In a press release issued to investors, online gambling company Entain has announced that it is in talks with the UK’s Crown Prosecution Service (CPS) in relation to an ongoing HM Revenue & Customs (HMRC) investigation into the group’s former Turkish online betting operations.
The statement revealed that Entain it is negotiating a deferred prosecution agreement with the CPS. The investigation stems from a production order issued by the HMRC requiring Entain to provide information and financial data in relation to the Turkish business which it owned from 2011 until 2017. While the investigation was previously believed to have targeted third-party suppliers, in July of 2020 the HMRC revealed that it was looking into allegations of corporate offending within the Entain Group.
According to the investigation, the offences include a breach of the Bribery Act 2010. Entain has now admitted that historical misconduct may have happened when the Turkish business was part of the group.
In its statement Entain noted:
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.
The investigation and potential financial penalty is the latest in a series of issues that the company has faced with regulators in several markets.
In August of last year, the UK Gambling Commission hit Entain with a record fine for serious social responsibility and anti-money laundering failures at its online and land-based businesses. The following month the Australian Transaction Reports and Analysis Centre (AUSTRAC) announced that it has launched an investigation into the business activities of the company that could result in another record fine.
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Olivia has worked as an editor and writer for major brands across multiple niches. She now focuses on the iGaming and sports betting industries.