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The chief executive of Ladbrokes owner Entain has stepped down after just five months in the role, sending shares down 11 per cent on Tuesday.
The FTSE 100 betting group said Gavin Isaacs was leaving “with immediate effect” and by “mutual agreement”, in the latest blow to the group following a turbulent period marred by a probe of historic bribery at the group’s former Turkish subsidiary and the abrupt exit of its previous chief executive.
In December, Australia’s financial crimes watchdog launched legal action against Entain citing “serious and systemic non-compliance” with anti-money laundering rules.
Entain did not give a reason for the departure of Isaacs, who has more than 25 years of experience in the industry. He will be replaced on an interim basis by chair Stella David, who also led the company for a period last year after Jette Nygaard-Andersen stepped down in December 2023.
Isaacs took up the role in September as the betting operator sought to rebuild investor confidence after compliance failings and a series of costly acquisitions.
The company’s shares have now fallen more than 34 per cent over the past year.
Under Nygaard-Andersen, Entain spent more than £2bn on 11 deals, leading to investor unrest about its strategy.
In 2023, the operator paid £615mn in 2023 as part of a deferred prosecution agreement over its failure to prevent bribery at its former Turkish subsidiary between 2011 and 2017. This drove an £879mn loss for 2023.
While the agreement ended an investigation by UK tax authorities, individual suspects were invited to enter into plea discussions with the Crown Prosecution Service last year.
Roberta Ciaccia, an analyst at Investec, said: “This is highly disruptive news, especially as it may take time to find a replacement for Gavin Isaacs . . . Uncertainty will persist.”
Analysts at Davy Research said that: “Entain is at a critical point in its turnaround journey, so the timing of this is unfortunate and will likely cause investor concerns, particularly with an outstanding regulatory issue [in Australia].”
In January, Entain said it expected its 2024 core profit would be at the top end of its £1.04bn to £1.09bn range, driven by favourable sports results in its last quarter in the UK and Ireland.
BetMGM, its online gaming and sports betting joint venture in the US with MGM Resorts, said last week it expects to turn a profit in 2025, boosted by increased customer numbers.
