Entain’s £3.6bn debt & 40% tax hike spook investors

Flutter’s US slump adds to the pressure, as prediction markets muscle into American betting.

The hit

Entain has dropped out of the FTSE 100, even as its first-half online revenue rose 7% in constant currency, according to iGaming Business. Flutter Entertainment’s US sportsbook revenue fell 15% in the second quarter of 2026, despite FanDuel holding its market lead, as prediction markets from Kalshi, Robinhood, Crypto.com & DraftKings’ own operation muscle in. Analysts say investors are repricing gambling stocks on falling confidence, not proven decline.

Why it matters

For bettors, rising taxes could mean fewer promos as operators protect margins. H2 Gambling Capital’s Ed Birkin says share declines have been “much more severe than the cut to earnings projections”.

The record

Net debt	£3.6bn owed by Entain at 3.1x leverage (end of June)
Tax rise	UK Remote Gaming Duty raised from 21% to 40% from 1 April (UK government)
RGD hit	£56m cut from Entain’s H1 EBITDA (Entain)
Flutter valuation	$36bn market cap at Jan 2024 NYSE debut, rising to $50bn by June 2025
US handle	$29.5bn NFL betting handle forecast for 2026 season (American Gaming Association)

What happens next

New 25% General Betting Duty on remote bets starts April 2027, excluding UK horse racing. Watch Flutter’s Q3 results & the AGA’s final 2026 NFL handle data for signs prediction markets are eating into sportsbook growth.

Sources: Top of the stocks: Why gambling shares have lost their shine

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