About Entain

Entain PLC, formerly known as GVC Holdings PLC, is a multinational sports betting and gaming company headquartered in the Isle of Man. Founded in 2004, Entain has grown to become a leading player in the online gambling industry. With a diverse portfolio of brands, including Ladbrokes, Coral, and bwin, Entain serves millions of customers worldwide.

Entain is committed to responsible gaming and sustainability, aiming to create a safe and enjoyable betting experience for its customers while minimizing its environmental impact and contributing positively to society.

Key Performance Indicators (KPIs)

Financial Highlights 2022 full year result:

Financial Performance Summary:

• Entain plc’s financial results for the full year of 2022 showcase a robust performance across key metrics. The company experienced significant growth in Net Gaming Revenue (NGR), reaching £4,298.7 million, marking a 15% increase from the previous year. Reported revenue also saw a notable uptick, standing at £4,034.6 million, representing a 13% increase. Adjusted EBITDA grew to £1,265.6 million, indicating an 11% improvement, while operating profit increased by 7% to £933.4 million.
• In terms of customer engagement, Entain saw an increase in active customers, reaching 11.4 million, a 5% rise from the previous year. Net Gaming Revenue (NGR) per customer also demonstrated growth, standing at £375, up by 9%. The company’s market expansion efforts were evident with 99% of revenue generated from regulated markets. Additionally, digital growth was strong, with online NGR increasing by 18% and online sports betting NGR growing by 19%.
• Entain’s commitment to sustainability is underscored by the launch of the Entain Together Foundation, which focuses on community engagement and responsible gaming. The company has also made progress towards its Net Zero carbon emissions goal, aligning with global sustainability initiatives. With a workforce of 24,000 employees, Entain plc continues to be a key player in the sports betting and gaming industry, demonstrating solid financial performance and a dedication to sustainable practices.

The Table below provides a snapshot of Entain PLC’s key financial and operational highlights for the full year of 2022.

ESG Overview

In this section, we explore the Environmental, Social, and Governance (ESG) practices of Entain PLC. Understanding a company’s ESG commitments is crucial for investors, stakeholders, and the general public to assess its impact on the environment, society, and governance structures. We delve into Entain PLC’s initiatives, strategies, and performance in these key areas, shedding light on its sustainability efforts and social responsibility. For a comprehensive guide on ESG in the iGaming industry, you can visit Better World Casinos – Understanding ESG and iGaming.

ESG (Environmental, Social, and Governance) Strategy

Entain’s ESG strategy is centered around a dedicated ESG & Safer Gambling Committee and specialized Working Groups, highlighting its commitment to responsible business practices:

ESG & Safer Gambling Committee:

Entain PLC has established an ESG & Safer Gambling Committee to oversee and guide the company’s initiatives related to environmental sustainability, social responsibility, and governance practices. This committee plays a crucial role in addressing ESG concerns within the industry, showcasing Entain’s commitment to responsible gaming.

Working Groups:

In addition to the ESG & Safer Gambling Committee, Entain has implemented Working Groups focused on specific aspects of ESG, allowing for a targeted approach to addressing challenges and opportunities. These Working Groups enable the company to allocate resources efficiently and delve into ESG concerns with expertise.

Key Areas of Focus:

Entain has identified four key areas of focus within its ESG strategy, ensuring a comprehensive approach to sustainability and responsible business practices:

• Customers: Prioritizing safe and responsible gaming experiences, ensuring customer well-being is a top priority.
• Colleagues: Focusing on employee well-being, diversity, and inclusion, fostering a positive work environment.
• Environment: Dedication to reducing the environmental footprint and promoting sustainability, aligning with global environmental goals.
• Communities: Supporting and positively contributing to the communities where Entain operates, showcasing social responsibility.

Entain PLC’s ESG strategy demonstrate its proactive and responsible approach to addressing environmental, social, and governance issues. The company’s commitment is underscored by its dedicated ESG & Safer Gambling Committee, specialized Working Groups, and adherence to responsible business practices. These initiatives align with Entain’s goal to lead in sustainable and responsible gaming practices within the industry.

Environmental Impact

In this section, we delve into the company’s efforts towards environmental sustainability and its initiatives to reduce its carbon footprint. For a better understanding of Entain PLC environmental strategies , you can also visit  ESG Environment page.

Environmental Performance

Carbon Emissions Reduction

Entain PLC is dedicated to reducing its carbon footprint through a holistic approach targeting both direct and indirect emissions:

Scope 1 (Direct) Emissions:

• Energy Efficiency: Entain invests in energy-efficient technologies and processes, optimizing heating, cooling, and lighting systems to minimize energy consumption and emissions.
• Fleet Management: Steps are taken to optimize the company’s fleet, aiming to reduce fuel consumption and associated emissions.
• Renewable Energy Adoption: Transitioning towards renewable energy sources where feasible reduces direct emissions and supports renewable infrastructure growth.

