Ladbrokes will today announce it is searching for a new chief executive after Chris Bell decided he would step down from the bookmaker this summer.

Mr Bell's decision will come as a surprise to the leisure industry, although several analysts have been notably more favourable towards Ladbrokes' main rival, William Hill.

Aged 52, he has served Ladbrokes for 20 years and became chief executive in February 2006 after the separation of Ladbrokes from Hilton International.

The vacancy comes eight months after Peter Erskine, the former chairman and chief executive of O2, took over as chairman. Insiders said Mr Bell had raised the subject of his succession shortly after Mr Erskine took the chairmanship.

Ladbrokes is expected to say that Mr Bell's departure is by mutual agreement and that he will stay until a successor is chosen.

In the frame will be two internal candidates - John O'Reilly, managing director of the online gaming division, and Brian Wallace, finance director. But there is an extensive Ladbrokes alumni spread across senior positions in the industry.

The new chief executive will arrive at a difficult time for Ladbrokes and other bookmakers, with some analysts predicting the next government could raise gambling taxation.

The government last week also announced plans that would see online operators based abroad, including Ladbrokes, which moved its internet sportsbook to Gibraltar, contribute to the racing levy, a move that signals a tougher regulatory regime for online gambling.

Ladbrokes was among a number of bookmakers hit by an unexpected series of bad results at the start of the Premier League season, raising concerns about structural pressures on sportsbook margins.

Shareholders will want Mr Bell's replacement not to leave Ladbrokes out of the loop in the much-anticipated round of consolidation in online gambling.

Mr Bell has taken Ladbrokes through significant changes in the industry, notably the 2007 Gambling Act and the rapid rise in online gambling.

Bookmakers have also seen football betting take off, putting their relationship with the racing industry under pressure.

Mr Bell also steered the company through a £275m rights issue in the autumn. He will leave with about a year left on his contract, which was worth over £600,000 in basic pay.

Source: FT.com

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