Entain Agrees to Settle Turkish Bribery Claims for Nearly $730 Million

Posted on: November 27, 2023, 06:55h. 

Last updated on: November 27, 2023, 06:55h.

This past May, Entain, a leader in the global gaming industry, announced that it would have to pay a substantial fine due to bribery charges related to its prior operations in Turkey. However, through negotiations, they have now agreed to pay £585 million (US$729 million) to put an end to the case.

A stage and meeting space in Entain's offices
A stage and meeting space in Entain’s offices. The gaming company will pay a massive fine to settle bribery claims linked to its prior operations in Turkey. (Image: TSK Group)

The bribery case dates back to when Entain operated the Sportingbet sports betting brand in Turkey from 2011 to 2017 under the name GVC. After agreeing to the fine, they are now able to avoid prosecution and keep their gaming license.

Effect on Entain’s Business

When Entain was known as GVC, it sold its operations in Turkey to Ropso Malta Limited in 2017. As a result of the investigation and settlement, the company will have paid over $1 billion in lost acquisition proceeds and fines before it can officially move on from the issues in Turkey.

Besides the nine-figure fine, Entain may also have to pay £20 million (US$25.21 million) as a charitable donation and £10 million (US$12.6 million) to cover the costs HMRC and the CPS incurred. The final decision on the penalties will be made by a UK court on December 5, with the debt expected to be paid off in regular installments over four years.

Market Performance

Over the past year, Entain’s market price has suffered, dropping to £843.16 (US$1,062) and providing investors with a -35% return. This downturn comes despite the company’s significant investments and acquisitions in the past year.

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