Entain announced that industry veteran Gavin Isaacs will be its new Chief Executive (CEO), with effect on 2 September.
Isaacs succeeds Stella David who served as Interim CEO of Entain after Jette Nygaard Andersen left the company in late 2018. David will replace the retiring Barry Gibson at the end September.
Isaacs, who has held many senior gambling positions before joining Entain, is a seasoned professional. Most recently, he served as the chair of Games Global. He is now stepping down immediately.
Isaacs was also a member of the board at DraftKings in recent years and has been chair for SBTech.
He was previously president and CEO at Scientific Games between June 2014 and December 2016. Isaacs was also appointed vice-chairman by the company. It has now been rebranded Light and Wonder.
Isaacs has held various positions in the past, including CEO at Shuffle Master and Bally Technologies, as well as president of Aristocrat. Isaacs also spent more than 12 years in the legal industry before entering the gambling sector.
Isaacs’ excitement at Entain challenge
Isaacs expressed his excitement at taking over the leadership of Entain.
Isaacs stated that “the company’s iconic brand, outstanding talent and continued execution of its new strategy will allow the business to achieve a leading position in all areas.”
I am convinced that Entain’s future is bright. “I look forward to leading Entain in capitalising the opportunities that lie ahead and creating values for its all stakeholders.”
David, the outgoing interim CEO, also welcomed this appointment. She stated: “The business is now well-positioned for future growth because of the positive progress that we’ve already made.” “I am confident with Gavin as our leader, we can achieve the ambitious plans we have set for Entain.”
Gibson said: “We’re confident Gavin will be the best person to lead Entain in its next phase, given his proven leadership skills and experience.”
I would like to also thank Stella David, and Entain for their significant improvements in operations and the progress they have made towards our strategic goals.
Why did Isaacs become Entain?
Entain is looking for a permanent new CEO ever since Nygaard Andersen’s resignation in December of last year. Since January 2021, she had been the CEO of Entain. Nygaard Andersen, who left Entain in January 2021, said that the company was “stable” and “sustainable”.
She resigned just days after Entain settled its lengthy case with UK Crown Prosecution Service relating to historical activities in Turkey. The operator will suffer a net loss of PS936.5m in 2023.
Entain was required to pay an amount of PS585.5m in financial penalties and profits disgorged as part of the deferred prosecutor agreement. Entain will make a PS20m donation to charity and pay PS10m toward HMRC costs and CPS. The payments will be made in four-year instalments.
It was announced last month that several investors will be filing a claim on behalf of a group against Entain. The group is accused of not informing investors about the historic offences committed by the company in Turkey.
“Private Jette”
Nygaard Andersen was CEO during a difficult time. She left the position due to growing concerns over her leadership. In a Financial Times article, the report expressed concerns about her M&A strategies and her slow growth in revenue.
Eminence Capital raised concern about the PS750m purchase of Polish market leader STS, and advocated for selling Entain’s 50% stake of BetMGM US. Eminence’s CEO Ricky Sandler was appointed to the BetMGM US board of directors in January.
Corvex Management is another activist investor with a stake of 4.4%. They said that a change in leadership was needed. Corvex Management stated in December of last year that Entain’s performance was unacceptable. All options should be explored to increase value.
The capital allocation committee of Entain launched an audit of its portfolio, including the markets, brands and verticals of the operator. Moelis Investment Bank was also brought on board to provide advice about possible divestments. Only one asset was put on the market – Georgia CrystalBet.
Rumours claimed that any brands not included in Entain’s platform core would be for sale. This could include BetCity, Ladbrokes Australia, and Baltics company Enlabs.
Gibson sets to move forward
Entain did not waste time in replacing David with a temporary successor. After serving for a few years as non-executive directors of the company, she took over the role of interim CEO.
David’s new position as chairman was announced just a few short months after. Entain confirmed Gibson’s departure as chairman in April. At the same time, Entain said David would take over the role.
Gibson, who has been in the chair for a long time, sat during a turbulent period. Gibson began his career as the chairperson of GVC Holdings, and now leaves to join Entain.
In this period, Kenny Alexander suddenly resigned as CEO just before HMRC expanded its investigation in 2020 to include “potential offending by corporations”. Shay Segev was soon on his way, departing for streaming giant Dazn.
GVC changed its name to Entain in order to better reflect the company’s social responsibility. Gibson was also the face of Entain’s response to Turkey.
Isaacs will be heading up what type of business?
Entain’s latest financial update gives a positive impression of where the company is at this time. The trading update, published in April showed that Entain’s performance during the first quarter was in line with its expectations. The group’s revenue decreased by 3%, and revenues from the UK and Ireland were down.
In London, Monday morning 22 July, shares of Entain rose 5.53% to 679.80 penny per share.
