, with underlying EBITDA expected at the lower end of a £910 million to £960 million range.

The Brazil Shock

In late September, an executive measure in Brazil provisionally withdrew all operators' authority to offer online sports betting and gaming with immediate effect. Entain had been building a business there following the country's regulation of the market, so the ban removed an expected source of growth. The company's guidance assumes the ban remains in place for the rest of 2026.

BetMGM Progress

BetMGM reported third-quarter net revenue up 7% to $710 million. iGaming revenue rose 6% and online sports revenue increased 7%, helped by World Cup engagement and an enhanced sportsbook launched ahead of the NFL season. BetMGM reiterated full-year guidance but expects results toward the lower end of its net revenue range of $2.9 billion to $3.1 billion and adjusted EBITDA range of $300 million to $350 million. It distributed $50 million of cash to its parents in the quarter and remains confident of reaching $500 million of adjusted EBITDA in the coming years. Entain shares rose more than 4% to around 445p on the day of the BetMGM update on 13 October.

Portfolio Reshaping

Entain is also simplifying its portfolio. The sale of an initial 20% stake in its Central and Eastern European business to partner EMMA Capital is on track to close in the fourth quarter of 2026, part of a phased exit from that region.

Market Context on 4 November

Gambling stocks in the UK have faced rising tax and regulatory pressure, including higher gaming duties and stake limits on online slots. Against that, Entain's UK and Ireland momentum suggests Market Share gains. In the US, the midterm result may affect federal debates on sports betting Advertising and consumer protection, though gambling remains largely regulated at state level.

Valuation and Sentiment

The steep fall in Entain's share price over the past year has left the company valued at a much lower multiple of Earnings than in previous years, reflecting concerns about regulation, Brazil and the long road to profitability at BetMGM. Some investors see the UK and Ireland momentum and BetMGM's improving cash distributions as signs that the business is stabilising. Others remain cautious until there is more clarity on tax changes and on the timing of BetMGM's $500 million EBITDA ambition. The company's move from the FTSE 100 to the FTSE 250 also changed the mix of index investors holding the shares, which can affect trading patterns. Any evidence of a sustained recovery in online growth outside Brazil would be closely watched as a potential turning point.

Risks to Consider

Key risks include higher gambling taxes, stricter regulation, adverse sporting results, the Brazil ban becoming permanent and competition in the US online market. Entain's Balance Sheet and Leverage remain under scrutiny after years of acquisitions and regulatory settlements.

What Investors Are Watching Next

Investors will watch fourth-quarter trading, including the impact of the football season, any developments on Brazilian regulation, completion of the CEE stake sale and BetMGM's progress toward profitability. The full-year results in early 2027 will set out guidance for 2027 and capital allocation plans for Entain PLC (LSE:ENT).