Sports betting and gaming group Entain plc has announced the resignation of two more executives from their respective roles.
Lachlan Fitt has resigned from his role as deputy chief executive officer (CEO) of Entain Australia, and Cameron Rodger has stepped down as Entain NZ managing director. Fitt has served as the chief financial officer of Entain Australia, which runs the Ladbrokes and Neds gambling brands in Australia, since 2018. His leadership has been crucial in the company’s mergers and acquisitions strategy.
The resignations come just a week after Entain announced that Gavin Isaacs will be stepping down as chief executive officer (CEO), effective immediately, after just five months in the top role.
Entain’s mounting regulatory woes
The transition comes at a delicate time for Entain, when the company 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 parallel to internal disputes, the Australian Transaction Reports and Analysis Centre (AUSTRAC) initiated civil penalty proceedings against Entain in December 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.
Recently, former top executives of Ladbrokes Coral parent Entain sued the company and its law firm in a London court over alleged sharing of privileged legal advice during the negotiations of deferred prosecution agreement (DPA) with regard to its legacy Turkish arm.
Kenny Alexander, the former Chief Executive Officer (CEO), and ex-chairman Feldman of the FTSE 100 company, have launched a lawsuit against Entain and its law firm, Addleshaw Goddard (AG), alleging that privileged legal advice was improperly shared during the negotiations of a £615 million DPA at its Turkish arm, according to court records obtained by the Financial Times.
