Challenge to Spanish gambling advertising ban rejected

Entain has found itself at the centre of a substantial legal dispute. Investors are set to demand compensation exceeding £100 million due to the company’s inadequate disclosure of bribery and corruption incidents within its past Turkish division.

Entain is currently in discussions for a deferred prosecution agreement with the Crown Prosecution Service. This is in relation to an ongoing investigation by HM Revenue & Customs into potential corporate offenses tied to Entain’s past online betting and gaming business in Turkey, which was under its ownership from 2011 until its divestment in 2017.

The investigation by HMRC is comprehensive, delving into possible violations of the Bribery Act 2010, specifically section 7, and scrutinizing past actions of former third-party suppliers and past employees of Entain. The company has recognized the possibility of such misconduct and is actively cooperating with both HMRC and the Crown Prosecution Service.

Although the final results of the investigation and any consequent financial penalties are not yet finalized, and fortified its anti-bribery policies and procedures, enhancing its overall compliance framework.

Given that the situation is fluid and subject to change, those interested in the most current developments should stay attuned to the latest statements from Entain and the pertinent regulatory authorities for updates.

Following Entain’s substantial settlement with HM Revenue and Customs (HMRC), which ranks among the heftiest financial sanctions in UK history, the legal firm Fox Williams has initiated legal action. In the closing month of 2023, Entain consented to a payment approaching £600 million subsequent to an inquiry into suspected bribery.

The market valuation of Entain has seen a precipitous fall, with its shares dwindling by nearly half since the initial announcement in May 2023 of an expected significant fine from HMRC. The accord, concluded in November, encompassed a monetary fine and the forfeiture of illicit profits. Entain also pledged a charitable contribution of £20 million and an additional £10 million to defray the expenses of HMRC and the Crown Prosecution Service.

The investigation’s roots trace back to 2019, scrutinizing potential corporate transgressions by Entain’s Turkish online betting and gaming enterprise, held from 2011 to 2017, and the actions of third-party vendors and erstwhile group employees. Formerly operating as GVC Holdings, Entain faced criticism for lacking adequate safeguards against bribery that could advantage the corporation.

The disclosure of this probe in July 2020, particularly targeting the erstwhile Turkish subsidiary of Ladbrokes, led to a notable 12 percent plunge in Entain’s stock value. Nonetheless, an Entain representative has conveyed that the firm is presently not cognizant of any such legal proceedings and has not been served with any formal claim, affirming their readiness to contest any such allegations vigorously.

Andrew Hill, a partner at Fox Williams and leader of the securities litigation team, has stressed that the lawsuit aims not just to recoup investor losses but also to fortify transparency and governance within the UK gambling industry. Hill aspires for this case to catalyze enhanced corporate conduct, reminding publicly traded companies of their imperative to honour disclosure duties.

Hill’s involvement in significant shareholder claims is not unprecedented. He is currently managing a £100 million lawsuit against the online fashion retailer Boohoo, stemming from 2020 accusations of supplier malpractice, and has previously overseen out-of-court settlements of claims against Tesco.

The Entain case reflects the wider ramifications for corporate governance and the accountability of publicly listed firms to their shareholders. It relates to the necessity of transparency and ethical behaviour, not merely as legal mandates but as essential elements for sustaining investor confidence and market integrity. The resolution of this lawsuit may establish a benchmark for future similar legal challenges and potentially shape corporate conduct industry-wide.

China and have agreed to extend their mutual visa-free exemption policies, facilitating greater bilateral exchanges and reflecting China's commitment to high-quality international engagement. As outlined in a joint statement from both nations, the policy will see China extend visa exemptions for Malaysian tourists until the end of 2025, with Malaysia reciprocating by extending the same privilege for Chinese tourists until the end of 2026. 

The decision aligns with China's broader efforts to open its borders and enhance people-to-people connections. The extension of the visa-free policy is expected to significantly benefit tourism and business travel between the two countries, demonstrating the robust and growing relationship between China and Malaysia. 

The announcement has already had a tangible impact on travel interest. Local media, Global Times reported that according to Qunar, a domestic travel platform, search volumes for Kuala Lumpur surged by 49 percent. Malaysia remains one of the top three overseas destinations on the platform, with flight bookings increasing 2.2 times compared to the previous year. 

Flight activity between China and Malaysia has also seen a strong recovery. Data from Variflight indicates that the number of China-Malaysia round-trip flights from June 1-19 reached over 90 percent of pre-pandemic levels, averaging more than 100 round-trip passenger flights daily. 

In addition to the bilateral agreement with Malaysia, has expanded its visa-free policy to include New Zealand and Australia. Passport holders from these countries can now enter China without a visa for up to 15 days for purposes such as business, tourism, visiting relatives and friends, and transit. 

This move follows earlier announcements from China's National Immigration Administration, which implemented a visa exemption policy for foreign tourist groups entering China via cruise ships from designated coastal provinces and cities. This policy aims to attract more international visitors and promote China's coastal tourism industry. 

Find out more about the latest updates and trends in the industry, from latest regulatory news to most recent innovations at the upcoming  Summit happening in Budapest from 2 – 4 September.

