KPMG Cleared in Entain Audit Investigation Regarding Turkish Liabilities

(AsiaGameHub) –   The Financial Reporting Council (FRC) has concluded its inquiry into KPMG‘s audit of Entain Plc‘s financial statements for the year ended 31 December 2022.

The UK’s statutory body for audit, accounting, and corporate governance has stated that neither KPMG nor Entain will face any disciplinary measures.

Launched in November 2024, the investigation focused on KPMG’s work on Entain’s FY2022 consolidated accounts. This followed the FTSE-listed gambling operator’s agreement to a £615m deferred prosecution agreement (DPA) in 2023.

This DPA, settled with HMRC and the Crown Prosecution Service, concerned bribery accusations connected to GVC Holdings—Entain’s former operating company—and its historical business activities in Turkey.

No action needed

In its FY2023 results, Entain posted a statutory loss of around £890m, largely due to a £585m provision for the DPA. The full settlement totalled £615m, made up of a £585m penalty, a £20m charitable contribution, and £10m in costs to the authorities.

The audited year, FY2022, was characterised as one of robust fundamental performance. Entain recorded an EBITDA of £993m and an operating profit of £103m, buoyed by expansion in the US through its BetMGM brand and persistent demand in UK and European markets, amplified by conditions during the COVID pandemic.

The FRC examined whether KPMG had sufficiently evaluated legal and regulatory risks in Entain’s accounts, particularly regarding how liabilities from its past Turkish operations were handled.

In its decision, the FRC said: “Having reviewed the evidence obtained in the investigation, and having considered all relevant factors, the Executive Counsel has decided not to bring enforcement action.”

Since 2024, Entain has consistently asserted that all issues related to the case are now settled, confirming the group has completely moved on from its historical exposure.

Operating under an updated corporate charter, Entain now conducts business solely in fully regulated markets, strengthening its compliance and governance structure.

Notwithstanding these reforms, financial challenges persist. For FY2025, Entain reported a third straight annual loss, amounting to £680m, even as key performance indicators showed marked improvement in its core UK and Ireland markets, indicating a return to stability in these important regions.

A broader restructuring

KPMG continues to serve as Entain Plc’s statutory auditor, with the end of the FRC investigation eliminating a source of regulatory doubt over its audit services.

Nevertheless, the firm is undergoing its own operational overhaul. In early 2026, KPMG disclosed a strategic review of its workforce, confirming intentions to eliminate roughly 440 assistant manager positions in its audit division, in addition to about 120 roles in its advisory business.

The firm cited unusually low staff turnover rates as the reason for the necessary workforce changes.

The resolution of the Entain investigation, paired with wider restructuring in the audit industry, highlights an evolving environment for corporate governance and audit supervision, where regulators are weighing scrutiny against a more proportionate enforcement strategy.