Former Entain CEO Charged With Fraud & Bribery For Illegal Gambling Operation in Turkey

Former Entain CEO Kenny Alexander is among 11 facing charges of fraud, bribery, cheating the public revenue, tax evasion, and perverting the course of justice.

Along with Alexander, other former Entain directors charged include Lee Feldman, the company’s former chair; Richard Cooper, its former finance director; and Robert Hoskin, its former legal director. James Humberstone, who held several roles with the company, has also been charged, along with six others not employed by the company.

Complex Investigation Uncovers Illegal Operation

The charges relate to how GVC Holdings (now Entain) allegedly handled its Turkish online gambling business between 2011 and 2018. The 11 men are accused of generating significant revenues from Headlong Ltd., a subsidiary running online gambling in Turkey.

Online gambling, however, is illegal in Turkey, and the charges 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.

Richard Las, Director of Fraud Investigation at HMRC, said: “This has been a complex and international investigation. These are serious charges that relate to conspiracy to defraud, bribery, cheating the public revenue, evasion of income tax, and perverting the course of justice, among others.”

Entain is placing a significant emphasis on its international operations, and its partnership with BetMGM, in particular, has performed well this year.

Entain Distances Itself From Former Employees

Entain already paid a £585m settlement in 2023 in a deferred prosecution agreement (DPA) over “historic failures” in Turkey, but this did not cover individuals.

A spokesperson for the gambling group said: “The company has not been charged and none of the individuals charged are currently employed by the company or its group.

“The company entered into a deferred prosecution agreement with the CPS in December 2023, which subject to continued compliance with its terms, resolved the HM Revenue and Customs investigation insofar as it concerned the company and its group.

“The company has no further comment to make in respect of these matters, which are the subject of ongoing criminal proceedings and reporting restrictions.”

Entain Leadership in State of Flux Since Scandal

Since the scandal came to light, the company has been in a state of flux. Jette Nygaard-Andersen was forced to resign due to backlash, and she was replaced temporarily by Stella David.

Gavin Isaacs was then appointed as permanent CEO, but lasted only six months. Isaacs left by mutual agreement following disagreements with the board. His departure caused the company’s stock to fall 11% as investors worried about the company’s stability.

David again served as interim CEO and took up the role permanently from April this year. Upon taking up the position, she said that the resolution of the HMRC investigation offered a “clean inflection point” for both her and Entain. The group was now “safe, stable and sustainable.”

The charges faced by the 11 men carry potential prison sentences of up to 10 years, as well as unlimited fines.