Accusations of Bribery and Illegal Practices Cast Shadow on Global Gaming Giant

By John Isaac,
Editor at online-gambling.com

John Isaac Editor at online-gambling.com

John Isaac is an editor with many years of experience in the gambling industry. He writes expert articles on card games like blackjack and poker. In addition, he is also well aware of the US gambling laws and the Indian and Dutch gambling markets. You can rely on verified information and insightful details.

• Twitter
• Email

More About John Isaac

Last updated: June 7, 2023

Entain, a big gambling company with well-known brands like Ladbrokes, is presently dealing with a severe problem that might seriously harm its standing and profitability. Accusations of bribery and illicit activity have surfaced about the company’s prior business in Turkey. Since it began some years ago, the UK tax authorities’ inquiry has turned up incriminating evidence against Entain.

The company issued a statement a few days ago in reaction to these events, accepting the potential fines and disclosing that talks with UK authorities about a sentencing deal are currently underway. Due to the infractions connected to its former virtual betting business in Turkey, the company anticipates paying out a large financial fine.

Entain?has a reason for fear given that the company was previously hit with a record $21 million punishment in the UK in August for many mistakes. HM Revenue & Customs (HMRC) is now looking into past wrongdoing, including possible breaches of the?UK Bribery Act?and other offences involving former third-party vendors and Entain’s own employees. Particularly under examination is the behaviour of the defunct Sportingbet sports betting division of the company.

UK Tax Authorities Probe Entain’s Former Turkish Operations for Historical Misconduct

HMRC initially started looking into the improper behaviour of outside vendors handling payments for Entain’s Turkish accomplice. However, the investigation’s purview widened to cover previous subsidiaries and personnel connected to Turkish activities. Most of the allegations being looked at fall under Section 7 of the Bribery Act, which deals with instances when a business fails to stop someone from providing a bribe to another business or person.

Entain’s chair, Barry Gibson, stated in a separate statement that the board was committed to finding a solution for this old problem. He emphasized both the company’s commitment to solely earning revenue from regulated and controlled markets and the substantial progress it has made in reforming its leadership and management teams.

Uncertainty Looms as Entain Negotiates Sentencing Agreement and Potential Fine

Although Entain anticipates a sizable punishment, the precise amount and the potential effects on its UK license are yet unknown. There is a ray of light for the firm, though, as it thinks that because of its cooperation with the inquiry and the fact that the offences are only related to prior activities, HMRC may be willing to reduce the fine.

The market reacted to the news right once, and Entain’s shares saw a substantial decline in the first hour of trade on Wednesday. The stock was markedly cheaper than the previous day’s closing price of ￡1,380 (US$1,706) when it was trading on the London Stock Exchange under the symbol ENT. It’s important to note that this price is also significantly lower than the peak for the year so far, which was $1,937 (￡1,567; February 8).

Entain will need to get through this difficult time and work hard to respond to the allegations made against it as the inquiry goes on and it waits for HMRC’s ultimate judgment. Without a doubt, the results of this inquiry will have a substantial influence on Entain’s activities in the future and its reputation in the gaming industry. How this share price drop will affect Entain’s acquisition strategy is yet to be determined.