Entain's share price falls sharply after chief executive steps down with immediate effect

Gavin Isaacs has left his position as chief executive of gambling industry giant Entain with immediate effect after little more than five months in the role.

The parent company of Ladbrokes and Coral announced the shock news Isaacs was leaving by "mutual agreement" in a short statement on Tuesday morning. Entain's share price fell sharply following the news, dropping by more than ten per cent to 667.6p by lunchtime.

Stella David, Entain's chair, will once again assume the position of chief executive on an interim basis until a permanent replacement has been found. David had previously been interim chief executive from December 2023 until Isaacs took up the position in September. Pierre Bouchut, Entain's senior independent director, will become non-executive chair on an interim basis.

David said: "Entain is making strong progress in delivering our strategic priorities. We would like to thank Gavin for his contribution."

She 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.”

Entain only announced that Isaacs, a veteran of the sector with 25 years of experience across the global sports betting, gaming and lottery industries, would take up the role last July following a period of turbulence.

The company had been looking for a permanent replacement since Jette Nygaard-Andersen stepped down with immediate effect in December 2023 following investor unrest over Entain's performance. It is understood Isaacs' departure is not related to the company's performance.

Jette Nygaard-Andersen: left Entain with immediate effect in December 2023

Isaacs, an Australian-born US citizen, had a lengthy and formidable CV in the gambling industry at companies including Scientific Games, DraftKings, SB Tech, Bally Technologies and Aristocrat before his appointment at Entain. He did not, however, have much experience of running a FTSE100-listed company, nor of the UK market with its regulatory challenges.

David Brohan, gaming and leisure analyst for stockbrokers Goodbody, described the news as a "disappointing development" for Entain and said: "The group spent nine months to hire Gavin Isaacs, and by all accounts he was regarded as a strong candidate by stakeholders.

"Entain has delivered several operational improvements in the past 12 months. Despite this, we expect today’s announcement to be poorly received, as we enter another period of uncertainty around management."

Entain is due to announce its full-year results next month and reiterated that group earnings for 2024 are expected to be at the top end of its guidance range. The company added that it was "comfortable" with market expectations for 2025. 

Entain has faced a number of challenges in recent years alongside the changes in its leadership.

In 2023 the company paid a total of £615 million in penalties, charitable donations and costs following the conclusion of a long-running investigation by HMRC into bribery claims surrounding a Turkish-based business owned by Entain's predecessor GVC Holdings.

Entain also revealed in December it was facing a "potentially material" penalty after Australia's financial crime watchdog launched legal proceedings against the company.

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Betting giant Entain raises projections for the year after stronger than expected performance 

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