Entain Reports Strong UK & Ireland Growth To Offset Brazil Problem

Entain has released its Q3 financial results, and it seems that the gambling giant is carrying some momentum. The trading period, covering July 1 to September 30 2026, indicated that group net gaming revenue (NGR) jumped by 2%.

Despite the 2% drop in group retail growth, UK & Ireland (UK&I) experienced an 8% uptick in NGR. Moreover, the results served to underpin the diversity and quality of its portfolio.

Double-digit domestic growth

Clearly, Entain’s domestic operation pulled its weight. Among the key takeaways was that UK&I online NGR soared by 14% to outperform expectations, while New Zealand, Spain, and Canada also produced double-digit growth.

Compared to Q2, the Q3 results appeared to be on a solid trajectory. In Q2, group net gaming revenue climbed by 5%, with online and retail defying expectations. UK&I online NGR soared by 13%, underpinning the momentum.

Brazil challenge flagged

Brazil was ostensibly the elephant in the room with regard to the financial results. With online gambling banned in the country as of last month, the challenges were flagged in Entain’s report as NGR in the region plummeted by 36%.

Although margins were squeezed as Entain were functioning in a highly competitive environment, the group’s Q3 online NGR, excluding Brazil, rose by 5%.

However, this was tempered by Entain’s core profit for the rest of the year would likely be at the lower end of its earlier forecasted range of £910 million to £960 million.

Budget concerns raised

Over the past few weeks, Entain has intensified calls for the government to backtrack over its plans to raise the Machine Games Duty (MGD) rate to 40%. Apart from unveiling its own ‘What’s at Stake’ campaign to shine a light on the struggles faced by the retail betting industry, Entain’s CEO, Stella David, is growing increasingly concerned that young workers could be hit by new tax rises.

Indeed, Entain currently employs more than 2,500 Under-25s, and recruits roughly 650 young people a year. Modelling carried out by accountancy firm Ernst & Young (EY) suggested betting companies could be at the eye of a storm as a significant hike in gambling tax rates could see 16,000 retail betting shops and 1,500 jobs put at risk.

Apart from writing to the Prime Minister, Andy Burnham, reports emerged that David co-signed a letter with other major betting groups to the Chancellor, John Healey, in a last-ditch attempt to avert a tax bombshell in the Budget.

There has also been a string of warnings about how the betting industry, which contributes £4 billion in tax revenues, could be decimated if the MGD rate materialises.

Entain carrying momentum

Despite dropping out of the FTSE 100 in August, and seeing its target share price previously lowered, city analysts are still harbouring strong hopes that Entain can turn things around.

Although Entain hasn’t been immune to the economic challenges permeating across the industry, David took the positives from the Q3 results, intimating she is optimistic about the company’s outlook.

In a statement, she said:

“I am pleased with our Q3 performance which reflects the strength of our execution and reinforces the resilience of our globally scaled business as well as its ability to consistently deliver high-quality growth.

“The underlying momentum we are seeing across our diverse portfolio supports our confidence in reiterating FY26 guidance. I am confident our disciplined focus on growth and optimisation will deliver strong future cash generation, and that Entain remains well positioned to be a long-term industry winner.”