Just a week after CEO Kenny Alexander stepped down, it was revealed that the U.K. taxing authority has been investigating GVC Holdings for possible offenses in conjunction with a Turkish online gambling business.
Prior to July 20, no GVC outlet was considered part of the investigation which began last year by HM Revenue & Customs. Indeed, GVC believed the probe was centered on former third party suppliers involved with payment processing for the business in Turkey.
GVC, which eliminated its share of the Turkish enterprise in 2017, is cooperating with the investigation, according to MSN. GVC Holdings, owner of Ladbrokes Coral, was ordered in November to provide information about its former Turkish language betting site.
The authority has yet to issue details of the GVC involvement.
GVC admitted surprise over the growing investigation. They admitted to being blindsided by the revelation July 21, according to Barron’s.
HMRC has not yet provided details of the nature of the conduct scrutiny, with the exception of a reference to section 7 of Bribery Act 2010, nor has it clarified which part of the GVC group is under investigation. Section 7 indicates that a commercial company can be declared guilty if a person associated with the organization bribes someone else to secure or keep business.
“It’s no wonder GVC’s management complain about the lack of clarity from the tax authorities; it is this lack of clarity which will do the damage,” said AJ Bell investment director Russ Mould.
The U.K. Gambling Commission is cooperating as well.
The ongoing investigations could last for years, given the size of GVC, said Liz Coleman, former HMRC tax inspector. “They have to analyze all the computer records too, so this could add even more time.”
The investigation unveiling comes one week after Kenneth Alexander announced that he was stepping down as GVC’s chief executive.
