Entain begins phased exit from CEE business with 20% stake sale

Entain has agreed to divest a 20% stake in Entain Holdings CEE to joint venture partner Emma Capital for approximately €425m ($493m), marking the first step in what the company describes as a phased full exit from the business.

The initial payment of €395m is due on completion, with an additional amount to follow in early 2027 reflecting full-year 2026 financial performance. Completion is expected in the fourth quarter of 2026, subject to regulatory approvals.

Entain CEE consists of two operating businesses: STS in Poland and SuperSport in Croatia. The combined entity generated net gaming revenue of £522m ($688m) and EBITDA of £184m in FY25, both up 7% year-on-year.

Entain CEO Stella David said: "Our initial divestment is a decisive first step towards Entain fully exiting Entain CEE and reflects our ongoing focus on maximising value for shareholders. This enables us to unlock the value created by our Croatian and Polish businesses and demonstrates our robust capital allocation discipline."

The operator said net proceeds from the 20% sale will be used to reduce outstanding debt, generating approximately £20m in annualised interest savings. Future proceeds from a full exit will be allocated toward reducing group reported leverage below 3x, with any excess capital returned to shareholders.

Following the deconsolidation of Entain CEE, the company revised its FY26 online EBITDA margin guidance to 21-22%, down from the previously stated 23-24% range that included Entain CEE. Entain said it continues to expect FY26 online net gaming revenue growth of 5-7% in constant currency on a like-for-like basis and remains on track to generate approximately £500m in annual adjusted cashflow by 2028.

Under the revised shareholder structure, Emma Capital will hold majority control of the joint venture, while the Juroszek family foundations will retain their existing 10% shareholding. A voting agreement will assign the Juroszek family's voting rights to Emma Capital, subject to customary exceptions, effective upon completion.

Entain will evaluate strategic options regarding an exit from its remaining minority shareholding in Entain CEE

Further guidance will be provided at the group's interim results on 13 August, 2026.

Global Gaming Insider also examined the key questions behind the deal, including why Entain is exiting a growing business and what the transaction could signal for the group's broader strategy.