The Thai government is finalising a significant piece of legislation that could see the establishment of large entertainment complexes, including casinos, across the country. According to local media reports, Deputy Finance Minister Julapun Amornvivat announced on Wednesday that the final draft of this bill will be ready for Cabinet deliberation in three to four weeks. The proposed law aims to boost the economy while addressing potential social impacts. 

The drafting process has involved input from 16 government agencies, each providing perspectives on the economic and social implications of introducing casino entertainment complexes. These agencies have unanimously recognised the economic benefits, anticipating that such complexes could enhance Thailand’s economy. However, concerns about social impacts have led to recommendations for implementing protective measures against the negative effects of gambling. 

Initially by a special House committee, the bill has undergone various revisions based on feedback from the involved agencies. Once the final draft is complete, it will be presented to the Cabinet for approval. If approved, the bill will be forwarded to the Office of the Council of State for vetting before being tabled in the House of Representatives. 

The proposed entertainment complexes are expected to attract investments ranging from TBH30-50 billion (€762 million-€1.2 billion). According to the draft, casinos will occupy no more than 5 percent of each complex, which will also feature hotels and other entertainment facilities. This structure aims to create a balanced entertainment offering that mitigates the focus on gambling. 

On the social front, several agencies have emphasised the need for responsible gambling policies and mechanisms to protect vulnerable groups. The government is considering establishing a national committee, comprising representatives from various agencies, to oversee the implementation and regulation of these entertainment complexes. 

The introduction of casino resorts is seen as a potential game-changer for Thailand’s tourism and entertainment sectors. According to industry observers, potential locations for these resorts include Bangkok, the Eastern Economic Corridor, Chiang Mai, and Phuket. Each resort would require an investment of at least THB100 billion (€2.54 billion). 

A report from Maybank Investment Bank that licences for these casino resorts could be awarded in phases, with the first resort potentially opening by 2029. As Thailand moves closer to finalising its casino entertainment complex bill, the government is poised to balance economic gains with social responsibility. The upcoming weeks will be crucial as the final draft is prepared for Cabinet approval, marking a significant step toward potentially transforming Thailand’s entertainment landscape. 

Find out more about the latest updates and trends in the industry, from latest regulatory news to most recent innovations at the upcoming  Summit happening in Budapest from 2 – 4 September.

Suntrust Resort Holdings Inc., listed on the Philippine Stock Exchange, has secured an additional $17 million (€15.87 million) loan from its parent company, Hong Kong-listed LET Group Holdings Ltd. This loan aims to support the ongoing development of Suntrust's major project, a $1 billion (€934 million) casino hotel in Parañaque City's Entertainment City.  

The loan agreement, approved by Suntrust’s board of directors, stipulates a repayment period of ten years and is expected to positively impact the company’s business operations and financial condition. 

The forthcoming casino hotel, named Westside City Hotel, is set to become the fourth casino facility in Entertainment City, following Solaire Resort and Casino, City of Dreams Manila, and Okada Manila. Suntrust anticipates the hotel's opening in early 2025. Westside City Hotel will feature 475 luxury hotel rooms, two theatres with seating capacities of 1,000 and 800, respectively, and extensive gaming facilities, including 1,126 slot machines, 281 gaming tables, and 134 electronic table games. 

Suntrust's project is part of a larger development within Entertainment City, an area known for its cluster of integrated casino resorts. The development also includes amenities such as a pool deck, spa, wellness centre, ballroom, multiple theatres including a grand opera house, a food mall, and four cinemas, aiming to attract a diverse clientele. 

This new loan complements a $38 million (€35.4 million) secured in April, also designated for the Westside City Hotel project. Additionally, Suntrust previously engaged in a PHP25 billion (€396.77 million) loan agreement with China Banking Corp., led by the Sy family, and a $6 million (€5.6 million) deal with Major Success Group Ltd., another entity under LET Group. These financial arrangements are pivotal in ensuring the completion and success of the Westside City Hotel. 

In 2020, Suntrust partnered with Megawide Construction Corp., owned by tycoon Edgar Saavedra, to co-develop the Westside City project, further bolstering its development capabilities. 

Suntrust’s Westside City Hotel will join the ranks of established casinos in Entertainment City, enhancing Manila’s reputation as a significant gaming and entertainment hub. The company reported a of PHP246.13 million (€3.9 million) in the first quarter of this year, a notable shift from a net profit of PHP92.84 million (€1.47 million) in the same period last year, primarily due to increased expenses. 

Despite recent challenges in the regulated gaming and gambling sector, including issues related to illegal POGOs (Philippine Offshore Gaming Operators) and cybercrimes, the industry remains resilient. The launch of new projects like , inaugurated by President Ferdinand Marcos Jr., underscores ongoing investments and confidence in the sector’s growth prospects. 

The Westside City Hotel project not only signifies Suntrust's strategic expansion but also reflects broader trends of robust investment and development within the Philippines' gaming and entertainment industry. 

Find out more about the latest updates and trends in the industry, from latest regulatory news to most recent innovations at the upcoming  Summit happening in Budapest from 2 – 4 September.