GVC Issue Statement Ref ‘Press Speculation’ On Former Turkish Business

GVC Holdings’ board has issued a statement dismissing ‘press speculation’ concerning HMRC’s investigation into its disposed Turkish wagering subsidiary.

GVC emphasised that HMRC ‘s investigation focused solely on ‘former third-party payment service providers’ whose sole connexion to GVC was to provide payment services for their former Turkish-facing company.

HMRC reported this July that it had opened a year-long investigation into GVC linked to the ‘Turkey online gambling payment collection.’

GVC had previously run its Turkish market subsidiary ‘Headlong Limited’ until 2017, when the company was forced to sell the firm as a condition added to its £4 billion takeover of Ladbrokes Coral.

GVC stated in separate filings with the CMA that it had relinquished any payment for its Turkish asset, absorbing €46 million in costs for closing the business.

HMRC ‘s inquiry report came less than 24 hours after the announcement that Kenneth Alexander had terminated his 13-year tenure as Group CEO – replaced by COO Shay Segev.

Yesterday, The Times’ chief business commentator Alistair Osborne published his daily column reporting on ‘city rumours’ that GVC’s former subsidiary was linked to the €2 billion Wirecard AG scandal.

“The Board can confirm that it has no evidence of any link between the HMRC investigation and the payment service providers mentioned in the newspaper report. As announced on 20 July 2020,” GVC replied in a statement.

The FTSE100 group said it is complying with the HMRC investigation and will update the market if necessary.

In conclusion, GVC reiterated that its core focus remains on regulated market growth, for which the company will report on its activities by publishing its interim results on August 13th.