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(AsiaGameHub) –   An investigation by the Financial Reporting Council (FRC) into KPMG’s audit work on Entain’s financial accounts has been closed with no further action planned, though the circumstances of the underlying issue remain subject to upcoming legal proceedings.

The FRC launched this probe into KPMG’s auditing of Entain’s 2022 accounts in 2024. It was opened as part of a broader case connected to Entain’s former operations in Turkey and allegations against the company’s former executives, dating back to when the firm operated as GVC Holdings.

Between 2011 and 2017, while trading under the GVC name, Entain ran a Turkey-focused business called Headlong Limited. In 2019, HM Revenue and Customs (HMRC) opened an investigation into “potential corporate offending” at this entity.

HMRC, the UK’s national tax authority, raised concerns that adequate anti-bribery and anti-corruption procedures were not being implemented at Headlong.

The inquiry ultimately resulted in Entain entering a £615 million deferred prosecution agreement (DPA) with the Crown Prosecution Service (CPS), made up of a £585 million financial penalty, a £20 million charitable donation, and £10 million to cover authorities’ investigation costs.

In February 2023, Entain released its full annual accounts for the 2022 trading year. The group reported 11% growth in net gaming revenue, boosted by that year’s FIFA World Cup, and later lifted its 2023 EBITDA guidance to a range of £985 million to £995 million.

The FRC subsequently questioned whether KPMG’s audit of these 2022 financial figures had fully accounted for any potential liabilities tied to the former Turkish business. It has now, however, concluded that KPMG did not commit any wrongdoing.

“After reviewing all evidence gathered during the investigation and considering every relevant factor, the FRC’s Executive Counsel has decided not to pursue enforcement action,” the regulator’s statement said.

“Therefore, in line with Rule 146 of the AEP, Executive Counsel has determined that the respondents to the investigation are no longer subject to enforcement action. As a result, the case has been closed.”

A spokesperson for KPMG UK said: “We are pleased the investigation has concluded with no sanctions, and we remain committed to delivering consistent, high-quality audit work.”

Upcoming Turkey-linked trials

GVC officially rebranded as Entain in December 2020. This change followed 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 stand trial at Southwark Crown Court on 14 February 2028. All seven face charges of fraud, bribery, and perverting the course of justice.

Entain’s leadership team has changed drastically since Alexander and Feldman departed. After Alexander left the role, he was replaced as CEO by Shay Segev, who previously served as the company’s Chief Operating Officer.

Segev held the CEO position for six months before resigning in January 2021 and leaving the company that June. He later became CEO of sports streaming platform DAZN, where he leads the platform’s expansion into the betting and gaming sector.

Jette Nygaard-Andersen, who had served as a Non-Executive Director at the firm since 2019, then took over the CEO role. She held the position for more than four years before stepping down in December 2023.

The role was then filled by Stella David on an interim basis starting in January 2024, before Gavin Isaacs took the top job between September 2024 and February 2025. David has returned to lead the company on a permanent basis since April 2025.

Entain’s new leadership maintains that the company has put significant distance between itself and the 2010s-era GVC that was led by former CEO Alexander and former Chairman Feldman.

For example, Barry Gibson, who served as Entain’s Chairman between 2020 and 2024, has stated that “the group has changed immeasurably since these events took place”, referring to Headlong’s 2010s Turkish operations.

The company has still felt the impact of the legal developments and investigations, however. The £615 million DPA had a major effect on Entain’s 2023 finances, with the firm recording a £900 million loss that year.

These developments also likely contributed to the company reaffirming its 2023 commitment to only focus on regulated and soon-to-be regulated markets, a promise first made in November 2020 just before the GVC rebranding was announced.