Entain Moves Toward Three Licences as New Zealand Builds Regulated iGaming Market

Key Points

• Entain plans a bid for three of the fifteen iGaming licences in New Zealand while the regulated market prepares for launch during 2027.
• The company reported eight per cent growth in FY25 net gaming revenue reaching £5.3bn with fifteen per cent online growth in the UK and Ireland.
• Entain announced a £50m saving plan to respond to rising UK gambling tax and expects five to seven per cent online NGR growth in 2026.

Gaming company Entain shared a plan to enter the New Zealand online casino market as it prepares applications for three licences once the government opens the process in 2026. Officials from the Department of Internal Affairs stated licensing procedures should begin during July while the regulated online gambling market may start during 2027. Under the present plan authorities expect to issue fifteen online casino licences by December 2026 which forms a step toward a national regulated gambling system. Winning three licences would allow Entain to reach more customers extend its products and secure a position inside the New Zealand gambling sector. During the FY25 results call chief executive Stella David told analysts the company is studying whether it can gain three of the fifteen available iGaming licences. However company leaders also explained that possible entry into the New Zealand online casino market still remains absent from financial forecasts for 2026 and 2027.

Entain operates the exclusive TAB brand across New Zealand which gives the operator market presence and also offers a strategic advantage in future expansion. Because the betting brand already runs a nationwide company can link sports betting services with upcoming online casino products through cross-selling. David explained that this structure makes Entain the only online operator able to connect sports betting services with iGaming products. Along with that benefit the company also holds an exclusive licence for online sports and racing betting across New Zealand. Andrew Vouris chief executive of Entain stated that existing operations and experience place the company in a position for this opportunity. Vouris said Entain may become an operator offering sports betting racing wagering and possibly online casino games together. Earlier discussion created doubt about whether TAB could apply for an iGaming licence since it already holds a betting monopoly.

Despite those doubts David and Chief Financial Officer Rob Wood showed confidence in the opportunity created by developing the online casino market. Wood informed analysts that Entain could gain up to half of the country’s gambling market valued at nearly £600 million if the expansion plan succeeds. Interest in iGaming growth also connects with regulatory efforts seeking to organise New Zealand online gambling activity. Entain’s position in the local betting sector began through a long term partnership agreement formed earlier in the decade.

During 2023 Entain and TAB New Zealand signed a twenty five year agreement delivering onshore betting services across the country. That agreement also aims to stop unlicensed operators from offering betting services to customers located inside New Zealand.

Entain Records Growth While New Zealand Expansion Creates Attention

Performance inside the New Zealand market already shows momentum which explains why Entain now studies expansion possibilities there. This development appears in company results where current operations recorded about twenty eight percent year on year growth. Because of that performance competitors began to observe the situation and prepare a reaction to Entain’s strategy. Soon after the announcement SkyCity Entertainment Group revealed interest in providing iGaming services in the developing online casino market. The company also stated a plan to become a trusted participant inside the future online casino industry of the country. At the same time Entain presented an expansion approach while releasing FY25 financial results to analysts and investors. During the reporting year the operator achieved eight per cent growth across the group’s net gaming revenue.

Due to that rise total net gaming revenue reached about £5.3 billion for the period. Financial indicators from the same period also showed progress across several areas of business activity. Across a twelve month period Entain reported gross profit of nearly £3.2 billion representing three per cent growth compared with 2024. Meanwhile underlying EBITDA increased seven per cent year on year reaching about £1.2 billion. Executives stated strong profit and cash flow partly resulted from higher returns delivered by BetMGM during the year. Because of this outcome joint ventures added greater support to the financial position of the group. Alongside those gains Entain also recorded performance progress inside the main market covering the United Kingdom and Ireland. Within that regional segment company reported about fifteen per cent online growth during 2025 supported by increased gaming participation.

Gaming net gaming revenue in the segment rose eighteen per cent during the year strengthening the expansion of online activity. Sports net gaming revenue also increased about seven per cent during the same twelve-month period although the fourth quarter performance lowered the annual figure. During the year Entain stated it raised market share within the United Kingdom demonstrating stronger activity in one of its markets. Analysts reviewing results reported the company now performs above its main competitor within that market. Executives linked this outcome to improvements across customer journeys and upgrades within digital betting products. Management also mentioned changes within the Ladbrokes platform while presenting a refresh of the Ladbrokes experience for customers. As part of the updates the company introduced Bet Builder designed for horse racing bettors.

Release of this product supported a wider plan to renew the platform and encourage engagement among racing customers. Due to those developments Entain stated that product strategy and customer changes helped the company reach podium positions across thirteen of sixteen global markets. At the same moment executives confirmed the customer acquisition rate remained above fifteen per cent. During the results call Stella David also introduced a cost saving programme responding to rising tax pressure in the United Kingdom. Revised strategy now targets savings of about £50 million to counter the higher cost from Remote Gaming and Remote Betting duties. This saving objective marks a change from earlier company financial planning. Previously Entain expected to save around £25 million yet the company later increased its target to £50 million.

David explained priorities have moved as the company enters the next stage focusing stronger attention toward cash generation. Through this direction the company now expects to produce around £500 million adjusted annual cash flow starting in 2028.

Entain Seeks Efficiency Through Cost Control and AI Programme

Within the wider efficiency strategy Entain intends to adjust the bonusing approach to strengthen player retention across betting platforms. Through these changes the company also plans to close product gaps while continuing improvement across operational areas. Stella David explained that Entain still must improve the cost of sales and control marketing spending compared with net gaming revenue. These operational actions belong to a strategy designed to protect profitability while regulation rules and tax costs increase across markets. Alongside these actions executives also referred to the artificial intelligence enablement programme as a driver supporting efficiency. David stated the programme improves customer experience and employee experience while accelerating technology development across the organisation.

Because of efficiency plans Entain expects to maintain a single digit growth path during 2026. At the same time the operator plans to further increase market share within the United Kingdom. This aim may become achievable as smaller operators struggle to operate under regulation structure and tax pressure. The company also expects moderate growth across online business activities. Entain forecasts online net gaming revenue growth between five and seven per cent during 2026 supported by balanced product expansion. Despite tax pressure in the United Kingdom group expects overall profitability to remain stable. Chief financial officer Rob Wood stated that total group EBITDA including BetMGM contribution should remain stable year on year. This stability should continue even while the company absorbs the financial impact created by higher gambling taxes inside the United Kingdom.