Entain has become embroiled in yet another legal dispute, this time involving a number of investment firms. The latest lawsuit against the gambling operator names State Street Bank and Trust Company (trustee for the Roche US Retirement Plans Master Trust) and Northern Trust Company. According to City AM, the lawsuit is connected to financial issues the operator is facing in the securities market.

In addition, Entain continues to deal with the fallout from its previous legal troubles in Turkey. Former CEO Kenny Alexander and ex-Chair Lee Feldman have initiated legal action against Entain itself and its legal firm, Addleshaw Goddard. They claim that Entain allegedly shared “privileged information” with investigators during the Turkish bribery case brought against the operator in 2019.

At the time, GVC Holdings (Entain’s predecessor) was accused of profiting illegally from online betting and gaming operations. Following an investigation into possible corporate misconduct and violations of the 2010 Bribery Act, Entain reached a Deferred Prosecution Agreement with the UK Crown Prosecution Service (CPS) in November 2023.

As part of the agreement, Entain committed to pay:

• £585 million in fines,
• disgorgement of profits,
• £20 million in charitable donations,
• and £10 million in costs to CPS and HMRC (the UK tax authority).

Former Chairman Barry Gibson, who was involved in the negotiations, emphasized that the violations were related to a business sold during the tenure of Alexander and Feldman. He also noted that the company had “fundamentally changed” and that HMRC regarded Entain as a reliable and helpful partner during the investigation.

However, Entain has also seen some legal victories. In Belgium, the operator was cleared in a case involving the granting of exclusive virtual betting rights to Ladbrokes. This marked a significant achievement for Entain, given its strong presence in the European market, and brought an end to over five years of legal proceedings.

The European Commission conducted a detailed examination of whether the arrangement violated Article 107(1) of the Treaty on the Functioning of the European Union (TFEU), which pertains to state aid. The investigation concluded that exclusive rights had not been granted to Ladbrokes, and that the Belgian government had not waived or forfeited any revenue that Ladbrokes was supposed to pay for offering virtual betting.

“On this basis, the Commission concluded that the measure in question does not constitute state aid under EU rules,” the final statement from the Commission read.

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