The operator is facing a significant penalty following its deferred prosecution agreement (DPA) with the Crown Prosecution Service. Negotiations for the DPA are progressing, and the operator is confident enough to estimate a settlement sum of £585m to be paid over four years. This estimation is based on the assumption that the operator will receive full credit for its cooperation with the investigation. However, judicial approval is still required, and it is predicted that the approval will be sought in Q4 2023.
The settlement specifically relates to alleged offences under Section 7 of the 2010 Bribery Act, which requires businesses to implement proper procedures to prevent bribery. It is important to note that the resolution only covers the company and the group. This suggests that there may be separate settlements or charges for individuals involved.
The operator has acknowledged historical misconduct involving former third-party suppliers and employees. To address this, it has undergone a comprehensive review of anti-bribery policies and procedures, taking decisive action to strengthen compliance and related controls. It operates exclusively in regulated markets and territories with a clear path to domestic regulation, holding licenses in over 40 territories worldwide.
The chairman of Entain, Barry Gibson, expressed satisfaction that a resolution is near and emphasized that the alleged offences occurred under a previous management team. He highlighted the significant changes made within the business in recent years, stating that the current Entain is vastly different from the former GVC.
HMRC’s investigation into the historical Turkish business began in 2019 when additional information was requested from GVC Holdings. The scope of the investigation was expanded in 2020 to cover potential corporate offending. Despite previous denials, reports persisted about the operator benefiting from Turkish operations. The case led to leadership changes, including the appointment of a new CEO and a rebranding to Entain.
The settlement covers the group, raising the possibility of prosecutions for former executives, including former CEO Kenny Alexander. This situation hindered the proposed corporate control change involving 888 Holdings. The Gambling Commission intervened, warning that any change must gain its final approval to avoid a license suspension. Consequently, talks with 888 were terminated, and a license review is still pending as a result of the case.
Per Widerström has since been appointed as CEO of the operator, succeeding Itai Pazner.
