Gambling giant Entain has posted encouraging results for the first half of 2025… although the success hasn’t been reflected in their share price.
The Ladbrokes, Coral and BetMGM owner recorded net gaming revenue – that’s the amount taken in bets minus winnings paid out – of £2.6 billion in the UK alone for the period, which is an increase of 8% on the first half of 2024.
And despite the success of their results, Entain’s share price had fallen by nearly 2% today (August 12) on the day of their publication, as well as a staggering 9.78% during the prior five days, as fears of a tax hike during the Autumn Budget have shaken investor confidence.
The Good News
First, the good news.
Entain’s net gaming revenue is incredibly encouraging for the company; particularly as the figures focus on non-American operations, where they are enjoying tremendous growth – instead, these results are, principally, for the UK and Irish market.
Their EBITDA – which stands for earnings before interest, tax, depreciation and amortisation – was 11% higher than the first half of last year.
Both customer numbers and the volume of bets also increased, year on year, which has been partly attributed to the surprise success of the Club World Cup as a betting vehicle.
The final of that summer competition, contested by Chelsea and PSG back in July, became Entain’s most bet-upon football match of 2025 so far.
The group also celebrated the launch of their BetMGM brand outside of the United States. Backed by a high-volume ad campaign starring Chris Rock, the firm has enjoyed early success on UK soil.
The success of England’s Lionesses at the European Championship, as well as heightened interest in Royal Ascot and Wimbledon, have also helped to prop up Entain’s results at a time of year when things can start to grind to a halt for UK bookmakers.
Shareholders will have been alarmed to note that the firm posted a net loss of £96 million for the first half of 2025, although Entain chiefs claim that was due to one-off costs rather than anything sinister.
The bullishness over those results has also seen Entain update their forecast for the second half of the year, with projections of a 7% rise on 2024’s figures anticipated.
Their CEO, Stella David, who was appointed to the role back in April, commented:
“I am delighted by the ongoing momentum and strong performance that both Entain and BetMGM have delivered in H1 2025.
“Our business is getting stronger, fitter and faster, with these results reinforcing our confidence in driving sustainable underlying growth and generating more than £0.5bn of cash annually in the medium term.
“We have more to do, returning our business to its winning ways, making it stronger and fitter for the opportunities ahead.”
The Bad News
But here’s the bad news: it seems almost a certainty that there will be a tax raid on gambling firms following the next chancellor’s budget, which is scheduled for November.
In an exclusive posted on their website, The Guardian claims that an increase in the gambling levy is ‘near guaranteed’ as the chancellor, Rachel Reeves, seeks to raise money for the Treasury without hiking income tax and national insurance.
It comes after the former prime minister, Gordon Brown, told the same publication that taxes on gambling firms should be increased so that their annual contribution more than doubled to £5.5 billion a year, up from the current rate of £2.5 billion annually.
It’s thought that at the very least, the amount of tax paid by bookmakers and sports betting firms will be harmonised at the same rate paid by online casinos, which will see an increase up to 21% on profits.
However, there have also been suggestions that the government is planning to increase the amount paid across the board, with a hike up to 25% or higher possible.
The speculation has prompted a mass sell-off of industry stocks, with Entain amongst those worst hit – despite posting such positive first half results this week.
Flutter was down 7.08% in the five days up to August 12, while Evoke – the holding company for William Hill and 888 – saw their value plummet by 13.33% for the same period.
It echoes similar scenes witnessed in October 2024, when rumours of a gambling tax hike – which never came to pass – saw millions wiped off the sector’s shareholder value.