Entain Facing Legal Battle Over Allegations of Bribery

Article by : Erik Gibbs Aug 22, 2024

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Entain, a major player in the global gambling industry and owner of brands like Ladbrokes and Coral, is facing a significant legal challenge over allegations of historical bribery. The UK law firm Fox Williams is pursuing Entain for substantial compensation, reportedly tied to a sharp decline in the company’s share price. The claims, valued at over £150 million (US$166.80 million), have raised scrutiny over past activities linked to Entain’s former operations in Turkey.

The controversy comes from a bribery investigation that culminated in a £585 million (US$650 million) settlement with the Crown Prosecution Service (CPS) in November of the previous year. The investigation centered around Entain’s Turkish business, which was sold in 2017 before the company rebranded from GVC Holdings to Entain in 2020. Despite the company’s efforts to distance itself from these legacy issues, the repercussions continue to impact its financial and legal standing.

Entain has confirmed that two groups of shareholders filed separate claims against the company in the High Court of England and Wales on August 1 and 2, 2024. The company has not yet been formally served with these claims but has stated its intention to defend itself. Entain insists that the activities in question occurred under a previous management team and before the company’s transformation into its current form.

Barry Gibson, who served as Chairman during the rebranding process, emphasized that the company has undergone significant changes since the sale of its Turkish business. He described the bribery issues as a legacy problem, handled by a past leadership team and highlighted Entain’s evolution into a company recognized for its strong corporate governance and focus on operating exclusively in regulated markets.

However, despite these assurances, the ongoing legal battle suggests that the consequences of Entain’s past actions continue to haunt the company. The aggressive pursuit of compensation by investors indicates that the issue is far from resolved.

This situation arises just as Entain is set to enter a new phase of leadership, with Gavin Isaacs taking over as CEO in September 2024. Isaacs is stepping into the role at a time when the company is reporting positive momentum, having upgraded its full-year guidance for 2024.

Interim CEO Stella David expressed confidence in the company’s trajectory, sharing the strong performance in the first half of the year, and the opportunities that lie ahead. She also welcomed Isaacs to the leadership role, expressing optimism about the future under his guidance.