Entain, a prominent gambling company, has provided a statement in response to an ongoing investigation by the UK’s HMRC (His Majesty’s Revenue & Customs). The investigation focuses on historic misconduct related to Entain’s now-closed Turkish iGaming business. Entain anticipates facing a significant financial penalty resulting from corporate failings during the period from 2011 to 2017. The company has expressed its commitment to resolving this historical issue and highlighted its transformation into a responsible operator with robust corporate governance.
The Investigation and Expected Penalty:
The investigation by HMRC into Entain’s Turkish iGaming business began in 2019, and the focus is on corporate failings during the period mentioned above. Entain acknowledges that it expects to receive a substantial financial penalty as a result. Barry Gibson, Chairman of Entain, has emphasized the company’s eagerness to reach a resolution, highlighting that the business in question was sold almost six years ago. He further emphasized Entain’s transformation and the implementation of measures to ensure responsible operations and exceptional corporate governance.
Uncertainty Surrounding the Penalty:
Although Entain has expressed its expectation of a substantial financial penalty, the exact amount remains uncertain. The company has undergone a comprehensive review of its anti-bribery policies and procedures since the investigation commenced. Entain is committed to working closely with both the CPS (Crown Prosecution Service) and HMRC to bring the matter to a timely conclusion.
Entain’s Efforts in Transformation and Compliance:
Gibson highlighted the extensive efforts undertaken by Entain to transform its operations and culture. The company has overhauled its board and leadership teams, ensuring a focus on responsible and regulated markets. Currently, 100% of Entain’s revenue is derived from regulated or regulating markets, emphasizing the company’s commitment to compliance. The business model, strategy, and culture have undergone rigorous review, analysis, and stress-testing to ensure alignment with regulatory standards.
Previous Regulatory Settlement:
In the past, Entain reached a regulatory settlement with the Gambling Commission, agreeing to pay £17 million ($21.5 million). This settlement was the result of multiple social responsibility and anti-money laundering failings identified by the Gambling Commission. Entain’s response to the HMRC investigation further underscores the company’s dedication to rectifying any historical issues and reinforcing its commitment to responsible and compliant operations.
Entain’s statement regarding the HMRC investigation sheds light on the company’s approach to addressing historical misconduct in its Turkish iGaming business. The company expects a substantial financial penalty but remains focused on resolving the matter and learning from past mistakes. Entain’s emphasis on responsible operations, corporate governance, and compliance underscores its commitment to being a reputable and compliant operator in the gambling industry. As the investigation progresses, Entain will continue working closely with relevant authorities to bring the matter to a close in a timely manner.