Entain PLC (LSE:ENT) said it is likely to face a “substantial financial penalty” when the outcome of a four-year probe into its former Turkish business concludes although prosecution cannot be ruled out.
The owner of Coral and Ladbrokes said it was in deferred prosecution agreement (DPA) negotiations with the Crown Prosecution Service (CPS) and is working towards achieving a resolution of the ongoing HMRC investigation.
The HMRC began an investigation into the group's former Turkish-facing online betting and gaming business, which it held from 2011 until it was sold in 2017, in November 2019.
In July 2020, it widened the scope of the investigation and was examining potential corporate offending by an entity (or entities) within the group.
Entain said that the HMRC investigation, which is ongoing, includes a review of its former Turkish-facing business and acknowledged that historical misconduct involving former third-party suppliers and former employees of the group may have occurred.
The FTSE 100-listed firm said it is not possible to say how the investigation will conclude.
Prosecution remains a possibility but the group is seeking to conclude DPA negotiations with the CPS.
“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. The company cannot identify reliably at this stage the size of any financial penalty.”