Former Entain Bosses Launch Lawsuit Against Law Firm

According to a report in the Financial Times, Former Entain bosses have launched a lawsuit against the gambling giant’s law firm, seeking to gain access to legal advice they were provided while at the company. The legal action, brought by ex-chief executive Kenny Alexander and former chairman Lee Feldman, centres on claims that Addleshaw Goddard and Entain have incorrectly claimed privilege over this advice.

Addleshaw Goddard, the gambling company’s longstanding law firm which also represented Entain in its £585 million Deferred Prosecution Agreement with the Crown Prosecution Service, faces a claim which seeks to secure access for Alexander and Feldman to the legal advice that the pair claim was given.

The claim states that the executives relied on Addleshaw’s advice in the development of Entain’s business in Turkey, described in the claim as a ‘grey market’. The filings note that business was done using an approach called ‘point of supply’, where online gambling is offered in a jurisdiction from other jurisdictions in which gambling is legal.

The claim highlights that the relationship between the pair and the Addleshaw Goddard team was “extremely close”, with AG never informing them that they should seek “separate independent counsel” to advise them on potentially challenging matters including “their own position and potential exposure or liability”.

A spokesperson for Kenny Alexander and Lee Feldman commented “Addleshaw Goddard were the claimants’ long time advisors during the time they built and managed the Entain business and advised them on all material legal issues in connection with Entain’s operations.”

“The claimants are concerned that crucial advice given by Addleshaw Goddard may have been withheld, purportedly on privilege grounds.  The claimants are determined to get to the truth of what has gone on here, hence their decision to force full disclosure from Addleshaw Goddard and Entain through this claim.”

A spokesperson for Entaintold the FT: “Entain considers the claim to be without merit and it will contest it robustly.”

Addleshaw Goddard said in a statement to the FT that the firm was “unable to comment due to the client confidentiality obligations we are subject to”.

Turkish Operations Trigger £585M Settlement

HM Revenue & Customs’ extensive probe into Entain’s former Turkish operations has culminated in one of the largest corporate settlements in British gambling history. Initially launched in November 2019, the investigation examined potential corporate offending related to the company’s Turkish-facing online betting and gaming business. The investigation specifically focused on alleged breaches of Section 7 of the Bribery Act 2010, examining failures in preventing bribery that benefited the business.

Settlement Terms Impact Company Finances

The final settlement package includes:

• A financial penalty and profit disgorgement of £585 million
• A charitable donation of £20 million
• A contribution of £10 million towards HMRC and Crown Prosecution Service costs

The total penalties, altogether reaching £615 million, will be paid in instalments over four years from December 2023. Entain were required to exit four jurisdictions in Central and South America within 12 months, specifically Mexico, Brazil, Peru and Chile. The Crown Prosecution Service acknowledged Entain’s “exemplary” cooperation throughout the investigation, and stated that the “extent of the voluntary production of material” by Entain was “akin to self-reporting”.