Entain sets aside £585 million for Turkish settlement with CPS

London-listed betting and gaming operator Entain has taken a £585 million provision in respect of its ongoing deferred prosecution agreement (DPA) negotiations with Britain’s Crown Prosecution Service (CPS).

The HMRC has been investigating Entain’s legacy Turkish-facing business, which was sold in 2017, with the company entering into DPA negotiations with the CPS in May to resolve the ongoing investigation.

The DPA negotiations have now progressed to the point where Entain believes that it is likely to be able to agree a resolution of the HMRC investigation insofar as it relates to the company.

Entain said it has a “sufficient degree of confidence” to take a provision of £585 million against a potential settlement, which would be paid over a four-year period in relation to alleged offences under Section 7 of the Bribery Act 2010. The company currently anticipates judicial approval will be sought during Q4 2023.

Section 7 of the Bribery Act 2010 relates to the failure of a relevant commercial organisation to have adequate procedures in place designed to prevent persons associated with it from undertaking bribery for the benefit of the commercial organisation.

The amount of the provision has been calculated on the basis that Entain will receive credit for its co-operation with the investigation.

Since the investigation first commenced, Entain has undertaken a comprehensive review of anti-bribery policies and procedures, and has taken action to significantly strengthen its wider compliance programme and related controls.

The company’s Board said that it looks forward to pursuing an orderly conclusion to this matter, and drawing a line under "these legacy issues involving former third-party suppliers and former employees of the group."

“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,” said Entain chairman Barry Gibson. “We have been working closely with the CPS throughout this process, and they have recognised our extensive cooperation.

“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.”

Entain is now licensed in more than 40 territories and remains committed to operating only in markets that are regulated or where it sees a clear path to domestic regulation.

Shares in Entain plc (LSE:ENT) were trading 2.50 per cent lower at 1,324.00 pence per share in London Thursday morning on this news and release of the company's results for the first half of 2023.