FRC Closes KPMG Probe Into Entain 2022 Audit
KPMG Cleared in Entain Audit Investigation – UK Regulator Closes Probe Into Turkish Liability Review
Key Takeaways
- The UK Financial Reporting Council has closed its investigation into KPMG’s audit of Entain’s 2022 accounts without enforcement action.
- The probe examined how KPMG assessed legal and regulatory risks linked to Entain’s historic Turkish-facing business.
- Entain previously agreed to a 615m pounds deferred prosecution agreement related to bribery allegations tied to former entity GVC Holdings.
- KPMG remains Entain’s statutory auditor as the case removes a layer of regulatory uncertainty.
- Entain continues to report multi-million losses despite improved underlying performance in key markets.
FRC Closes Investigation Into KPMG’s Audit of Entain’s 2022 Accounts
The UK Financial Reporting Council has concluded its investigation into KPMG’s audit of Entain Plc’s consolidated financial statements for the year ending 31 December 2022. The regulator confirmed that it will not bring enforcement action against either KPMG or Entain.
The investigation was opened in November 2024. It focused on whether KPMG had properly assessed legal and regulatory risks in Entain’s accounts, particularly those linked to liabilities arising from the group’s former Turkish-facing operations.
In its statement, the FRC said that after reviewing the evidence and considering all relevant factors, its Executive Counsel decided not to pursue enforcement measures. With this decision, the regulatory review into the 2022 audit has formally ended.
Background: Deferred Prosecution Agreement and Financial Impact
The probe followed developments connected to Entain’s 615m pounds deferred prosecution agreement agreed in 2023. The settlement was reached with HMRC and the Crown Prosecution Service and related to bribery allegations tied to GVC Holdings, the former operating entity of Entain, and its historic Turkish-facing business.
The total settlement amount consisted of a 585m pounds financial penalty, a 20m pounds charitable donation, and 10m pounds in costs payable to authorities.
In its financial year 2023 accounts, Entain reported a statutory loss of approximately 890m pounds. The company stated that this result was driven in large part by a 585m pounds provision linked to the deferred prosecution agreement.
The FRC’s investigation examined whether KPMG had adequately reflected these legal exposures and associated risks in its audit work on the 2022 accounts, which preceded the formal agreement but occurred during a period when related matters were developing.
Entain’s Financial Performance and Corporate Changes
For the financial year 2022, the period under review in the audit, Entain reported EBITDA of 993m pounds and operating profit of 103m pounds. The group described the year as one of strong underlying performance.
Growth in the United States through its BetMGM brand contributed to results, alongside sustained demand in UK and European markets. The company indicated that market conditions influenced by COVID contributed to this demand.
Following the deferred prosecution agreement, Entain stated that it had resolved all matters connected to the case and had fully exited its legacy exposure. Under a revised corporate charter, the group now operates exclusively in fully regulated markets.
Despite these measures, financial pressure remains visible. For the financial year 2025, Entain reported a third consecutive multi-million loss of 680m pounds. At the same time, the company recorded significantly improved underlying metrics in its core UK and Ireland markets, signalling stabilisation in those regions.
For users of online betting and gaming platforms, these developments are relevant because regulatory settlements and accounting provisions can directly affect a company’s financial results, capital allocation, and strategic focus across jurisdictions.
KPMG Remains Auditor Amid Broader Restructuring
KPMG continues to serve as the statutory auditor of Entain Plc. The conclusion of the FRC investigation removes a layer of uncertainty around its audit work related to the 2022 accounts.
At the same time, KPMG is undergoing internal restructuring. At the beginning of 2026, the firm announced a strategic review of its corporate headcount. It confirmed plans to cut around 440 assistant manager roles within its audit division and approximately 120 roles in its advisory arm.
KPMG attributed these reductions to unusually low attrition rates, which it said required workforce adjustments. The restructuring comes during a period of heightened scrutiny of audit quality and governance standards across major UK listed companies.
Regulatory Oversight and Corporate Governance Context
The closure of the Entain-related probe highlights the role of the Financial Reporting Council in overseeing audit, accounting, and corporate governance standards in the United Kingdom. The regulator has the authority to investigate statutory audits of public interest entities, including companies listed on the FTSE.
In this case, the FRC examined whether legal and regulatory risks associated with Entain’s historic operations were appropriately considered in the audit process. Its decision not to pursue enforcement action indicates that, based on the evidence reviewed, the regulator did not find grounds to take disciplinary measures.
For internationally active gambling operators and their investors, regulatory investigations into financial reporting can influence transparency assessments and risk evaluations. The resolution of such probes provides greater clarity regarding past reporting periods, even as companies continue to face ongoing market and operational challenges.
Our Assessment
The Financial Reporting Council has formally closed its investigation into KPMG’s audit of Entain’s 2022 financial statements without taking enforcement action. The review was linked to Entain’s deferred prosecution agreement concerning historic Turkish-facing operations. KPMG remains the company’s auditor, while Entain continues to manage the financial consequences of the settlement and reports ongoing losses despite improved underlying performance in key markets. The case concludes a specific regulatory review tied to Entain’s past liabilities and its financial reporting for 2022.
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