(Alliance News) - GVC Holdings PLC on Tuesday said the UK HM Revenue & Customs has expanded its investigation launched in November in relation to the company's former Turkish-facing online gambling business, which was sold in December 2017.
The gambling company which owns the Ladbrokes and Coral betting chains said at the time the probe was launched, it believed the investigation was concerned with a number of former third-party suppliers and the processing of payments for online gambling in Turkey.
However, on Tuesday, GVC said was surprised to learn that the UK tax authority is now examining "potential corporate offending" by an unidentified entity - or entities - within the GVC group, providing no further information except making reference to the section 7 Bribery Act 2010.
"Both the company and GVC are surprised by the decision to extend the investigation in this way and are disappointed by the lack of clarity provided by HMRC as to the scope of its investigation. HMRC has not yet provided details of the nature of the historic conduct it is investigating, with the exception of a reference to section 7 Bribery Act 2010, nor has it clarified which part of the GVC group is under investigation. In the meantime, the company continues to co-operate fully with HMRC regarding the provision of information," GVC Holdings said.
Last week, GVC reported a double-digit first-half revenue decline and the departure of Chief Executive Officer Kenny Alexander.
The stock was trading 7.5% lower at 806.98 pence each on Tuesday morning in London, the worst performer in the FTSE 100 index.
By Ife Taiwo; ifetaiwo@alliancenews.com
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