UK regulator ends investigation into KPMG’s audit of Entain’s financial statements

(AsiaGameHub) –   The FRC has stated that no enforcement action will be pursued.

UK.- The Financial Reporting Council (FRC) has concluded its investigation into KPMG’s audit of Entain’s 2022 financial statements. The regulator confirmed it would not impose any penalties regarding its review of the London-listed gambling firm’s results.

Initiated in 2024, the FRC’s inquiry assessed whether KPMG had sufficiently evaluated risks associated with Entain’s previous Turkish business, Headlong Limited. These concerns originated from compliance issues related to the company’s operations between 2011 and 2017, when the company operated under the name GVC Holdings.

HM Revenue and Customs (HMRC) began a probe in 2019, which resulted in a £615 million deferred prosecution agreement (DPA) with the Crown Prosecution Service in 2023. Entain’s 2022 accounts, released in February 2023, showed an 11 percent increase in net gaming revenue, boosted by the FIFA World Cup, and upgraded its 2023 EBITDA forecast to between £985 million and £995 million.

In an official statement, the FRC commented: “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… Accordingly, the case has been closed.”

KPMG UK expressed its satisfaction with the conclusion.

Although this investigation has concluded without any measures being taken, the legal fallout from Entain’s activities in Turkey continues for individuals allegedly involved. Former CEO Kenny Alexander, who departed in July 2020, and former chairman Lee Feldman, who stepped down in March 2019, along with other parties, are scheduled to face trial at Southwark Crown Court in February 2028. The charges against them include fraud, bribery, and perverting the course of justice.

Entain has seen a series of leadership changes since Alexander’s departure. Shay Segev served as CEO for only six months before exiting to lead DAZN. Jette Nygaard-Andersen subsequently held the CEO role until December 2023, after which Stella David provided interim leadership, followed by a brief period with Gavin Isaacs, before David returned as the permanent CEO in April 2025.