Isaacs replaces Stella David, who has been serving as interim CEO at Entain since the exit of Jette Nygaard-Andersen late last year. David will succeed the outgoing Barry Gibson as chair at the end of September.
The experienced Isaacs takes on the top role at Entain having held a host of other senior positions in gambling. He has most recently been serving as chair of Games Global but is stepping down with immediate effect.
In recent years, Isaacs has also been a board member at DraftKings and chair of SBTech.
Prior to this, from June 2014 and December 2016, he was president and CEO of Scientific Games. Isaacs also went on to become vice-chairman of the company, which has since rebranded as Light and Wonder.
Earlier in his career, Isaacs was the CEO of Shuffle Master, chief operating officer at Bally Technologies and president of Aristocrat. In addition, before joining the gambling industry, Isaacs spent over 12 years working in the legal sector.
Isaacs’ excitement at Entain challenge
Commenting on his new role, Isaacs said he is “very” excited to be taking the helm at 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,” Isaacs said.
“I am confident that Entain has an extremely bright future. I look forward to leading the group in capitalising on the opportunities ahead and creating value for all its stakeholders.”
Outgoing interim CEO David also welcomes the appointment. She said: “The positive progress we have already achieved means the business has strong building blocks in place for the future. I am confident that with Gavin’s leadership we will realise the ambitious plans that we have for Entain.”
Gibson added: “We are confident Gavin’s proven leadership and operational experience mean that Gavin is the right person to take Entain into its next chapter.
“I would also like to thank Stella David and Entain colleagues for the significant operational improvements and progress made so far towards our strategic priorities.”
What led Isaacs to Entain?
Entain has been looking for a new, permanent CEO since December last year when Nygaard-Andersen resigned. She had led Entain as CEO since January 2021. Upon leaving Entain, Nygaard-Andersen said the group was in a “stable and sustainable” position.
Her resignation came just days after Entain resolved its long-running case with the UK’s Crown Prosecution Service (CPS), relating to historic activities in Turkey. This led to a £936.5m net loss for the operator in 2023.
The deferred prosecution agreement stated that Entain must pay a financial penalty and disgorgement of profits to a total of £585.5m. The business will also make a £20m charitable donation and contribute £10m towards HMRC and CPS costs. These will be paid in instalments and will run for a period of four years.
Last month, it was revealed that a group claim is set to be filed against Entain on behalf of several investors. This alleges the group did not communicate knowledge of the historical offences it committed in Turkey to investors.
“Private Jette”
While Nygaard-Andersen served as CEO through a particularly tricky time, she left amid rising concerns about her leadership. A Financial Times report highlighted concerns with the group’s M&A strategy and slow revenue growth under her leadership, even her use of private jets.
Activist investor Eminence Capital, for example, raised concerns about the £750m acquisition of Polish market leader STS and argued in favour of selling Entain’s 50% stake in BetMGM US. Eminence CEO Ricky Sandler secured a seat on the board in January this year.
Another activist shareholder, Corvex Management, holds a 4.4% stake and said a leadership change was necessary. “Simply put, Entain’s recent performance has been unacceptable and all options must be considered to drive value,” Corvex said in December last year.
Meanwhile the Entain board’s capital allocation committee launched a review of the operator’s portfolio of markets, brands and verticals and investment bank Moelis was brought in to advise on potential divestments. The review concluded with only one asset – Georgia’s CrystalBet – put up for sale.
Rumours suggested any brand not on Entain’s core platform would be up for sale, which could have meant BetCity in the Netherlands, Ladbrokes Australia and Baltics business Enlabs could be up for grabs.
Gibson set to move on
Entain wasted little time in bringing in David as a temporary replacement. She took on the interim CEO role having been serving as a non-executive director of the group.
Just a few months later, David was confirmed to be moving to another new role, this time as chair. Gibson’s exit as chairman was confirmed in early April, with Entain at the same time saying David would replace him in the position.
Long-serving Gibson sat as chair during what was a period of significant upheaval. He began as chair of GVC Holdings and leaves with the company now known as Entain.
During this time, he had to contend with Kenny Alexander abruptly departing as CEO ahead of HMRC widening its investigation to examine “potential corporate offending” in 2020. His replacement, Shay Segev, was also on his way before too long, leaving for streaming giant Dazn.
GVC then rebranded to Entain to reflect a more socially responsible ethos. Incidentally, Gibson also acted as the frontman for Entain’s response to the Turkish case.
What sort of business will Isaacs be leading?
As to where Entain is now, the group’s most recent set of financial update paints a relatively positive picture. Published in April, the trading update showed Entain performed in line with expectations during Q1. Revenue from the UK and Ireland was down and the group revenue was down 3% on a pro forma basis.
Shares in Entain were trading up 5.53% at 679.80 pence per share in London Monday morning (22 July).
Original article: https://igamingbusiness.com/people/people-moves/entain-appoints-gavin-isaacs-as-new-ceo/
