Two former executives of Entain, Kenny Alexander and Lee Feldman, have lost a civil case against the UK Gambling Commission. They claimed that the regulator infringed upon their privacy during the scrutiny surrounding their failed attempt to acquire online casino operator 888. The court’s decision underscores the ongoing legal challenges faced by the executives, who are also dealing with separate criminal charges related to fraud and bribery.
The legal dispute traces back to the executives’ efforts to take over 888, which fell apart after the Gambling Commission indicated potential issues with the company’s licensing due to concerns about Alexander and Feldman’s leadership at Entain. At that time, Entain was under investigation by HM Revenue and Customs for alleged bribery associated with its operations in Turkey from 2011 to 2018. This investigation, known as Operation Incendiary, prompted the Gambling Commission to inquire whether Alexander and Feldman had been interviewed under caution or were considered suspects.
According to 888, the company struggled to receive “the most basic assurances” from the Gambling Commission regarding the status of Alexander and Feldman, contributing to the collapse of the takeover talks.
Court Ruling and Implications
On Monday, Mrs Justice Eady ruled against Alexander and Feldman, dismissing their privacy claims and ordering them to pay the legal costs incurred by the Gambling Commission. The specifics of the judge’s reasoning are currently under a temporary reporting restriction.
In 2023, Entain had already reached a settlement, agreeing to pay GBP 615 million (approximately $828.5 million) as part of a deferred prosecution agreement related to the HMRC’s investigation. Although Entain itself was not charged, this agreement helped protect the company from further prosecution.
Alexander and Feldman are among 11 individuals facing charges linked to the bribery and fraud allegations that have overshadowed Entain’s Turkish operations for nearly a decade. A criminal trial for these charges is scheduled for 2028.
A spokesperson for Alexander and Feldman has indicated their intention to appeal the recent civil judgment. Meanwhile, the Gambling Commission expressed satisfaction with the court’s decision, which reinforces its authority in regulating the gambling sector in the UK.
As this case unfolds, it highlights the significant legal and reputational challenges facing executives in the gambling industry, especially amid ongoing scrutiny and investigations.
