Entain prepares £585m for HMRC fine
Entain has recently provisioned 585 million pounds as it prepares for the conclusion of its HMRC’s investigation.
This latest announcement relates to the investigation of Entain’s former Turkish operations, which the UK’s HMRC initiated four years ago to identify any potential breaches of the country’s bribery laws. The investigation originally only involved certain third parties the Turkish subsidiary worked with, however, a year after its initiation the HMRC expanded it to certain internal offenders.
At the end of May, the company announced that it expects to be hit with a sizable penalty for certain events that took place before 2017. This recent announcement builds on it, with the company taking a provision of more than half a billion dollars to prepare for a finalized resolution for the case.
Entain stated that it is taking a provision because its negotiations with the UK’s Crown Prosecution Services have reached a stage where the firm believes it will be able to reach an agreement with the government organization. The operator further added that it expects that the fine would be due over the course of four years and that a final agreement will receive approval sometime in the last quarter of the year.
Moreover, Entain also mentioned that since the beginning of the investigation, it has carried out an in-depth review of its compliance measures to strengthen them and ensure its anti-bribery efforts remain effective.