Former Entain executives Kenny Alexander and Lee Feldman have initiated civil proceedings against the UK Gambling Commission, alleging privacy violations during the regulator’s intervention in their 2023 attempt to acquire control of 888 Holdings.
Background on 888 Holdings Acquisition Attempt
Alexander and Feldman, who previously served as chief executive and chair of Entain (parent company of Ladbrokes and Coral), acquired a 6.5% stake in 888 Holdings through their investment vehicle FS Gaming in June 2023. The pair proposed installing themselves in leadership positions at 888, which operated the William Hill brand.
The acquisition plan collapsed after 888 terminated discussions, citing regulatory concerns. The company informed investors that the Gambling Commission indicated it would review 888’s operating licence due to questions about Alexander and Feldman’s previous roles at Entain during an HM Revenue and Customs (HMRC) investigation into alleged bribery at the company’s Turkish operations between 2011 and 2018.
Details of the Legal Claim
The civil lawsuit centers on allegations of “misuse of private information and/or breach of confidence.” Alexander and Feldman claim the Gambling Commission violated their privacy rights by causing 888 to issue a public statement disclosing the licence review and its underlying reasons.
According to court documents filed by the claimants’ legal team, the licence review constituted a “convenient fiction.” The pair argues that 888’s statement created the impression of an adverse regulatory finding that rendered them unsuitable for leadership roles at the company.
The lawsuit also challenges the regulator’s March 2024 statement announcing the conclusion of the licence review following the abandoned acquisition proposal.
Regulatory Response and Justification
The Gambling Commission defended its intervention, stating it had no alternative but to act after learning that Feldman and Alexander were suspects in HMRC’s Operation Incendiary investigation. The regulator questioned whether 888 was aware that the two executives had been interviewed under caution or were under investigation.
In its statement to the stock market, 888 reported that it could not obtain “the most basic assurances” to address the regulator’s concerns. During cross-examination, Feldman confirmed he was aware at the time that Alexander was a suspect in the investigation, though Feldman himself was not under suspicion at that point.
Commission lawyers stated that while Alexander and Feldman could have responded to 888’s questions about Operation Incendiary, Feldman instead complained about “fearmongering” in his reply to the company.
Connection to Ongoing Criminal Proceedings
Entain agreed to pay £650 million in 2023 as part of a deferred prosecution agreement related to HMRC’s investigation into alleged bribery in its Turkish operations. Alexander and Feldman are among 11 defendants who have been charged with fraud and bribery, with a trial scheduled to commence in 2028.
Claims of Reputational Damage
The claimants assert they suffered “damage, distress and embarrassment, as well as the loss of standing” as a result of the regulator’s actions. In a witness statement, Feldman stated he had been “ostracised by my peers” following the commission’s intervention and had been unable to work for two years. He expressed concern about the impact on his reputation and what his children would read about him in the future.
Commission’s Defence
The Gambling Commission maintains that none of the publications related to the claimants revealed private information or caused damage. The regulator argues that any information published about Alexander and Feldman served the public interest.
Court proceedings revealed that Alexander engaged in discussions with 888 while knowing he was a suspect in Operation Incendiary. The case continues as both parties present their arguments before the court.
The civil proceedings represent a separate legal matter from the criminal charges the executives face, with both cases highlighting ongoing scrutiny of governance and compliance standards within the UK gambling sector.
Source: The Guardian
