Why Entain Is Walking Away From Poland and Croatia Despite Owning Two Market Leaders

Entain is selling down one of the strongest parts of its European business, and the numbers alone do not explain why.

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The gambling group has agreed to hand control of its Central and Eastern European joint venture to Czech investment firm EMMA Capital in a deal that marks the beginning of a full withdrawal from the region. The move is striking because the assets at the heart of the sale, Poland’s STS and Croatia’s SuperSport, have continued to generate steady growth and remain leaders in their domestic markets.

That disconnect has left analysts looking elsewhere for the real reason behind the exit.

A Sale Driven by Pressure Outside Central Europe

The business being sold was not underperforming. Entain CEE generated £522 million in net gaming revenue during 2025, while EBITDA climbed to almost £184 million. Both figures were up around 7% from the previous year.

Instead, attention has shifted to the UK.

Britain’s sharp increase in gambling taxes this year has dramatically changed the financial picture for major operators. Remote gaming duty doubled from 21% to 40%, while sports betting duty increased from 15% to 25%. Analysts estimate the changes have pushed Entain’s effective tax rate on UK profits above 80%, while the company’s share price has fallen roughly 30% since the tax measures were announced.

Against that backdrop, selling a valuable overseas asset became a relatively quick way to reduce debt.

The existing ownership agreement with EMMA Capital also made the process unusually straightforward. Once the transaction closes, expected in the fourth quarter of 2026, Entain’s stake will fall below 50%, EMMA will gain effective control, and the agreement is intended to lead to Entain’s complete exit over time.

The company has indicated that the proceeds will strengthen its balance sheet and lower annual interest costs.

Poland Still Offers Growth, But With Limits

The decision does not reflect a collapsing Polish betting market.

Industry specialists describe Poland as one of Europe’s more unusual gambling markets. Sports betting has expanded steadily despite a demanding tax structure, while licensed operators have adapted to conditions that many international competitors have chosen to avoid.

The biggest obstacle lies elsewhere.

Private companies are still excluded from Poland’s online casino market, which remains under a state monopoly. That means operators such as STS cannot build the kind of sportsbook-and-casino ecosystem that has become standard in many other regulated European jurisdictions.

Legal experts say that restriction has limited the strategic value Entain originally expected when it acquired STS for £750 million in 2023. While the company has been able to improve technology, customer management and operations, it has never been able to unlock the broader cross-selling opportunities available in more liberal markets.

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Hopes that Poland would eventually open its online casino sector have yet to materialize, leaving much of that long-term investment thesis unrealized.

Competition Has Become More Expensive

Entain has also acknowledged that Poland has become a tougher commercial battleground.

Earlier this year, executives disclosed that the business had begun losing some market share as competitors increased promotional spending. Rather than matching aggressive bonus offers, the company chose to protect profitability.

That strategy came as Poland’s online betting growth slowed significantly compared with Croatia, where revenue continued expanding at a much faster pace.

Market observers also believe STS no longer enjoys the clear dominance it once had, with rivals including Betclic and Superbet closing the gap after years of investment in marketing and product development.

The Deal Reflects Changing Priorities

The timing suggests Entain’s decision has less to do with Central Europe’s prospects than with its own financial priorities.

Analysts have argued that disposing of profitable assets allows the company to reduce debt while placing greater emphasis on businesses investors currently value more highly, particularly its US joint venture, BetMGM.

The existing partnership with EMMA Capital offered a ready-made route to transfer control without launching a broader sale process, making the Central European business the easiest asset to monetize first.

That leaves an unusual outcome. Entain is stepping away from two businesses that remain profitable, established and among the strongest operators in their markets—not because the local strategy failed, but because pressures elsewhere inside the group appear to have become more urgent.

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Source: igamingbusiness.com