Entain reports strong H2 growth
International gambling and sports betting company Entain reported strong progress in its H2 results.Formerly known as GVC Holdings, Entain is an international gambling...
Investors filed a compensation lawsuit against Entain
20 investors sued Entain, demanding compensation for losses due to the company’s bribery operations in Turkey.
Formerly known as GVC Holdings, Entain is an international gambling and sports betting company founded in 2004. The company owns brands such as PartyPoker, Sportingbet, Coral, and Ladbrokes, which the company acquired after offloading its subsidiary company Headlong for free.
Headlong was a major revenue source for Entain, operating in Turkey. However, later the company was included in black-market operations, such as secretive cash collection systems and payment processes. Headlong even bribed some Turkish officials to not have any juridical issues.
This resulted in major losses for the company, and on August 21, a class-action lawsuit was filed against Entain in London’s High Court. Entain’s investors claim that besides failing its management in Turkey, the company also did not properly inform its investors about it, later causing losses for them.
Owning half of BetMGM, Entain needs to pay the highest fine in UK history, £600 million, to resolve the case. Moreover, Entain could also face prosecution under the UK Bribery Act, after which it could internationally lose its license and result in unemployment statistics growth.
Andrew Williams, a partner at Fox Williams, the law firm that filed the complaint, said:
“The lawsuit would offer institutional investors the opportunity to recover substantial losses but more importantly serve to improve transparency and governance within the UK’s gambling sector, reminding public companies that they need to take their disclosure obligations seriously.”
If the case enters the trial, the judge will need to decide how much the Turkey issue harmed Entain’s stock price.
FAQs
What does Entain do?
Entain is an international sports betting and gambling company. The company’s main activities include online and retail betting and gaming operations.
In what countries does Entain operate?
Entain operates in 18 countries across Asia, North America, South America, Europe, and Oceania.
Does Entain operate in Turkey?
Gambling is illegal in Turkey, and Entain stopped its operations in Turkey.
What is the class-action lawsuit against Entain about?
The lawsuit involves 20 investors suing Entain for compensation due to losses related to the company’s bribery operations in Turkey. The investors claim that Entain failed in its management in Turkey and did not properly inform them, resulting in financial losses.
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