Entain CEO steps down in wake of HMRC resolution

Gambling giant Entain announced the immediate departure of its chief executive officer Jette Nygaard-Andersen on Wednesday.

The FTSE 100 company said it had appointed Stella David, currently serving as a non-executive director, to assume the position of chief executive officer on an interim basis.

It said David's tenure would continue until a permanent replacement for Nygaard-Andersen was identified and appointed.

Entain said Jette Nygaard-Andersen's decision to resign coincided with the resolution of issues with its legacy Turkish-facing business, which was under investigation by HMRC.

The board said the HMRC investigation posed considerable threats to the group, with the recent approval of a deferred prosecution agreement (DPA) by the court underscoring the potential consequences that the company and its stakeholders could have faced if the matter had not been resolved in such a way.

It said the successful conclusion of the DPA process was, in part, attributed to the substantial overhaul of the group's business model, strategy, and corporate culture in recent years.

“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 chairman Barry Gibson.

“We are all indebted to Jette for her dedication to steering the company through such a difficult time.

“She has also led the executive team in devising a new commercial strategy that I am confident will lead to stronger organic growth and a more profitable Entain.”

Gibson described David as an “intensely commercial leader” with a track record of success across multiple industries.

“I am confident that she will quickly help to set us on the path to achieving our strategic aims while we conduct a rigorous search for a permanent CEO.”

Outgoing CEO Jette Nygaard-Andersen described the last three years as equally rewarding and challenging.

“The resolution of the HMRC investigation into the legacy business, which was sold by a former management team in 2017, offers a clean inflection point for me and for Entain.

“The group is now safe, stable and sustainable and I believe that this is the right time to move on to other business and career opportunities.”

At 0820 GMT, shares in Entain were up 3.75% at 835.8p.

Reporting by Josh White for Sharecast.com.