Entain has reached a £585m Deferred Prosecution Agreement (DPA) with the UK’s Crown Prosecution Service (CPS).
The settlement relates to UK tax authority HMRC’s investigation into the operator’s former Turkish-facing business, which was sold in 2017, as well as the activities of former third-party suppliers and employees.
The breach comes from alleged offences under Section 7 of the Bribery Act 2010 and, in particular, a failure to have adequate procedures in place to prevent bribery.
Financial breakdown
Entain has agreed to pay a financial penalty of £585m, to make a further charitable donation of £20m and to pay a contribution of £10m to cover legal costs of the case.
The penalty will be paid in instalments over four years.
Entain chairman Barry Gibson said: “This legacy matter concerns a business which was sold by a former management team six years ago.
“The group has changed immeasurably since these events took place, and the DPA process has provided a reminder of the stark differences between the GVC of yesterday and the Entain of today.
“We are committed to continuing our journey towards operating only in regulated markets, and are now widely recognised as a best-in-class, responsible operator with the highest levels of corporate governance across all aspects of our business,” he added.
The voluntary settlement received preliminary judicial approval from Dame Victoria Sharp today (24 November) at the Royal Courts of Justice in Southwark Crown Court, London.
Entain will now seek final judicial approval from the court on 5 December 2023.
The settlement proceedings were first announced by Entain on 10 August 2023, which means today’s developments will not have come as a surprise to investors.
Background context
Details of the settlement proceedings have not been made available. Kenny Alexander was CEO of the company at the time of the alleged breach, when it was still known as GVC.
Alexander had been touted for a shock return to the UK gambling sector this year as the potential CEO of 888 after investment vehicle FS Gaming built up a significant stake in the business.
However, 888 pulled the plug on those negotiations after the Gambling Commission expressed concern over the outcome of the HMRC investigation and placed the company’s licence under review.
During Entain’s recent investor day presentation, chairman Gibson warned the case may continue to make headlines in the press even after the DPA has received final judicial approval.
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