*

Company sees profit at high end of 1-1.1 billion pound

forecast

*

Shares up nearly 4% after 15% slide on Monday

*

Group drops plans for sale of Crystalbet

(Adds context about U.S. market in paragraph 3, share move in

paragraph 6)

Oct 17 (Reuters) - British gambling group Entain ( GMVHF )

said on Thursday it now expects annual core profit to be towards

the top end of its earlier forecast of 1 billion pounds ($1.30

billion) to 1.1 billion pounds, boosted by a strong

third-quarter performance.

Entain's ( GMVHF ) net gaming revenue grew 8% in the most recent

quarter, helped by betting on popular sports events such as the

English Premier League and the National Football League.

Despite the positive results, the Ladbrokes owner is facing

challenges from rising competition and regulatory scrutiny

across several U.S. states, and navigating a regulatory

landscape with varying requirements in different jurisdictions.

Entain ( GMVHF ) shares on Monday slid 15% over speculation that

Britain's finance minister Rachel Reeves would likely increase

some taxes on gambling companies in her maiden budget on Oct.

30, potentially pressuring Entain ( GMVHF ) by raising operational costs.

After the forecast update on Thursday, shares were up 3.6%

at 737 pence. The company did not mention the possibility of new

taxes on the sector.

Entain ( GMVHF ) has been prioritising the rapidly growing U.S. market,

its biggest, where its joint venture with MGM Resorts ( MGM ), BetMGM,

faces stiff competition from rivals including Flutter-owned

FanDuel and Boston-based DraftKings.

For the full year, underlying earnings before interest,

taxes, depreciation, and amortization are expected to come in at

1.06 billion pounds, according to company-compiled consensus.

The Douglas, Isle of Man-headquartered company also said it

will not pursue the sale of its Georgian brand Crystalbet

following a strategic review.

($1 = 0.7702 pounds)