Scope 2 (Indirect) Emissions:

• Renewable Energy Procurement: Proactively seeking renewable energy sources for operations reduces indirect emissions from purchased electricity, heating, and cooling.
• Energy Efficiency Programs: Implementing energy-saving measures decreases overall energy consumption and reliance on fossil fuels.
• Carbon Offsetting: Entain explores carbon offsetting initiatives to balance remaining indirect emissions.

Targets & Initiatives

• Carbon Reduction (2030 Goal): Entain aims to reduce carbon emissions by 50% by 2030, aligning with global climate efforts.
  • Strategies include implementing energy-efficient tech, transitioning to renewables, and improving operational efficiency.
• Supplier Engagement (2025 Goal): Engaging with suppliers to align them with sustainability goals.
  • By 2025, 80% of supplier expenditure aims to be with sustainable companies.
• Employee Involvement: Recognizing the importance of employee engagement:
  • Providing training on sustainable work practices.
  • Promoting remote work options to reduce commuting emissions.
  • Offering education on sustainability and carbon footprint reduction.

Entain’s Commitment to Net Zero

• Setting Ambitious Targets: Pledged to achieve net-zero carbon emissions by 2035.
• Progress & Path to Net Zero (2022):
  • Renewable Energy Adoption: 67% of UK electricity consumption now from renewables.
  • Power Purchase Agreement: Secured agreement with SSE until 2027 for renewable energy.
  • Carbon Offsetting: Investing in carbon removal initiatives, aiming for ‘Entain Forest’ of one million trees by 2032.

Position on Deforestation & Paris Agreement

• Recognizes biodiversity importance and potential deforestation impacts.
• Strong support for the Paris Agreement and policies aligned with limiting global temperature rise.

International Standards & Recognition

• Achieved ISO certifications for environmental management and occupational health and safety.
• Upgraded to AA status by MSCI, affirming leadership in ESG practices.

Social Impact

In this section, we explore the company’s initiatives related to social responsibility, employee engagement, and community involvement. For a comprehensive view of Entain PLC social endeavors, you can also visit  ESG Social page.

Internal Initiatives

• Commitment to Diversity & Well-being: Entain prioritizes diversity, inclusion, and employee well-being.
• Global Workforce Impact: With over 25,000 employees globally, Entain is a significant employer and contributor to local economies.
• Glassdoor Reviews: While Glassdoor reviews offer valuable insights into the company culture and employee experiences, it’s essential to note that opinions may vary, reflecting a diverse range of perspectives within the organization. With a 3.5-star rating out of 5 and 58% of reviewers willing to recommend the company to a friend, Entain PLC’s Glassdoor reviews showcase a mix of positive and negative feedback. Positive aspects highlighted by employees include great benefits, flexible working hours, stability, supportive managers, and a positive work atmosphere. However, some employees have raised concerns about long hours, staff shortages leading to heavy workloads, limited opportunities for personal growth, and disorganized management structures in certain departments. Overall, while there are positive aspects of working at Entain PLC, there are also challenges that employees may encounter, emphasizing the importance of considering multiple perspectives when evaluating the company.

External Initiatives

• Responsible Gambling Strategy: Entain embeds responsible gambling in its growth strategy, showcasing dedication to ethical practices.
• Recognition for Player Protection: Acknowledged for commitment to player protection and safer gambling, promoting responsible gaming practices.
• Funding Treatment & Support: Entain funds treatment and support services for individuals affected by gambling harm, fulfilling corporate social responsibility.
• Foundations for Social Causes: Entain Foundation and Entain US Foundation support various social causes, including safer gambling, grassroots sports, diversity in technology, and community development.

Entain PLC’s environmental efforts, from carbon reduction goals to supplier engagement and employee involvement, demonstrate a strong commitment to sustainability. The company’s initiatives towards net-zero emissions by 2035, support for the Paris Agreement, and adherence to international standards highlight its leadership in environmental responsibility.

On the social front, Entain’s internal initiatives focus on diversity and employee well-being, while external efforts in responsible gambling, community support, and foundation initiatives showcase its comprehensive approach to corporate social responsibility. This balanced strategy positions Entain as a leader not only in the betting and gaming industry but also in environmental and social responsibility.

Governance

For any organization, governance forms the backbone of its operations, shaping its transparency, integrity, and regulatory compliance. It encompasses the structures and processes through which companies are directed and controlled. To delve deeper into the governance practices within the iGaming industry, visit Better World Casinos – ESG and Governance.

Governmental Performance

Frameworks & Policies

Entain PLC operates within a framework of regulatory compliance and responsible gaming policies, ensuring transparency and ethical practices:

• Regulatory Compliance: Adheres to stringent regulations for online gambling, sports betting, and casino operations. This includes licenses from regulatory bodies like the UK Gambling Commission and the Malta Gaming Authority.
• Responsible Gaming Policies: Prioritizes responsible gaming, with measures like age verification, self-exclusion, and deposit/betting limits to prevent problem gambling.
• Data Protection & Privacy: Robust policies in place to safeguard customer data, complying with regulations such as GDPR for responsible and secure handling of information.

