An international sports betting conglomerate is undergoing a leadership change.
Entain CEO Jette Nygaard-Andersen informed the company’s board of directors on Wednesday of her intention to immediately step down from her position.
"Under Jette’s leadership, Entain has executed a fundamental strategic shift towards regulated or regulating markets, overhauled its governance, transformed its operations, and significantly improved its customer offering,” said Entain chairman Barry Gibson in a statement.
As a result of Nygaard-Andersen’s resignation, Stella David — a non-executive director — will serve as CEO until Entain completes the hiring process for a permanent replacement.
Bribery scandal
The development comes weeks after Entain reached a deferred prosecution agreement in November with the United Kingdom’s Crown Prosecution Service (CPS) following alleged bribery at the company’s former Turkish business, which was sold by a former leadership team six years ago. In 2019, the HMRC — the tax authority of the UK — launched a bribery investigation into Entain and, in August, the company gathered funds in anticipation of a fine. As part of the recent agreement with the CPS, Entain will have to pay a $737 million fine, which was recently approved by a British judge.
Entain, which owns a 50% stake in BetMGM, will also be required to make a $25 million charitable donation as part of the agreement. The European company will also have to cover the costs of the probe for the HMRC and the CPS, which comes out to roughly $12.5 million.
Business still growing
Entain reported favorable third-quarter results amid its bribery scandal.
The company saw revenue increase by 7% in Q3 2023 compared to the same period last year. Entain attributed the jump to its online business, which saw revenue increase by 9% compared to Q3 2022. Entain, which also owns gaming brand Ladbrokes, reported a 15% uptick in active customers in Q3 compared to the same period in FY2022. BetMGM, which is a joint venture with MGM Resorts, generated $458 million in revenue in Q3 2023 — a 15% increase year-over-year. BetMGM is the third-largest sportsbook in America with an 18% market share.
