UK iGaming Listings Shrink as Regulatory Challenges

The UK’s iGaming sector is undergoing a quiet exodus from the London Stock Exchange (LSE), as a decade of consolidations, regulatory upheaval and investor disinterest has pushed many listed firms to merge, delist or migrate to foreign markets. At the heart of the shift lies a volatile mix of tighter regulation, economic headwinds, and growing attraction to the more liquid, higher-valued US equity markets. According to analysts and industry figures, what’s unfolding is not an isolated case, but part of a broader decline in the appeal of the UK’s public equity market—particularly for gambling companies.

The UK’s public investment landscape has been steadily contracting. Forty-five companies exited the LSE in 2024 alone, and with 15 live bids in play as of Q1 2025, that figure looks set to rise. The LSE now accounts for just 3% of global equity markets, a sharp drop from its former stature.

“There are fewer listed companies, and the companies that remain are of lower value,” says Ivor Jones, equity analyst at Peel Hunt. The total number of LSE-listed firms fell from 2,916 in 2005 to just 1,660 by February 2025.

Domestic fund managers are selling off UK equities to meet investor redemptions, and risk-averse retail investors have shifted to cash or fixed income in the face of high interest rates and economic uncertainty. As valuations fall, capital has fled. Gaming firms have mirrored this decline.

Consolidation Leaves Few Standing

The UK’s iGaming market has experienced waves of M&A activity over the past decade. In many cases, this led to delistings or reduced LSE exposure. Betfair disappeared from the exchange in 2016 after its merger with Paddy Power. GVC’s acquisition of Ladbrokes Coral in 2017, Kindred’s purchase of 32Red, and 888’s acquisition of William Hill followed the same pattern.

Jones believes that the main phase of consolidation-driven M&A by public companies is over. “There’s still M&A happening on the fringes,” he says, “but it’s hard to imagine another big move like Entain buying Evoke.”

What remains of UK-listed operators may not stay listed for long. Private equity firms—especially in Europe and the US—have been active buyers. Major names like Blackstone, CVC, and Apollo have taken controlling stakes in firms including Superbet, Tipico, and Lottomatica. Private equity interest is driven by depressed valuations and long-term upside. “PE buyers can take a longer view,” says Jones, noting the €1.8bn debt on Evoke’s books as a challenge but not a dealbreaker for the right buyer.

In the US, this trend is more developed. Apollo’s $6.3bn acquisition of IGT and Everi Holdings in 2024 is just one example of big-money activity in the space. Frank Fantini, founder of Fantini Research, argues that PE funds are willing to pay higher prices because they aren’t burdened by short-term shareholder demands.

Regulatory Drag and Recovery

UK gambling reforms—including affordability checks, stake limits, and a new statutory levy—have hit operator revenues hard. In 2024, 888 Holdings saw UK revenue fall 25% year-on-year in H1, though it has since forecast a slow return to growth. Entain, meanwhile, posted 22% growth in UK net gaming revenue in Q1 2025 after a 13% increase in Q4 2024.

Entain CFO Rob Wood attributed the turnaround to reducing friction in customer journeys, while CEO Stella David said the company would gain market share as smaller rivals struggle with compliance costs.

Still, the regulatory picture remains a threat. A possible consolidation of gambling tax rates in the Autumn Budget has raised alarm, with operators fearing the remote betting tax (currently 15%) could rise to match iGaming’s 21%.

“The market’s feeling flattish,” says Jones. “Gaming has been disappointing in terms of the balance of risk.”
Evolving Investor Appetite Once, investors strongly preferred companies with a large share of regulated revenue. That view has shifted. “Regulated no longer equals low risk,” Jones argues. UK regulation, once seen as a shield, has become a source of uncertainty.

Gaming Realms CEO Mark Segal credits a shift to B2B and international diversification for the company’s resilience. Since acquiring Slingo in 2015, the company pivoted from a UK operator to a global content supplier. “Investors really like the B2B model,” says Segal, noting the relative insulation from regulatory headwinds.

The Lure of the US

A growing number of firms are eyeing US markets for higher valuations and deeper capital access. Flutter’s 2025 decision to move its primary listing from Dublin to the NYSE underscores the trend. FanDuel now generates 41% of Flutter’s group revenue, justifying the pivot.

“US markets reward growth and tech-focused models far more than the UK,” says Ed Birkin of H2 Gambling Capital.

Even non-gaming giants like Shell and Wise have considered similar moves. And Bet365, long one of the UK’s most influential gaming companies, has reportedly explored both a US IPO and private equity deals.

“A US IPO would give them a higher valuation and access to more capital than a UK listing,” says Birkin, though he adds that private equity might provide a smoother path to eventual public listing.

SPACs have also provided an accelerated path to the US public markets. Super Group’s 2022 merger with Sports Entertainment Acquisition Corp placed Betway on the NYSE. The company says the move increased its credibility with banks, regulators, and investors.

The LSE is aware of the challenge and is pushing back. Its parent company, LSEG, notes that it has a more geographically diverse investor base than US exchanges and offers lower IPO costs—by up to 2.5% compared to Nasdaq. However, a London listing no longer offers the valuation premiums it once did. “Any valuation gains following a switch to US listings have largely reverted,” LSEG acknowledged in a March note, pointing instead to global sector trends as the main drivers of price movement.

The UK is a small market and a small share of total equity value, and that has put pressure on valuations.

Outlook

With economic uncertainty, outflows from UK equities, and increasing regulatory burdens, the UK iGaming market is in a state of transition. Public listings are becoming less attractive, while alternative paths—private equity, B2B models, or US listings—gain traction.

Equity investing, as Jones puts it, “is about evaluating risk and paying the right price.” In the current UK environment, that price is getting harder to justify. As UK operators diversify their geographic reach or seek new capital markets abroad, the LSE faces an uphill battle to retain what’s left of the country’s once-vibrant gaming sector.