An international sports betting conglomerate has been handed a fine for alleged bribery.
Entain has reached a deferred prosecution agreement with the United Kingdom’s Crown Prosecution Service (CPS) following alleged bribery at the company’s former Turkish business.
"This legacy matter concerns a business which was sold by a former management team six years ago,” said Entain chairman Barry Gibson in a statement. “The Group has changed immeasurably since these events took place, and the DPA process has provided a reminder of the stark differences between the GVC of yesterday and the Entain of today.”
The agreement follows an investigation launched in 2019 by the HMRC — the tax authority of the UK. The probe caused Entain to gather funds in anticipation of a settlement with the HMRC.
Under the agreement Entain will pay a $729 million fine, which is scheduled for judicial approval on Dec. 5. The agreement also requires Entain — which owns a 50% stake in BetMGM — to make a $25 million charitable donation and to allocate roughly $12.5 million to the HMRC and the CPS to cover costs of the extensive investigation. Entain will be allowed to pay the fine in several installments over a four-year period pending judicial approval of the penalty next week.
Steady business
In Q3 2023, Entain saw total group net gaming revenue increase by 7% compared to the same period last year. The European sports betting and gaming giant attributed the results in Q3 2023 to its online business, which saw revenue during the quarter jump 9% compared to Q3 2022.
Entain, which also owns UK betting brand Ladbrokes and South American operator Sportingbet, reported a 15% uptick in active customers in Q3 2023 compared to the same period in FY2022. The company is solidifying a presence in America through BetMGM, which generated $458 million in net gaming revenue in Q3 2023 — a 15% increase year-over-year. BetMGM is the third-largest sportsbook in the U.S. with an 18% market share in jurisdictions that it operates in excluding New York. The Empire State is currently the largest online gaming market in America.
Entain expects BetMGM to generate between $1.8 billion and $2 billion in revenue in FY2023.
