Accounts Payable Officer

Somewhere to run, nowhere to hide: Europe's biggest iGaming operators facing major transition. ANALYSIS: Europe's biggest gambling operators built their empires at home. But as taxes climb, regulation tightens and growth slows across the continent, home is becoming a much harder place to do business. Is Entain's push into Latin America, for example, simply another growth strategy, or the clearest sign yet that Europe's largest operators are looking elsewhere for their future? Entain's FY25 results, published in March 2026, showed underlying EBITDA of £1.16 billion (US$1.57bn), up eight percent on a constant-currency basis, a genuine recovery story on paper. But the underlying picture is more complicated. Statutory pre-tax losses reached around £557 million (US$754.89m), driven largely by impairments and legacy charges rather than day-to-day trading, and the company's own FY26 guidance flags online NGR growth of just five-to-seven percent, modest for a group with global scale. Pressure Point The biggest pressure point is UK tax. From April 2026, Entain absorbed an increase in Remote Gaming Duty, which nearly doubled from 21 percent to 40 percent, alongside a rise in General Betting Duty. The company has guided that it can only mitigate around 25 percent of the incremental cost this year, rising to over 50 percent from 2027 through its "Project Romer" that aims to save some £100 million (US$135.5m). In July, that pressure translated into headcount: Entain confirmed it is cutting 500 jobs globally, citing both UK tax changes and, notably, growing competition from prediction market platforms eating into traditional sportsbook volume. In its FY25 results, the company said its "global scale, diversity and strong UK market position sees us well placed to navigate regulatory and tax changes, with short-term challenges providing strategic opportunities". That suggests management sees the current regulatory environment not simply as a headwind to manage, but as a catalyst for accelerating its international strategy. Wider Euro Tax Squeeze Entain's UK problem is part of a wider European trend. The Netherlands, for example, has increased gambling taxes three times since 2024, France has pushed GGR taxation above 59 percent, Italy has introduced €7 million licence fees for online concessions (£5.99m/US$8.12m), while Germany continues to tax turnover rather than gross gaming revenue. Together, these measures have significantly increased operating costs across Europe's largest regulated markets. A major unintended consequence is growing concern over channelisation. Dutch gambling industry association VNLOK has warned that repeated tax increases are pushing customers towards unlicensed operators rather than increasing government revenues. And across Europe, regulators are now investing heavily in coordinated enforcement as the illicit market continues to expand. Global Shift James Kilsby, Chief Analyst at regulatory intelligencers Vixio, believes the balance of global growth is already shifting: "Prior to 2018, the regulated online gambling market was highly euro-centric but legalization of sports betting and iGaming in various U.S. states as well as the major markets of Ontario and Brazil has coincided with stricter regulations in European countries that has restricted growth in a number of cases," he says. Vixio forecasts regulated online gambling markets in the U.S., Canada and Latin America will generate US$56.3 billion (£42.2bn) by 2028, drawing level with Europe or potentially surpassing it depending on currency fluctuations. Set against that backdrop, Entain's footprint tells its own story. The group has already reduced its exposure to markets that are still transitioning towards full regulation, from five in 2023 to two by 2024, while pushing into markets further from Europe entirely. Entain describes Brazil, which regulated online sports betting in January last year, as a "must-win" market, and the group's Q2 2026 earnings call reiterated confidence in sustained growth momentum there. Diversification Paying Off BetMGM, its U.S. joint-venture with MGM Resorts, has also just delivered its first cash distribution back to its parent companies - evidence that geographic diversification is beginning to pay for itself, not just spread risk. It's a meaningful shift in Entain's own language and the company that once defined itself primarily through its UK and European market share now gives equal weight to global scale - and cash generation from newer markets. But the transition to Latin America-and other emerging markets-carries its own volatility, currency swings and political jeopardy. Yet for an operator facing a 40 percent UK tax rate and a shrinking, hyper-competitive domestic customer base, growing, newly-regulated markets look considerably more attractive than they might have five-years-ago. And Entain is far from alone. Flutter estimates the UK's tax changes will reduce adjusted EBITDA by around £240 million (US$320m) in FY26, rising to £405 million (US$540m) the following year. Revenue Driver At the same time, FanDuel has become the group's largest revenue driver, highlighting how much of Flutter's future growth now comes from outside its traditional European base. The company has also launched FanDuel Predicts, reflecting the growing pressure traditional sportsbooks face from prediction markets. Latin America delivered record quarterly revenue in Q2 2026, for the Swedish-origin iGaming operator, growing 32 percent year-on-year and accounting for more than one-third of total group income. Betsson CEO Pontus Lindwall happily asserts: "We are investing in several B2C markets that are not yet profitable," reinforcing a wider industry view that "today's pressure is tomorrow's growth". Improving Regulation Markets such as Nigeria, Kenya and South Africa continue to attract operator interest because they combine large, mobile-first populations with gradually improving regulation. While regulatory uncertainty and inconsistent enforcement remain significant challenges, the continent is increasingly viewed as the industry's next long-term growth frontier. According to Vixio, Africa's regulated online gambling market is projected to grow by around 48 percent between 2025 and 2028, making it one of the fastest-growing regulated gambling regions globally. Industry leaders point to regulation, rather than demand, as the biggest constraint on growth. Protecting Consumers "Regulation must protect consumers and uphold integrity, but it must also create an enabling environment for sustainable investment and innovation," Peter Emolemo Kesitilwe, CEO of the African iGaming Alliance, told iGamingFuture. The current focus on LatAm and Africa doesn't mean that the established operators are abandoning Europe. Entain's UK and Italian operations, for instance, remain central to the business, and leadership under CEO Stella David has been notably stable compared to the group's turbulent recent history. Yet the direction of travel is difficult to ignore. Most meaningful growth initiatives announced over the past year point outward and beyond. By contrast, most of the company's cost-cutting and margin-defence measures have been driven by mounting pressures at home. And it appears that expansion into newer jurisdictions is no longer just a strategic option but a commercial necessity.

Entain revenue tops £2.54 billion in strong first-half performance. 13th August 2026 10:01 am Entain has reported a 7 per cent increase in net gaming revenue to £2,545.3 million for the first-half of 2026, Subscribe for full access to Gaming Intelligence including premium news content, feature articles, news archive, company profiles and more. Includes subscription to the print edition of GIQ magazine and postage. Already a subscriber or registered user?