Two Former Entain Execs Sue UK Gambling Regulator

Two senior-level executives who used to be part of the management team of Entain’s predecessor recently filed a lawsuit against the gambling regulator in the UK, the Gambling Commission.

Proposed Senior-Level Transition Results in Review by the UKGC

That is the case of a legal claim filed by the former chair of GVC Holdings, now Entain, Lee Feldman, together with the company’s former chief executive, Kenneth Alexander. In their claim, the two leaders alleged that the gambling watchdog misused their personal information after disclosing details regarding an investigation into suspected bribery, Law360 reveals.

Although the legal claim was filed on October 24, 2024, details were only recently released publicly. The case filed by Feldman and Alexander reads: “Given that this was the position of the defendant as the official regulator of betting and gambling in this country, such an impression is and was likely to be highly damaging and distressing to the claimants.”

The lawsuit follows an investigation by the HMRC into GVC’s former business in Turkey from several years ago. Although the business was sold in 2017, allegations against it claimed that it operated in the country’s grey sector. This resulted in a £615 million Deferred Prosecution Agreement (DPA) reached between Entain and the Crown Prosecution Service (CPS).

As described by the legal claim, in June 2023, Feldman and Alexander attempted to transition to senior-level roles at the recognizable gambling and betting company, 888 Holdings PLC, for the roles of director and chief executive respectively. Following the regulations, the Gambling Commission started a review of the bid.

An Unwarranted and Unnecessary Release of Private Information

While ultimately, the negotiations fell through the cracks, a press release by the UK gambling watchdog captured the attention of the two executives. In its announcement, the Commission confirmed that the proposed senior-level executives held “key functions” at GVC Holdings at a time when the company was under investigation by the HMRC for alleged breaches and offenses, including bribery in Turkey.

The lawsuit filed by the two executives claimed that the disclosure of such private information was “unwarranted and unnecessary.” In addition, Feldman and Alexander claimed the gambling watchdog’s actions resulted in “unquantifiable financial and reputational harm, as was the inevitable or foreseeable result.”

Per the legal claim, the former executives are seeking damages of more than £50,000 ($62,800). In addition, Feldman and Alexander seek an injunction that would prohibit the Gambling Commission from releasing confidential information in the future.

The two former senior-level executives claimed that the reviewed information was “plainly private, regardless of whether it was true or not.” They also claimed that the Commission’s press release “gave clear impression” that an unfavorable conclusion had been reached about their suitability for a license.