Entain has set aside £585m ($746.3m) as part of its ongoing discussions with the Crown Prosecution Service (CPS) regarding a deferred prosecution agreement (DPA).
Previously, Entain had revealed an investigation by HMRC into its former Turkish-facing business, which it sold in 2017 (when it was under the name of GVC Holdings). Following this, the company entered DPA talks with the CPS to address this ongoing HMRC inquiry.
Now, Entain is gearing up to settle the HMRC investigation concerning both the company and the broader group. Although the complete terms of the DPA await judicial approval, the firm's confidence in the resolution has led to the earmarking of a £585m provision.
This settlement amount would be spread over four years and pertains to alleged breaches of Section 7 of the Bribery Act 2010.
Entain's provision has been calculated considering its extensive cooperation with the investigation prior to and post entering the DPA agreement.
Furthermore, the company's Board expects to seek judicial approval in Q4 2023.
Barry Gibson, Entain Chairman, did not mince his words and placed the blame firmly on the old GVC management team.
He said in an official statement: “We are pleased to be making good progress towards drawing a line under this historical issue, which relates to a business that was sold by a former management team of the Group nearly six years ago.
"The Entain of today bears no resemblance to the GVC of yesterday, which had a different management team, a different strategy and – to be blunt – different standards.”
Meanwhile, Gibson recently exclusively spoke to the GI Huddle as part of an in-depth 40-minute discussion on all things Entain.
