Entain Remains Viable As JP Morgan Ups Shareholding In Gambling Giant

Entain has been given a lift after banking giant JP Morgan upped its shareholding in the UK gambling group. A message sent by Entain to the London Stock Exchange (LSE) earlier this week showed the 5% notification threshold had been crossed.

JP Morgan will now control 7% of Entain’s overall stock, split into 5.6% in direct voting rights and 1.4% in financial instruments. More specifically, the latter comprises cash-settled equity swaps with various expiration dates through 2031. Last Friday, Entain’s share price peaked at £5.42, meaning JP Morgan’s total stake could have been valued as much as £244.9m on that date.

A sign of renewed confidence?

Inevitably, the purchase of shares by JP Morgan, a US banking powerhouse with over £4 trillion in assets, suggests they have faith in Entain’s long-term sustainability. Moreover, JP Morgan stepped in to fill the void of New York hedge fund Eminence Capital, which shut down last month.

In the aftermath of Eminence’s closure, the company’s founder, Ricky Sandler, stood down, citing poor returns in a letter interview. The news came as a significant blow to Entain, as Eminence was the third-largest shareholder behind Capital Group and Dodge & Cox with a 6.5% stake.

Cashing in at the right time

JP Morgan made its move after Entain’s share price crashed by 31.8% year-to-date. With shares cheaper, JP Morgan has confidence that Entain will experience a resurgence this year.

There has been speculation floating about involving a potential sale of Entain. Although Entain has been the subject of an acquisition before, the company’s leadership team has yet to confirm or validate the rumours. Nevertheless, a transaction involving high-profile brands such as Ladbrokes and Coral could excite JP Morgan.

Keeping their heads above water

Despite the hike in Remote Gaming Duty (RGD) paid on online casino bets from 21% to 40%, Entain has cause for optimism, judging by its latest set of financial results. In Q1 of 2026, the final month before the new tax changes took effect, Entain lifted its net gaming revenue (NGR) by 6% year-on-year.

Although there was a slight slowdown in UK and Ireland (UKI) retail, sports wagers soared by 9%. While operators across the board are having to pivot in a more testing economic climate, Entain’s revenue for 2025 stood at £5.3 billion. This reflected a slight uptick from the £5.1bn in 2024, suggesting it has the tools to cope.

World Cup on the horizon

The timing of JP Morgan’s announcement is fascinating, given the World Cup is just a few weeks away. Although Entain CEO Stella David previously expressed her fears about the illegal gambling market tightening its grip on the World Cup, she revealed Ladbrokes has been gearing up for the summer extravaganza by revamping its app and rolling out a new experience.

Discussing her expectations for the World Cup on a trading update call last month, David said: “My observation on the World Cup — it will be great for volumes, but it’s going to be a bit of a rollercoaster ride, because in the early days, there are many more teams playing and margins could be widely fluctuating because there’ll be high scoring, lopsided games.

“I think towards the second half of the World Cup, it will be more equally based competitors. And I think there’ll be some lovely upsides there, particularly given that most of our markets are in the World Cup.”