Entain unveils plans to accelerate withdraw from unregulated markets

One of the largest sports betting and gaming companies around the world, Entain, announced its plans to exit unregulated markets. On Wednesday, the company revealed that it plans to withdraw from "a number of unregulated markets where it no longer sees a path to domestic regulation."

Currently, Entain has licenses in more than 30 countries. Although the company is present in jurisdictions where market liberalization is expected, it set out a plan to reduce the number of markets where such liberalization remains unclear.

Despite planning to exit some of those markets, Entain acknowledged that it doesn't anticipate a strong impact in terms of EBITDA and net gaming revenue. The company explained that this is because those markets represent a fracture of its gaming operations and won't affect its performance.

In a statement released on January 18, 2023, Entain's Chair, Barry Gibson, said: "As part of the profound and far-reaching transformation program that Entain has undergone in the last few years, we took the decision in 2020 to only operate in nationally regulated markets."

He pointed out that the latest announcement complements the company's strategy to operate only in nationally regulated markets and at the same time demonstrates Entain's commitment to adhering to "the highest standards of corporate responsibility, governance, sustainability, and player safety."

Gibson said that the company clearly demonstrates that it is prepared to exit any market that doesn't plan to regulate its gambling activities. In conclusion, he said: "We are proud to be leading our industry as the only global operator taking this approach of solely operating in markets where there is domestic licensing."

Ultimately, the latest announcement confirms that Entain is accelerating its plans to exit unregulated markets and continue doing business only within established ones. The strategy which Gibson mentioned is currently one of the main goals for Entain on its path to sustainable growth and innovation.

As per the plan itself, the company set a goal to exit all unregulated markets by the end of this year. This commitment is seeking to ensure that by the start of 2024, 100% of Entain's revenue is derived only from regulated gambling markets.

Without any doubt, Entain's long-term sustainability plan to operate only in regulated markets is admirable. This plan comes despite the economic recession, increasing inflation and the impact of the global pandemic on the industry in the last few years. Clearly, those efforts reaffirm the company's leadership position within the player protection vertical.

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