One half of the BetMGM joint venture made a significant executive announcement that should help shape the company.
Entain announced Monday morning that it hired Gavin Isaacs as its new CEO, replacing Stella David. David was appointed interim CEO in December and will work with Isaacs on the transition before replacing Barry Gibson as chair of the board Sept. 30.
Entain stock rose 1.8% on the news that the industry veteran would join the team.
How Isaacs could help BetMGM might be part of the sports betting operator’s first half presentation, which is scheduled for next Monday at 8:30 am Eastern.
Isaacs gaming background
Isaacs, an American Gaming Association Hall of Famer, started his gaming career in 1998 when he was hired as president of Aristocrat. He then logged more than six years at Bally’s as COO and then worked as CEO of SHFL Entertainment when the company was bought by Bally’s.
He then served a brief period at MacAndrews & Forbes, a holding company that owned around 40% of Scientific Games when Isaacs joined as executive VP in January 2014.
MacAndrews & Forbes owner and Scientific Games Chairman Ron Perelman then helped hire Isaacs as the president and CEO of Scientific Games in June 2014. After two and a half years, he transitioned to vice chairman of the board until 2018.
Shift to digital
Scientific Games is where Isaacs cut his teeth on US sports betting, as the company owned sportsbook tech provider OpenBet.
Isaacs took a spot on the DraftKings board in April 2020 after first taking roles with two of the company’s future acquisitions. Joining the DraftKings board came as the company bought SBTech, where Isaacs served as chairman for more than a year.
He also began his role of advisor to the board of Jackpocket in March 2019. DraftKings announced the $750 million purchase of Jackpocket earlier this year.
Most recently, Isaacs served as chairman of digital game developer Games Global.
Isaacs potential BetMGM impact
Interim CEO David admitted Entain failed to provide BetMGM with US-focused products quickly enough, which likely led to a lower market share.
“But being fully transparent, it took us, and that is Entain, some time to realize just how quickly we needed to feed BetMGM with better customer experiences, and better, more focused US-tailored products,” she said on Entain’s 2023 earnings call.
That should not be an issue under the guidance of someone who understands the US sports betting industry like Isaacs.
BetMGM investment details?
One figure investors in either MGM Resorts or Entain hopes to hear next week is how much investment the joint venture requires this year. Another year of investment was not necessarily the plan last year, but both partners confirmed more capital would be needed.
“We are aligned with MGM that 2024 is a year of investment for BetMGM, investing in marketing and building momentum behind our improved player experience with more US tailored products and new game launches,” David said.
The two invested $150 million total in BetMGM during 2023.
Update on Angstrom integration
Another key point in the BetMGM update should be how pricing model tech Angstrom is improving the sportsbook’s live betting and parlay products.
Entain CFO Rob Wood noted in April that there had been an improvement seen in the early days of MLB betting. There should be an update on how the NBA performed with Angstrom pricing, as well as how the integration with NFL sportsbooks is going with the season quickly approaching.
The financial impact of Angstrom’s performance has two prongs. Driving better results for BetMGM means a higher earn-out payment over the next three years.
Entain bought Angstrom for $106 million upfront with another $160 million in potential earnouts.