Entain, the multinational betting group behind brands like Ladbrokes and Coral, is reportedly facing a new legal challenge from a consortium of heavyweight institutional investors. While the exact details of the claim remain undisclosed, it relates broadly to financial market matters.
Claim filed by institutional investors
The claim, recently submitted to London’s High Court, is being led by US law firm Morgan, Lewis & Bockius, and includes entities like Brown Brothers Harriman Trustee Services, State Street Bank and Trust Company, Northern Trust Company, and The Reliance Trust Company. Filed on the Financial List, a division reserved for high-value and complex financial disputes, the claim has firms acting in their capacities as trustees for large investment funds.
A spokesperson for Entain confirmed the development in a statement to City AM, noting that the company is “aware of this claim but has not yet been formally served with it.” They added that the case is “at a very early stage,” and emphasised that Entain “intends to defend any proceedings robustly.”
The latest lawsuit follows another one by law firm Fox Williams in August 2024 that Entain found itself entangled in. That earlier lawsuit resulted in a steep drop in the company’s share price after a high-profile settlement with the UK’s Crown Prosecution Service. Entain has agreed to a deferred prosecution agreement (DPA) in relation to historical misconduct linked to its former Turkish operations. Though the business was divested in 2017, the DPA saw the company pay a total of £615 million, including £585 million in fines and disgorgements, £20 million to charity, and £10 million to cover HMRC’s legal costs.
Internal consequences
The fallout from the investigation also sparked internal legal disputes. Earlier this year, former chief executive officer (CEO) Kenny Alexander and ex-chairman Lee Feldman launched proceedings against Entain and its legal advisors Addleshaw Goddard, seeking disclosure of communications shared with prosecutors. In December 2023, CEO Jette Nygaard-Andersen stepped down amid shareholder criticism over the company’s performance. She was succeeded by Gavin Isaacs, who resigned in February 2025 after only five months in the role, reportedly due to irreconcilable differences with the board over strategic decisions.
Recently, Entain appointed Stella David as its permanent CEO, who briefly served as interim CEO. The company also reported strong first-quarter results for 2025. The London Stock Exchange-listed company’s shares rose by as much as 7.6 percent in early trading on 29 April, driven by a 9 percent year-on-year increase in Group Net Gaming Revenue (NGR).
AUSTRAC’s 640-page lawsuit
Last month, Entain faced yet another regulatory investigation amid claims by the Australian Transaction Reports and Analysis Centre (AUSTRAC) that it has systemically and repeatedly failed to comply with anti-money laundering (AML) regulations. AUSTRAC initiated legal action against Entain, backed by a 640-page report that outlines the alleged offences. The recent court filings have laid bare the first comprehensive description of the specific failures that AUSTRAC claims occurred in Entain’s Australian business.
Owing to delicate times, Entain Australia, the owner of Ladbrokes and Neds, reportedly announced the disbanding of the Ladbrokes Racing Club (LRC) due to increasing operational costs. This move came at a time when the wagering sector faces mounting financial pressures, including higher product fees and regulatory scrutiny. On 19 May (Monday), Entain shares fell 1.71 percent to an intraday low of 754.80 GBX on the London Stock Exchange (LSEG).
