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 in London’s High Court. This latest claim adds to a series of ongoing legal, regulatory, and internal challenges that the company has been navigating, creating a complex operating environment.

The new claim, which relates broadly to financial market matters, was recently submitted to London’s High Court, specifically on the Financial List, a division reserved for high-value and complex financial disputes. The claim is being led by US law firm Morgan, Lewis & Bockius and reportedly includes entities such as Brown Brothers Harriman Trustee Services, State Street Bank and Trust Company, Northern Trust Company, and The Reliance Trust Company, acting in their capacities as trustees for large investment funds. A spokesperson for Entain confirmed the development, as reported by iGaming Times, stating that the company is “aware of this claim but has not yet been formally served with it.” The spokesperson added, as reported by iGaming Times, that the case is “at a very early stage” and emphasised that Entain “intends to defend any proceedings robustly.”

Past Legal and Regulatory Headwinds

This latest lawsuit follows another legal challenge initiated by law firm Fox Williams in August 2024. That earlier lawsuit had reportedly contributed to a steep drop in the company’s share price after a high-profile settlement with the UK’s Crown Prosecution Service (CPS). Entain had agreed to a Deferred Prosecution Agreement (DPA) in relation to historical misconduct linked to its former Turkish operations, which were divested in 2017. The DPA involved a significant payment from Entain, totalling £615 million, including £585 million in fines and disgorgements, £20 million to charity, and £10 million to cover HMRC’s legal costs.

Leadership Changes and Recent Performance

The fallout from the CPS investigation also reportedly sparked internal legal disputes. Earlier this year (2025), former chief executive officer (CEO) Kenny Alexander and ex-chairman Lee Feldman reportedly launched proceedings against Entain and its legal advisors Addleshaw Goddard, seeking disclosure of communications shared with prosecutors. The period has also seen significant leadership transitions within Entain. CEO Jette Nygaard-Andersen stepped down in December 2023 amidst shareholder criticism over the company’s performance. She was succeeded by Gavin Isaacs, who reportedly resigned in February 2025 after only five months in the role, reportedly due to irreconcilable differences with the board over strategic decisions. More recently, Entain appointed Stella David as its permanent CEO, following her brief tenure as interim CEO. Despite these ongoing challenges, the company also reported strong first-quarter results for 2025. Its London Stock Exchange-listed shares reportedly rose by as much as 7.6 percent in early trading on April 29, driven by a 9 percent year-on-year increase in Group Net Gaming Revenue (NGR).

Australian Regulatory Scrutiny and Market Pressures

Adding to its international regulatory pressures, last month (April 2025), Entain reportedly faced yet another regulatory investigation from Australia. The Australian Transaction Reports and Analysis Centre (AUSTRAC) initiated legal action against Entain, alleging that the company has systemically and repeatedly failed to comply with anti-money laundering (AML) regulations. AUSTRAC’s legal action is backed by a 640-page report outlining the alleged offences, with recent court filings reportedly providing the first comprehensive description of the specific failures AUSTRAC claims occurred in Entain’s Australian business. In what appears to be an indirect consequence of these challenging times and mounting financial pressures (including higher product fees and intensified regulatory scrutiny), Entain Australia, which owns brands like Ladbrokes and Neds, reportedly announced the disbanding of the Ladbrokes Racing Club (LRC) due to increasing operational costs. The company’s shares on the London Stock Exchange (LSEG) reportedly fell 1.71 percent to an intraday low of 754.80 GBX on May 19.

In conclusion, Entain is navigating a highly complex period marked by a new lawsuit from institutional investors. This latest legal challenge compounds existing pressures from previous regulatory settlements, significant internal leadership changes, and a major new AML investigation in Australia, despite recent positive Q1 financial results. The situation underscores the multifaceted nature of the challenges facing the multinational betting group as it seeks to stabilize its operations and strategic direction.