The global gaming and betting behemoth, Entain, recently announced its ongoing deferred prosecution agreement (DPA) discussions with the Crown Prosecution Service (CPS). The company’s aim is to resolve the current impasse relating to the HM Revenue & Customs investigation (HMRC) concerning a former Turkish affiliate.
In November 2019, a subsidiary of Entain was served with a production order from the HMRC. The order required the subsidiary to furnish information about its previous iGaming and wagering enterprise in Turkey. This particular venture was operated by the group from 2011 to 2017, subsequently sold off.
The investigative probe, initially targeted at various past third-party suppliers, who had a hand in managing the iGaming arrangements in Turkey, reported Entain. However, as of July 11, 2020, the investigation’s purview was broadened to potentially include corporate malpractices by units within the Entain collective.
The firm highlighted that the scrutinized offenses include, but are not confined to, section seven of the Bribery Act 2010.
Potential Fine for the Company
Entain further clarified that the ongoing investigation encompasses an analysis of the erstwhile Turkish-facing establishment. The company concedes that the occurrence of misconduct by previous third-party suppliers could be a possibility. Given this, Entain asserted its dedication to cooperate fully with the HMRC and CPS investigations.
Entain revealed that it’s currently unknown what conclusions the investigation might reach. The outcome could see an entity within the group successfully defending its actions or facing a verdict of guilt. Undeterred, Entain is focusing on finalizing the DPA discussions with the CPS. The company explained that the final settlement would hinge on a judicial green light.
The company expressed caution that the case might culminate in a fine of an unspecified amount.
Simultaneously, Entain has initiated a thorough examination of its anti-bribery strategies and protocols. The company stated that it has implemented the necessary steps to fortify its compliance initiatives and related safeguards.
Entain expressed the satisfaction of its board of directors with the advancements in compliance made by the group and was content with the progress of the ongoing investigation. The board will aim for a systematic resolution of the issue. This is not the only recent hurdle faced by the company— a week prior, the firm was accused of purportedly bankrolling a group that encouraged bettors to protest against the current gambling reform in the UK. A number of UK officials were critical of these lobbying attempts and labeled Entain’s practices “deceitful”.
Additional Statement Released by Entain
A few hours after the primary announcement, Barry Gibson, Entain’s chairman, addressed the matter:
We seek to resolve this historical issue principally revolving around a business that was divested by the Group nearly half a decade ago. Entain has undergone a significant transformation since then and has taken decisive steps to emerge as a top-tier, conscientious operator with excellent corporate governance.
Barry Gibson, chair, Entain
He noted that the company’s board and leadership have drastically changed over the years. Additionally, Entain’s commitment to compliance has significantly increased, now shunning revenues from unregulated markets.
Gibson further demonstrated his company’s upright intentions by vowing to work closely with CPS and HMRC to expedite the resolution process.
