Entain Targets New Zealand Expansion While Outlining £50m UK Cost Strategy

Entain is exploring expansion opportunities in New Zealand as the operator considers applying for three of the 15 online gaming licences expected to be made available when the market launches.

Speaking during the company’s FY25 earnings call, CEO Stella David confirmed that the company is closely monitoring the development of the country’s regulated iGaming framework. While the potential market has not yet been factored into Entain’s financial forecasts for 2026 or 2027, the company believes there is significant long-term potential.

Chief Financial Officer Rob Wood indicated that the operator could realistically capture a substantial share of the market once it becomes regulated, with industry estimates suggesting the sector could be worth around £600 million. The licensing process is expected to begin in July, according to New Zealand Department of Internal Affairs, with a full launch anticipated in 2027.

Entain may also benefit from its existing presence in the country through its exclusive sports betting brand TAB. David noted that this position could allow the company to promote both betting and online gaming products within the same ecosystem, giving it a strategic advantage when the market opens.

£50m plan to offset UK tax changes

Alongside its international ambitions, Entain has also outlined a new strategy aimed at reducing the financial impact of upcoming increases to the UK’s Remote Gaming and Remote Betting duties.

The company has expanded its original cost-saving target from £25 million to £50 million. According to David, the revised plan reflects a broader focus on strengthening cash generation as the group progresses to its next stage of growth. Entain is targeting £500 million in annual adjusted cash flow by 2028.

Key measures within the plan include refining bonus strategies to improve customer retention, addressing gaps in its product offering and reviewing marketing expenditure relative to net gaming revenue. The company also reported strong customer acquisition levels, with rates exceeding 15%.

David also highlighted the role of artificial intelligence within the business, explaining that AI-led initiatives are helping streamline operations, enhance customer experience and accelerate technology development across the group.

Strong performance in the UK and Ireland

Entain reported continued momentum in its core UK and Ireland operations during 2025. Online revenue in the region grew by 15%, driven largely by an 18% increase in gaming revenue, while sports betting revenue rose by 7%.

The company also noted that it had expanded its market share in the UK and currently holds leading positions in 13 of the 16 regulated markets in which it operates.

David credited the growth to improvements in customer experience and product innovation across brands such as Ladbrokes, including the recent introduction of a bet builder feature for horse racing.

Financial results and outlook

For the full year, Entain reported gross profit of £3.2 billion, representing a 3% increase compared with the previous year. Underlying EBITDA rose 7% to £1.2 billion, supported in part by stronger-than-expected returns from its joint venture with BetMGM.

Looking ahead to 2026, Entain expects online net gaming revenue growth of between 5% and 7% on a constant currency basis. Group EBITDA, including BetMGM, is projected to remain broadly stable year-on-year despite the anticipated increase in UK gambling taxes.