Ex-Entain Executives Lose Privacy Lawsuit Against UK Gambling Regulator
Background of the Legal Dispute
Two former executives of Entain, Kenny Alexander and Lee Feldman, were involved in a legal battle accusing the UK Gambling Commission of violating their privacy. Both executives are also facing serious criminal allegations related to fraud and bribery.
Details of the Failed Takeover Attempt
The conflict arose during their unsuccessful bid to acquire 888, a well-known online casino operator. Alexander, who was the CEO of Entain, and Feldman, the former chairman of Ladbrokes and Coral’s parent company, faced scrutiny from the Gambling Commission that affected the takeover proceedings.
The takeover collapsed after the regulator indicated it would review 888’s operating license due to concerns stemming from Alexander and Feldman’s previous roles at Entain. This was tied to an ongoing investigation by HM Revenue and Customs into alleged bribery activities linked to Entain’s operations in Turkey from 2011 to 2018, known as Operation Incendiary.
The Commission requested information from 888 regarding whether the executives were suspects or had been interviewed under caution related to the investigation. 888 was unable to obtain definitive assurances addressing these concerns, which contributed to the deal falling through.
Outcome of the Privacy Case
Alexander and Feldman argued that the Gambling Commission infringed upon their privacy by publicly disclosing the reasons for the license review. However, Mrs Justice Eady dismissed their claims and ordered them to pay the regulator’s legal expenses. Details of the judge’s reasoning remain confidential due to a temporary reporting restriction.
Wider Context and Next Steps
In a related development, Entain agreed in 2023 to pay a substantial settlement of GBP 615 million ($828.5 million) through a deferred prosecution agreement linked to the HMRC’s bribery investigation. While the company secured this deal to avoid further prosecution, the individuals involved, including Alexander and Feldman, remain subject to criminal charges.
Eleven people, including these two former executives, face multiple charges connected to the alleged fraudulent and bribery misconduct, with a trial expected in 2028. A spokesperson for Alexander and Feldman has confirmed their intention to appeal the dismissal of their privacy case. The Gambling Commission has expressed approval of the court’s decision.
