One of the leaders in the gambling industry, Entain, agreed to pay a settlement in order to settle the bribery investigation related to its Turkish business.
The agreement is reached:
Entain, which is the owner of big brands Ladbrokes and Coral, accepted the settlement worth almost £600 million to stop the investigation about the alleged bribery that might have occurred in Turkey.
According to the company, the agreement with HM Revenue and Customs is reached, and a huge payment of £585 million is to be made. The payment will go through in the form of a financial penalty and “disgorgement of profits.”
The penalty includes an additional £20 million intended to be used for charitable purposes. Also, Entain will have to pay an extra £10 million to cover the costs of the HMRC and the Crown Prosecution Service (CPS) installments during the four years.
Barry Gibson, the Chair of Entain, said: “This legacy matter concerns a business that was sold by a former management team six years ago. The group has changed immeasurably since these events took place. We are committed to continuing our journey towards operating only 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 started investigating this issue for the first time back in 2019, and back then, it was a “potential corporate offending.” The business in question was an online betting and gaming company that Entain owned between 2011 and 2017. Also problematic were the activities of third-party suppliers and the former company’s employees. Entain, which had the name GVC at the moment, was allegedly guilty of failing to conduct the procedures they were required to follow in such cases and stop people from being included in the bribes related to the company.
The DPA:
In August, Entain confirmed that they would probably pay a penalty in order to settle things with the regulators.
According to The Guardian, Entain and defenders agreed upon a deferred prosecution agreement (DPA) in the hearing held at the Royal Courts of Justice on Friday, November 24. The DPA has to be approved, which will possibly happen at the next hearing, which is scheduled for December 5.
DPA is often used in the cases of bribery and corruption. If the company is charged with a criminal offense and the judge approves the DPA, all claims are suspended, and the company is required to follow the strict rules. The company would be able to recover, but it would be obligated to make serious reparations in order to make the business work smoothly.