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Entain, a leading sports betting and gaming company, has disclosed that it is likely to face a significant financial penalty as a result of an investigation conducted by Her Majesty's Revenue and Customs (HMRC), the UK's tax authority.
The probe is centered around potential misconduct involving former third-party suppliers. The company, previously known as GVC Holdings, has confirmed that it is currently in negotiations for a deferred prosecution agreement (DPA) with the Crown Prosecution Service (CPS) in an effort to resolve the matter. Entain Chairman Barry Gibson stated, "We are keen to achieve a resolution to what is a historical issue relating principally to a business that was sold by the group nearly six years ago."
Entain, the owner of well-known betting brands such as Ladbrokes and Coral, has undergone significant changes and has shifted its focus exclusively to regulated markets. The ongoing investigation involves a review of Entain's former Turkish-facing business, and the company has acknowledged the possibility of historical misconduct involving former third-party suppliers and ex-employees.
To address the issue, Entain has emphasized its commitment to strengthening its compliance program and controls. It has undertaken a thorough review of anti-bribery policies and procedures since the investigation began.
While the exact financial penalty is yet to be determined, it is highly likely that Entain will face a substantial one. The company has refrained from providing an estimate at this stage. Despite the investigation, Entain's board expressed satisfaction with the progress made so far and expects a "an orderly conclusion to the matter." The company will continue to provide updates as the investigation progresses.
In recent years, problematic practices in the UK's gambling industry have led to the imposition of large fines by the Gambling Commission. Entain itself was fined £17 million ($21.5 million) in 2022.
By fLEXI tEAM