Reports have emerged that Entain is ‘exploring options’ regarding its Central and Eastern European (CEE) joint venture operations, including a ‘possible sale’.
Reuters has stated that Entain has been under pressure to cut costs in recent months to offset the rise in remote gaming duty in the UK market.
The report noted that one option for the SuperSport and STS operator in the CEE could be to ‘sell its holding to Czech investment firm EMMA Capital’, its joint venture partner in the region, with proceeds being ‘used to pay down debt’.
However, Reuters also clarified that ‘discussions are in the early stages and there is no certainty that a transaction will be agreed’. Entain declined to comment on the speculation when contacted by SBC, while Reuters added that EMMA Capital ‘would neither confirm nor deny any talks’.
Entain’s joint venture with EMMA Capital in the CEE region has been in place since 2022, when Croatian operator SuperSport was bought by the two parties. This deal featured a ‘call-and-put option’ over EMMA’s stake, which can be exercised by either party from the third anniversary of completion.
The joint venture grew a year later when the Polish operator STS was acquired.
Mikolaj Cymerman, Chief Commercial Officer at Entain CEE, recently spoke to iGaming Expert about the potential of the CEE region and the challenges operators face.
Cymerman said: “Adapting to a dynamic environment is essential for success in any CEE market. Regulatory frameworks evolve, tax regimes change, competitive landscapes shift, markets mature and customer expectations continue to rise.
“Operators that succeed in the region are those that can adapt quickly while maintaining a long-term strategic vision. We’ve seen markets transition from purely locally dominated environments to highly competitive international ecosystems in a relatively short period of time. At the same time, technology adoption, mobile penetration and product sophistication have accelerated significantly.
“The challenge is balancing agility with discipline. You need to be able to react to change while continuing to invest in the products, brands and capabilities that will drive sustainable growth.”
In Q1, Entain CEE operations saw a 6% year-on-year decline in net gaming revenues, down 1% for online and 30% for retail operations. The company noted that Poland ‘benefited from its migration to CEE SuperSport platform’, but highly customer-friendly sports results ‘weighed on NGR due to a football-heavy sports mix’.
