A three-year investigation on Entain Holdings UK Limited by the HM Revenue & Customs (HMRC) regarding misconduct by employees and third-supplies is finally wrapping up. It could result in what Entain officials called a “substantial” penalty.
The inquiry by HMRC encompasses the period from 2011 to 2017 for the online betting and gaming firm. The main focus of the investigation was former third-party suppliers who processed payments.
In 2019, Entain denied it was still benefiting from Headlong Ltd.. a Turkish business. A year later, though, Entain publicly acknowledged the HMCR was expanding their investigation to look at potential corporate offending that fell under the Bribery Act of 2010.
The controversy may have cost Kenny Alexander his position as CEO. He resigned shortly after the investigation expanded. He was replaced by Shay Segev, who rebranded the business as GVC Group. The move was made to reposition the business as a socially responsible, sustainable operation.
The business is in limbo until the investigation concludes. The company put out a news release saying it was working on a resolution.
“Whilst prosecution of a group entity or entities, which may defend the action successfully or be convicted, remains a possibility, the group is seeking to conclude DPA negotiations with the CPS,” the release said. “Negotiations remain ongoing and any resolution would be subject to judicial approval.”
Any outcome is probably coming with a financial penalty.
“While the company cannot say at this stage what the consequences of the investigation will be, it is likely that they will include a substantial financial penalty which is yet to be determined,” Entain said in the release. “The company cannot identify reliably at this stage the size of any financial penalty.”
That said, Entain did get some good news recently as well. The company was granted approval to produce a wagering and broadcasting deal with TAB New Zealand. The agreement is for 25 years.
It was approved by the New Zealand Minister for Racing and is expected to take effect on Thursday.
“We are delighted and honored to have received Ministerial approval to finalize the strategic partnering agreement between TAB NZ and Entain Australia,” said Entain CEO Dean Shannon. “We believe this 25-year strategic partnering arrangement will be a game-changer for sports betting in New Zealand and we are pleased that it will help provide significant financial benefits to the three New Zealand racing codes and the vast array of national sporting organizations.”
The partnership will provide guaranteed funding to TAB NZ of more than US$620 million in the first five years.
