Entain Group summed up its 2025 financial year on an analyst call, sending two key signals to the market. Net Gaming Revenue (NGR) rose by 8% to £5.3bn. The core UK&I segment delivered double-digit growth, and commentators from the investment community noted that Entain is now “materially ahead of its largest competitor” in the UK market.
On the same call, management unveiled plans to enter the upcoming regulated iGaming market in New Zealand and presented an updated £50m cost-savings programme designed to cushion the impact of tax increases in the UK.
New Zealand opens the door to online gambling
The regulated iGaming market in New Zealand, according to the local Department of Internal Affairs, will begin operating in 2027. The licensing process will begin as early as July this year. The model provides for the issuance of 15 licences, making the country one of the few jurisdictions with a capped number of licences.
Competition for these limited spots is expected to be fierce, and the market itself, despite its relatively modest size, is attracting the attention of major operators.
Three licences and “optionality” instead of firm forecasts
CEO Stella David told analysts that Entain intends to bid for three of the 15 available licences. At the same time, she stressed that New Zealand has been deliberately excluded from the company’s 2026 and 2027 forecasts. Management views this market as a potential opportunity rather than a revenue stream built into its financial model.
This approach allows Entain to keep its guidance conservative while also signalling the direction of its strategic interest.
Half the market and a key advantage: TAB
CFO Rob Wood estimated the size of New Zealand’s iGaming market at around £600m and suggested that Entain could capture up to half of the market. Management’s case rests on a unique competitive advantage: the company holds exclusive rights to the TAB betting brand in the country, which creates an opportunity for cross-selling between sports betting and online casino. No other operator has a comparable setup.
Previously, stakeholders discussed whether TAB would be able to apply for an iGaming licence at all, given its monopoly status in betting. However, both David and Wood expressed clear optimism about the prospects of such an application.
UK taxes rise as Entain expands its cost-savings plan
The upcoming increase in the rates of UK Remote Gaming Duty and Remote Betting Duty has prompted a review of the cost-savings strategy. The original £25m plan has been doubled to £50m. Stella David emphasised that the company’s priorities must evolve to reflect the “next phase”, and highlighted stronger cash generation as a key focus. The target for annual adjusted cash flow has been set at £500m from 2028 onwards.
The optimisation levers are varied. The company continues to fine-tune its bonus strategy, seeking to improve player retention. According to David, the customer acquisition rate “comfortably” exceeds 15%. One of the main tools influencing customer acquisition for most casinos is new no deposit bonuses. This type of offer is popular not only in New Zealand but also in many other countries around the world. Therefore, this marketing approach may indeed prove successful.
In parallel, Entain is closing product gaps and refining its offering to compete across the full breadth of its portfolio. A separate focus is reducing cost of sales and optimising marketing spend as a percentage of NGR.
The AI enablement programme was also cited as a source of savings. According to the CEO, it speeds up the development of technology solutions while also improving the customer experience and employees’ working conditions.
UK&I online gains momentum
The online business in the UK&I segment grew by 15% in the 2025 financial year. Gaming NGR increased by 18%, while sports NGR rose by 7%, although sports performance was pressured by fourth-quarter results.
Analysts pointed to the gap versus the nearest competitor, describing Entain’s performance as “a material lead”. David attributed the growth to improved customer journeys and a refreshed user experience for the Ladbrokes brand. She also mentioned the launch of a Bet Builder for horse racing as an example of product development delivering tangible results.
Profit, EBITDA and contribution from BetMGM
For the 2025 financial year, Entain’s gross profit totalled £3.2bn, up 3% on the 2024 result. Underlying EBITDA rose by 7% to £1.2bn. Profitability and cash flow were supported by a higher-than-expected return on investment from the BetMGM joint venture.
2026 guidance amid tax pressure
Management expects online NGR growth of 5–7% at constant currency, with “broad-based” positive momentum across the portfolio. Total group EBITDA, including BetMGM, is expected to be flat year on year, despite a “significant” increase in UK taxes. Entain expects to continue delivering single-digit growth and gain market share as smaller operators face mounting pressure from the regulatory and tax environment.
