Entain facing 'substantial' fine as it enters talks with CPS

Ladbrokes owner Entain is seeking a deferred prosecution agreement over alleged bribery at its former Turkish business, the gambling giant said on Wednesday.

The blue chip also confirmed it was facing a potentially "substantial" financial penalty.

The announcement follows a lengthy investigation into Entain’s former Turkish-facing online betting and gaming business, which it owned from 2011 until it was sold in 2017.

HM Revenue & Customs started investigating the business in November 2019. Initially focusing on former third-party suppliers and relating to processing of payments, the scope of the probe was then widened in July 2020 to include potential corporate offences by entities within the group.

Entain said the offences under investigation "include, but are not limited to, section 7 of the Bribery Act 2020". Section 7 covers "failures of commercial organisations to prevent bribery".

Entain confirmed it was now in discussions with the Crown Prosecution Service about a DPA, and that it was "working towards achieving a resolution of the ongoing HMRC investigation".

Under a DPA, an organisation admits guilt but avoids criminal prosecution in exchange for meeting certain specified conditions. All DPAs, which are used for fraud, bribery and other economic crimes and only apply to organisations, rather than individuals, must be approved by a court.

Entain continued: "It is not possible at this stage to say how the investigation into the company will conclude. While prosecution of a group entity or entities, which may defend the action successfully or be convicted, remains a possibility, the group is seeking to conclude DPA negotiations with the CPS."

It added that it was likely the consequences of the probe would include a "substantial financial penalty".

It concluded that while discussions with the CPS were ongoing, the board was "content" with progress to date and was looking forward to ensuring an "orderly conclusion" of the matter.