Entain has reiterated its guidance for the end of 2026 after its online performance softened the blow of a continuing decline in British retail betting activity.

The LSE gambling group, one of the largest in the world with a market cap of £3.91bn, reported group wide Q1 revenue growth of 3%, with 7% coming from gaming, while sports betting revenue dipped 3%.

A similar disparity was seen between online and retail betting. Online betting revenue was up 5% while retail betting revenue was down 3%. Gaming revenue rose 9% online and 1% across retail channels while sports betting revenue was down 1% and 3% across both.

The signs point to Entain becoming an even more online-led enterprise, despite the prominence of its Ladbrokes Coral brands on British and Irish high-streets. Entain pointed to Q1 online revenue in the UK and Ireland being ahead of expectations at 13% growth.

Retail revenue was down 1%, however, in line with Gambling Commission statistics showing continued gradual decline in retail gross gaming yield (GGY) and participation. Entain, like other major retail stakeholders in the UK and Ireland, has been winding down some operations, such as announcing the closure of a number of Irish Ladbrokes shops earlier this year.

The group finds its navigating choppy waters in 2026, with Remote Gaming Duty (RGD) increasing as of April. This will likely affect Entain’s online performance, and while retail may have escaped the financial pressures of the tax increases it is still facing political scrutiny.

Nonetheless, Entain has taken confidence from its promising start to the year – at least from its online business – as well as from its international activity. The firm has reiterated its FY2026 guidance, expecting online net gaming revenue (NGR) growth of between 5-7% and £500m in annual adjusted cash flow in 2028.

“We entered 2026 with strong momentum which has continued in Q1, with strong volume growth across our diversified portfolio,” said Stella David, Chief Executive Officer of Entain.

“This further demonstrates our ongoing strategic execution and strengthening operations, and also highlights the growth embedded in our globally scaled business. Our strong and resilient business has started the year well, and we continue to build on this momentum.”

An international lifeline for Entain?

The UK and Ireland are, and will undoubtedly continue to be, core markets for Entain. With the regulatory and tax situation in the former looking increasingly sticky, however, its international activity may become even more important over the coming months and years.

Overall international revenue rose 1% year-over-year during Q1, with 8% growth for gaming and a 3% decline for sports. Online review was up 2%, again with an 8% rise in gaming and 2% decline for sports, while retail revenue dropped 4% overall with gaming revenue down 4% and sports revenue down 5%.

The group has also taken confidence from its Australian performance, with revenue up ahead of expectations at 12%. The group has two assets in Australia – Ladbrokes and Neds – active in a highly valuable market, though it is one that is also undergoing some political changes.

In contrast to Australia, the decline in the Central and Eastern Europe (CEE) segment of Entain’s international division has been staggering. Overall net gaming revenue was down 6% while online revenue dropped 1% and retail revenue dropped 30%.

BetMGM remains one of the key international revenue pipelines for the group, bringing in revenue of $696m from US and Canadian business for both Entain and its joint venture partner MGM Resorts.

As pressures mount in the UK, maximising returns from this international portfolio may become even more critical for Entain. This may require some tough decisions for the underperforming CEE division.

“Our sharper focus and optimisation initiatives reinforce our conviction in delivering sustainable growth and improving cash generation,” David added. “Entain remains well positioned to be a long-term industry winner, seizing the many opportunities ahead, and I am confident in our future.”