UK gambling company Entain has taken action with the aim of optimising its capital structure. The aim is to see a reduction of an estimated £10 million in loan repayment interest the company is facing.
Their total cash interest in FY25 is expected to be approximately £240 million but this should see improvement thanks to the refinancing actions recently announced by the company. Entain says that the adjustments that have been made are net debt neutral and their existing financial obligations will not be impacted.
Two existing US dollar-denominated Term Loans will be repriced and extended. One of these is a $1.1 billion loan that was set to reach its maturity date in March 2027. This has been changed to July 2032 with its margin reduced by 35 basic points. It is now 225bps over Term SOFR. The discount on the loan was 99.875.
The second loan is one of $2.18billion. This has seen a 50 basis point reduction in its margin to 225 bps over Term SOFR. The maturity date remains October 2029.
Entain’s decision to carry out this refinancing is part of their ongoing effort to see its capital structure optimised. This is particularly important to them in a higher interest rate environment. The overall debt level of the company has remained steady and taking actions to reduce their borrowing costs will be a financial boost for them.
Entain are one of the leading gambling businesses in the UK. Brands that they run include long-established companies Ladbrokes and Coral. Recent years have seen global expansion with over 100 licenses held in 30+ jurisdictions. They have a major presence in Italy with Eurobet, SuperSport in Croatia, BetCity in the Netherlands and STS in Poland.
Across the pond in the USA, they have 50/50 ownership of BetMGM with MGM Resorts International. The American gambling industry has seen great expansion in recent years and BetMGM has become one of the leading companies. Their Second Quarter 25 results saw net revenue up 36% on the same period in the previous financial year. Their EBITDA of $86 million was $8 million higher than 12 months ago.
Adam Greenblatt is BetMGM’s Chief Executive Officer. Speaking about the recent financial figures, he said that the momentum they had last year has “accelerated through the first half of 2025.” The CEO added that their iGaming business “continues to deliver new records” and the company is “healthier than it has ever been.”
Further success is expected with the launch of an online slot that should be a big hit with fans of the legendary sitcom ‘Friends.’ ‘The One With the Multi Drop’ is part of BetMGM’s partnership with Atlantic Digital. That’s a designer who is no stranger to creating slots based on top TV shows. Previous slots include ‘Star Trek: The Next Generation’ and ‘Cheers.’
South America is another important market and Sportingbet is one of its leading companies. Ladbrokes and Coral operate in Australia and in New Zealand, TAB and Betcha have been launched as Entain continues to grow around the globe.
In the UK, Entain faces a situation where stricter regulation is being introduced. This year has seen a mandatory levy introduced by the Labour government. It has the aim of raising at least £100 million a year. Funds that are raised will be used to treat those who have problems with their gambling behaviour. The research of gambling harm will also receive funding.
We’ve just mentioned online slots and they are a hugely popular element of any online casino. They are recognised as being addictive and action has been taken in the UK. New maximum stakes are now in place – £2 a spin for those aged between 18 and 24 and £5 for older players. It will be interesting to see how the new maximum stakes will affect the revenue that the online slots produce.
A growing concern in the UK for Entain may well be the level of taxation that must be paid. Consultations are ongoing at present regarding the introduction of a new system. Currently there is a three-tier system in place but the plans are to introduce just one gambling tax. Companies fear that this will lead to a higher tax rate being put in place.
There has also been a rise in the number of affordability checks made on players. Action is also due to be taken on the bonuses that are offered by UK gambling companies With a rise in the number of players who now gamble on the unlicensed and unregulated black market, there may be problems ahead for Entain in the UK. Strengthening their presence around the world even further may well be needed.
