The Financial Reporting Council (FRC) has closed its investigation into KPMG’s audit of Entain Plc’s corporate accounts for the year ending 31 December 2022.
The UK’s statutory regulator for auditing, accounting and corporate governance has confirmed that no enforcement action will be taken against either KPMG or Entain.
The probe was initiated in November 2024, examining KPMG’s audit of Entain’s FY2022 consolidated accounts, following developments related to the FTSE-listed gambling group agreeing terms on a £615m deferred prosecution agreement (DPA) in 2023.
The DPA settlement, agreed with HMRC and the Crown Prosecution Service, related to bribery allegations tied to GVC Holdings – the former operating entity of Entain – and its historic Turkish-facing business.
No action needed
In its FY2023 accounts, Entain reported a statutory loss of approximately £890m, driven in large part by a £585m provision linked to the DPA. The total settlement amounted to £615m, comprising a £585m financial penalty, a £20m charitable donation and £10m in costs payable to authorities.
The year under review, FY2022, had been presented as a period of strong underlying performance. Entain reported an EBITDA of £993m and operating profit of £103m, supported by growth in the US via its BetMGM brand and sustained demand across UK and European markets enhanced by COVID-induced conditions.
The FRC reviewed whether KPMG had adequately assessed legal and regulatory risks within Entain’s accounts, including the treatment of liabilities tied to its historic Turkish-facing business.
In its verdict, the FRC stated: “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 maintained that it has resolved all matters connected to the case, stating that the group has fully exited its legacy exposure.
Under a revised corporate charter, Entain now operates exclusively in 100% regulated markets, reinforcing its compliance and governance framework.
Despite these changes, financial pressures remain evident. For FY2025, Entain reported a third consecutive multi-million loss of £680m, although underlying metrics improved significantly across its core UK and Ireland markets, signalling stabilisation in key regions.
A broader restructuring
KPMG remains the statutory auditor of Entain Plc, with the conclusion of the FRC probe removing a layer of regulatory uncertainty surrounding its audit work.
However, the firm faces its own operational reset. At the start of 2026, KPMG announced a strategic review of its corporate headcount, confirming plans to cut approximately 440 assistant manager roles within its audit division, alongside around 120 roles in its advisory arm.
The firm attributed the decision to unusually low attrition rates, necessitating workforce adjustments.
The closure of the Entain probe, combined with broader restructuring within the audit sector, underscores a shifting landscape for both corporate governance and audit oversight, as regulators balance scrutiny with a more measured approach to enforcement.
