Entain, a major player in the industry, faces a substantial financial setback as it confirms its agreement to pay £585 million ($737.4 million) in penalties over its legacy Turkish business. The penalties are related to alleged offences under Section 7 of the Bribery Act 2010, coupled with the failure to implement adequate procedures to prevent bribery.
Financial Penalty Details:
Entain has agreed to pay a financial penalty of £585 million, including disgorgement of profits. This significant sum is in connection to the activities of former third-party suppliers and employees of the group in its legacy Turkish business. The penalty arises from alleged breaches of the Bribery Act 2010 and the absence of sufficient anti-bribery measures.
Legal Background:
The penalties stem from offences under Section 7 of the Bribery Act 2010, emphasizing corporate liability for failing to prevent bribery. The failure of the company to have adequate procedures in place to prevent bribery has led to the financial penalty. The announcement follows Entain’s previous decision to set aside the specified amount, now confirmed for payment.
Charitable Donation and Additional Contributions:
In addition to the financial penalty, Entain will make a charitable donation of £20 million. Furthermore, the company will contribute £10 million to HMRC (Her Majesty’s Revenue and Customs) and the CPS (Crown Prosecution Service) to cover costs related to the investigation. These additional measures underscore Entain’s commitment to addressing the consequences of the legacy Turkish business activities.
Chairman’s Perspective:
Barry Gibson, Chairman of Entain, acknowledged the legacy matter, emphasizing that it pertains to a business sold by a former management team six years ago. He highlighted the transformation of the company, stating that the DPA (Deferred Prosecution Agreement) process underscores the vast differences between the GVC of the past and the Entain of today. Gibson reaffirmed the company’s dedication to operating in regulated markets and its standing as a responsible operator with robust corporate governance.
Future Developments:
Entain will provide further details after the hearing on December 5, 2023. The final Deferred Prosecution Agreement will be disclosed at the appropriate time. Despite the financial setback, Entain remains confident in its ability to deliver significant growth opportunities and is committed to addressing any concerns constructively.
Entain’s agreement to pay £585 million in penalties reflects the company’s commitment to addressing legacy issues and ensuring compliance with anti-bribery regulations. The financial penalty, charitable donation, and additional contributions to cover costs demonstrate a proactive approach to resolving legal matters. As Entain navigates this challenging period, the company’s emphasis on responsible operations and corporate governance remains at the forefront of its strategy.