UK financial watchdog closes probe into KPMG’s audit of Entain accounts
The FRC says it will take no enforcement measures.
UK.- The Financial Reporting Council (FRC) has closed its inquiry into KPMG’s audit of Entain’s 2022 accounts. The watchdog said it would take no enforcement measures over the analysis of the London-listed gambling operator’s results.
The FRC’s probe, launched in 2024, examined whether KPMG had adequately considered risks linked to Entain’s former Turkish operation, Headlong Limited. The issues stemmed from compliance concerns around the company’s activities between 2011 and 2017, when Entain was called GVC Holdings.
HM Revenue and Customs (HMRC) opened an investigation in 2019, which led to a £615m deferred prosecution agreement (DPA) with the Crown Prosecution Service in 2023. Entain’s 2022 accounts, published in February 2023, reported an 11 per cent rise in net gaming revenue, buoyed by the FIFA World Cup, and raised EBITDA guidance to £985-995m for 2023.
In its statement, the FRC said: “Having reviewed the evidence obtained in the investigation, and having considered all relevant factors, the FRC’s Executive Counsel has decided not to bring Enforcement Action… Accordingly, the case has been closed.”
KPMG UK welcomed the outcome.
While this probe has come to an end with no action to be taken, Entain’s Turkish escapades are still subject to legal proceedings against individuals allegedly involved. Former CEO Kenny Alexander, who left the company in July 2020, and chairman Lee Feldman, who stepped down in March 2019, along with others, are to stand trial at Southwark Crown Court in February 2028 on charges including fraud, bribery, and perverting the course of justice.
Entain has had several people at the helm since Alexander left. Shay Segev was CEO for just six months before leaving to lead DAZN. Jette Nygaard-Andersen then served as CEO until December 2023, followed by interim leadership from Stella David, and a short tenure by Gavin Isaacs, before David’s return as permanent CEO in April 2025.
