Entain Kicks Off CEE Exit With €425m Stake Sale

Entain has agreed to sell a 20% stake in its Central and Eastern European business to joint venture partner EMMA Capital for approximately €425 million. The deal marks the opening move in a planned full exit from Entain CEE. An enterprise value of around €2.1 billion sits behind it, roughly ten times annual earnings.

An upfront payment of €395 million is due at completion. A further sum tied to fiscal year 2026 performance follows in early 2027. The deal targets a close in the fourth quarter of this year, pending regulatory approvals.

Why Entain Is Leaving

Entain formed the CEE venture in 2022 after acquiring a 75% stake in SuperSport, a leading Croatian sports betting operator, from EMMA Capital. The business expanded when Entain added Polish sportsbook STS in a deal worth £750 million. Together, SuperSport and STS hold strong positions in their domestic markets. The STS platform has also migrated onto SuperSport’s infrastructure, marking a notable step in the unit’s operational development.

In fiscal year 2025, Entain CEE generated net gaming revenue of £522 million, up 7% on the prior year. EBITDA also rose 7% to £184 million. On a longer view, online revenue and earnings grew at double-digit compound annual rates between 2023 and 2025. The numbers look solid. But the first quarter of 2026 told a different story, with revenue from the region falling 6% year on year.

Despite that dip, Entain frames the sale as a capital allocation decision rather than a retreat. Management wants to unlock value built since the venture launched and put the proceeds to work reducing group debt. The company estimates the deal will generate approximately £20 million in annualised interest savings.

Ownership After the Deal Closes

Once the transaction completes, Entain’s stake in Entain CEE will fall from 67.5% to 47.5%. EMMA Capital’s holding rises to match at 47.5%, with the remaining 10% staying with the Juroszek family. The Juroszek family has also granted EMMA Capital voting rights over its shares, giving EMMA effective control of the business.

As part of the arrangement, the Juroszek family receives a put option on its 10% stake. It covers three exercise windows over the three years following completion. That gives the overall structure a relatively clean path toward full consolidation under EMMA.

Once Entain no longer holds a majority, the CEE business exits full consolidation in the group’s financial statements. Until a complete exit happens, Entain accounts for its share of profits and any dividends as a minority shareholder.

Debt Reduction Comes First

Entain has made its priorities clear. The company wants to bring its reported leverage below three times EBITDA before it returns surplus capital to shareholders. Proceeds from this sale go directly toward paying down debt, with further disposals expected as Entain looks to sell the rest of its stake.

CEO Stella David called the transaction a decisive first step toward a full exit. She said it reflects the company’s focus on capital discipline and long-term value for shareholders.

Entain updated its fiscal 2026 guidance to reflect the deconsolidation. It maintained its forecast for online net gaming revenue growth of 5% to 7% in constant currency on a like-for-like basis. The projected online EBITDA margin has been revised to a range of 21% to 22%, down from the previous 23% to 24%, as Entain CEE exits the consolidated numbers. The company said it remains comfortable with analyst expectations for group underlying EBITDA of around £1.13 billion. It also reiterated its target of generating around £500 million in annual adjusted cash flow by 2028.

Further guidance detail arrives when Entain publishes interim results on 13 August 2026.

The Opening Move in a Longer Exit

The €425 million transaction is the first step in what looks like a deliberate, multi-stage divestment. Entain built the CEE business into a meaningful regional operation over just a few years, but holding it no longer fits the group’s current direction. The valuation multiple suggests Entain is leaving on reasonable terms. The question now is how quickly the remaining stake sells, and what the company does with the cash when it does.