ENTAIN (ENT) SHARES: 2025 PERFORMANCE IN UK, KEY DRIVERS, MILESTONES AND RISKS —'26 OUTLOOK

How did Entain perform in 2025?

Entain plc (LSE: ENT), a leading global sports betting, gaming, and interactive entertainment group, experienced significant developments throughout 2025. As one of the most closely-watched gaming stocks on the London Stock Exchange, Entain's 2025 share performance reflected both a recovery from legislative uncertainty and increasing investor focus on digital and regulated market expansion.

The company's share price started the year at approximately 990p and ended near 1,120p, implying a YTD gain of around 13%—modest, but notable given wider volatility in the FTSE 100. Volumes remained high, reflecting continuing institutional interest, though the rising regulatory focus and increased operational costs in key geographies weighed on overall sentiment.

From a financial perspective, Entain posted resilient revenue growth in its full-year 2025 results. Total group net gaming revenue rose 6% compared to 2024, buoyed by solid performances in online sports betting and gaming. Its diverse portfolio and international presence—spanning over 30 regulated markets—continued to shield it against abrupt regional downturns.

Entain’s UK retail betting segment stabilised following post-pandemic recovery and tech enhancements in betting shops. However, online verticals remained the chief growth engines. The integration of new artificial intelligence tools to drive acquisition and retention helped digital margins, alongside a growing customer base in both core European and Latin American markets.

One of the defining moments in 2025 was the leadership transition, with Jette Nygaard-Andersen stepping down as CEO in early summer. Her replacement, former COO Rob Wood, quickly reasserted strategic priorities, focusing on compliance, profitability, and technology-driven betting experiences. Investor reactions were cautiously optimistic, with a brief dip in share price during the transition offset by subsequent clarity around long-term ambitions.

Another milestone involved the definitive exit from unregulated markets, including grey-zone jurisdictions in Asia, as part of Entain’s broader ‘Sustain’ strategy geared towards 100% regulated revenue. This move reassured ESG-focused stakeholders and aligned the group more closely with UK and EU compliance standards, although it did temporarily impact certain revenue streams.

Additionally, Entain’s BetMGM joint venture in the United States achieved stronger market share, particularly in states like Michigan and New Jersey. While the JV remains capital-intensive, revenue from BetMGM crossed the $2 billion mark annually. Analysts remained mixed on the profitability timeline but broadly concurred that Entain’s technology and operational scale position it well in North America.

Despite macroeconomic headwinds—including inflationary pressures on consumer discretionary spending and rising UK interest rates—Entain managed to maintain EBITDA margins above 20%, a testament to its operating discipline and technology-led efficiencies.

Overall, 2025 was a measured recovery year for Entain. The group balanced regulatory obligations, digital transformation, and geographic diversification to post consistent if not spectacular growth. For investors, it signalled stable footing heading into 2026.

What influenced ENT share price in 2025?

Several strategic and market-wide factors influenced Entain's share price throughout 2025. These drivers include regulatory developments, leadership changes, joint ventures, and technology initiatives that shaped investor sentiment and stock valuation.

1. Regulatory landscape in the UK

The UK Gambling Commission’s White Paper feedback materialised into actionable changes in 2025, including stricter affordability checks and advertising restrictions across online platforms. While these knotted daily operations, Entain’s early investment in internal compliance and ‘Advanced Responsibility & Care’ programme helped mitigate regulatory frictions. Some competitors experienced profit shrinkage due to rushed adaptations, giving Entain modest competitive breathing room.

Still, these measures did impact ARPU (average revenue per user) in the UK segment, contributing to flat growth in certain quarters. Investor concern around tightening UK margins was reflected in short-lived volatility in Q2 and Q4 share performances.

2. Global expansion and joint ventures

On the growth side, Entain doubled down on its commitment to North America and Latin America. The momentum behind BetMGM in the United States continued to be a critical valuation driver. Quarterly updates showing increased user engagement and market penetration reassured stakeholders of the JV’s long-term viability, despite rising competition from DraftKings and FanDuel.

In Latin America, Entain's acquisition of a majority stake in a Brazilian operator marked a strategic foray into a rapidly liberalising market. Strength in local operations demonstrated Entain’s capability to localise technology stacks while maintaining group-wide risk controls.

