Entain, the global gambling giant, is reportedly divesting its operations in Poland and Croatia, a move that industry experts attribute not to underperformance in those markets but to the financial strain imposed by a recent UK tax hike. The company’s decision to exit Central and Eastern Europe (CEE) is facilitated by a pre-existing deal structure with EMMA, which allows for a swift transaction. This development raises questions about the strategic priorities of one of the world’s largest gambling operators and the broader impact of fiscal policy on international expansion.
According to sources familiar with the matter, Entain’s withdrawal from Poland and Croatia is not a reflection of the business’s failure in these jurisdictions. Instead, the UK tax increase has significantly impacted the company’s bottom line, forcing a reassessment of its portfolio. The tax hike, which raised the remote gaming duty from 15% to 21% in the UK, has squeezed margins for operators heavily exposed to the British market. Entain, which generates a substantial portion of its revenue from the UK, has been under pressure to streamline operations and reduce costs.
The pre-existing deal structure with EMMA, a key partner in the region, has enabled Entain to move quickly on the divestiture. EMMA, which stands for Entain’s joint venture with the Polish gambling operator, has a framework that allows for the sale of assets without protracted negotiations. This structure has been instrumental in expediting the exit process, according to analysts. The exact terms of the deal have not been disclosed, but it is understood that the transaction will involve the transfer of Entain’s Polish and Croatian assets to EMMA or another entity.
Poland and Croatia represent significant markets in the CEE region, with growing online gambling sectors. Poland, in particular, has a regulated market — bettors can check the current ranking of licensed operators — that has attracted major operators, but it also faces challenges such as high taxation and strict advertising restrictions. Croatia, while smaller, has a developing market with potential for growth. Entain’s exit from these countries marks a strategic retreat from a region that the company had previously targeted for expansion.
The decision to sell comes at a time when Entain is focusing on core markets and seeking to reduce debt. The company has been under scrutiny from investors and regulators, and the UK tax hike has added to its financial burdens. By divesting non-core assets, Entain aims to strengthen its balance sheet and concentrate on markets where it has a stronger competitive position, such as the UK, Australia, and the United States.
Industry observers note that Entain’s move could signal a broader trend among UK-based operators reassessing their international portfolios in light of domestic tax pressures. The UK gambling industry has faced increased regulatory and fiscal challenges in recent years, including a review of the Gambling Act and higher taxes. These factors are prompting operators to reconsider their global strategies and prioritize markets with more favorable conditions.
For Poland and Croatia, the departure of a major operator like Entain could create opportunities for local and regional players to gain market share. However, it may also reduce competition and limit consumer choice. The impact on the local markets will depend on how quickly other operators step in to fill the void left by Entain.
As Entain proceeds with the sale, the industry will be watching closely to see how the company reallocates its resources and whether other operators follow suit. The UK tax hike has already led to cost-cutting measures across the sector, and further divestitures cannot be ruled out. Entain’s experience in Poland and Croatia serves as a cautionary tale about the interplay between domestic fiscal policy and international business strategy.
In the coming months, the completion of the sale will provide clarity on the financial impact for Entain and the future of its CEE operations. The company’s ability to navigate these challenges will be a key test of its resilience in an increasingly complex regulatory and tax environment.