Share
Entain, the United Kingdom-based gambling company that owns half of BetMGM, has officially named Stella David its CEO. David has served in the role on an interim basis for the past two months. The appointment might bring some stability, which seen five people occupy the role in as many years.
One of the challenges facing David as the company’s new leader will be to BetMGM’s efforts to maintain its position as a frontrunner in regulated US iGaming, amid increasing pressure from FanDuel and, to a lesser extent, DraftKings. Meanwhile, rumors have once again begun to swirl about whether Entain’s partner in the t venture, MGM Resorts, could make another bid to buy out Entain’s interest.
David looks to end string of CEO departures
Entain has struggled with a C-suite that has become something of a rapidly-revolving door. For example, David’s predecessor Gavin Isaacs was Entain’s CEO for a mere five months according to Alex Daniel of Independent.
While most of Entain’s brands operate exclusively in the UK, BetMGM’s online casino offerings are active there and in four US states and the Canadian province of Ontario. Entain controls exactly half of the interest in BetMGM along with MGM Resorts. (BetMGM-branded products operating in Europe are wholly owned by MGM, do not use Entain technology, and are not part of the t venture.)
For BetMGM, Entain’s interest has brought a focus on digital product improvement. As an example of that emphasis, Entain acquired Angstrom Sports in 2023 to shore up BetMGM’s live sports betting offerings.
Under Entain’s ownership, BetMGM has also been aggressive in building out a library of exclusive casino games, like its recent Wheel Of Fortune online casino product in New Jersey.
Product improvements and acquisitions could be key levers for BetMGM to pull in the US as expansion for regulated online casino play in the nation has come to a standstill. If Entain’s overall business struggles, Entain could find itself on the opposite side of an acquisition move.
Further instability could prompt MGM buyout
Entain hasn’t been alone on the acquisition path to expansion and/or improvement over the past few years. MGM has also been active on that front, Push Gaming became MGM holdings as well.
Meanwhile, Daniel reports that Entain’s stock price has fallen by over 70% compared to a 2021 high. It will be on David now to get Entain moving back toward that peak and MGM will be watching with great interest.
MGM has already attempted to take full control of BetMGM by taking Entain private and rumors circulated about a second offer to shareholders in 2024. A lack of quick, significant improvement under David might result in an MGM takeover becoming more appealing to investors than waiting out the implementation of her reforms.
David will get her chance to produce results, barring which she might be the fifth person to exit the role of Entain CEO since 2020. A further decline in Entain’s share price might be a catalyst for MGM to swoop in and choose the next CEO of the company.
