Entain has agreed to pay over £600 million to resolve an HM Revenue & Customs (HMRC) investigation into the operations of its Turkish subsidiary, Headlong Ltd. The financial penalty is part of a Deferred Prosecution Agreement (DPA) reached in principle between the online gambling group and the Crown Prosecution Service (CPS) on November 24.
DPA Set to be Finalized on Dec. 5
Under the terms of the DPA, Entain will pay a total of £585 million in financial penalty and disgorge profits. Additionally, it will donate £20 million to charity and cover £10 million in costs for HMRC and the CPS.
The DPA will be in effect for four years, with Entain required to pay the entire amount within that period, beginning with the date of the final court approval which the company expects to obtain on December 5.
Turkish Business Allegedly Violated UK’s Bribery Laws
The DPA stems from an HMRC investigation into Headlong in 2019 over alleged breaches under Section 7 of the Bribery Act 2010. The Turkish business was owned and operated by GVC Holdings from 2011 to 2017 before being sold to Ropso Malta Limited for a performance-related earn-out of up to €150 million. GVC Holdings rebranded to Entain in December 2020.