Leading betting, gaming, and interactive entertainment conglomerate, Entain, has confirmed setting aside a financial provision of roughly £585 million ($747 million) amid its ongoing deferred prosecution agreement (DPA) discussions with the Crown Prosecution Service (CPS). This is due to an HMRC inquiry into one of its previous Turkey-centric operations. The former business entity, operating under the alias GVC Holdings, was sold by Entain in 2017 and was scrutinised for purported infractions of Section 7 of the Bribery Act 2010.
Considering the extensive HMRC investigation, Entain previously confirmed its engagement in DPA deliberations with the CPS to amicably resolve the prolonged issue. Subsequent to several years of dealing with this matter, the corporation expressed optimism that it might be poised to reach a resolution to the HMRC inquiry.
While the terms of the DPA are subject to judicial approval, Entain holds the view that earmarking £585 million ($747 million) to facilitate a potential settlement could resolve the issue at hand. This proposed amount, if approved as a resolution, is expected to be paid over a four-year period. Although the decision to provide this substantial sum was made public on Thursday, Entain mentioned it may seek a judicial go-ahead sometime in Q4 2023.
“Whilst the complete terms of a DPA are contingent on judicial consent, the Company has adequate confidence to earmark a sum of £585 million against a probable settlement, payable over a four-year tenure, pertaining to alleged breaches of Section 7 of the Bribery Act 2010,”
states an announcement released by Entain.
Entain Overhauls its Anti-Bribery Policies
The chairman of Entain, Barry Gibson, expressed his delight at the company’s progress towards resolving the long-standing issue involving a business which was divested almost six years ago. He asserts: “We have been closely collaborating with the CPS throughout these proceedings, and they have acknowledged our extensive cooperation.” To cap it off, Gibson highlighted that Entain has significantly enhanced its operational strategy, business model and organizational culture over the recent years.
“Subsequent to a complete revamp of our business model, operational strategy, and culture in recent years, the current-day Entain bears no similarity to the yesteryears’ GVC.”
Barry Gibson, Chairman at Entain
Since the initiation of the HMRC investigation, Entain has comprehensively reviewed and updated its anti-bribery policies and procedures. The company aimed to refresh and enhance its organizational strategies, supplementing and reinforcing its compliances across distinct global markets.
Through this recent update, Entain aspires to expeditiously resolve the issue. At present, the company boasts licenses in over 40 jurisdictions and is internationally recognized as a leading authority in betting, gaming, and entertainment activities.
