Statement Regarding Regulatory Settlement
17 August 2022
("Entain" or the "Group")
Statement regarding regulatory settlement
Entain, the global sports betting, gaming and interactive entertainment Group, can confirm that it has agreed a regulatory settlement with the British Gambling Commission (the "Commission") in respect of alleged historical licensing breaches. The regulatory settlement amounts to £14m in respect of Entain's digital business, and £3m in respect of its retail business.
Entain has entered into the regulatory settlement with the Commission in order to bring the matter to a close and avoid further costly and protracted legal proceedings. Entain accepts that certain legacy systems and processes supporting the operations of its British business during 2019 and 2020 were not in line with the evolving regulatory expectations of the Commission in respect to aspects of social responsibility and anti-money laundering ("AML") safeguards. However, the Group also notes the Commission's statement that it found no evidence whatsoever of criminal spend within Entain's operations.
The issues raised by the Commission relate to the period between December 2019 and October 2020, which predates the many changes in the area of safer gambling and AML that Entain has introduced. For instance, in 2021 Entain launched its Advanced Responsibility and Care™ ("ARC™") programme which, using revolutionary AI technology, operates in real-time and is individually tailored for each customer. The initial trials of ARC™ in the UK have shown a risk assessment accuracy of over 80%, a 120% uplift in the use of safer gambling tools by those most at risk, and a 30% overall reduction in customers increasing their risk levels.
Furthermore, in May of this year Entain was awarded the Advanced Safer Gambling Standard by GamCare, having evidenced the highest standards of player protection and social responsibility for its online and land-based gambling businesses in Great Britain.
As part of the settlement, Entain has also agreed to appoint a Board sponsor to oversee the implementation of any further improvements identified by the original 2020 compliance assessments and to undertake an independent audit of the relevant policies and procedures at a future date.
The £17m settlement amount was already provided for in the Group's financial statements.
Investor Relations - Entain plc
David Lloyd-Seed, Chief IR & Communications Officer
Davina Hobbs, Head of Investor Relations
Callum Sims, IR Manager
Media - Entain plc
Lisa Attenborough, Head of Corporate Communications
Jay Dossetter, Head of ESG and Press Office
Jodie Hitch, PR Manager
Rob Greening/Nick Hayns/Sam Austrums
Tel: +44 (0) 20 7250 1446
About Entain plc
Entain plc (LSE: ENT) is a FTSE100 company and is one of the world's largest sports-betting and gaming groups, operating both online and in the retail sector. The Group owns a comprehensive portfolio of established brands; Sports Brands include bwin, Bet.pt, Coral, Crystalbet, Eurobet, Ladbrokes, Neds, Sportingbet and Sports Interaction; Gaming Brands include CasinoClub, Foxy Bingo, Gala, GiocoDigitale, Ninja Casino, Optibet, Partypoker and PartyCasino. The Group owns proprietary technology across all its core product verticals and in addition to its B2C operations provides services to a number of third-party customers on a B2B basis.
The Group has a 50/50 joint venture, BetMGM, a leader in sports betting and iGaming in the US. Entain provides the technology and capabilities which power BetMGM as well as exclusive games and products, specially developed at its in-house gaming studios. The Group is tax resident in the UK with operations in a total of 31 regulated or regulating territories. Entain is a leader in ESG, a member of FTSE4Good, the DJSI and is AA rated by MSCI. The Group has set a science-based target, committing to be carbon net zero by 2035 and through the Entain Foundation supports a variety of initiatives, focusing on safer gambling, grassroots sport, diversity in technology and community projects. For more information see the Group's website: www.entaingroup.com