Entain could be relegated from the FTSE 100 after a sharp share-price decline, as higher UK gambling taxes weigh on earnings.

Entain, the owner of Ladbrokes and Coral, was listed by FTSE Russell as an indicative deletion from the FTSE 100 on August 25, 2026. The possible move highlights investor concerns about higher gambling taxes, weaker earnings and the company’s recovery plan.

The change is not final. FTSE Russell will use market data from the close of Tuesday, September 1, for its formal review. It will announce confirmed changes after the close on Wednesday, September 2. Any rebalancing is scheduled to take effect from Monday, September 21, according to LSEG.

Revenue is rising, but earnings are falling

Entain reported first-half 2026 net gaming revenue of £2.545 billion, up 7% from the same period in 2025. Underlying earnings before interest, tax, depreciation and amortisation fell 2% to £479.3 million for the six months to June 30.

The company said higher UK online gambling tax costs more than offset stronger revenue. Online net gaming revenue in its UK and Ireland division rose 13% at constant currency. Group online net gaming revenue increased 7% on the same basis, Entain reported.

  • First-half net gaming revenue: £2.545 billion
  • Year-on-year revenue growth: 7%
  • Underlying EBITDA: £479.3 million
  • Year-on-year EBITDA change: down 2%

Entain reports the United Kingdom and Ireland as one segment. The tax changes discussed here apply to gambling involving UK customers. Gambling licensing arrangements remain separate across Great Britain, Northern Ireland, the Channel Islands and the Isle of Man.

Tax pressure is arriving in two stages

HM Revenue and Customs 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-style products.

A new 25% rate for remote betting is scheduled to begin on April 1, 2027. Remote bets on UK horseracing will remain outside that rate and continue to face the existing 15% treatment. The government expects the wider gambling-duty package to raise more than £1 billion a year for public finances by 2031.

Entain previously estimated that the changes would add about £200 million a year to the cost of its UK and Ireland online business before mitigation. In its interim results, the company said it expects to offset about 25% of the higher UK online gambling tax impact during the 2026 financial year.

Shares have lost ground ahead of the review

Entain shares were reported at about 530 pence on August 27. That was roughly 42% below the 52-week high and about 30% below the level at the end of 2025, according to SBC News.

A move into the FTSE 250 would not change Entain’s licences or its obligations to the Gambling Commission. It could reduce the company’s visibility among investors and affect funds that track the FTSE 100.

The index change would reflect the share-price decline, not a regulatory enforcement decision. It would not itself alter Entain’s ability to operate under its existing licences.

Recovery plan faces a tougher test

Entain has maintained its 2026 guidance for online net gaming revenue growth of 5% to 7% at constant currency. It expects full-year group underlying EBITDA, excluding parent fees, to range from £910 million to £960 million.

The group is also pursuing a phased exit from Entain CEE. It has agreed to sell an initial 20% stake for €425 million. The deal implies an enterprise value of about €2.1 billion for the business.

Entain expects the transaction to complete in early fourth quarter 2026. It says proceeds from a full exit would help reduce leverage below three times earnings.

The September index review will determine whether Entain remains in the FTSE 100. It will not remove the underlying pressure from higher UK gambling taxes, which the company is attempting to offset through growth and restructuring.