Entain strikes £585m court deal over former Turkey business

Betting and gambling giant Entain announced a significant development in its legal matters on Friday, as it reached a deferred prosecution agreement (DPA) with the Crown Prosecution Service (CPS).

The FTSE 100 company said the agreement, which had received preliminary judicial approval, primarily pertained to the investigation conducted by HMRC into Entain’s legacy Turkey-facing business, which it divested in 2017.

Additionally, it covered the actions of former third-party suppliers and former employees of the group.

The alleged offences related to the Bribery Act, specifically focusing on the company’s failure to establish adequate anti-bribery procedures.

It said the DPA was a voluntary agreement that, once final court approval was obtained and its terms were met, would fully resolve HMRC’s investigation concerning Entain and the group.

The terms of the DPA aligned with those the company described in an update on 10 August.

Entain said it agreed to a substantial financial penalty and a disgorgement of profits, totalling £585m.

In addition, it would make a charitable donation of £20m and contribute £10m towards covering HMRC and CPS costs.

The financial commitments would be disbursed in instalments over the four-year term of the DPA, starting from the date of final court approval.

Entain said it was scheduled to seek final judicial approval for the DPA from the court on 5 December.

“This legacy matter concerns a business which was sold by a former management team six years ago,” said chairman Barry Gibson.

“The group has changed immeasurably since these events took place, and the DPA process has provided a reminder of the stark differences between the GVC of yesterday and the Entain of today.

“We are committed to continuing our journey towards operating only in regulated markets, and are now widely recognised as a best-in-class, responsible operator with the highest levels of corporate governance across all aspects of our business.”

Entain said it would make a further announcement after the hearing on 5 December, with details of the finalised DPA to be provided “at the appropriate time”.

At 1441 GMT, shares in Entain were down 2.38% at 843.8p.

Reporting by Josh White for Sharecast.com.