Kenny Alexander and Lee Feldman have commenced legal action against the UK Gambling Commission (UKGC).
The allegations of the former CEO and Chairman GVC Holdings (formerly Entain Plc) centre on the ‘misuse of private information’, according to the information currently available in the court filing referencing ‘Part-53 of the Media and Communications Claims’.
Representing Alexander and Feldman, the legal challenge has been filed by London law firm Slateford. Whilst it is unclear exactly what the allegations relate to, volatility between the two parties isn’t unfamiliar.
FS Gaming, the investment vehicle spearheaded by Alexander, was in pursuit of 888 Holdings (now Evoke Plc) leadership last year, as it took a 6.5 per cent stake in the operator. However, the ambitious acquisition attempts triggered an investigation from the UKGC, which raised concerns over an investigation that was ongoing at the time into a historic bribery case involving Entain and its former Headlong subsidiary in Turkey.
It led to 888 raising fears over the efforts of Alexander as he sought to increase his shares in 888 and become the firm’s CEO, alongside Feldman who was touted as potential chairman had their acquisition plans come to fruition.
Following the request for clarification from FS Gaming, which 888 said yielded “the most basic assurances,” the UKGC subsequently decided that it needs to commence a review of the group’s operating licences.
This was deemed appropriate given the aforementioned investment and proposal, with a range of outcomes possible in a licence review that 888 assured it would “cooperate fully with”.
Subsequently, 888’s board unanimously opted to terminate discussions in light of this review, the publicly-available information and that prospective appointments “have no reasonable prospect of being approved”.
A few months following Alexander’s bid for 888 disintegrating, Entain agreed a £585m settlement with the Crown Prosecution Service after being subject to a bribery investigation, leading to the FTSE100 gambling group booking corporate losses of £900m on 2023 accounts.
The case stemmed from its previous Turkish business, which it sold in 2017. The owner of Ladbrokes and Coral will pay the settlement to HMRC.
Chairman Barry Gibson commented at the time of the settlement: “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.”
Since then however, it was reported only last month by the Financial Times that the Crown Prosecution Service is edging towards a decision on charging individuals, even reportedly inviting those allegedly involved to enter plea deals over the case. At this stage, exactly which individuals are under investigation is not known.
SBC has reached out to Slateford Law to provide further information on the Feldman and Alexander dispute against the Gambling Commission.
