Entain, the global sports betting and gaming company, has reported a strong third quarter performance following fears of a potential “tax raid” by the UK government earlier in the year. The company, which owns popular online gambling brands such as Ladbrokes and Coral, saw a 25% increase in net gaming revenue in the three months to September 30th.
The news comes as a relief to investors and shareholders who were concerned about the impact of potential tax changes on the company’s bottom line. In April, the UK government announced a review of gambling laws, including a possible increase in gambling taxes. This sparked fears among industry insiders that Entain could be hit with higher tax rates, leading to a drop in profits.
However, Entain’s strong performance in Q3 has put those fears to rest. The company reported a 25% increase in net gaming revenue, driven by strong growth in its online sports betting and casino businesses. Online net gaming revenue increased by 22%, while retail net gaming revenue was up by 34%.
Entain CEO, Jette Nygaard-Andersen, commented on the results, stating that the company’s focus on customer experience and product innovation has been key to its success. She also highlighted the importance of continuing to invest in responsible gambling measures to ensure the long-term sustainability of the business.
Despite the positive results, Entain faces several challenges in the coming months. The UK government is still expected to announce changes to gambling laws, which could have a significant impact on the company’s operations. In addition, the ongoing COVID-19 pandemic continues to disrupt the global economy, posing risks to the company’s future performance.
Overall, Entain’s strong Q3 performance has reassured investors and stakeholders about the company’s resilience in the face of regulatory and economic challenges. The company’s focus on customer experience and responsible gambling measures has positioned it well for future growth, despite the uncertainties in the market.
