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Read Full BioKenny Alexander, the former CEO of Entain, claims the UK Gambling Commission colluded with 888 to block his attempted takeover of the company.
Alexander filed a lawsuit against the Commission, alleging that the gambling regulator shared information with 888 chair Lord Mendelsohn, which led to the company withdrawing from talks in 2023.
In court this week, lawyers for Alexander and his deputy, Lee Feldman, stated that the Commission worked “hand-in-hand” and in “connivance” with 888.
Mendelsohn held talks with Andrew Rhodes, the chief executive of the Gambling Commission, who allegedly indicated that 888 ran the risk of losing its licence if Alexander were to become its boss.
Alexander and Feldman, among others, are facing several charges of fraud, bribery, and tax evasion over how GVC Holdings (now Entain) handled its Turkish online gambling business between 2011 and 2018.
Commission Disclosed Private Information That Blocked Takeover
The former executives formed an investment group, FS Gaming, which had taken a 6.5% share in 888 (now Evoke). The group was engineering a boardroom takeover, but following talks between the Commission and Mendelsohn, 888 issued a press release calling off a deal with FS Gaming.
Alexander and Feldman say this was the result of Rhodes disclosing confidential information to Mendelsohn. The press release, issued in July 2023, states that 888 held discussions with the Commission, which informed the group that it was launching a license review due to Alexander’s investment. It warned that a potential takeover would put 888’s business “at immediate and significant risk.”
In court, David Sherbourne, a media lawyer representing Alexander and Feldman, argued the Gambling Commission had “heavily collaborated” with 888 and “made public the private and confidential information” about its review in order to “undermine” their proposal.
He also claimed that the Commission had previously denied that it was “in any way responsible” for the press release. The Commission claims it merely approved “factual amendments” and stated that Rhodes did not disclose any confidential details to 888.
Trial Against Alexander on Hold Until 2028
While the court hears the dispute between Alexander and the Commission, the criminal trial against the former Entain CEO is not expected to take place until 2028.
Entain has already paid a fine of £615 million ($815 million) related to the Turkish operation. The company has been slowly recovering from the penalty and has been boosted by its 50% stake in BetMGM, which reported favorable growth this quarter.
Online gambling is illegal in Turkey, and the charges against Alexander, Feltman, and nine others include the various ways the men attempted to cover up the illegal operations. Executives allegedly paid bribes to Turkish officials and others to protect their ability to keep operating illegally in the country.
Recently, it has also emerged that an unnamed UK bookmaker inadvertently disclosed details of running an illegal offshore operation to the Gambling Commission.
Whether the offshore location is in Turkey and the company is Entain has not been revealed. Sources said the company takes billions of pounds in bets from British punters every year, leaving a select few, including Entain and Evoke, as potential suspects. The Commission is investigating the matter and has requested that the company hand over extensive financial evidence.
