Entain Settles £585m Penalty Following Bribery Investigation

27/11/2023 | Categories: News | Published by: BTCGOSU | Last updated: 05/01/2024

Entain, a major player in the industry, faces a significant development as it discloses its decision to pay a total of £585 million ($737.4 million) as a financial penalty and disgorgement of profits over its legacy Turkish business. The announcement follows a thorough investigation into the company’s now-closed Turkish-facing business, shedding light on alleged offenses under Section 7 of the Bribery Act 2010 and the absence of adequate anti-bribery procedures within the company.

Background and Investigation Details

The financial penalty stems from activities conducted by former third-party suppliers and former employees of Entain in its Turkish operations. The investigation, prompted by concerns about potential bribery, uncovered a failure in the implementation of effective preventive measures against such practices, a breach of Section 7 of the Bribery Act 2010.

Entain’s Response and Financial Commitments

Entain had previously earmarked the £585 million sum, and now, the company has officially confirmed its commitment to paying the specified amount. In addition to the financial penalty, Entain will make a charitable donation of £20 million and contribute £10 million to HMRC (Her Majesty’s Revenue and Customs) and the CPS’ (Crown Prosecution Service) costs, emphasizing its dedication to addressing the repercussions of the investigation responsibly.

Chairman’s Perspective

Barry Gibson, Chairman of Entain, acknowledged the gravity of the situation, characterizing it as a “legacy matter” related to a business that the company divested six years ago. Gibson highlighted the transformative changes within the group since the events in question, emphasizing the contrast between the GVC of the past and the present-day Entain. He underscored the company’s commitment to operating exclusively in regulated markets and its recognition as a responsible operator with robust corporate governance.

Future Steps and Further Announcements

Entain anticipates making additional statements on the matter after the hearing scheduled for December 5, 2023. Details of the final Deferred Prosecution Agreement, a legal arrangement that allows a company to avoid criminal charges by fulfilling certain conditions, will be disclosed in due course.

Entain’s decision to settle the £585 million penalty demonstrates a commitment to rectifying past discrepancies and upholding corporate responsibility. As the company navigates through this challenging period, its dedication to regulated markets and responsible operations positions it as a responsible and accountable industry leader. Entain’s ability to address concerns and focus on significant growth opportunities will undoubtedly play a pivotal role in shaping its future trajectory.

Brands under the Entain Portfolio

There are several online casinos and sportsbooks that fall under the Entain brand. Below is a summary of their brands.

Sports Brands:

bwin: A leading European online betting brand with a strong presence in key markets like Germany, Belgium, France, Italy, and Spain. Offers a comprehensive gaming experience, including casino, poker, and bingo accessible through a single account.
Ladbrokes: A well-established force on the UK high street for over 50 years, Ladbrokes has expanded its reach online and through various channels, becoming one of the most recognized brands in the UK.
Coral: Synonymous with UK casinos, Coral maintains a robust presence both on the high street and online, establishing itself as a prominent brand in the industry.
Sports Interaction: Known for its localized sports betting and gaming offerings, Sports Interaction is a popular name among sports fans in Canada.
Sportingbet: A leading provider of sports betting, casinos, games, and poker online and on mobile. Acquired by Entain in 2013, it continues to offer diverse gaming experiences.
betboo: Catering to South American customers since 2005, Betboo provides online bingo, sportsbook, casino, and poker. Acquired by Entain in 2009.
Gamebookers: Popular in eastern and central European markets, Gamebookers is a full-service sportsbook offering a vast array of daily bets on more than 90 sports.
VistaBet.gr: A Greek-facing gaming site within the Entain portfolio, offering a complete suite of sports betting, live casino, table and slot games, as well as poker.

Games Brands:

PartyCasino: One of the world’s largest online casinos, PartyCasino offers a wide range of classic casino games, including blackjack, roulette, and an extensive variety of slot machines.
PartyPoker: A pioneer in the online poker industry since 2001, PartyPoker remains one of the most recognized and enduring brands.
Gala Bingo: The second-largest player in the UK online bingo market, Gala Bingo offers scheduled bingo sessions, slots games, and roulette, including live roulette.
Gala Casino: Providing a full range of casino and live casino products, Gala Casino offers an extensive suite of proprietary and third-party online games.
Gala Spins: A dedicated slot suite with a mobile app offering over 100 games, Gala Spins stands out with its easy and enjoyable gaming experience.
Foxy Bingo: Launched in 2005, Foxy Bingo is one of the most successful brands in online bingo and is a prominent name in the UK bingo market.
Foxy Games: Introduced in 2015, Foxy Games focuses on cross-selling from bingo to casino, offering over 150 games, including slots, progressive jackpots, and various table games.
Gioco Digitale: Pioneering the Italian market since 2009, Gioco Digitale focuses on casino and bingo products and considers itself a gaming portal for casual gamblers.
Cheeky Bingo: A dedicated bingo platform offering various bingo games, including 90 Ball Bingo, 75 Ball Bingo, and 52 Ball Bingo.