Published
FinancialLegal & RegulatorySports Betting

Entain's share price drops 14% in two days amid regulatory challenges

Operator Entain has seen its share price fall 14% over the last two days, marking a stark decline of more than 30% compared to its value from the previous year.

SharesDown
Listen To Article

While Entain has been on an acquisition spree, it has also faced mounting regulatory pressure. In 2022, the company found itself in hot water as the Gambling Commission imposed a record-breaking £17m ($20.7m) settlement against Entain due to multiple lapses in anti-money laundering and safer gambling measures from the company.

The company has expressed that the recent decline in Entain's share price can be attributed to a combination of factors.

Ongoing regulatory challenges have persisted longer than expected, creating headwinds for the company's growth. Additionally, adverse sporting results in September have impacted sports margins, further affecting its financial performance.

Despite these challenges, Entain remains optimistic about its future. The company's CEO, Jette Nygaard-Andersen, emphasised that it continues to attract more customers and maintain their commitment to product improvements.

The acquisitions, including SuperSport, Retail and BetMGM, have shown robust performance, with BetMGM expected to achieve positive EBITDA in the latter half of 2023.

Entain anticipates that its online net gaming revenue (NGR) for the full year 2023 will experience low double-digit percentage growth, even as proforma NGR is expected to decline slightly.

The company is determined to meet its FY2023 EBITDA guidance, which remains in the range of £1bn to £1.05bn, supported by operational controls.

However, the question remains: how can Entain get its mojo back among investors?

Premium+ Connections
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
 
Premium
 
Premium
 
Premium Connections
Consultancy
Executive Profiles
Seminole Hard Rock Support Services
Seminole Hard Rock Support Services
Metropolitan Gaming
Holland Casino
Nederlandse Loterij
Follow Us

Facing Facts: Q1 2024 analysis from across the globe

Gambling Insider tracks the Q1 results of operators across t...

Taking Stock: A guide to sports betting operator and supplier prices

Gambling Insider tracks sports betting operator and supplier...

Tailor-made: The power of personalisation in the modern gaming industry

With insights from GR8 Tech, Greentube and the Oregon Lotter...

Sportradar and the Taiwan Sports Lottery: More offerings, greater efficiency

Danny Fok, VP of Strategic Projects at Sportradar, speaks al...