31 Aug 2026
Entain Poised to Exit FTSE 100 Following Remote Gaming Duty Increase
Entain, the company behind Ladbrokes and several other betting platforms, stands set to leave the FTSE 100 during the next quarterly index review after a period marked by rising operational costs and reduced earnings projections. The move comes directly after the remote gaming duty on online casino-style games climbed from 21 percent to 40 percent starting in April 2026, a change that company statements indicate will reduce earnings by around £100 million during 2026 and by approximately £150 million each year thereafter even after cost reductions take effect. Observers note that oil and gas operator Ithaca along with airline EasyJet now appear positioned to enter the index in its place once the review concludes.
Index Reshuffle Mechanics and Timing
FTSE 100 membership adjustments occur on a quarterly basis, with the upcoming review scheduled for August 2026 reflecting market capitalisation and liquidity thresholds measured over preceding months. Companies that fall below the required ranking thresholds receive notification ahead of formal removal, and Entain's share price trajectory since the duty announcement has placed it at risk of dropping out. Data from market trackers shows the operator's valuation declined steadily through the spring and early summer of 2026, creating the conditions for replacement by firms whose capitalisation crossed the entry line during the same measurement window.
Tax Rate Change Details
The remote gaming duty adjustment announced in the prior budget applied specifically to online casino-style products and took effect on 1 April 2026. Under the new structure the rate rose to 40 percent of gross gaming revenue generated from those activities, nearly doubling the previous 21 percent levy. Company filings released after the change outline the financial consequences, including the £100 million earnings reduction expected for the remainder of 2026 and the larger £150 million annual impact from 2027 onward. Management has referenced ongoing efficiency programmes designed to offset part of the increase, yet the net effect remains material enough to influence index standing.
Company Background and Market Position
Entain operates multiple consumer-facing brands across sports betting and gaming verticals, with Ladbrokes serving as its flagship UK high-street and online presence. The group maintains international operations as well, though domestic regulatory and tax developments exert significant influence over overall results. Market participants have tracked Entain's performance against peers since the duty announcement, noting that the higher rate applies uniformly to qualifying online products and therefore compresses margins across the segment. The August 2026 reshuffle will formalise any index movement once the June-to-August measurement period closes and final rankings are published.
Replacement Candidates and Sector Context
Ithaca Energy and EasyJet have surfaced as the most likely entrants should Entain depart. Ithaca's valuation has risen amid stable energy prices and production volumes, while EasyJet has benefited from sustained travel demand and improved operational metrics. Both companies currently sit just inside the threshold that would secure FTSE 100 membership once the current member exits. The shift highlights how tax policy changes in one sector can indirectly affect index composition by altering relative market values across unrelated industries.
Broader Industry Effects
Other operators subject to the same duty increase have reported similar margin pressure, although the scale of impact varies according to product mix and cost base. Industry figures released in mid-2026 indicate aggregate remote gaming revenue remains steady in volume terms, yet profitability metrics have tightened following the rate adjustment. Entain's experience therefore reflects a sector-wide recalibration rather than an isolated event, and analysts continue to monitor how further efficiency measures or product adjustments might mitigate ongoing cost increases.
Conclusion
The August 2026 FTSE 100 reshuffle will confirm whether Entain departs the index, with Ithaca and EasyJet positioned to fill the vacancy. The remote gaming duty rise implemented in April 2026 has produced measurable earnings effects that market capitalisation data now translate into index ranking changes. Company statements, regulatory announcements, and market tracking data together provide the factual basis for understanding the sequence of events without reference to external speculation.