Two former top executives of gambling giant Entain have been defeated in a High Court civil action against the UK's gambling regulator. Kenny Alexander and Lee Feldman, the ex-chief executive and chair of the Ladbrokes and Coral owner, sued the Gambling Commission, alleging it breached their privacy. Their claim has now been dismissed.
The Failed 888 Takeover and Regulatory Intervention
The legal dispute stemmed from the pair's attempt to gain control of the online casino firm, 888 Holdings, last year. Those takeover talks collapsed after the Gambling Commission intervened. The regulator informed 888 that its operating licence would be subject to a review due to concerns about Alexander and Feldman's past roles at Entain.
This concern was linked to a major investigation by HM Revenue and Customs (HMRC) into Entain, codenamed Operation Incendiary. The Commission asked 888 if it was aware whether the two men had been interviewed under caution or were suspects in that probe. In a subsequent stock market statement, 888 said it could not obtain "the most basic assurances" to satisfy the regulator's worries, leading to the deal's failure.
Privacy Claim Dismissed with Costs Order
Alexander and Feldman, with Alexander famously known in the industry as "King Kenny", argued that the Commission breached their privacy by causing a public statement that disclosed both the licence review and the reasons behind it. They took the regulator to court over this alleged breach.
On Monday, however, Mrs Justice Eady threw out their claim. She also ordered Feldman and Alexander to pay the legal costs incurred by the Gambling Commission. Details of the judge's full reasoning are currently under a temporary reporting restriction and cannot be disclosed.
Background: The £650m DPA and Pending Criminal Trial
The civil case is a separate legal front for the two former executives, who are also facing serious criminal charges. The HMRC investigation focused on alleged bribery within Entain's former Turkish business operations between 2011 and 2018.
In a major settlement last year, Entain itself agreed to pay £650 million as part of a deferred prosecution agreement (DPA) related to that probe. Subsequently, Alexander and Feldman were among 11 defendants charged with offences including fraud and bribery. A criminal trial in that matter is scheduled to begin in 2028.
Following the civil ruling, the Gambling Commission stated simply: "We welcome the dismissal." Representatives for Feldman and Alexander have been approached for comment.
