In a major development in bribery compliance, the owner of prominent gambling entities Ladbrokes and Coral, Entain, has agreed to pay nearly £600 million to settle an extensive investigation into alleged bribery at a former business it owned in Turkey. The settlement comes as a result of an inquiry initiated by HM Revenue and Customs (HMRC) in 2019, delving into potential corporate misconduct by a Turkish-facing online betting and gaming business that was under Entain’s ownership from 2011 to 2017.

Bribery Allegations and Lack of Procedures:

At the heart of the investigation are allegations that Entain, formerly known as GVC, failed to implement adequate procedures to prevent bribery within its Turkish operations. The company is accused of allowing individuals to participate in illicit practices that would ultimately benefit the business. The probe, which originally focused on the Turkish-facing business, later expanded to include scrutiny of third-party suppliers and former employees.

Financial Reckoning:

Entain has agreed to pay a staggering £585 million as part of the settlement. This substantial sum encompasses a financial penalty, the disgorgement of profits, a £20 million charitable donation, and a £10 million contribution towards the costs incurred by HMRC and the Crown Prosecution Service (CPS). The penalty is slated to be paid in instalments over a four-year period.

Deferred Prosecution Agreement (DPA):

In a move commonly employed in cases of alleged bribery and corruption, Entain has reached a deferred prosecution agreement (DPA) with the UK’s Crown Prosecution Service. Under this agreement, the company faces criminal charges, but proceedings are automatically suspended pending judicial approval. DPAs come with stringent rules and are designed to allow companies to make reparations without suffering the potentially devastating consequences of a criminal conviction.

Awaiting Final Court Approval:

While the DPA has been reached in principle, it is still pending final court approval, scheduled for December 5. The outcome of this hearing will determine the final terms of the settlement and the company’s obligations under the DPA.

Corporate Evolution:

Entain’s chairman, Barry Gibson, emphasised that the investigated events occurred six years ago and related to a business that was sold by a previous management team. The company asserts that it has undergone significant transformations since that time, positioning itself as a responsible operator with high levels of corporate governance. The settlement, if approved, is expected to fully resolve the HMRC investigation.

Industry Impact:

This development could have far-reaching implications for Entain and its standing within the highly regulated gambling industry. The size of the settlement underscores the gravity of the allegations and highlights the challenges faced by companies operating in international markets.

As the final court approval date looms, industry observers and stakeholders will be closely watching to see how this settlement shapes the future of Entain and whether it serves as a precedent for other companies grappling with similar legal challenges. The gambling giant’s journey through this bribery investigation serves as a stark reminder of the complexities and consequences associated with corporate conduct in an increasingly scrutinised business environment.