On November 24, the gambling giant Entain announced that it has reached a deferred prosecution agreement (DPA) with the Crown Prosecution Service (CPS). The agreement was also approved by Dame Victoria Sharp, president of the King’s Bench Division. The gambling company will proceed to seek final judicial approval from the Court on December 5.
The agreement in question relates to HMRC’s investigation into the company’s former business activity in Turkey. While Entain sold its Turkish assets in 2017, the bribery-related offenses of its legacy business continue to haunt the company.
Under the DPA, Entain agreed to pay a financial payment of £585 million ($737.5 million), to make a charitable donation of £20 million ($25 million) and to pay a £10 million ($12.5 million) contribution that covers the HMRC and the CPS’s costs. As per the terms of the deal, the gambling company will pay this money in installments over four years after the DPA secures approval from the Court.
The current settlement will add to Entain’s woes as the company struggles with investor distrust and shareholder disapproval.
Entain Is Committed to Following the Rules
Entrain highlighted its cooperativeness with the HMRC and the CPS and expressed its desire to continue working with the authorities in the future.
Barry Gibson, the company’s chairman, commented on the DPA, explaining:
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.
Barry Gibson, chair, Entain
Gibson added that his team is planning to only operate in regulated markets and remain a trusted business. Now a best-in-class responsible operator with high levels of corporate governance, Entain hopes to never repeat its past mistakes.
Entain added that it will release a further announcement after the hearing on December 5.
Earlier this month, Entain’s leadership increased its stake in the company. This move aimed to demonstrate the higher-ups’ trust in the company’s financial position despite the recent setbacks.
A few weeks ago, Entain published its Q3 results, highlighting a net gaming revenue increase of 7%.