Entain Creates New Board Committees
Author:
Muhammad Gregory
International betting and gaming operator Entain has established two new committees on its group board. The People and Governance Committee and the Sustainability and Compliance Committee come as part of the group’s efforts to enhance the board’s sustainability, staff engagement and effectiveness. The move comes as the operator assesses the impact of the newly published Gambling Act Review white paper.
Entain is keen to promote diversity within its workforce and reinforce its sustainability credentials.
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Supporting Diversity
Leading betting and gaming operator Entain has announced that it has established two new committees on its group board. The People and Governance Committee and the Sustainability and Compliance Committee have been formed to increase the board’s effectiveness, engagement with staff and sustainability.
Entain is one of the world’s biggest betting and gaming groups, operating both online and in the retail sector. Its extensive portfolio of brands includes a range of household names, including Ladbrokes, Coral, Foxy Bingo, Gala and Partypoker. The gambling operator is one of just two to be listed on the FTSE100, alongside rival Flutter Entertainment.
Issuing a statement on the changes, Entain outlined what each committee would do. The People and Governance Committee will review workforce practices and policies, monitoring their consistency with the group’s purpose, strategy and values. It will also ensure that appropriate procedures are in place in regards to the training and evaluation of Directors.
The committee will take the lead on processing appointments to the board and leadership team, considering the benefits of diversity. This includes gender and social and ethnic backgrounds, as well as cognitive strengths. Members will also review developments in law, regulation and business practice relating to corporate governance.
The new People and Governance Committee will be chaired by Stella David. Chairman Barry Gibson and Designated Workforce Director Virginia McDowell will join her on the committee. Following its creation, the Nomination Committee will be disbanded. Its responsibilities will be absorbed by the new committee.
Sustainability a Key Issue
The new Sustainability and Compliance Committee has been renamed from the Environmental, Social and Governance Committee. It will be tasked with largely the same functions, as well as providing oversight of the operator’s Sustainability and Compliance program. It will oversee the effective management of the group’s continuing relationship and engagement with a variety of stakeholders.
Further to this, the committee will keep a close eye on progress, looking to internal key performance indicators and external Sustainability and Compliance index results. As an internationally leading operator, Environmental, Sustainability and Governance initiatives are an increasing concern for Entain.
Last year, Chief Governance Officer Robert Hoskins explained that sustainability is a key priority for investors, requiring transparent and responsible reporting. ESG is also beneficial for consumers and Entain’s own workforce, promoting a positive image of the company. Stella David, who has joined the People and Governance Committee, has stepped down as a member of the Sustainability and Compliance Committee with immediate effect.
The Sustainability and Compliance Committee will consist of members Non Executive Director David Satz and Non Executive Board Member Rahul Welde. The committee will be chaired by Virginia McDowell. Speaking on behalf of the group, Entain Chairman Barry Gibson explained what the changes would mean for the future of Entain. Gibson stated:
“The outstanding quality of Entain’s people around the world is a key part of our success, and these changes will bring the Board even closer to the extraordinary talent and diversity that we are fortunate to have across our business.”
Continuing, Gibson reiterated the group’s continuing focus on sustainability as well as its commitment to being a responsible operator. In his statement, he said that leading levels of corporate governance run through all aspects of the business.
Online Slot Limits
The changes to Entain’s board committees come at a pivotal time for the operator. The UK’s government recently published the long-awaited outcome of its Gambling Act Review, detailing new curbs for online gambling. Amongst the wide-ranging proposals detailed in the white paper are stake limits for online slots, increased powers for the Gambling Commission and the creation of an ombudsman for consumer redress.
At the time of the white paper’s publication, Entain CEO Jette Nygaard-Andersen welcomed the clarity that it would bring. She praised the importance of the review as an opportunity to create a robust framework that is suitable for the digital age and that would level the playing field for all operators.
Amongst the proposals that will have an impact on Entain’s UK online operations are the ￡2 slot limit for under 25s, staking limits of ￡2 to ￡15 for online slots and reinforced financial checks based on customer deposits. Tighter controls over some game features will also have an impact on the business.
Entain will have to navigate the introduction of mandatory deposit limits and curbs on bonuses, a compulsory levy of 1% of GGR to fund treatment and research into gambling harms, and the creation of an industry-funded independent ombudsman.
Some of the government’s new proposals align with actions that Entain has already taken to protect its customers. In 2020, it terminated VIP schemes across the UK, and has since introduced personalized staking limits for online slots. It has also implemented an affordability model in the UK that includes soft checks on customers from as low as ￡100.
The group has actively supported the idea of an independent industry ombudsman and is on side with gambling levy. Entain was the first operator to voluntarily commit to donating 1% of its UK GGR towards research, education and treatment for problem gambling. In 2021, it launched its Advanced Responsibility and Care program, which utilizes AI to enhance player protections.
As the operator has already voluntarily taken on some of the actions proposed in the white paper, it does not expect there to be any material change to its expectations for the current financial year. It predicts an impact of less than 1% on its group-wide online net gaming revenue in the financial year 2024.
