Entain plc, a global leader in sports betting, gaming, and interactive entertainment, has announced its engagement in deferred prosecution agreement (DPA) negotiations with the Crown Prosecution Service (CPS) as part of its ongoing efforts to resolve the HM Revenue & Customs (HMRC) investigation.
In November 2019, Entain Holdings (UK) Limited, a subsidiary of the company, received a production order from HMRC, requesting information regarding the group's former Turkish-facing online betting and gaming business, which was operated between 2011 and 2017.
Initially, the company believed that HMRC's investigation was primarily focused on third-party suppliers involved in processing payments for online betting and gaming in Turkey. However, on July 21, 2020, the company disclosed that the investigation had expanded to examine potential corporate misconduct within the group.
The investigation encompasses various potential offences, including section 7 of the Bribery Act 2010. Entain acknowledges that historical misconduct may have occurred involving former third-party suppliers and employees during the operation of its former Turkish-facing business. The company continues to fully cooperate with HMRC and the CPS throughout the ongoing investigation.
At this stage, it is difficult to predict the final outcome of the investigation. While the possibility of prosecution remains, with potential successful defense or conviction, Entain aims to reach a resolution through DPA negotiations with the CPS, subject to judicial approval. The negotiations are still ongoing, and the terms of any resolution will be determined through this process.
The investigation may result in a significant financial penalty for the company; however, the exact amount is yet to be determined. Entain cannot reliably estimate the size of the financial penalty at this stage.
Since the initiation of the investigation, Entain has conducted a thorough review of its anti-bribery policies and procedures. The company has taken measures to strengthen its broader compliance program and related controls.
While discussions with the CPS are ongoing, the board is satisfied with the progress made thus far and looks forward to reaching a satisfactory conclusion to this matter in due course.
The information provided in this announcement is deemed to be inside information in accordance with the Market Abuse Regulation (EU) No. 596/2014. With the publication of this announcement, the inside information is considered to be in the public domain.
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