Adam Roarty is a journalist covering sports betting, regulation, and industry innovation for CasinoBeats. His coverage includes tax increases in the UK, covering breaking stories in the ever-evolving landscape of US betting such as the...
Read Full BioFormer Entain CEO Kenny Alexander and fellow executive Lee Feldman have lost their case against the UK Gambling Commission and been ordered to pay legal costs. The pair is still awaiting a criminal trial after being arrested for their part in an alleged illegal gambling operation in Turkey.
Alexander and Feldman filed a lawsuit against the Commission, alleging that the regulator shared private information with 888 chair Lord Mendelsohn to block a potential takeover deal.
On Monday, Mrs. Justice Eady dismissed the claim and ordered the two men to pay the Gambling Commission’s legal costs. Further details of the verdict cannot be revealed, as Eady imposed a temporary order preventing their reporting.
A spokesperson for Feldman and Alexander said the pair planned to appeal against the judgment. The Gambling Commission, meanwhile, told The Guardian, “We welcome the dismissal.”
What the Lawsuit Alleged
The former executives formed an investment group, FS Gaming, which took a 6.5% stake 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 claimed this was the result of UK Gambling Commission CEO Andrew 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 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.
Justice Eady sided with the Commission, refusing to entertain the allegations brought by the two executives who are facing charges of fraud, bribery, and tax evasion over how GVC Holdings (now Entain) handled its Turkish online gambling business between 2011 and 2018.
Alexander & Feldman Trial Slated for 2028
The criminal trial against Alexander, Feldman, and others is not expected to take place until 2028. In total, 11 individuals were arrested, including other former GVC staff members.
Richard Cooper, GVC’s former finance director, Robert Hoskin, its former legal director, and James Humberstone, who held several roles with the company, have also been charged, along with six others not employed by the company.
Entain has already paid a fine of £615 million ($815 million) related to the Turkish operation. Online gambling is illegal in Turkey. The country has been increasing efforts to clamp down on the practice, including arresting several soccer referees and players in a betting scandal that emerged last year.
The charges against the former Entain executives include various attempts by the men to cover up the illegal operations. Alexander and others allegedly paid bribes to Turkish officials to protect their ability to keep operating illegally in the country.
Richard Las, Director of Fraud Investigation at the UK’s tax agency, 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.”
