Entain FTSE 100 relegation looks increasingly likely as the London market’s quarterly index reshuffle approaches, with Entain, Persimmon, and Aston Martin all tipped to lose their current index places. The driving forces are a combination of punishing new gambling taxes, a subdued property market, and a torrid run for the Warwickshire luxury car maker.
Gambling taxes pile pressure on Entain ahead of FTSE reshuffle
Entain, which owns the Ladbrokes brand, is expected to drop from the FTSE 100 after an extended period of difficulty. Dan Coatsworth, head of markets at AJ Bell, said the company ‘has battled with high UK gambling taxes, increased competition, and slower than expected growth in the US.’
The tax environment has worsened considerably. From April 2026, remote gaming duty, which applies to online casino-style games, rose to 40 per cent from 21 per cent, a near-doubling of the rate. A further blow comes from April 2027, when a new 25 per cent betting levy introduced under former Chancellor Rachel Reeves will target remote and online betting. The levy was announced under Reeves before she left the role.
Entain has said these changes could reduce its earnings by roughly £100m in 2026 and £150m annually from 2027, even after the company takes steps to reduce marketing spend and promotions. That is a substantial drag on a business already grappling with competitive pressure and an underperforming US operation.
Housebuilder Persimmon is expected to join Entain in dropping out of the FTSE 100. Coatsworth described the prospect as ‘a sign of the times amid a depressed property market.’ The firm earlier this year flagged concern over inflationary pressures in its supply chain, which it expects to weigh on its bottom line in the second half of the year.
Slated to take their places are Ithaca, an oil and gas firm that has enjoyed a rally on the back of elevated energy prices, and EasyJet, whose shares have moved ahead of its £5.7bn takeover by asset manager Apollo, a deal that would ultimately see it removed from the London market altogether.
Entain FTSE 100 relegation mirrors Aston Martin’s struggles on the 250
On the FTSE 250, Aston Martin is tipped to fall off the mid-cap index after several difficult years. The Warwickshire-headquartered luxury car firm said earlier this year that it would cut 20 per cent of its workforce after net losses swelled 52 per cent to nearly £500m. The company employs around 3,000 people, meaning the cuts amount to roughly 600 jobs.
The firm pointed to ‘extremely disruptive’ US tariffs and ‘extremely subdued’ demand in China, described in the report as the world’s biggest car market, as contributors to its woes. Coatsworth put the market’s response plainly: ‘Aston Martin continues to struggle on the stock market as investors worry about the state of its finances.’
The index changes will be determined using market close data from the 1 September trading session, with the confirmed movers announced after the market closes the following day. For Entain, a company that has faced a near-continuous run of headwinds from regulation, competition, and shifting demand, the likely exit from the FTSE 100 marks a further stage in a prolonged slide from its earlier position as one of London’s more prominent listed operators.
