Entain targets three New Zealand licences as FY25 NGR hits £5.3bn

Entain is pursuing three of the 15 available iGaming licences in New Zealand, CEO Stella David confirmed during the company’s FY25 results call on 5 March, as the operator reported group net gaming revenue up 8% to £5.3 billion for the full year.

The New Zealand opportunity has not been included in Entain’s forecasting for 2026 or 2027, David told analysts. Despite that, CFO Rob Wood said Entain expects to capture up to half of a market estimated to be worth £600 million. The licensing process is set to begin in July, according to New Zealand’s Department of Internal Affairs, with the market itself expected to launch in 2027.

Entain’s position in New Zealand is structurally distinct from any other potential applicant. Through its exclusive betting brand TAB, it is the only operator currently able to cross-sell between sports betting and iGaming in the market. There had been prior uncertainty among stakeholders about whether TAB could even apply for an iGaming licence given its monopoly status, but both David and Wood appeared confident the path forward is clear.

New Zealand’s iGaming licensing developments are closely watched across the industry. The country recently moved to declare prediction markets illegal while advancing 15 online casino licences, signalling a deliberate regulatory framework focused on controlled market entry.

UK tax mitigation plan doubled to £50m

On the domestic front, David unveiled an updated plan to generate £50 million in savings to offset the financial impact of incoming increases to the UK’s Remote Gaming and Remote Betting duties. The savings target has doubled from the original £25 million figure the company had set out previously.

David said Entain’s priorities had to evolve to reflect what she described as the next stage in its journey, with a sharpened focus on cash generation. The company is targeting £500 million in annual adjusted cash flow from 2028.

The savings programme includes refining bonusing to improve player retention, closing product gaps, and reducing cost of sales. David said customer acquisition rates were comfortably above 15%, and that the company had more to do on optimising marketing as a percentage of NGR. AI-enablement was also cited as a contributor to both cost savings and improvements in customer and colleague experience.

Entain expects to continue on its single-digit growth trajectory in 2026, with smaller UK operators expected to struggle to compete against scaled incumbents.

UK market share gains

Entain recorded 15% online growth in its core UK and Ireland market during 2025, driven by 18% gaming NGR growth. Sports NGR was up 7% for the 12-month period, though it was weighed down by results in Q4. The operator said it had grown UK market share during the year and held podium positions in 13 of its 16 live markets globally.

One analyst on the call described Entain as “materially outperforming its largest competitor” in the UK. David attributed this to improved customer journeys and a revamped Ladbrokes experience, including the recent launch of a bet builder for racing.

The performance puts Entain in a different position to several UK-focused peers. Evoke’s Q4 results reflected the uneven operating environment for UK operators contending with tax headwinds, where gaming growth has had to offset softness elsewhere.

Bottom line and 2026 guidance

Gross profit for the full year came in at £3.2 billion, up 3% from 2024. Underlying EBITDA rose 7% to £1.2 billion. Profitability was supported by a higher-than-expected return on investment from BetMGM, the US joint venture with MGM Resorts. BetMGM reported record revenue of $2.8 billion in FY 2025, underlining the JV’s contribution to Entain’s overall performance.

For 2026, the company is guiding online NGR growth of 5-7% on a constant currency basis, with broad-based growth expected across the portfolio. Total group EBITDA, including BetMGM, is expected to be stable year-on-year despite absorbing the full impact of the UK tax increases, Wood said.

Source: Entain