Entain reaches penalty agreement over historic failings in Turkey

Entain is to seek judicial approval for a Deferred Prosecution Agreement with the UK Crown Prosecution Service.

UK.- Entain has reached an agreement in principle with the Crown Prosecution Service (CPS) over historic regulatory breaches in Turkey. It has received preliminary judicial approval from the Royal Courts of Justice sitting and will seek final judicial approval on December 5.

As announced in August, Entain will pay £585m in a financial penalty and disgorgement of profits under a Deferred Prosecution Agreement. It will also donate £20m to charity and pay £10m towards costs incurred by the CPS and HM Revenue & Customs. The payments will be made in instalments over four years from the date of final approval.

The settlement covers alleged offences under Section 7 of the 2010 Bribery Act. In May, Entain admitted that there may have been historical misconduct involving former third-party suppliers and employees of a former Turkish subsidiary. Investigations began in late 2019 and relate to an online betting and gaming business that targeted Turkey, where online gambling is illegal. Entain (then GVC Holdings) owned the business between 2011 and December 2017, selling it shortly before it bought Ladbrokes Coral for £3.6bn.

Entain hopes the voluntary agreement will allow it to close the issue. However, the agreement relates only to Entain and does not rule out the possibility that former executives could face separate investigations or charges. 888 dropped plans to appoint former Entain CEO Kenny Alexander as its own CEO this year after the Gambling Commission said the move could cause it to lose its licence.

Entain chair Barry Gibson said: “This legacy matter concerns a business which was sold by a former management team six years ago. 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. We are now widely recognised as a best-in-class, responsible operator with the highest levels of corporate governance across all aspects of our business.”