CRIMINAL CAPITALI$M

UK
REPORT: Entain shares in reverse after £585m bribery fine

By JOHN ABIONA
 24 November 2023

Shares in Entain dipped after it agreed to pay £585m following a bribery probe into its former Turkish business.

In August, the Ladbrokes and Coral owner told shareholders it had set aside the sum following a Bribery Act investigation by HM Revenue & Customs (HMRC) that began four years ago.

Authorities investigated the Turkish business that had been sold in 2017 by Entain's previous management, GVC, alongside the activities of former suppliers and employees.

The blue-chip firm was fined for failing to have robust measures in place to prevent bribery.

Entain said it agreed a deal with the Crown Prosecution Service (CPS) to pay the figure over four years. It will also hand £20m to charity and pay £10m to cover the costs of HMRC and the CPS.

Probe: Entain was fined for failing to have robust measures in place to prevent bribery

Entain chairman Barry Gibson said: 'This legacy matter concerns a business which was sold by a former management team six years ago. The Group has changed immeasurably since these events took place.' Shares sank 0.6 per cent, or 5.4p, to 859p.

Gambling stocks were dealt a further blow after HSBC sounded the alarm over a weak set of third-quarter results.

The broker said Entain is struggling to get a grip on a cocktail of woes from an underperforming UK business to tighter regulation and higher tax.

HSBC reduced the target price to 1280p from 1520p but kept its 'buy' rating on the stock as it believes there remains value but warned a turnaround of the business will take time.