REG - Entain PLC - Update on HMRC Investigation

EntainAnnouncement

10/08/2023 07:15

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RNS Number : 8629I  Entain PLC  10 August 2023

10 August 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 has taken a £585 million
provision in respect of its ongoing deferred prosecution agreement (DPA)
negotiations with the Crown Prosecution Service (CPS).

The Company previously announced an investigation by HMRC into its legacy
Turkish facing business, which it sold in 2017, and subsequently announced
that it is in DPA negotiations with the CPS to resolve the ongoing HMRC
investigation.

The DPA negotiations have now progressed to the point where the Company
believes that it is likely to be able to agree a resolution of the HMRC
investigation insofar as it relates to the Company and the Group.  While the
full terms of a DPA are subject to judicial approval, the Company has a
sufficient degree of confidence to take a provision of £585 million against a
potential settlement, which would be paid over a four-year period in relation
to alleged offences under Section 7 of the Bribery Act 2010.  The Company
currently anticipates judicial approval will be sought during Q4 2023.

Section 7 of the Bribery Act 2010 relates to the failure of a relevant
commercial organisation to have adequate procedures in place designed to
prevent persons associated with it from undertaking bribery for the benefit of
the commercial organisation.

The amount of the provision has been calculated on the basis that the Company
will receive full credit for its extensive co-operation with the investigation
prior, and subsequent, to entering into any DPA.

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

The Board looks forward to pursuing an orderly conclusion to this matter and
drawing a line under these legacy issues involving former third-party
suppliers and former employees of the Group. The Group is now licensed in more
than 40 territories and, as previously disclosed, is committed to operating
only in markets that are regulated or where it sees a clear path to domestic
regulation.

Barry Gibson, Chairman stated "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. We have been working closely with the CPS throughout this process,
and they have recognised our extensive co-operation. Following a complete
overhaul of our business model, strategy and culture in the last few years,
the Entain of today bears no resemblance to the GVC of yesterday."

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.

Forward-looking statements

This document contains certain statements that are forward-looking
statements.  They appear in a number of places throughout this document and
include statements regarding our intentions, beliefs or current expectations
and those of our officers, directors and employees.  These forward-looking
statements include all matters that are not historical facts.  By their
nature, these statements involve risks and uncertainties since future events
and circumstances can cause results and developments to differ materially from
those anticipated.  Any such forward-looking statements reflect knowledge and
information available at the date of preparation of this document.  Other
than in accordance with its legal or regulatory obligations (including under
the Market Abuse Regulation (596/2014) as it forms part of English law by
virtue of the European Union (Withdrawal) Act 2018, the Listing Rules, the
Disclosure Guidance and Transparency Rules and the Prospectus Rules), the
Company undertakes no obligation to update or revise any such forward-looking
statements.  Nothing in this document should be construed as a profit
forecast.  The Company and its directors accept no liability to third parties
in respect of this document save as would arise under English law.

 

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

Davina Hobbs, Head of Investor Relations

Aimee Remey, VP US IR

 Callum Sims, IR Manager

 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

 Rory Godson / Rob Greening / Russell Lynch                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)

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