Shock move as Entain boss Shannon stands down; industry leaders ponder implications

In a shock revelation today, Entain boss Dean Shannon announced he is standing down at the end of the month.

The news has left racing bosses wondering what the implications are for the New Zealand industry with Shannon, a staunch supporter of harness racing in particular, and a big owner of locally trained horses.

Entain secured a 25-year partnership with the New Zealand TAB in March, 2023 and has since poured hundreds of millions of dollars into rejuvenating the industry. The deal guaranteed a minimum funding of more than $1 billion to the NZ Tab in the first five years.

The Australian Financial Review today reported that Shannon’s resignation was an attempt to improve the business relationship with the financial crimes watchdog. It’s story follows:

London-listed Entain faces hundreds of millions of dollars in fines for alleged breaches of Australian anti-money laundering laws between 2018 and last year.

The Australian Transaction Reports and Analysis Centre has sued the British bookmaker, claiming failures in oversight by Entain’s board and senior management resulted in “serious and systemic” non-compliance.

Shannon, who held leadership roles across Ladbrokes and Neds during the period, has agreed to step down and will depart the company by June 30.

Sources, not authorised to speak publicly, said Austrac had not requested Shannon’s resignation. However, he was told his exit would help the company break from its past.

“Dean has put the best interests of the business first, and he is trying to get the best possible outcome for the business,” a source close to the matter said.

Shannon’s exit will coincide with the completion of a newly created anti-money laundering and counter-terrorism finance program and the introduction of a new law in New Zealand that effectively gives Entain the exclusive rights for online racing and sports betting.

Stella David, group chief executive of Entain, thanked Shannon for his contribution to the business.

“The growth and integration of Neds and Lads into our global portfolio of podium position brands has been a particular highlight, and he has more recently delivered what we believe is a market leading compliance programme in Australia,” David said.

Shannon will be replaced in the interim by Andrew Vouris, a former Tabcorp executive who more recently led Entain’s venture into esports.

Vouris was the deputy chief operating officer of wagering and media at Tabcorp and was also involved in the remediation of commercial operations related to Tabcorp’s Austrac proceedings in 2017.

A process has commenced for a permanent chief executive.

Shannon has led Entain Australia since 2019, and was also the inaugural chief executive of Ladbrokes.com.au and founder of Neds.com.au.

He built Entain into one of the country’s largest online bookmakers – it had almost 2 million customers last year with a market share of 17 per cent.

AUSTRAC began investigating Entain in September 2022, months after the company paid British regulators $29 million for similar breaches.

The investigation found Entain had allowed 17 high-risk customers to spend more than $152 million without doing appropriate due diligence.

Its central allegation is that Entain did not have the right systems in place – such as transaction limits and procedures for international deposits or withdrawals – to manage the risk of money laundering.

AUSTRAC alleges Shannon personally reviewed one of the customer’s accounts, deciding he was “very low-risk” because he had been wagering for a decade and publicly available information about his wealth matched his spending.

The two parties are required to attend a mediation before August 4.

Shannon is the fourth senior executive to leave Entain this year. Chief financial officer Lachlan Fitt, general manager of ownership and participation Ryan Stanaway, and managing director of NZ, Cameron Roger, have all left the business.

The Australian Financial Review is not suggesting the exits are related to the AUSTRAC legal action.

HRNZ CEO Brad Steele this afternoon paid tribute to the work of Shannon.

“Dean’s leadership has played a pivotal role in navigating New Zealand racing through a time of transformation and uncertainty.

“His vision and strategic focus helped lay the foundations for a modernised wagering landscape, and it’s no coincidence that New Zealand is now one of the few countries in the world showing positive wagering results.”