Entain plc: Resolving HMRC investigation for Global Gaming Leader

Entain plc, a prominent global company engaged in sports betting, gaming, and interactive entertainment, has announced that it is currently in negotiations for a deferred prosecution agreement (DPA) with the Crown Prosecution Service (CPS). The purpose of these negotiations is to reach a resolution regarding an ongoing investigation by HM Revenue & Customs (HMRC).

In November 2019, a subsidiary of Entain Holdings (UK) Limited received a production order from HMRC requesting information related to the company’s former Turkish-facing online betting and gaming business, which operated from 2011 until its sale in 2017. 

Initially, it was understood that HMRC’s investigation focused on former third-party suppliers involved in payment processing for online betting and gaming in Turkey. However, in July 2020, it was announced that HMRC was broadening the scope of its investigation to examine potential corporate misconduct within the Entain group.

The investigation by HMRC encompasses various offenses, including but not limited to those outlined in section 7 of the Bribery Act 2010. Entain acknowledges the possibility of historical misconduct involving former third-party suppliers and former employees of the company during its Turkish-facing business operations.

Entain is fully cooperating with both HMRC and the CPS throughout the investigation. It is currently uncertain how the investigation will ultimately conclude. While the possibility of prosecution of a group entity or entities, with potential successful defense or conviction, remains, Entain is actively working to finalize the DPA negotiations with the CPS. These negotiations are ongoing, and any resolution reached would require judicial approval.

The consequences of the investigation are yet to be determined, but it is likely that they will include a significant financial penalty. The exact size of the penalty cannot be reliably estimated at this stage.

Since the start of the investigation, Entain has conducted a thorough review of its anti-bribery policies and procedures. The company has taken steps to strengthen its compliance program and related controls. While discussions with the CPS are still ongoing, the board of Entain is satisfied with the progress made thus far and looks forward to a well-ordered resolution of this matter.

Please note that the information disclosed in this announcement is considered inside information according to the Market Abuse Regulation (EU) No. 596/2014. As this announcement has been made public, the inside information is now in the public domain.

Maxine Klingensmith

Maxine holds a bachelor degree in journalism, and she has worked as a freelance writer with foremost publications. Recently, Maxine has joined our team as a news editor. As she is passionate for casino and gambling industry, she conventionally contributes the latest news and reviews for casinos.

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