Entain to accelerate path to 100% regulated revenue with market exits
FTSE 100 giant to remain in grey markets it anticipates will regulate by the end of the year and updates market on sustainability drive
Entain is set to accelerate its plans to exit a number of unregulated markets where it sees no route to domestic regulation.
The FTSE 100 operator confirmed it would ramp up its strategy to derive 100% of revenue from nationally regulated markets by the end of 2023.
The strategy was implemented in November 2020, with the operator looking to establish itself as a sustainable business and decrease the risk it was exposed to.
In October, EGR was informed that “99.9%” of Entain’s revenue was derived from regulated markets, with the firm now looking to exit the final few unregulated markets.
Entain did not disclose which unregulated markets it remained in.
In February 2022, the operator pulled out of Russia and Moldova as part of its exit strategy.
However, Entain has confirmed it will remain in markets where it “expects changes in regulation”, enabling the firm to “obtain domestic licenses in due course”.
The most obvious of these markets is Brazil, where Entain operates its Sportingbet and Betboo brands.
Brazil’s regulation remains in limbo after former President Jair Bolsonaro failed to give the green light to sports betting legislation before leaving office in December.
EGR also understands that Entain is currently waiting on regulation in Asia, namely the Indian market.
Touching on the financial repercussions of the strategy, Entain said that the net gaming revenue and EBITDA impact from pulling out of said markets was “relatively small” and would have “no effect on current expectations”.
Entain chair Barry Gibson said the firm was acting “decisively” in its efforts to exit unregulated markets as it looked to future sustainability.
Gibson explained: “As part of the profound and far-reaching transformation programme that Entain has undergone in the last few years, we took the decision in 2020 to only operate in nationally regulated markets.
“Today’s [18 January] announcement is therefore a continuation of that strategy, and should be taken as a clear demonstration of Entain’s commitment to the highest standards of corporate responsibility, governance, sustainability and player safety.
“We stated at the outset that we would exit any market that wasn’t able to regulate at sufficient pace or to the right standards, and we have acted decisively to do so. We are proud to be leading our industry as the only global operator taking this approach of solely operating in markets where there is domestic licensing,” he added.