Previous allegations of bribery have resulted in a legal battle for Entain. As reported by Law.com, the operator is being pursued by UK law firm Fox Williams for significant compensation. According to the report, the legal firm is citing a major share drop resulting from historical bribery claims worth more than £150m.
In November of last year, Entain agreed to a £585m settlement with the Crown Prosecution Service (CPS) off the back of the bribery investigation.
Providing comment to CasinoBeats, the group stated: “Entain has been made aware that, on 1 August 2024 and 2 August 2024, two groups of shareholders issued separate claims against Entain in the High Court of England and Wales. We have not yet been formally served with either of the claims, so these matters are at a very early stage. Entain intends to defend any proceedings robustly.”
The case stemmed from its previous Turkish business, which it sold in 2017. The owner of Ladbrokes and Coral will pay the settlement to Her Majesty’s Revenue & Customs (HMRC).
Entain emphasised that it has since transformed as a company, insisting that the previous action was a legacy issue as the illegal activity took place prior to its 2020 rebrand when it traded as GVC Holdings.
Barry Gibson, who was Chairman at the time, provided comment on the case on behalf of Entain, stating: “This legacy issue pertains to a business divested by a past management team six years prior. The company has undergone significant changes since then, and the DPA process has underscored the profound evolution from the GVC of the past to today’s Entain.
“We remain focused on advancing our operations exclusively within regulated markets and are acknowledged as a leading, responsible entity with unparalleled corporate governance across our business.”
Whilst the operator will have hoped that the settlement put the case to bed for good, the consequences appear to have reared their head again with the aggressive pursuit of compensation from investors.
Entain will begin a new era of leadership from September as Gavin Isaacs takes the role of CEO, building on a generally positive H1 period for the firm as it upgraded its full-year 2024 guidance.
Interim CEO Stella David welcomed Isaacs to the role and reflected on the start to the year for the firm: “Our focused execution underpins the Group’s performance so far this year, and we are excited by the opportunities ahead.,” she said.“I look forward to welcoming Gavin Isaacs as our new Chief Executive Officer and supporting him as we continue to build on the Group’s improving operational momentum.”
