New CEO at Entain: Gavin Isaacs Takes the Helm

The gambling conglomerate Entain has announced that industry veteran Gavin Isaacs will assume the position of the new Chief Executive Officer. With this appointment, the owner of Ladbrokes aims to regain investor confidence following the resignation of the previous CEO at the end of last year. The FTSE 100-listed company stated on Monday that Isaacs, who has more than 25 years of industry experience and was recently Chairman at game development company Games Global, will take on the role on September 2. Barry Gibson, the outgoing Chairman of Entain, declared: "We are confident that Gavin's proven leadership and operational experience make him the right person to lead Entain into the next chapter." Stella David will replace Gibson as interim CEO. Isaacs was also Chairman of the sports betting software developer SBTech and a board member at DraftKings, which made an £18.4 billion takeover bid for Entain in 2021 but later withdrew. The leadership decision comes at a critical time as the company seeks to restore investor trust following compliance issues and costly acquisitions. Last year, Entain agreed to pay £585 million to settle an investigation by HM Revenue & Customs over alleged bribery in a Turkish subsidiary, resulting in a £879 million loss for 2023. Under former CEO Jette Nygaard-Andersen, who resigned in December due to a declining share price, Entain spent more than £2 billion on eleven acquisitions, causing discontent among investors, especially given the increasing regulatory pressure. In May, the company announced it was considering a sale of the Georgian gambling brand Crystalbet following a strategic review by the capital allocation committee, but this potential divestment did not boost the share price. On Monday morning, Entain's shares rose 4.5 percent following the new CEO announcement, though they have fallen by more than 30 percent this year. In June, New York hedge fund Eminence Capital, whose founder Ricky Sandler secured a seat on Entain's board in January, became the third-largest shareholder of Entain with a 5.8 percent stake. The activist investor had published an open letter to the Entain board last year, criticizing the company's decision to finance the £750 million acquisition of Polish company STS through the issuance of new shares; he described it as a "value-destructive expansion strategy." Entain, which maintains a partnership with MGM Resorts in the UK under the BetMGM brand, received approval in May to operate in Nevada, one of the most profitable US states. Isaacs commented on his new role, stating that Entain's "iconic brands, exceptional talent, and continued focused strategy implementation will enable the company to return to a leadership position across all areas.