JP Morgan Chase dropped its Entain shareholding below the 3% mandatory disclosure threshold on 18 May, just ten days after filing a notification that it had accumulated 7% of the FTSE 100 gambling company.
From 7% to Below 3% in Ten Days
A Notification of Major Holdings published to the London Stock Exchange confirmed the crossing of the 3% threshold on Monday 18 May. The bank had reported the 7% position on 8 May, consisting of 5.6% in direct voting rights and a further 1.4% held through financial instruments. At the 8 May peak share price of 542p, that stake was valued at up to £244.9m.
LSE filings show JP Morgan sold shares across four consecutive trading days — 12, 13, 14 and 15 May. Neither JP Morgan Chase nor Entain has commented publicly on the disposal or its rationale.
The Eminence Capital Connection
JP Morgan’s initial accumulation of the 7% position followed the closure of Eminence Capital, the New York-based hedge fund founded by Ricky Sandler. Eminence had held approximately 6.5% of Entain, ranking it the third-largest shareholder behind Capital Group and Dodge & Cox. When the fund wound down last month, Sandler also stepped down from his Non-Executive Director role at Entain. He disposed of his remaining 5.8% stake on 7 May, one day before JP Morgan’s increased position was disclosed. Whether the two transactions involved a direct off-market deal remains unconfirmed.
Share Price Resilience Against a Difficult Backdrop
Entain’s share price held steady through the disposal period. Shares opened at 532.28p on 8 May and closed at 532.4p on 15 May, despite intraday volatility that saw them dip to 501.92p on 12 May and peak at 550.8p on the opening day. Shares were trading at around 535p this week but remain down approximately 30% year to date, reflecting a difficult operating environment driven in large part by the UK’s Remote Gaming Duty increase, which pushed the online casino rate to 40%.
The tax changes have had tangible operational consequences. Entain has announced plans to close a third of its Ladbrokes shops in Ireland, and the company estimated a £200m annual impact from the duty increases when they were confirmed last year.
Trading Position and Full-Year Outlook
The shareholding movements come as Entain works to stabilise its performance under a revised strategic direction. Q1 2026 revenue was up 3% year-on-year, driven by an 8% increase in volume. Online NGR rose 5%, with igaming revenue up 9%. Sports betting revenue slipped 1% on weaker margins.
For the full year, Entain is targeting 5% to 7% growth in online NGR. Group EBITDA, excluding BetMGM fees, is guided at £1.13bn. The company has set an adjusted free cash flow target of at least £500m by 2028.
In 2025, group revenue grew 3% to £5.25bn. UK and Irish revenue rose 6% to £2.19bn. The company posted a third consecutive year of net losses, though the precise figure has not been disclosed in available filings.
Entain has been the subject of sustained M&A speculation. With no major shareholder now holding a disclosed position above 3% and JP Morgan’s rapid exit unexplained, that speculation is unlikely to ease in the near term.
Source: London Stock Exchange regulatory filings
