REG - Entain PLC - Update on Deferred Prosecution Agreement

EntainAnnouncement

24/11/2023 14:15

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RNS Number : 6436U  Entain PLC  24 November 2023

 24 November 2023

 

Entain plc

 

("Company" and, together with its subsidiaries, "Group")

 

Update on Deferred Prosecution Agreement

 

 

Further to its announcement of 10 August 2023, Entain plc (LSE: ENT), the
global sports betting and gaming group, announces that it has, in principle,
reached a Deferred Prosecution Agreement (DPA) with the Crown Prosecution
Service (CPS), which received preliminary judicial approval from Dame Victoria
Sharp, President of the King's Bench Division, at a hearing today at the Royal
Courts of Justice sitting as the Crown Court at Southwark.  Entain will now
seek final judicial approval from the Court on 5 December 2023.

The DPA relates to HMRC's investigation into the Company's legacy
Turkish-facing business, which the Group sold in 2017, and the activities of
former third-party suppliers and former employees of the Group. It arises from
alleged offences under Section 7 of the Bribery Act 2010 and, in particular,
the failure of the Company to have adequate procedures in place to prevent
bribery. The DPA is a voluntary agreement and, subject to final Court approval
and compliance with its terms, would fully resolve the HMRC investigation into
these matters insofar as they concern the Company and the Group.

The terms of the DPA are in line with the provision announced on 10 August
2023.  The Company has agreed to pay a financial penalty plus disgorgement of
profits totalling £585 million, to make a charitable donation of £20 million
and to pay a contribution of £10 million to HMRC and the CPS's costs. The
financial penalty, disgorgement of profits and the charitable donation will be
paid in instalments over the term of the DPA, which will be four years from
the date of the final Court approval.

The Company has co-operated extensively with HMRC and the CPS and will
continue to co-operate with the authorities into the future, pursuant to the
terms of the DPA.

Barry Gibson, Chairman, stated:

"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. We are committed to
continuing our journey towards operating only in regulated markets, and are
now widely recognised as a best-in-class, responsible operator with the
highest levels of corporate governance across all aspects of our business."

A further announcement will be made following the hearing on 5 December 2023
and details of the finalised DPA will be provided at the appropriate time.

The information contained within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulation (EU) No.
596/2014 as it forms part of English law by virtue of the European Union
(Withdrawal) Act 2018. The person responsible for releasing this announcement
on behalf of the Company is Simon Zinger, General Counsel. Upon the
publication of this announcement, this inside information is now considered to
be in the public domain.

Enquiries:

 Investor Relations - Entain plc

                                                           investors@entaingroup.com (mailto:investors@entaingroup.com)

 David Lloyd-Seed, Chief IR & Communications Officer

Davina Hobbs, Head of Investor Relations

Aimee Remey, VP US IR

 Callum Sims, IR Manager

 Company Secretary                                         secretary@entaingroup.com (mailto:secretary@entaingroup.com)

 Media - Entain plc                                        media@entaingroup.com

 Lisa Attenborough, Head of Corporate Communications

 Jay Dossetter, Head of Corporate PR

 Jodie Hitch, PR Manager

 Media - Powerscourt                                       Tel: +44 (0) 20 7250 1446

 Rob Greening / Russell Lynch / Sam Austrums               entain@powerscourt-group.com

 

About Entain plc

Entain plc (LSE: ENT) is a FTSE100 company and is one of the world's largest
sports betting and gaming groups, operating both online and in the retail
sector. The Group owns a comprehensive portfolio of established brands; Sports
brands include BetCity, bwin, Coral, Crystalbet, Eurobet, Ladbrokes, Neds,
Sportingbet, Sports Interaction, STS, SuperSport and TAB NZ; Gaming brands
include Foxy Bingo, Gala, GiocoDigitale, Ninja Casino, Optibet, Partypoker and
PartyCasino. The Group owns proprietary technology across all its core product
verticals and in addition to its B2C operations provides services to a number
of third-party customers on a B2B basis.

The Group has a 50/50 joint venture, BetMGM, a leader in sports betting and
iGaming in the US. Entain provides the technology and capabilities which power
BetMGM as well as exclusive games and products, specially developed at its
in-house gaming studios. The Group is tax resident in the UK and is the only
global operator to exclusively operate in domestically regulated or regulating
markets operating in over 40 territories.

Entain is a leader in ESG, a member of FTSE4Good, the DJSI and is AA rated by
MSCI. The Group has set a science-based target, committing to be carbon net
zero by 2035 and through the Entain Foundation supports a variety of
initiatives, focusing on safer gambling, grassroots sport, diversity in
technology and community projects. For more information see the Group's
website: www.entaingroup.com
(https://protect-eu.mimecast.com/s/6cRUCr8NGIW7xxYCz6Y1t?domain=entaingroup.com/)
.

 

 

 

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