Entain Australia Grows 13% as CEE Exit Unlocks €425M

Kyle Kevin

iGaming Writer

Fact Checked

Entain’s Australia business powered 13% NGR growth in H1 while the company offloaded its CEE unit for €425 million — a move CEO Stella David insists is “no fire sale” as the group pivots toward New Zealand’s 2027 iGaming opening.

Entain’s Australia business delivered 13% NGR growth in H1 2026, with New Zealand surging 21% as the group positions for the country’s 2027 iGaming liberalisation. CEO Stella David and new CFO Michael Snape told analysts on Thursday that market share gains in Australia came from sharper product execution — enhanced bet builder tools, native apps, and a broader sports focus beyond racing. New Zealand’s growth is a warm-up. The country will issue 15 online casino licences starting 2027, and Entain wants three of them, including its existing TAB racing monopoly. However, the bigger strategic move is the exit door. In June, Entain agreed to sell a 20% stake in its Central and Eastern Europe unit to EMMA Capital for €425 million. The deal values Entain CEE at €2.1 billion and will cut group leverage below 3x. David called it value creation, not a distressed sale. “There’s no fire sale taking place here,” she said. The proceeds will reduce debt and return excess capital to shareholders. For operators across Asia, the Entain playbook is clear: exit mature markets with tax headwinds, double down on growth regions with regulatory tailwinds.

Australia and New Zealand Drive H1 Growth

Australia’s 13% NGR jump on constant currency built on Q1’s 12% gain, which Entain had already flagged as ahead of expectations. The turnaround is deliberate. David pointed to three inputs: a less exclusive focus on racing, streamlined operations, and investment in features that “really move the dial.” The bet builder enhancement and native app push have paid off in wallet share. New Zealand is the longer bet. Revenue there climbed 21% in H1, driven by the Betcha brand launched in August 2024 and the TAB racing partnership. Andrew Vouris, appointed ANZ CEO in August 2025 with 17 years of local sector experience, has had a year to align the business for 2027. New Zealand’s Online Casino Gambling Act 2026 will allow 15 licences, capped at three per operator, each tied to a single brand. Race and sports betting stay with TAB. Entain is not the only bidder — Betway’s Super Group also wants three licences. The regulatory framework is restrictive: gambling duty rises from 12% to 16%, plus 15% GST, a 1.24% problem gambling levy, and a 3.5% licensing fee. Marketing rules ban affiliate and influencer advertising. David called the 2027 opening “a new opportunity.” The question is whether Entain can hit its stated 50% market share target in a market where no operator may hold more than three of fifteen licences.

Spain’s Bwin Turnaround

Spain delivered the standout European number. Bwin’s NGR surged 28% in H1, a fourfold improvement in brand presence and a doubling of player acquisition. David said the market has “great momentum” and expects the inputs to keep generating share gains. The growth comes ahead of Spain’s incoming cross-operator player limits, scheduled for 2027. Neither David nor Snape expressed concern. The limits are designed to cap how much a player can lose across all licensed operators, a measure that could compress margins industry-wide. However, Entain’s scale in Spain — built on Bwin’s revived brand — may insulate it better than smaller competitors. The UK and Ireland also performed, with online NGR up 13% in Q1 and 6% across H1. Retail dipped 1%, reflecting the broader shift from high-street betting to digital. International NGR as a whole rose 7%. The CEE unit, which Entain is exiting, grew 2% in H1 before being discontinued in June. Online there rose 7%, but retail crashed 22%.

The CEE Exit and Balance Sheet Reset

The CEE divestiture is the defining strategic move of David’s tenure so far. Entain agreed in June to sell 20% of Entain CEE — which houses STS in Poland and SuperSport in Croatia — to joint venture partner EMMA Capital for €425 million. The deal implies a €2.1 billion enterprise value at roughly 10x EBITDA. Completion is expected in Q4 2026. Post-deal, Entain’s stake drops from 67.5% to 47.5%, with EMMA rising to 42.5% and the Juroszek family holding 10%. A voting agreement gives EMMA majority control. The financial logic is clean. Net proceeds will reduce Entain’s £3.6 billion net debt, saving roughly £20 million in annual interest. Future proceeds from a full exit will push reported leverage below 3x, with excess capital returned to shareholders. The FY26 Online EBITDA margin guidance drops from 23-24% to 21-22% because CEE — a higher-margin business — leaves the consolidated numbers. David framed it as portfolio optimisation. “We have really good value businesses that we continue to invest and grow,” she said. “But the CEE feel is a good example of adding value.” Snape added: “We’re very firmly focused on shareholder value and unlocking value from the portfolio.” Industry commentators noted that Entain’s pre-existing deal structure with EMMA made a fast exit possible. Poland’s iGaming monopoly and recent tax hikes also made the market less attractive. For players in Asia and beyond, the Entain story is one of geographic arbitrage: exiting taxed European markets to fund expansion in regulatory greenfields like New Zealand.

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