Last checked at 31 May 2023 07:00
31 May 2023
Entain plc
("Company" and, together with its subsidiaries, "Group")
Update on HMRC Investigation
Entain plc (LSE: ENT), the leading global sports betting, gaming, and interactive entertainment group, announces that it is in deferred prosecution agreement (DPA) negotiations with the Crown Prosecution Service (CPS) and is working towards achieving a resolution of the ongoing HMRC investigation.
As previously disclosed, on 28 November 2019, Entain Holdings (UK) Limited, a subsidiary of the Company, received a production order from HM Revenue & Customs (HMRC) requiring it to provide information relating to the Group's former Turkish-facing online betting and gaming business, which it held from 2011 until it was sold in 2017. At that time, the Group understood that HMRC's investigation was directed at a number of former third-party suppliers, relating to the processing of payments for online betting and gaming in Turkey. On 21 July 2020, the Company announced that HMRC was widening the scope of its investigation and was examining potential corporate offending by an entity (or entities) within the Group.
The offences under investigation include, but are not limited to, section 7 of the Bribery Act 2010.
The Company understands that the HMRC investigation, which is ongoing, includes a review of its former Turkish-facing business and acknowledges that historical misconduct involving former third party suppliers and former employees of the Group may have occurred.
The Group continues to co-operate fully with HMRC and the CPS.
It is not possible at this stage to say how the investigation into the Company will conclude. Whilst 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. Negotiations remain ongoing and any resolution would be subject to judicial approval.
While the Company cannot say at this stage what the consequences of the investigation will be, it is likely that they will include a substantial financial penalty which is yet to be determined. The Company cannot identify reliably at this stage the size of any financial penalty.
Since the investigation first commenced, the Group has undertaken a comprehensive review of anti-bribery policies and procedures and has taken action to strengthen its wider compliance programme and related controls.
Whilst the discussions with the CPS remain ongoing, the Board is content with progress to date and looks forward to pursuing an orderly conclusion to this matter.
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
Enquiries:
Company Secretary
Investor Relations - Entain plc
David Lloyd-Seed, Chief IR & Communications OfficerDavina Hobbs, Head of Investor RelationsAimee Remey, VP US IR Callum Sims, IR Manager | secretary@entaingroup.com
investors@entaingroup.com
david.lloyd-seed@entaingroup.com davina.hobbs@entaingroup.com aimee.remey@entaingroup.com callum.sims@entaingroup.com |
Media - Entain plc
Lisa Attenborough, Head of Corporate Communications Jay Dossetter, Head of Corporate PR Jodie Hitch, PR Manager |
media@entaingroup.com
lisa.attenborough@entaingroup.com jay.dossetter@entaingroup.comjodie.hitch@entaingroup.com |
Media - Powerscourt
Rory Godson / Rob Greening / Sam Austrums |
Tel: +44 (0) 20 7250 1446
entain@powerscourt-group.com |
About Entain plc
Entain plc (LSE: ENT) is a FTSE100 company and is one of the world's largest sports-betting and gaming groups, operating both online and in the retail sector. The Group owns a comprehensive portfolio of established brands; Sports brands include BetCity, bwin, Coral, Crystalbet, Eurobet, Ladbrokes, Neds, Sportingbet, Sports Interaction and SuperSport; Gaming brands include Foxy Bingo, Gala, GiocoDigitale, Ninja Casino, Optibet, Partypoker and PartyCasino. The Group owns proprietary technology across all its core product verticals and in addition to its B2C operations provides services to a number of third-party customers on a B2B basis.
The Group has a 50/50 joint venture, BetMGM, a leader in sports betting and iGaming in the US. Entain provides the technology and capabilities which power BetMGM as well as exclusive games and products, specially developed at its in-house gaming studios. The Group is tax resident in the UK and is the only global operator to exclusively operate in domestically regulated or regulating markets operating in over 40 territories.
Entain is a leader in ESG, a member of FTSE4Good, the DJSI and is AA rated by MSCI. The Group has set a science-based target, committing to be carbon net zero by 2035 and through the Entain Foundation supports a variety of initiatives, focusing on safer gambling, grassroots sport, diversity in technology and community projects. For more information see the Group's website: www.entaingroup.com