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Entain resolves bribery probe with HMRC

Entain (LSE: ENT), the owner of Ladbrokes and Coral, has hammered out a deal with the Crown Prosecution Service (CPS). They’re forking over a hefty £585 million following a Bribery Act investigation into their former …

Entain (LSE: ENT), the owner of Ladbrokes and Coral, has hammered out a deal with the Crown Prosecution Service (CPS).

They’re forking over a hefty £585 million following a Bribery Act investigation into their former Turkish business by HM Revenue & Customs (HMRC).

So, HMRC was snooping around suppliers and ex-employees of the Entain group. They were particularly miffed about the company supposedly slacking on anti-bribery measures.

On top of the cash splash, Entain is tossing £20 million to charity and covering HMRC’s costs with a £10 million payout. Chairman Barry Gibson, said this whole mess is about a business they sold six years ago under different management. He swears they’ve transformed into a responsible, top-notch operator since then.

The legal nod for this agreement happened on Friday, but the final approval date is scheduled for December 5th. Once that’s a done deal, the £585 million will be doled out in four chunks.

Entain made it clear they’ve been buddy-buddy with HMRC and the CPS throughout, promising to keep the cooperation vibes going. Oh, and just a fun fact, the dodgy Turkish business was offloaded in 2017, before Ladbrokes and Coral joined the Entain family. They’ve been haggling over this fine since August when they set aside the cash.

The whole HMRC investigation fiesta started in 2019.

Entain shares closed 5% lower in London today.

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