Entain agrees to settle $729M payment over Turkish bribery probe

One of the world’s largest gambling companies, Entain, owner of the acclaimed Ladbrokes brand, has shut the lid on another bad chapter with the company reaching a settlement with the UK’s Crown Prosecution Service and agreeing to pay $729m (£585m) to close an ongoing probe alleging bribery and other suspicious practices in the company’s former Turkish division.

The Turkish division was sold back in 2017 ahead of the purchase of Coral and Ladbrokes to clear competition concerns, and yet the company is still in hot water over past mistakes. The settlement comes after a prolonged investigation which was started by the HMRC back in 2019 and which has now concluded.

For the most part, Entain said that it had expected the settlement to reach these numbers, and the company has reacted calmly to the ruling. Entain has said that it will also be donating £20m and £10m to HMRC and the CPS, to cover the costs of the investigation.

The penalty is not paid immediately after the settlement, but rather the company will have four years to complete its obligations.

Entain has made sure to explain that the current allegations and investigation were not because of actions committed by Entain in its reformed and rebranded operations, but because of a legacy bequeathed onto the new company by its former management team six years ago.

This was confirmed by Entain Chairman Bary Gibson who took the penalty in stride and assured investors, regulators, and customers that the company had reformed profoundly since that time.

"We are committed to continuing our journey towards operating only in regulated markets, and are now widely recognized as a best-in-class, responsible operator with the highest levels of corporate governance across all aspects of our business," Gibson explained.

Entain has also assured that it guaranteed its full cooperation with both HMRC and the CPS in order to put this unpleasantness aside and ensure that no such accidents can happen in future.

Entain is similarly on a path to only operate in regulated and trusted markets and intends to deliver on this promise by repeatedly expanding in such jurisdictions. The company also correctly predicted back in August the exact amount of the settlement. Entain has gone through some changes, including a reduction of its B2C esports operations with Unikrn and a reduction of the company’s workforce in Australia.

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