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Entain has named industry veteran Gavin Isaacs as its new chief executive, as the Ladbrokes owner tries to restore investor confidence after the exit of his predecessor late last year.
The FTSE 100 company said on Monday that Isaacs, who has more than 25 years of experience across the industry having recently served as the chair of game development company Games Global, will assume the role on September 2.
“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 chair Barry Gibson, who will be stepping down to be replaced by interim chief executive Stella David.
Isaacs has also been chair of sports betting software developer SBTech and a board member at DraftKings, which made an £18.4bn offer for Entain in 2021 but subsequently walked away.
The leadership appointment comes as Entain seeks to rebuild investor confidence following compliance failings and a series of costly acquisitions.
The company last year agreed to pay £585mn to settle an HM Revenue & Customs investigation into alleged bribery at a business it owned in Turkey, which resulted in an £879mn loss for 2023.
Under former chief Jette Nygaard-Andersen, who stepped down in December amid a slumping share price, Entain spent more than £2bn on 11 acquisitions, leading to investor unrest over its strategy at a time of rising regulatory pressure.
The company said in May that it was considering a sale of its Georgia-based gaming brand Crystalbet following a strategic review by its capital allocation committee, but this possible disposal had not been enough to lift the share price.
Entain’s shares went up 4.5 per cent on Monday morning following the chief executive announcement, although they are down more than 30 per cent this year.
In June, New York-based hedge fund Eminence Capital, whose founder Ricky Sandler gained a board seat in January, became Entain’s third-biggest shareholder, increasing its stake to 5.8 per cent.
The activist investor went public last year by disclosing an open letter to the Entain board to oppose its decision to fund the £750mn purchase of Polish company STS by issuing shares, describing it as “an empire building, shareholder value destroying strategy”.
Entain, which has a joint partnership in the UK with MGM Resorts under the BetMGM brand, gained approval in May to operate in Nevada, one of the most profitable US states.
Commenting on his new role, Isaacs said Entain’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”.
