The UK Financial Reporting Council (FRC) has closed its inquiry into KPMG’s audit of Entain’s 2022 accounts and will take no enforcement action. The inquiry examined whether KPMG adequately considered risks linked to Entain’s former Turkish operation, Headlong Limited; KPMG UK welcomed the decision.
The decision ends the FRC’s examination of KPMG’s audit without enforcement action.
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The Department for Culture, Media and Sport is expected to consult this week on proposals to bar unlicensed gambling operators from sponsoring British sports teams, reportedly. The move follows Everton’s three-year sleeve sponsorship agreement with Stake.com, which does not hold a UK gambling licence. The proposals have been on hold since February, when DCMS indicated a formal review would begin in spring.
The UK government is preparing a consultation on whether to close a legal exemption allowing overseas betting brands without UK licences to sponsor British sports teams, reportedly expected to begin in July 2026. The review follows renewed scrutiny after Everton agreed a three-year shirt-sleeve deal with Stake.com; the government has not yet set out proposed changes.
Entain asked England’s Independent Football Regulator to clarify that club licensing rules prohibit sponsorship income from unlicensed gambling operators. The company made the request in response to the IFR’s consultation on licensing clubs in the top five men’s divisions. Entain said the rule should be clarified before the next season begins.
Entain has asked the Independent Football Regulator to act against English football sponsorship deals involving unlicensed gambling operators. The government has said it plans to propose rules limiting such sponsorships to Gambling Commission-licensed companies, but its planned spring consultation had not taken place; Entain wants action before the season starts in August.
Analysts said proposed UK gambling tax increases could prompt further mergers and acquisitions, including a possible renewed MGM bid for Entain. Equity analyst Andrew Tam said MGM might consider a lower offer, but MGM chief executive Bill Hornbuckle has publicly rejected the prospect of an acquisition; the proposals remain under examination by the Treasury Select Committee.