Entain provides update on HMRC investigation

By Dave Sawyer, Last updated Aug 10, 2023

This morning Entain plc the owners of the High Street bookmakers Ladbrokes, provided an update to investors and shareholders concerning the ongoing investigation by HMRC into the company’s legacy Turkish facing business, which it sold in 2017.

Subsequently Entain plc advised their shareholders that will subject to shareholder approval, allocate a provision of £585 million concerning its ongoing negotiations with the Crown Prosecution Service (CPS) in relation to a deferred prosecution agreement (DPA).

These DPA negotiations have now advanced to a stage where the company believes it’s likely to reach a resolution for the part of the HMRC investigation involving the company and the group.

Although the precise terms of the DPA require judicial endorsement, the company holds sufficient confidence to allocate a £585 million provision to account for a potential settlement.

This settlement, if approved, will be paid over a span of four years and pertains to alleged infractions under Section 7 of the Bribery Act 2010. The company foresees that judicial approval will be pursued in the fourth quarter of 2023.

Commenting on the latest developments, Barry Gibson the Non-Executive Chairman of Entain said: “We are pleased to be making good progress towards drawing a line under this historical issue, which relates to a business that was sold by a former management team of the Group nearly six years ago. We have been working closely with the CPS throughout this process, and they have recognised our extensive co-operation.”

“Following a complete overhaul of our business model, strategy and culture in the last few years, the Entain of today bears no resemblance to the GVC of yesterday.”

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