A Financial Reporting Council (FRC) investigation into KPMG’s auditing of Entain’s accounts has been closed with no further action planned, though the circumstances of the problem remain a matter of forthcoming legal discourses.
In 2024, the FRC launched its investigation into KPMG’s auditing of Entain’s 2022 accounts. This came amid a wider case regarding Entain’s former activities in Turkey and allegations levied at former executives of the firm, occurring during its days as GVC Holdings.
Between 2011-2017, while trading as GVC, Entain operated a Turkish-facing business, Headlong Limited. In 2019, HM Revenue and Customs (HMRC) launched an investigation into ‘potential corporate offending’ taking place at this business.
HMRC, the UK tax office, was concerned that the correct procedures to prevent bribery and corruption were not taking place at Headlong.
The investigation ultimately led to Entain paying a £615m deferred prosecution agreement (DPA) with the Crown Prosecution Service (CPS), consisting of a £585m financial penalty, a £20m charitable donation and £10m to cover authorities’ costs.
In February 2023, Entain published its accounts for the 2022 full trading year. The group declared 11% growth in net gaming revenue, driven by that year’s World Cup, and subsequently raised its EBITDA guidance for 2023 to between £985m–£995m.
The FRC subsequently questioned whether or not KPMG’s audit of these 2022 figures had thoroughly taken any liabilities connected to the Turkish business into account. It has now, however, concluded that there was no wrongdoing on KPMG’s part.
“Having reviewed the evidence obtained in the investigation, and having considered all relevant factors, the FRC’s Executive Counsel has decided not to bring Enforcement Action,” its statement read.
“Therefore, in accordance with Rule 146 of the AEP, Executive Counsel has decided that the Respondents to the investigation should no longer be liable for Enforcement Action. Accordingly, the case has been closed.”
A KPMG UK spokesperson said: “We are pleased the investigation has concluded without sanction, and we remain committed to delivering sustainable audit quality.”
Turkey trials ahead
GVC rebranded as Entain in December 2020. This came after the resignation of Kenny Alexander as Chief Executive Officer in July 2020, and the resignation of Lee Feldman as Chairman in March 2019.
Alexander, Feldman, and five other former GVC executives are scheduled to go on trial at Southwark Crown Court on 14 February 2028. The seven face charges of fraud, bribery, and perverting the course of justice.
The Entain leadership team has changed substantially since Alexander and Feldman left. Following his departure, Alexander was subsequently replaced as CEO by Shay Segev, formerly Chief Operating Officer.
Segev served in the role for six months before resigning in January 2021 and leaving in June that year, subsequently becoming CEO of DAZN and overseeing the sports streaming platform’s own expansion into betting and gaming.
Jette Nygaard-Andersen, who had been a Non-Executive Director at the firm since 2019, then took on the mantle of CEO and held the role for over four years before stepping down in December 2023.
The role was then filled by Stella David on an interim basis from January 2024 before Gavin Isaacs took on the top job between September 2024-February 2025. David has been back in the driving seat permanently since April 2025.
The new leadership of Entain maintains that the company has put considerable distance between itself and the GVC of the 2010s, when the company was led by former CEO Alexander and former Chairman Feldman.
For example, Barry Gibson, former Chairman of Entain between 2020-2024, would assert that ‘group has changed immeasurably since these events took place’ – referring to the Turkish operations of Headlong during the 2010s.
The firm has still felt the sting of the legal developments and investigations, however. The £615m DPA had a big impact on 2023 finances, with Entain recording a £900m loss that year.
The developments may have also contributed to the company’s 2023 recommitment to focus only on regulated and regulating markets, a commitment first made in November 2020 just prior to the announcement of the rebranding from GVC.
