REG - Entain PLC - Update on HMRC Investigation

EntainAnnouncement

31/05/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230531:nRSe0863Ba&default-theme=true

RNS Number : 0863B  Entain PLC  31 May 2023

31 May 2023

Entain plc

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

Update on HMRC Investigation

 

Entain plc (LSE: ENT), the leading global sports betting, gaming, and
interactive entertainment group, announces that it is in deferred prosecution
agreement (DPA) negotiations with the Crown Prosecution Service (CPS) and is
working towards achieving a resolution of the ongoing HMRC investigation.

As previously disclosed, on 28 November 2019, Entain Holdings (UK) Limited, a
subsidiary of the Company, received a production order from HM Revenue &
Customs (HMRC) requiring it to provide information relating to the Group's
former Turkish-facing online betting and gaming business, which it held from
2011 until it was sold in 2017.  At that time, the Group understood that
HMRC's investigation was directed at a number of former third-party suppliers,
relating to the processing of payments for online betting and gaming in
Turkey.  On 21 July 2020, the Company announced that HMRC was widening the
scope of its investigation and was examining potential corporate offending by
an entity (or entities) within the Group.

The offences under investigation include, but are not limited to, section 7 of
the Bribery Act 2010.

The Company understands that the HMRC investigation, which is ongoing,
includes a review of its former Turkish-facing business and acknowledges that
historical misconduct involving former third party suppliers and former
employees of the Group may have occurred.

The Group continues to co-operate fully with HMRC and the CPS.

It is not possible at this stage to say how the investigation into the Company
will conclude.  Whilst prosecution of a Group entity or entities, which may
defend the action successfully or be convicted, remains a possibility, the
Group is seeking to conclude DPA negotiations with the CPS. Negotiations
remain ongoing and any resolution would be subject to judicial approval.

While the Company cannot say at this stage what the consequences of the
investigation will be, it is likely that they will include a substantial
financial penalty which is yet to be determined.  The Company cannot identify
reliably at this stage the size of any financial penalty.

Since the investigation first commenced, the Group has undertaken a
comprehensive review of anti-bribery policies and procedures and has taken
action to strengthen its wider compliance programme and related controls.

Whilst the discussions with the CPS remain ongoing, the Board is content with
progress to date and looks forward to pursuing an orderly conclusion to this
matter.

The information contained within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulation (EU) No.
596/2014.  Upon the publication of this announcement, this inside information
is now considered to be in the public domain.

 

 

Enquiries:

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

 Investor Relations - Entain plc                           investors@entaingroup.com (mailto:investors@entaingroup.com)

 David Lloyd-Seed, Chief IR & Communications Officer       david.lloyd-seed@entaingroup.com (mailto:david.lloyd-seed@entaingroup.com)

Davina Hobbs, Head of Investor Relations                 davina.hobbs@entaingroup.com (mailto:davina.hobbs@entaingroup.com)

Aimee Remey, VP US IR                                    aimee.remey@entaingroup.com (mailto:aimee.remey@entaingroup.com)

 Callum Sims, IR Manager                                   callum.sims@entaingroup.com

 Media - Entain plc                                        media@entaingroup.com

 Lisa Attenborough, Head of Corporate Communications       lisa.attenborough@entaingroup.com (mailto:lisa.attenborough@entaingroup.com)

                                                         jay.dossetter@entaingroup.com (mailto:jay.dossetter@entaingroup.com)
 Jay Dossetter, Head of Corporate PR
jodie.hitch@entaingroup.com

 Jodie Hitch, PR Manager

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

 Rory Godson / Rob Greening / 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 and SuperSport; 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 (http://www.entaingroup.com)

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDWPUAAAUPWGMU