Entain last week signed off a £585m Deferred Prosecution Agreement with the UK’s Crown Prosecution Service over alleged bribery offences relating to the Turkish business that was sold by GVC Holdings, the company which preceded Entain.
Ladbrokes owner Entain's CEO Jette Nygaard-Andersen will step down immediately, the sports betting giant said on Wednesday (13), following reports that some shareholders were unhappy with her leadership.
The departure comes a week after the firm received final approval from a British judge for a costly US$732.4 million settlement stemming from alleged bribery offences at the group's former Turkish unit, concluding an HM Revenue & Customs (HMRC) probe that began in 2019.
The company did not specify reasons for Nygaard-Andersen resignation.
Stella David, currently a non-executive director, will serve as interim CEO until a permanent replacement is found, Entain said.
Nygaard-Andersen, 55, was appointed as CEO in January 2021 and played an instrumental role in driving the company's growth and strategy amid a tough regulatory environment.
Britain is stepping up efforts to crack down on problem gambling and earlier this year set out long-awaited plans with an aim to bring regulations up to date with a rise in betting online and on smartphones.
Shares in Entain touched a record high of 2,500 pence in September 2021, but are down 35% overall since Nygaard-Andersen took the helm.
Last week, the Financial Times reported the problems hanging over Nygaard-Andersen amid a slump in share price, mounting regulatory pressures and growing discontent among certain investors.
"The CEO leaving could make it easier for Entain to enter into M&A negotiations with the likes of MGM, or even Draftkings," analysts at Investec said.
"However, the interim period with lack of a permanent CEO could also be unhelpful, and the operational trends for the next 12-18 months remain lacklustre," they added.
Source: GMB / Reuters