3. AI and data-driven betting tools

Entain invested heavily in AI tools for player analytics and responsible gambling across its online platforms. Algorithms built on behavioural tracking allowed more accurate risk profiling, higher user retention rates, and better customer lifetime value. Analysts saw this as a long-term moat that enhances both profitability and compliance credibility.

These tools also contributed to a more targeted marketing approach, increasing conversion rates without breaching advertising code thresholds—crucial amid tightening UK promo guidelines.

4. Leadership developments

The CEO transition introduced uncertainty initially, but Rob Wood’s credentials and track record as CFO and COO soothed market nerves. His vision for aggregating global operations under a single digital platform framework resonated with institutional investors seeking scalable efficiencies.

5. Share buyback programme

To buoy investor confidence, Entain announced a £300 million share buyback in Q3 2025. This not only uplifted the share price in the second half of the year but was also welcomed by long-term holders as a sign of management confidence and cash flow robustness.

Yet, analysts warned that without consistent improvement in growth markets, buybacks may offer only temporary support.

In sum, Entain's ability to proactively address regulatory shifts, harness technology, and manage large-scale integrations helped limit volatility and guide the share price to a modest uptick over the year. Strategic clarity from management proved a stabilising force, particularly after a turbulent 2024.

What to watch with ENT shares in 2026?

Looking to 2026, there are multiple variables investors should closely track when it comes to Entain. While growth opportunities remain credible, several risks and dependencies must be assessed to determine if ENT shares can outperform broader market benchmarks.

1. Regulatory evolution in core markets

The most immediate concern stems from ongoing regulatory tightening, particularly in the UK and EU. The full-year impact of new affordability and advertising rules will be clearer by mid-2026. Stakes are high: consistent compliance is expensive to maintain, and even minor lapses could lead to monetary penalties and reputational damage.

Further changes in Scotland and the Republic of Ireland have also been proposed. If enacted, Entain’s comprehensive compliance framework is expected to handle them better than smaller peers—but implementation costs could still challenge overall margin stability.

2. US sports betting profitability

After years of rapid expansion, US sports betting markets are expected to consolidate. For Entain, sustained market share gains and profitability from BetMGM will be pivotal in shaping investor sentiment in 2026. With more US states evaluating betting legalisation, Entain must strike the right balance between aggressive growth and operational discipline.

If BetMGM can achieve positive EBITDA in more states, it could act as a catalyst for a share price re-rating. Conversely, if losses persist beyond Q3, analysts warn of downward pressure on ENT’s valuation.

3. Expansion in emerging markets

Emerging regions such as Brazil, India, and parts of Africa offer tremendous potential, but require precise regulatory navigation, local partnerships, and capital allocation. Entain’s early entry into Brazil puts it ahead of many peers, yet questions remain about scalability and profitability timelines.

Investors will want visibility on whether revenue from these regions can offset more mature market deceleration, especially given localised marketing and platform adaptation costs.

4. ESG and stakeholder alignment

Entain’s 'Sustain' agenda positions it as a leader in ESG compliance among gaming operators. However, expectations from institutional investors—including ethical funds and pension schemes—are rising. Key focus areas include carbon disclosure, gender representation in management, and customer protection metrics.

Failure to meet benchmarks may not only pose reputational threats but can also directly affect capital access and index inclusion, both of which weigh on share price upside potential.

5. Potential M&A activity and cost rationalisation

There is speculation of both acquisition targets and possible bids for Entain itself, especially given recent regulatory clearance for consolidation in the gaming sector. While no formal offers have been made, 2026 could see renewed M&A activity—including bolt-on acquisitions or joint tech ventures.

Additionally, market focus will be on whether Entain can meet its 2026 target of delivering £100 million in annualised cost savings through IT consolidation and shared service models.

The bottom line

2026 is shaping up as a pivotal year for Entain. Its performance will hinge on consistent execution across regulatory adaptation, profit-generation from BetMGM, sustained growth in emerging markets, and robust stakeholder alignment. While upside exists, particularly with scalable AI-led platforms and high-margin digital betting, maintaining momentum in the face of global scrutiny will be the ultimate test for ENT shares.