The owner of the well-known Ladbrokes and Coral betting brands has started looking at what to do with its Central and Eastern European joint venture, and a sale is one of the possibilities on the table, according to three sources with knowledge of the situation.
The company, which also runs the BetMGM gambling operation in the United States, has been feeling the financial squeeze after the United Kingdom raised taxes on online gambling — bumping the rate on casino games and slots from 21% to 40%, and the rate on sports betting from 15% to 25%, effective in April.
Since those tax increases were announced in November, the company’s share price has dropped roughly 30%, according to financial data from LSEG.
Among the options being weighed is selling the company’s stake in the joint venture to its partner, Czech investment firm EMMA Capital. Two sources indicated this is one scenario under active consideration, with one adding that any money raised from such a deal could be used to pay down the company’s debt. The London-listed firm currently carries a market value of £3.5 billion, or approximately $4.63 billion.
The conversations are still in their early phases, and the sources — who spoke anonymously because the discussions are confidential — cautioned that there is no guarantee any agreement will be reached.
A company spokesperson declined to offer any comment on the matter. EMMA Capital said it would neither confirm nor deny that any discussions are taking place. Following the Reuters report on Thursday, the company’s shares climbed 0.8% on Friday.
The joint venture was established in 2022 after the two companies jointly acquired Croatian sportsbook operator SuperSport. As part of that arrangement, a call-and-put option was built in over EMMA Capital’s stake, which either side can exercise starting from the third anniversary of the deal’s completion — giving the company a potential path to taking full ownership.
The venture grew further in 2023 when it acquired Polish betting operator STS for approximately £750 million.
The Central and Eastern European division generated £183.7 million in earnings before interest, taxes, depreciation, and amortization in 2025, an increase from £170 million the year before, based on the company’s full-year financial results.
The broader company posted better-than-anticipated annual profit of £1.16 billion, while adjusted net debt reached £3.64 billion by the end of 2025.
The company has estimated that the UK tax hikes will add around £200 million in costs each year. It plans to offset roughly 25% of that burden this year and more than half by 2027.
Following the government’s tax announcement, the company recorded a £488 million non-cash impairment charge against its UK operations, which contributed to a loss after tax of £680.5 million for the year ending in December.
