Entain is proposed to leave the FTSE 100 and join the FTSE 250 on September 21, 2026. The move has focused investor attention on the impact of higher gambling duties in Britain.

FTSE Russell published the indicative changes on August 25. It is due to announce the confirmed outcome after market close on Wednesday, September 2, using market data from Tuesday, September 1.

The changes are scheduled to take effect at the start of trading on Monday, September 21.

Entain’s proposed index move does not change its licences or its ability to serve customers. It reflects the company’s market value under FTSE Russell’s rules, while its latest results show the pressure higher taxes are placing on earnings.

What the index move means

Removal from the FTSE 100 would not alter Entain’s licences or its ability to operate in Great Britain. The change reflects the company’s market value relative to other eligible companies.

Index changes can affect investor demand. Funds that track the FTSE 100 may need to reduce their Entain holdings. Funds tracking the FTSE 250 may become potential buyers.

The practical effect will depend on fund mandates, trading flows and the final rebalance.

Entain closed at 515.20 pence on Tuesday, September 1, according to market data reported by Financial Times Markets. The shares were down sharply over the previous year and remained close to their 52-week low.

Revenue is rising, but earnings are under pressure

Entain reported a 5% rise in first-half net gaming revenue on a constant-currency basis for the six months to June 30, 2026.

Group underlying earnings before interest, tax, depreciation and amortisation fell 2% year on year to £479 million.

Entain said stronger revenue performance was more than offset by higher UK online gambling tax. UK and Ireland online net gaming revenue rose 13% on a constant-currency basis, while group online underlying EBITDA fell 5% to £395 million.

The figures show the central issue for investors: higher customer revenue is not translating directly into stronger earnings when tax takes a larger share of remote gaming profits.

Higher duties target remote gambling

The government increased Remote Gaming Duty from 21% to 40% for accounting periods beginning on or after April 1, 2026.

The duty applies to profits from remote gaming with UK customers, including online casino and slot activity.

A separate 25% rate for remote betting is due to begin on April 1, 2027. Remote bets on UK horse racing will remain outside that new rate. Bingo Duty was abolished on April 1, 2026.

  • Remote Gaming Duty increased from 21% to 40% on April 1, 2026.
  • Remote betting duty is due to reach 25% from April 1, 2027.
  • Remote bets on UK horse racing are excluded from the new 25% rate.
  • Bingo Duty was abolished on April 1, 2026.

The changes concern duties on gambling with UK customers. They are separate from the licensing and compliance framework overseen by the Gambling Commission in Great Britain.

Northern Ireland, the Channel Islands and the Isle of Man do not share Great Britain’s licensing framework. UK tax rules can still apply to remote gambling involving UK persons under the place-of-consumption system.

What investors will watch next

Entain has maintained its full-year 2026 guidance for online net gaming revenue growth of 5% to 7% on a constant-currency basis.

It expects group underlying EBITDA, excluding parent fees, to range from £910 million to £960 million.

The company also expects to offset about 25% of the impact of the higher UK online gambling tax during 2026. It has pointed to operating efficiencies, product changes and a shift in the mix of betting and gaming activity.

Entain has not said that customers will face a specific change in prices or returns.

The FTSE decision will be assessed alongside the company’s next earnings updates. The key test is whether Entain can turn strong UK revenue growth into sustainable cash generation after tax, compliance costs and other operating expenses.

For Britain’s listed gambling sector, the proposed demotion is a visible market signal. Higher duties have not stopped revenue growth, but Entain’s results show how much of that growth can be diluted before it reaches the bottom line.