Entain sees betting shop gambling bounce-back, but reveals online sales fall

The Ladbrokes and Coral owner said online net gaming revenues fell 9% year-on-year in the final quarter of 2021.

Ladbrokes and Coral owner Entain has seen trading in its betting shops rebound close to pre-pandemic levels, but revealed online gambling revenues fell for the first time in over five years. (PA Wire)

Ladbrokes and Coral owner Entain has seen trading in its betting shops rebound close to pre-pandemic levels, but revealed online gambling revenues fell for the first time in over five years.

The group said online net gaming revenues fell 9% year on year in the final quarter of 2021.

The drop follows 23 quarters of double-digit growth in a row as it came up against strong trading a year earlier, when online gambling was boosted due to lockdown measures.

But Entain was bolstered by a 60% jump in revenues across its betting shops, with stores shut a year earlier due to the restrictions.

The group, which has around 2,700 betting shops in the UK, said year-on-year retail trading by volume had returned to within 10% of pre-pandemic levels.

Entain upped its full-year underlying earnings to between £875 million and £885 million, compared with a previous forecast of £850 million to £900 million.

The figures come after US betting firm DraftKings walked away from a £16 billion approach for Entain in October.

It marked the second time Entain has been eyed for takeover by a US rival over the past year, after US joint venture partner MGM saw a £8 billion move rebuffed.

UK betting firms have been heavily targeted by US rivals over the past year amid a rapid growth in sports betting across the US due to relaxing federal laws across many states.

Entain said its fourth quarter trading saw it deliver a 12% rise in full-year online gaming revenues.

Betting shop revenues were 3% lower as last year’s lockdown closures impacted the chain.

Jette Nygaard-Andersen, chief executive of Entain, said 2021 had been a “successful and eventful” year for the group.

“All of our major markets have performed well.

“BetMGM, our hugely exciting business in the US, has been a particular highlight with 2021 net gaming revenue ahead of expectations and an upgraded outlook for 2022.”