Entain PLC on Wednesday said its chief executive officer has stood down with immediate effect, with a non-executive director named as the interim replacement.
The sports betting and gambling company, which owns brands such as bwin, Coral, Ladbrokes, PartyPoker and Sportingbet, said Jette Nygaard-Andersen will be replaced by Stella David, who will remain in the role until a permanent replacement is found.
Entain said Nygaard-Andersen’s decision to leave comes after the company entered into a deferred prosecution agreement with the UK Crown Prosecution Service in relation to bribery offences at its former Turkish firm.
HM Revenue & Customs launched in investigation into Entain in 2019. Entain faced allegations relating to bribery offences at its former Turkish unit, sold by a management team in 2017.
Nygaard-Andersen has been CEO of Entain since the start of 2021, having joined the board of what was then GVC Holdings at the end of 2019.
Entain was alleged to have had inadequate procedures in place to prevent such activity, although it claims to have since ‘undertaken a comprehensive review of its anti-bribery policies and procedures and has taken decisive action to significantly strengthen its wider compliance programme and related controls.’
Entain has agreed to pay a penalty plus disgorgement of profit totalling £585 million. Additionally, the company will make a charitable donation of £20 million and pay £10 million towards HMRC and CPS costs, all of which will be provided in four annual instalments from funds it had set aside to cover expected penalties stemming from the case.
‘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 Chair Barry Gibson.
‘She has offered exceptional leadership during what has been a hugely challenging period. It is no exaggeration to say that the HMRC investigation posed a number of threats to our group.
‘In Stella David we are hugely fortunate to have an intensely commercial leader with a long 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.’
Shares in Entain were up 4.0% to 838.00 pence each in London on Wednesday morning.
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