London, April 27, 2026, 16:05 BST
Entain shares dropped hard in London on Monday, following news that Eminence Capital—among the largest shareholders for the Ladbrokes owner—is shutting down and giving money back to investors.
This hits as Eminence’s stake in Entain sits at about 6.5%, a level that could weigh on a share price that’s already sliding. Entain was off 5.7% at 565.60 pence late in the London session, with volume at 3.4 million shares, according to Investors Chronicle data.
Entain shares slipped 7% to 557.60 pence by 1110 BST, according to Sharecast via LSE.co.uk, following Bloomberg’s report that longtime hedge fund manager Ricky Sandler is closing Eminence after 27 years.
On April 24, Bloomberg cited Sandler telling clients the fund’s recent performance wasn’t strong enough to justify staying open. He pointed to disappointing returns, higher talent expenses and the burden of infrastructure costs as factors behind the decision to close.
According to a letter reviewed by Bloomberg, Sandler said it’s gotten “increasingly difficult” for Eminence to stick to its investment process in today’s market. The Business Times, referencing the same Bloomberg report, noted the firm aims to return a minimum of 75% of each fund’s net asset value by mid-to-late June. The Business Times
The issue now is technical rather than operational. Should Eminence offload a big chunk of Entain shares to hand back capital, the market could face a sudden influx. According to SBC News, investors zeroed in on this chance of heavier selling, with Eminence still ranked as Entain’s number three investor—trailing only Capital Group and Dodge & Cox.
Entain is pushing to refocus investors on its trading performance. On April 16, the company reported first-quarter net gaming revenue up 3% at constant currency. Online net gaming revenue ticked up 5%. CEO Stella David described the group as entering 2026 with “strong momentum.” Entain left its 2026 guidance unchanged. Entain
BetMGM, the U.S. joint venture between Entain and MGM Resorts, is still a key sticking point in the ongoing valuation debate. Earlier this month, the venture trimmed its 2026 revenue outlook to a range of $2.9 billion to $3.1 billion, down from the previous $3.1 billion to $3.2 billion, after seeing weaker numbers in its sports-betting segment. Adjusted core profit guidance sticks at $300 million to $350 million, but management now expects results near the bottom of that band.
BetMGM is hitting its targets, according to CEO Adam Greenblatt, who flagged iGaming, multi-product states, and Nevada as main priorities. The company posted net revenue of $696 million for the first quarter, a 6% rise, and adjusted EBITDA came in at $25 million.
The U.S. market has gotten tougher. FanDuel parent Flutter, according to Reuters, now projects 2026 profit growth to fall short of what analysts had penciled in, citing headwinds like customer engagement and the cost of promotions—a sign BetMGM faces similar pressures.
The mood in Britain isn’t any calmer. Back in March, Entain flagged roughly £200 million in extra yearly costs tied to higher UK gambling taxes, and outlined cost-cutting measures to soften the impact. Speaking to Reuters, David said the company was “using AI a lot” to bring down production and asset-generation expenses. Reuters
Entain faces a lingering risk: even solid trading might not shake off the overhang of ownership pressure. If Eminence offloads its entire stake cleanly, that cloud could lift fast. But a drawn-out sell-down would likely leave shares stuck in limbo, with investors hanging back until Entain can show its guidance, BetMGM’s cash delivery, and the cost-cutting plan really stack up.
