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(AsiaGameHub) –   Entain has reaffirmed its full-year 2026 outlook, as robust online results helped offset the ongoing downturn in its British retail betting operations.

The London-listed gambling giant, which holds a market valuation of £3.91bn, reported a 3% increase in total group revenue for the first quarter. This was driven by a 7% rise in gaming revenue, which helped balance a 3% decline in sports betting income.

A similar trend was observed when comparing digital and physical channels. Online betting revenue grew by 5%, whereas retail revenue fell by 3%. Specifically, gaming revenue climbed 9% online compared to 1% in retail, while sports betting revenue saw declines of 1% and 3% across those respective channels.

These figures suggest that Entain is increasingly becoming a digital-first business, despite the high visibility of its Ladbrokes and Coral brands on British and Irish high streets. Notably, Entain highlighted that Q1 online revenue in the UK and Ireland exceeded expectations with 13% growth.

Conversely, retail revenue dipped 1%, consistent with Gambling Commission data indicating a steady decline in retail gross gaming yield (GGY) and customer participation. Like other major UK and Irish retail operators, Entain has been scaling back its physical footprint, including the closure of several Ladbrokes locations in Ireland earlier this year.

The group faces a challenging landscape in 2026, compounded by an increase in Remote Gaming Duty (RGD) effective from April. While this tax hike will likely impact online performance, the retail sector continues to navigate its own set of political pressures.

Nevertheless, Entain remains optimistic due to a strong start to the year—particularly within its online and international segments. The company has reiterated its FY2026 guidance, projecting online net gaming revenue (NGR) growth of 5-7% and targeting £500m in annual adjusted cash flow by 2028.

“We entered 2026 with strong momentum which has continued in Q1, with strong volume growth across our diversified portfolio,” stated 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?

While the UK and Ireland remain core markets, the increasingly complex regulatory and tax environment suggests that international operations will play a vital role in the company’s future.

Overall international revenue grew 1% year-over-year in Q1, with gaming revenue up 8% and sports revenue down 3%. Online revenue for the international segment rose 2%, reflecting an 8% increase in gaming and a 2% drop in sports, while retail revenue fell 4% overall, with gaming and sports down 4% and 5% respectively.

The group also drew confidence from its Australian operations, where revenue outperformed expectations with 12% growth. Entain operates two brands in this lucrative market—Ladbrokes and Neds—though the region is currently experiencing its own regulatory shifts.

In contrast, the Central and Eastern Europe (CEE) segment has seen a significant downturn, with total net gaming revenue falling 6%. Within that division, online revenue slipped 1%, while retail revenue plummeted 30%.

BetMGM continues to be a primary revenue driver for the group, generating $696m in revenue from US and Canadian operations for both Entain and its joint venture partner, MGM Resorts.

As domestic pressures intensify in the UK, maximizing the potential of its international portfolio will be essential for Entain, which may necessitate difficult strategic choices regarding 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.”