Entain withdraws from more than 140 unregulated markets

Multi-billion dollar gaming group Entain (formerly GVC Holdings) is withdrawing from more than 140 unregulated markets. The publicly listed company announced back in November 2020 that it would only operate in regulated markets in the future. But what are the reasons behind Entain's decision to withdraw from a triple-digit number of countries at relatively short notice?

Back in February last year, we at GambleJoe reported that Entain intended to withdraw from all non-regulated markets. The plan was to achieve this by the end of 2023 at the latest. And indeed, just in time for the New Year, Entain has now announced that it has completely withdrawn from over 140 unregulated markets.

What are the reasons for withdrawing from over 140 unregulated markets?

Entain is a publicly quoted gaming group with revenues of almost £4.3 billion in 2022 alone. It goes without saying that such a successful company does not forego revenue without good reason in the interests of its many shareholders. As recently as the beginning of January this year, we reported that Entain's shares were on the rise.

The main reason for Entain's 'retreat' from over 140 unregulated markets is probably the fact that the group is under increased regulatory scrutiny as a result of recent events. For example, it was recently announced that Entain had to pay a hefty fine of almost GBP 600 million as a result of a corruption scandal. Since then, Entain has been forced to step up its compliance efforts.

What countries has Entain left?

The list of countries that Entain has now exited is long and includes both smaller and larger countries. According to the gambling group, the turnover in the more than 140 unregulated markets ranged from minimal to significant.

For example, the list includes the Pitcairn Islands, home to just 35 people. The Vatican City State and Antarctica are probably equally irrelevant to Entain's sales, as the company has now officially withdrawn from these markets as well. However, the list does include economically significant countries such as Ukraine and Argentina. The Isle of Man-based gambling group recently generated revenues totalling several million pounds in these countries.

By pulling out of more than 140 countries, the gambling giant says it will lose around £100 million in annual revenue. In return, Entain may be able to claim in the future that it only operates in regulated markets. This, in turn, could attract new investors and strengthen the company as a whole.

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