The owner of Ladbrokes and Coral has agreed to pay nearly £600 million to settle an investigation into alleged bribery at a former business in Turkey. Entain, the gambling giant, has reached an agreement with HM Revenue and Customs, involving a financial penalty and the disgorgement of profits totaling £585 million.
As per the terms of the agreement, the penalty, inclusive of a £20 million charitable donation and a £10 million contribution towards the costs incurred by HMRC and the Crown Prosecution Service (CPS), will be paid in installments over four years.
Barry Gibson, the chair of Entain, stated, "This legacy matter concerns a business that was sold by a former management team six years ago. The group has undergone significant transformation since these events transpired. We are committed to progressing in regulated markets and are now widely recognized as a best-in-class, responsible operator with the highest levels of corporate governance across all aspects of our business."
HMRC initiated an investigation in 2019 into potential corporate offenses by a Turkish-facing online betting and gaming business that Entain owned from 2011 to 2017. The inquiry also covered the activities of third-party suppliers and former employees of the group. Entain, formerly known as GVC, is accused of lacking the necessary procedures to prevent involvement in bribes benefiting the business.
In August, Entain signaled its likelihood to face a substantial penalty in settling the investigation, setting aside £585 million. The company has reached, in principle, a deferred prosecution agreement (DPA) with the CPS, subject to final court approval on December 5. Under a DPA, a company faces criminal charges, but proceedings are suspended upon approval from a judge, with strict adherence to specified rules. DPAs have been utilized in cases of alleged bribery and corruption, with companies such as Rolls-Royce.
Got it. It's positive that Entain is owning up to past problems and promising to do better. The fact they're paying in installments and making donations shows they're serious about sorting things out.
I can't help but be curious about the details of the inquiry. HMRC is investigating possible corporate offenses in an online gaming and betting company that Entain owned for a considerable amount of time and that has Turkish users. It's not just about the business; they're also investigating past workers and outside vendors. It looks like an intense dive. 🤓
This news about Entain is quite concerning, especially the allegations of bribery. It's good to see they are taking steps to address the issue, but do you think this will have any lasting effects on the company?
The settlement by Ladbrokes and Coral's owner, Entain, echoes a commitment to resolving past issues. While the penalty is substantial, their focus on transformation and responsibility demonstrates intent for positive change. Transparency and adherence to regulations reflect an evolving stance towards governance and ethics in the industry.
As I reflect on the settlement between Entain and HMRC regarding alleged bribery in Turkey, it raises questions about corporate responsibility within the gambling industry. It's a reminder of the ongoing need for thorough governance and ethical practices in business.