Two former executives of Entain, Kenny Alexander and Lee Feldman, have lost a civil case against the UK Gambling Commission regarding alleged violations of their privacy rights. The ruling follows their claims that the regulator’s actions during a failed acquisition attempt of online casino operator 888 Holdings infringed upon their personal rights.
In early 2023, Alexander, the former chief executive officer of Entain, and Feldman, the ex-chair of the company’s subsidiaries, attempted to take over 888. This acquisition collapsed after the Gambling Commission alerted 888 to a potential review of its operating license, citing ongoing investigations into the executives’ previous roles at Entain. At the time, Entain was under scrutiny by HM Revenue and Customs for alleged bribery related to its operations in Turkey, which occurred between 2011 and 2018, under a probe known as Operation Incendiary.
The commission’s inquiry included questions about whether Alexander and Feldman had been interviewed under caution or designated as suspects in that investigation. According to 888, the company struggled to obtain “the most basic assurances” concerning the executives’ status, ultimately leading to the failure of the takeover discussions.
Judgment and Legal Costs
In a ruling delivered on Monday, Mrs Justice Eady dismissed the case brought by Alexander and Feldman, ordering them to pay the legal costs incurred by the Gambling Commission. The full reasoning behind the judgment remains under a temporary reporting restriction, leaving many details undisclosed.
In 2023, Entain had previously agreed to a deferred prosecution agreement, resulting in a payment of GBP 615 million (approximately $828.5 million) in relation to the HMRC investigation. Although Entain itself was not charged, the agreement served to shield the company from further legal repercussions while the implicated individuals face serious criminal charges. Alexander and Feldman are among eleven individuals facing allegations of bribery and fraud tied to the company’s operations in Turkey, with a criminal trial scheduled for 2028.
A spokesperson for Alexander and Feldman announced plans to appeal the civil court’s judgment. Meanwhile, the UK Gambling Commission expressed satisfaction with the dismissal of the case, emphasizing the importance of its regulatory role in maintaining the integrity of the gambling industry.
The ongoing legal battles surrounding Entain and its former executives highlight the challenges faced by individuals in positions of power within the gambling sector, particularly as regulatory scrutiny continues to intensify.
