Entain shares dropped again after major investor Eminence Capital confirmed it will wind down its $6–7bn fund, adding pressure to an already weak year for gambling stocks.
The fund, which holds around 6.5% of Entain, will return at least 75% of investor capital by June. The update pushed Entain shares down 7% on the London Stock Exchange, taking its 2026 decline to 26%.
The move was discussed on the iGaming Daily podcast, where host Charlie Horner, was joined by SBC News Editor Ted Orme-Claye and Business Journalist Patrick Killeen, where the latter said Eminence “has been an investor in the company since the 2000s,” underlining the significance of its exit.
Eminence Founder Ricky Sandler, also a non-executive director at Entain, said the operator had “fallen short of our very high standard and their investors’ expectations”.
Orme-Claye added: “This is far from doomsday for Entain but it does paint a picture of a lot more volatility in the betting industry stock markets.”
The trio linked the sell-off to wider market pressures. UK online betting tax increases, regulatory shifts in Brazil and weaker consumer spending are hitting margins and investor confidence.
Gambling stocks are now underperforming broader markets, with Flutter Entertainment and DraftKings also seeing declines over the past year.
Despite this, Entain reported solid Q1 results, with UK and Ireland online revenue up 13%. Retail betting – including Ladbrokes and Coral – remains outside recent online tax hikes, giving operators some protection.
Looking ahead, the three pointed to US growth, potential regulation in Finland and major sporting events as key drivers for recovery in 2026.
