Entain Targets Brazil and US for Growth Amid UK Tax Rise Concerns

Global sports betting and gaming group Entain reported its H1 results on Tuesday, beating expectations with total EBITDA up 32%.

Total net gaming revenue (NGR), including the company’s 50% share in BetMGM, was up 7% year-on-year, 10% when adjusting for currency fluctuations.

Significant sporting events, including the soccer Club World Cup and Women’s European Championships, and major tennis tournaments, contributed to growth. The company has outlined key sporting events as drivers, and it is unlikely that any esports tournaments make up a significant proportion of wagers taken by the gambling behemoth.

A report from supplier Kambi recently showed that esports was the fifth-largest sport for betting volume this quarter, although Entain has not placed much emphasis on the vertical in recent years.

The company shuttered its esports-facing brand Unikrn in 2023, months after the acquisition of Sportsflare. Although the company emphasized that esports remained a key strategic pillar, there has been little movement in recent years.

Transformation Journey Well Underway, Says CEO

In the first half of the year, Entain had a change in leadership with Stella David replacing Gavin Isaacs in February. Isaacs lasted only five months in the role, but the company may have found some stability in David, who was appointed on a permanent basis in April.

She had previously served as CEO on an interim basis before Isaacs’ appointment, taking the place of Jette Nygaard-Andersen amid mounting criticism.

On the results, David commented: “I am delighted by the ongoing momentum and strong performance that both Entain and BetMGM have delivered in H1 2025. Entain’s transformation journey is well underway, gathering pace, and is supported by our high-quality portfolio of iconic brands with podium positions in attractive markets.

“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.”

Entain Targets Brazil and US As Tax Increases Loom in UK

BetMGM was a standout performer for Entain this year, increasing its revenue by 35%. Based on its performance, the company upgraded its FY25 outlook, noting there was a “clear path to $500m EBITDA and beyond.”

Overall, the gaming group is targeting EBITDA in the range of £1.1 billion to £1.15 billion (roughly $1.5 billion).

BetMGM is expected to expand into newly regulated markets in the US as Missouri becomes the latest state to legalize sports betting later this year.

Additionally, the newly regulated market in Brazil has been an area of growth for Entain. Net gaming revenue was up 21% in the region, which Entain stated is “performing in line with expectations in a highly competitive, newly regulated market.”

Tax increases in the UK could lead to the company increasingly targeting international markets. David played down concerns about any rise in rates, stating, “Of course, we don’t want to see taxes go up in the UK, but we have this fantastic [global] portfolio business.”

The company could target new regions in the future, with Korea pushing to create an esports betting platform. Expansion of betting in Korea could open up the market, which is currently restricted to the state-operated sportsbook Sports Toto.