Entain eyes half of NZ iGaming market, doubles UK savings

Entain plans to apply for three of New Zealand’s 15 planned iGaming licenses and has doubled its UK tax savings target to £50 million, as full-year 2025 net gaming revenue increased 8% to £5.3 billion. Executives outlined the targets on the FY25 results call and pointed to further share gains in the UK.

Chief Executive Stella David told analysts the New Zealand opportunity is not included in 2026 or 2027 forecasts. The Department of Internal Affairs expects the licensing process to begin in July ahead of a planned 2027 launch. Chief Financial Officer Rob Wood put the market at about £600 million and indicated Entain could capture up to half. With exclusive sports betting rights through TAB in New Zealand, the company would be the only online operator positioned to cross-sell between sports and iGaming if licensed.

In the UK and Ireland, online revenue grew 15% in 2025, driven by an 18% rise in gaming NGR and a 7% increase in sports NGR, which was affected by fourth-quarter results. The group reported share gains in the UK and podium positions across 13 of its 16 active markets. Responding to a comment on the call that Entain is “materially outperforming its largest competitor” in the UK, David linked momentum to improved customer journeys and a refreshed Ladbrokes experience, including a new racing bet builder.

To offset higher Remote Gaming and Remote Betting duties, Entain doubled its previously announced savings plan to £50 million. David described the shift as “to reflect the next stage in its journey,” with a sharper focus on cash generation. Ongoing efforts include refining bonusing for retention, closing product gaps, improving cost of sales, and optimizing marketing as a percentage of NGR. The company pointed to its AI-enablement program for operational efficiencies that improve customer and colleague experiences and speed technology development. Customer acquisition is running comfortably above 15%.

For the 12 months to year-end 2025, Entain reported gross profit of £3.2 billion, up 3% year over year, and underlying EBITDA of £1.2 billion, up 7%. Profitability and cash flow benefited from a higher-than-expected return on investment from BetMGM. Looking to 2026, Wood guided to online NGR growth of 5% to 7% on a constant-currency basis, with broad-based growth across the portfolio, and indicated total group EBITDA, including BetMGM, should be stable year over year despite higher UK taxes.

The company expects to continue single-digit growth in 2026 and aims to further increase UK market share as smaller operators face pressure from regulatory and tax changes. Entain is targeting annual adjusted cash flow of £500 million from 2028, supported by cost controls, marketing optimization, and product enhancements.

On New Zealand, David and Wood expressed confidence in the licensing pathway, noting earlier debate over whether TAB could apply for an iGaming license has eased. Entain reiterated that any contribution from New Zealand is excluded from near-term forecasts until the market opens.