Entain Sets Aside Funds To Settle UK Investigation Into Turkish Business

August 10, 2023
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Entain said it has set aside £585m to cover continuing deferred prosecution agreement negotiations with the UK’s Crown Prosecution Service over its former Turkish-facing business.

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Entain said it has set aside £585m to cover continuing deferred prosecution agreement negotiations with the UK’s Crown Prosecution Service (CPS) over its former Turkish-facing business.

The company, parent of Ladbrokes and bwin online gambling brands, said it believes negotiations have reached the point where it expects to agree to a HM Revenue & Customs (HMRC) investigation settlement that will be sent to court for approval by the end of this year.

A potential settlement of Bribery Act claims would be paid over four years, Entain said today (August 10).

“Since the investigation first commenced, the group has undertaken a comprehensive review of anti-bribery policies and procedures and has taken decisive action to significantly strengthen its wider compliance programme and related controls,” the London-listed company said.

The company previously said misconduct may have occurred involving third-party suppliers and former employees.

It sold the business in 2017.

“We are pleased to be making good progress towards drawing a line under this historical issue, which relates to a business that was sold by a former management team of the group nearly six years ago,” chairman Barry Gibson said.

“We have been working closely with the CPS throughout this process, and they have recognised our extensive cooperation,” he said in a statement.

“Following a complete overhaul of our business model, strategy and culture in the last few years, the Entain of today bears no resemblance to the GVC of yesterday.”

Separately, Entain said that its first-half group EBITDA was £499m, up 6 percent over the same period a year earlier.

Net gaming revenue (NGR) grew 19 percent in the half, the company said.

Its BetMGM joint venture had NGR of $944m, up 55 percent.

Online NGR rose 15 percent.

For the year, group EBITDA is expected to be in the range of £1bn to £1.05bn, the company said.

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