Ladbrokes-owner Entain likely to face “substantial financial penalty” after bribery investigation
Entain said it could face a “substantial financial penalty” following investigations into its business practices in Turkey by the Crown Prosecution Service (CPS).
The Ladbrokers owner said the offences under investigation at its Turkish facing business, which it held between 2011 and 2017, include breaching the bribery act.
Entain admitted that “historical misconduct involving former third party suppliers and former employees of the group may have occurred.”
It is in talks to sign a deferred prosecution agreement (DPA) with the CPS. Although the betting firm said it cannot say what the outcome of the investigation will be, it is likely to include a “substantial financial penalty”.
Back in 2017, Rolls Royce was forced to pay £497m as part of its DPA to settle claims that it paid bribes to secure export contracts.
The tax authorities launched the investigation in 2019, requiring Entain to provide information relating to its former Turkish-facing business.
The investigation was initially directed at a number of third-party suppliers, but in 2020, HMRC widened the scope of the investigation to include offences which may have occurred within Entain itself.
Entain said that although prosecution remains a “possibility”, it is attempting to conclude DPA negotiations.
Since the investigation first commenced, Entain said it has undertaken a “comprehensive review of anti-bribery policies and procedures”.
Barry Gibson, chair of Entain said: “We are keen to achieve a resolution to what is an historical issue relating principally to a business that was sold by the Group nearly six years ago.
“Entain has been through a period of extraordinary transformation since then, and has taken decisive action to be a best-in-class, responsible operator with outstanding corporate governance,” Gibson continued.