Three Entain Execs Quit in Nine Days as AUSTRAC Case Looms

Posted on: February 20, 2025, 11:52h. 

Last updated on: February 20, 2025, 12:26h.

Philip Conneller @casinoorgphilc Read More
Expertise: Gaming Business, Regulation, Tribal Gaming.
  • Entain Australia Deputy CEO and CFO Lachlan Fitt, and Entain NZ director Cameron Rodger quit
  • Entain Global CEO Gavin Isaacs left last week
  • Company faces civil lawsuit from Australian Financial Intelligence Agency alleging AML failings

It’s been one week since Entain Global CEO Gavin Isaacs left the company “by mutual consent” after just five months at the helm. On Thursday, two more high-profile executives followed him out of the door. Entain Australia’s Deputy CEO and CFO Lachlan Fitt, and Cameron Rodger, managing director of Entain NZ have also both resigned.

Entain, Gavin Isaacs, Lachlan Fitt, Cameron Rodger, AUSTRAC
What’s with the revolving doors at Entain? Global CEO Gavin Isaacs, quit last week (left), followed by Entain Australia Deputy CEO and CFO Lachlan Fitt, right, and Entain NZ Managing Director Cameron Rodger, center. (Image: Entain)

The resignations followed a civil lawsuit filed against the online gambling giant by the Australian Financial Intelligence Agency (AUSTRAC) in December, which accuses Entain Australia of “serious and systemic noncompliance with anti-money laundering and counter-terrorism financing laws.”

There’s no evidence that Fitt’s departure is linked to the complaint, however, nor is his name mentioned in the lawsuit.

Turbulent Times

Isaacs, who at the time warned investors that the proceedings could result in a potentially “material financial penalty,” took over the CEO role after the time in which the alleged infractions are claimed to have occurred.

Issacs was hired in July 2024 to steady the ship at Entain, which has seen a turbulent few years marked by tumbling stock value, culminating in the resignation of previous CEO Jette Nygaard-Anderson in December 2023.

Isaac’s leaving isn’t believed to have been linked to the group’s strategy or performance. Entain’s share price fell 11% on news of the departure. The company’s stock has lost almost 65% of its value since reaching an all-time high in October 2021.

Entain’s nonexecutive chair, Stella David, has returned as interim CEO.

‘Criminal Exploitation’

The Ladbrokes parent is accused in the AUSTRAC lawsuit of accepting AU$152 million (US$96 million) in bets from 17 customers with “suspected criminal profiles and associations.”

Despite often being aware of the high money laundering and terrorism financing risks, Entain chose to continue business relationships with these customers, AUSTRAC claims. Moreover, it “deliberately obscured the identities” of high-risk customers and failed to stop a “serious risk of criminal exploitation,” per the lawsuit.

The failure to monitor these customers exposed Entain to the risk of being exploited by criminals and to the risk that proceeds of crime were being used to obtain designated services,” according to the complaint.

In a statement in December, Isaacs said Entain was fully cooperating with the AUSTRAC investigation and was “implementing further enhancements to Entain Australia’s anti-money laundering efforts.

“We are committed to keeping financial crime out of gambling and continue to play our part in supporting a well-regulated and compliant sector for our customers, stakeholders, and the wider community,” Isaacs added.