Entain plc (LON:ENT), a global gambling giant with a diverse portfolio of online and retail betting and gaming brands, has experienced a rollercoaster of a year. From leadership transitions and regulatory headwinds to soaring share prices driven by its U.S. joint venture, BetMGM, the company's trajectory reflects both the immense potential and the inherent complexities of the modern gambling industry.
While recent news suggests a turning tide, a deeper look reveals a landscape of opportunities and challenges that will shape Entain's future.
Entain's core business encompasses a wide array of brands, including Ladbrokes, Coral, bwin, and Sportingbet, operating across various regulated markets worldwide. The company offers a comprehensive suite of services, from sports betting and online casino games to poker and bingo.
Historically, Entain's strength has been rooted in its established presence in the UK and European markets. However, the company's strategic focus has increasingly shifted towards expansion in high-growth regions, particularly the United States and, more recently, Brazil. This strategic pivot is largely driven by the immense potential of the U.S. sports betting market, unlocked by the repeal of the Professional and Amateur Sports Protection Act (PASPA) in 2018.
The jewel in Entain's crown, BetMGM, is a joint venture with MGM Resorts International, leveraging the latter's established brand recognition and land-based casino infrastructure. BetMGM has rapidly gained market share in the burgeoning U.S. online sports betting and iGaming market.
This rapid growth has been a major catalyst for Entain's stock performance, particularly following the upgraded forecasts announced in June 2025. The revised projections, anticipating annual revenues of at least $2.6 billion and an EBITDA of at least $100 million, signal a significant milestone for BetMGM and a validation of Entain's strategic investment in the U.S. market. The 12% surge in Entain's share price following this announcement underscores the market's confidence in BetMGM's potential to drive future growth.
The current CEO of Entain is Stella David who was appointed in 2025. Entain is listed on the London Stock Exchange and is trading under the ticker symbol ENT.
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Entain plc Share Price
In spite of the success of BETMGM, Entain's journey has not been without its hurdles. The company has faced a series of regulatory challenges in various jurisdictions. In the UK, a deferred prosecution agreement related to allegations of bribery in Turkey cast a shadow over the company's corporate governance. Furthermore, legal proceedings initiated by Australia's financial crimes watchdog for breaches of anti-money laundering regulations have added to the compliance burden. These regulatory setbacks have not only resulted in financial penalties but have also eroded investor confidence and raised concerns about Entain's risk management practices. The company has responded by committing to strengthening its compliance frameworks and enhancing its due diligence processes.
Adding to the complexity, Entain has also experienced significant leadership changes. The appointment of Stella David as the permanent CEO in April 2025 marked a pivotal moment for the company. David, previously the interim CEO and former chair, brings a wealth of experience and a clear strategic vision focused on accelerating growth in the U.S. and Brazil. Her leadership is seen as crucial in restoring investor confidence and navigating the evolving regulatory landscape. However, she faces the challenge of rebuilding trust after a period of executive departures and corporate governance concerns.
The company's underperforming share price, particularly prior to the recent BetMGM-driven surge, has attracted the attention of activist investors. The interest from firms like Eminence Capital and Sachem Head Capital Management highlights the pressure on Entain to unlock shareholder value and improve its financial performance. The unsuccessful £16.2 billion bid from DraftKings in 2021 serves as a reminder of the potential for strategic acquisitions and the ongoing scrutiny of Entain's valuation. These factors create a dynamic environment where strategic decisions and operational execution are critical to Entain's long-term success.
P/E Ratio Average Over the Last Ten Years: 32.25
Entain plc EPS and Revenue Breakdown 2020-2023
| ASC | Annual EPS | Annual Revenue |
|---|---|---|
| 2020 | £1.26 | £3.26 billion |
| 2021 | £1.25 | £3.91 billion |
| 2022 | £-0.31 | £3.94 billion |
| 2023 | £-2.13 | £3.55 billion |
Sports Betting and Gambling Industry Comparison
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Entain plc Share Price Forecast
Overall, 14 analysts have assigned Entain plc shares a Buy rating and 5 assigned it a Hold rating.
?A View From The Bulls:
- Strong Growth Potential in the U.S. Market: BetMGM's continued expansion and market share gains in the U.S. represent a significant growth opportunity for Entain. The revised revenue and EBITDA forecasts signal a positive trajectory and the potential for further upside.
- Strategic Focus on High-Growth Regions: Entain's commitment to expanding in Brazil, a rapidly growing sports betting market, diversifies its revenue streams and reduces its reliance on mature markets.
- Experienced Leadership: Stella David's appointment as CEO provides stability and a clear strategic direction focused on driving growth and improving operational efficiency.
- Potential for M&A Activity: The company's attractive assets and underperforming share price make it a potential target for acquisition, which could unlock significant shareholder value.
?A View From The Bears:
- Regulatory Risks: Ongoing regulatory scrutiny and potential penalties in various jurisdictions pose a significant threat to Entain's profitability and reputation.
- Compliance Costs: Increased investment in compliance frameworks and due diligence processes will likely increase operating expenses and impact short-term earnings.
- Competition: The online gambling market is highly competitive, with established players and new entrants vying for market share. Intensified competition could erode profit margins.
- Economic Uncertainty: Economic downturns and fluctuations in consumer spending could negatively impact demand for gambling services.
Average Analyst Consensus 12-Month Price Target: £1,115.58
Our View: Entain's success hinges on its ability to capitalise on the growth opportunities in the U.S. and Brazil while effectively managing regulatory risks and improving its operational efficiency. Stella David's leadership will be instrumental in navigating these challenges and restoring investor confidence.
While the recent surge in share price is a positive sign, a sustained recovery will require consistent execution and a clear demonstration of Entain's commitment to responsible gambling and ethical business practices. The coming year will be a defining period for Entain, as it seeks to solidify its position as a leading player in the global gambling industry.
Investors should closely monitor the company's performance, regulatory developments, and strategic initiatives to assess its long-term prospects. The gambling industry is constantly shifting, and only the most adaptable and forward-thinking companies will thrive.
