Allegations of bribery have led Entain to legal action. According to Law.com, British law firm Fox Williams is seeking significant compensation from the operator. The report highlights that the firm cites a substantial drop in share value due to historical bribery claims amounting to over £150 million ($187 million).
Last November, Entain agreed to a £585 million ($730 million) settlement with the Crown Prosecution Service (CPS) following a bribery investigation.
In a statement, the group said: “Entain has been made aware that, on 1 August 2024 and 2 August 2024, two groups of shareholders issued separate claims against Entain in the High Court of England and Wales. We have not yet been formally served with either of the claims, so these matters are at a very early stage. Entain intends to defend any proceedings robustly.”
The case relates to a previously sold Turkish business that was divested in 2017. The owner of Ladbrokes and Coral is set to pay compensation to His Majesty’s Revenue and Customs (HMRC).
Entain noted that the company has significantly transformed since then, asserting that the previous issues are a legacy, as the illegal activities occurred before the rebranding in 2020, when the company was known as GVC Holdings.
Barry Gibson, who was Chairman at the time, commented on the case on behalf of Entain, stating: “This legacy issue pertains to a business divested by a past management team six years prior. The company has undergone significant changes since then, and the DPA process has underscored the profound evolution from the GVC of the past to today’s Entain.
“We remain focused on advancing our operations exclusively within regulated markets and are acknowledged as a leading, responsible entity with unparalleled corporate governance across our business.”
Although the operator hoped the settlement would close the case, repercussions have resurfaced due to investors’ aggressive pursuit of compensation.
Starting in September, Entain will enter a new era of leadership with Gavin Isaacs as CEO. This transition comes amidst positive results for the first half of the year, allowing the company to raise its annual forecast for 2024.
Interim CEO Stella David welcomed Gavin Isaacs to his new role and commented on the company’s start to the year: “Our focused execution underpins the Group’s performance so far this year, and we are excited by the opportunities ahead.,” she said.“I look forward to welcoming Gavin Isaacs as our new Chief Executive Officer and supporting him as we continue to build on the Group’s improving operational momentum.”
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