Gambling industry veteran Gavin Isaacs has been chosen as the new CEO of troubled British betting leviathan, Entain.
And with world money markets reacting with a “Definitely, Maybe”, shares in the FTSE 100 Omnichannel stabilised to 663 GBX Tuesday, after a precipitous, near-50 percent slide over a year wracked by corruption scandals and internecine corporate in-fighting.
Isaacs, currently Chair of development company Games Global, assumes his new role on September 2, and will replace Interim Entain CEO Stella David and the free-spending Jette Nygaard-Andersen, who was fired last December.
According to highly-placed sources, Isaacs has the full-backing of activist Entain stakeholder Ricky Sandler, of New York-based Eminence Capital, the man who fired the boardroom coup that ousted Nygaard-Andersen.
“We are confident that his proven leadership and operational experience mean that Gavin is the right person to take Entain into its next chapter,” said current Entain Chair Barry Gibson, who himself is set to retire and be replaced by David.
Isaacs (pictured above) was also formerly Chair of sports betting software developer SBTech and on the board of top U.S. sportsbook DraftKings — which made an unsuccessful £18.4 billion (US$23.75bn) bid for Entain in 2021.
In May last year Entain paid a massive £585 million fine (US$755.16m) to British revenue authorities to settle a long-running bribery and money-laundering case in Turkey when the company was operating as GVC Holdings.
Herculean Task
The ongoing Turkey scandal was exacerbated by Nygaard-Andersen’s reckless £2 billion (US$2.58bn) gambit to buy Entain–the owner of storied betting brands Ladbrokes Coral, PartyPoker, Sportingbet, bwin, et al, and, lest it be forgot, U.S. joint-venture sportsbook BetMGM–out of trouble.
Sandler, Entain’s third-biggest shareholder and a board member since January this year, described the £750 million acquisition (US$968.16m) of dominant Polish gambling operator STS as “empire building” and “value destroying”.
Reacting to Isaacs’ appointment, Interim Entain CEO David, who becomes company Chair on September 30, said: “I am looking forward to working with Gavin and transitioning into my new role as chair of this fantastic business.
“I am confident that with Gavin’s leadership we will realise the ambitious plans that we have for Entain.”
Isaacs, also a former President and CEO of Scientific Games, responded:
“I am very excited to be joining Entain. The company’s iconic brands, exceptional talent and ongoing execution of its refocused strategy will enable the business to return to a leadership position across all aspects.
“I am confident that Entain has an extremely bright future, and I look forward to leading the group in capitalising on the opportunities ahead and creating value for all its stakeholders.”
With Entain reporting a loss of £900 million (US$1.16bn) in 2023, and a global portfolio of 35 brands to manage, his task ahead is nothing less than herculean.
Watch this space.
