Coral and Ladbrokes owner Entain faces the prospect of being relegated from the FTSE 100 as trading conditions continue to prove challenging.
The operator has been a mainstay of the index since they were rebranded back in 2020.
However, the spectre of tax increases and weakening performance is expected to see Entain demoted from the FTSE 100 next month and relegated to its sibling, the FTSE 250, in the latest blow for the outfit.
Entain Relegated to FTSE 250?
The FTSE 100 tracks the performance of the UK’s 100 biggest companies on the London Stock Exchange (LSE), which have been selected based upon their market capitalisation.
They are demoted from the top-tier index if their value falls below the top 110 companies that are listed on the LSE.
The drop to the FTSE 250 is considered a significant moment in a company’s history, as the firms listed here are generally considered ‘mid cap’ – rather than being the most revered businesses trading in the UK.
The next FTSE reshuffle will take place in September, with market analysts claiming that Entain and property construction firm Persimmon could be relegated to the 250, with EasyJet amongst those pushing for a promotion to the 100.
“Entain, which faces high UK gambling taxes and slower-than-expected US growth, faces possible additional pressure at the Autumn Budget in October, where new chancellor John Healey may target gambling companies to shore up the UK government’s finances,” reports the Morning Star.
It has been heavily rumoured that Healey, at the behest of Andy Burnham, could raise the tax owed on gaming machines stationed in betting shops, Adult Gaming Centres, bingo halls and the like.
Machine Gaming Duty (MGD) was frozen in the last Autumn Budget by Rachel Reeves, but the Prime Minister is a vocal opponent of gambling premises on UK high streets – he will no doubt look to make trading conditions all the more challenging for a sector that he has previously described as ‘dodgy businesses’.
If MGD is hiked, it will make some betting shops even more financially unviable – this at a time when in excess of 500 have been closed in 2026 by the likes of William Hill and Betfred.
Entain operates approximately 2,300 betting shops in the UK, but has permanently closed around 70 in the past 12 months. How many more will be forced to shutter if MGD is increased in the Autumn Budget?
And what impact would that have on their share price?
Free Fall
The Gambling Tax hike, initiated by the former chancellor Reeves last year, was seen as the latest kick to the guts of the sector.
Shop closures and marketing budget cuts are just some of the outcomes as firms like Entain look to rally and consolidate; they ended their long association with the Cheltenham Festival’s Coral Cup and other high-profile races and meetings.
They have since replaced those sponsorship deals with a commercial agreement with Birmingham City FC; suggesting that a fall-out between bookmakers and horse racing, with the latter emerging from the tax grab unscathed, is ongoing.
Over the past five years, Entain’s share price has crashed by 73.3% – with a 34% decline in 2026 alone.
August has proven to be a new nadir for the company, with their share value plummeting 11.24% this month alone.
Although share price should only be considered a guide as to a listed business’s worth and health, there are ramifications when investors fall out of love with a stock – as they have with Entain.
Relegation to the FTSE 250 would be a significant milestone as Entain chiefs look to rally around a positive enough set of first-half results in 2026 – net gaming revenue was up 7% year on year, which beat even their own expectations.
However, the Remote Gaming Duty hike was only rolled out in April, so it could be a while before the ‘new normal’ is revealed in Entain’s results – in April 2027, a tax increase on online sports betting revenue will also be introduced.
Adding to the challenges is the ongoing underperformance of BetMGM, Entain’s flagship operation in the burgeoning North American market that continues to lose ground to the likes of FanDuel and DraftKings.
Entain have already begun to make plans for the immediate future, making 500 job cuts and severing ties with some of their operations in Eastern Europe.
Relegation from the FTSE 100 would be the latest in a long line of blows suffered by a company that employs around 10,000 people in the UK alone.