Entain CEO steps down after 5 months in role

February 11, 2025

Entain CEO steps down after 5 months in role

Sports betting and gaming group Entain has announced that Gavin Isaacs will be stepping down as chief executive officer (CEO), effective immediately, after just five months in the top role.

However, no reason was given for Isaacs’ departure, saying merely it was by “mutual agreement”. The company also announced that Entain’s non-executive Chair Stella David, will assume the role of CEO on an interim basis until a permanent replacement for the role has been found. Stella has previously served as the interim CEO from December 2023 until September 2024.

As Stella transitions from her role, Pierre Bouchut will become non-executive Chair on an interim basis. Bouchut is currently senior independent director.

Entain’s regulatory woes

The transition comes at a time when Entain has been mired in controversy. Recently, Entain Australia, the owner of Ladbrokes and Neds, reportedly announced the disbanding of the Ladbrokes Racing Club (LRC) due to increasing operational costs. This move comes at a time when the wagering sector faces mounting financial pressures, including higher product fees and regulatory scrutiny.

The Financial Reporting Council (FRC) also recently launched an investigation into KPMG’s audit of Entain plc’s financial statements for the year ending 31 December 2022. The probe intensifies scrutiny on both the Big Four audit firm and Entain, a major gambling company that owns Ladbrokes, Coral, and other global gaming brands. This development comes amid a series of regulatory challenges faced by both entities, raising questions about compliance and governance practices in the corporate and auditing sectors.

In December, the Australian Transaction Reports and Analysis Centre (AUSTRAC) initiated civil penalty proceedings against Entain for failing to comply with anti-money laundering and counter-terrorism financing laws. AUSTRAC alleged that Entain’s platforms, including Ladbrokes and Neds, failed to conduct adequate risk assessments, exposing them to significant risks of criminal exploitation.

Official comments

Stella David said on Isaac’s departure, “Entain is making strong progress in delivering our strategic priorities. We would like to thank Gavin for his contribution. The Board is pleased with the Group’s performance in 2024 and trading so far this year.”

David, in the company’s statement, also reaffirmed that the group’s earnings before interest, taxes, depreciation and amortisation (EBITDA) for the financial year 2024 is expected to be at the top of the £1,040-£1,090 million guidance range.

This is despite the global betting industry facing massive challenges over the past couple of months. The market was very volatile to both Entain and its competition.

Stella added, “The Board and management remain aligned on the Group’s focus on operational excellence and maximising shareholder value. I look forward to leading the business as we continue to accelerate our performance.”

“The negative market reaction to yet more turmoil at Entain will be slightly offset by the comfort derived from Chair Stella David stepping back into the interim CEO role, a position she has previously successfully held,” said Jefferies analysts in a note, as reported by Reuters.

In November last year, Entain announced the appointment of Dafne Guisard as its new Chief Operations Officer, effective from 13 January. Guisard, who most recently served as Chief Strategy, Transformation, and Digital Officer at The Kraft Heinz Company, brings extensive expertise in global strategy and digital transformation to Entain. Her leadership is set to support Entain’s ambitious growth and operational goals as the company moves into the new year.