Ladbrokes owner faces ‘big financial penalty’ after probe
Betting giant is facing rap for ‘breaching anti-bribery laws’
THE owners of betting giant Ladbrokes are braced for “a substantial financial penalty” following a four-year investigation by the taxman.
Potential offences include breaching anti-bribery laws and possible misconduct involving ex-employees and former third-party suppliers.
London-listed Entain has told investors it is in “deferred prosecution agreement” talks with the Crown Prosecution Service and is working towards resolving the issue.
In a statement it said: “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.” It added a confirmation that “historical misconduct” may have occurred.
The tax probe is linked to its activities in Turkey, though it sold that part of the business in 2017.
Entain said that while prosecution remains a “possibility”, it is attempting
to “conclude deferred prosecution negotiations”. The news sent its share price tumbling by 2.87 per cent.
Barry Gibson, chairman of Entain, said: “We are keen to achieve a resolution to what is a historical issue relating principally to a business that was sold by the group nearly six years ago.”
He went on: “Entain has been
through a period of extraordinary transformation since then, and has taken decisive action to be a best-inclass, responsible operator with outstanding corporate governance.
“The board and leadership teams have been overhauled, 100 per cent of our revenue is now from regulated or regulating markets, and our business model, strategy and culture have been reviewed, analysed, and stress-tested. We will continue to work closely with both the CPS and HMRC to ensure that this matter can be concluded as soon as is practical.”
Last year, Entain was fined £17million for social responsibility and anti-money laundering failures, including at its online operation.
In 2019, HMRC had asked chiefs to provide information on its former Turkish online betting and gaming business, while investigating a number of former third-party suppliers.
Across the group, revenue last year was £4.29billion, while profits reached £993million.
But it warned of lower profit margins in 2023 as it exits unregulated markets and faces higher costs for wages and energy in the UK.
In recent years the Government has introduced rules to curb gambling problems, including stricter age and identity checks and more support for punters who become addicted.
As a result, many gambling firms have sought to expand their operations in the US.