Corporate Structure

• Board of Directors: Oversees Entain’s strategic direction and governance, comprising professionals from diverse backgrounds to ensure ethical operations.
• Executive Leadership: Led by CEO Jette Nygaard-Andersen, the executive team drives day-to-day operations and long-term growth, bringing expertise in gaming, finance, and technology.

Committees

• Audit Committee: Ensures financial reporting accuracy, internal controls, and risk management, maintaining integrity in financial statements and compliance.
• Remuneration Committee: Focuses on executive compensation aligned with company performance and shareholder interests, reviewing incentive schemes.
• Nomination Committee: Identifies and recommends Board candidates based on needed skills, experience, and diversity.

Financials

Entain PLC maintains transparency and profitability, with a focus on delivering value to shareholders:

• Revenue Streams: Primarily from online gambling, sports betting, and casino offerings, providing revenue stability with a diversified portfolio.
• Profitability: Demonstrates consistent profitability, driven by effective cost management, revenue growth strategies, and operational efficiency.
• Investment & Expansion: Strategic investments in innovation and technology enhance products and customer experience. Evaluates opportunities for geographic expansion and market diversification.
• Shareholder Returns: Committed to delivering shareholder value through dividends and share buyback programs. Focus on long-term value creation for shareholders.

Entain PLC’s governmental performance highlights its commitment to regulatory compliance, responsible gaming, and data protection. The corporate structure ensures effective governance and leadership oversight, with dedicated committees focusing on key areas. Financially, Entain maintains transparency and profitability, emphasizing shareholder value creation through strategic investments and returns. This comprehensive approach establishes Entain as a leader in the gaming industry, balancing growth with ethical business practices.

Sanctions, Controversies, and Concerns

Entain PLC has faced a series of sanctions, controversies, and concerns in recent years, which have drawn attention to various aspects of its operations and business practices.

• £17 Million Fine by the UK Gambling Commission (August 2022). In August 2022, Entain received a substantial £17 million fine from the UK Gambling Commission. This fine stemmed from regulatory breaches related to responsible gambling measures. The UKGC found that Entain had failed to implement effective controls to prevent money laundering and to protect vulnerable customers. This fine highlighted the importance of robust responsible gambling policies and regulatory compliance within the industry.
• Investigation by the Australian Financial Crimes Regulator (September 2022). Following the UKGC fine, Entain faced further scrutiny in September 2022 when the Australian financial crimes regulator launched an investigation. The focus of this investigation was on potential breaches of anti-money laundering (AML) regulations within Entain’s Australian operations. The probe aimed to determine whether the company had adequate measures in place to detect and prevent money laundering activities.
• Potential Substantial Financial Penalty in the UK (Ongoing Investigation).Entain is also facing the possibility of a significant financial penalty in the UK related to an ongoing investigation. The nature of this investigation has not been fully disclosed, but it is likely related to compliance issues or regulatory breaches. The outcome of this investigation could have significant financial implications for the company.
• Investigation by HM Revenue and Customs into Potential Bribery in Turkey. In another concerning development, Entain came under investigation by HM Revenue and Customs (HMRC) regarding potential bribery activities in Turkey. The investigation focused on allegations that Entain employees were involved in bribery schemes to secure business deals in the region. Bribery allegations can have serious legal and reputational consequences for companies, and this investigation added to Entain’s challenges.
• Accusations of Involvement in a Lobbying Scandal (May 2023).In May 2023, Entain faced accusations of being involved in a lobbying scandal. The company was accused of engaging in inappropriate lobbying activities to influence government policies and regulations related to the gambling industry. Lobbying scandals can tarnish a company’s reputation and raise questions about its ethical practices and transparency in dealing with regulators and policymakers.

Entain PLC’s history of sanctions, controversies, and concerns highlights the challenges and scrutiny faced by companies in the gambling industry. These issues have brought to light the importance of robust compliance with regulatory requirements, responsible gambling practices, and ethical business conduct. The fines, investigations, and accusations underscore the need for Entain to strengthen its internal controls, governance, and transparency to regain trust from regulators, customers, and stakeholders. As the company navigates these challenges, its ability to address these issues effectively will be crucial for its long-term sustainability and reputation within the industry.

UN Sustainable Development Goals (SDGs)

Entain plc aligns its business practices with various UN Sustainable Development Goals (SDGs) to contribute positively to global sustainability efforts:

1. Goal 3 (Good Health and Well-being): Entain promotes responsible gambling practices to ensure the well-being of its customers. By prioritizing player protection and investing in responsible gaming initiatives, the company contributes to promoting healthy gambling habits and reducing gambling-related harm.
2. Goal 4 (Quality Education): Through its responsible gambling programs and initiatives, Entain provides education and resources to empower individuals to make informed decisions about their gambling behavior. By promoting awareness and understanding of responsible gaming practices, the company supports efforts to enhance education on gambling-related issues.
3. Goal 8 (Decent Work and Economic Growth): Entain’s commitment to diversity, inclusion, and employee well-being contributes to achieving Goal 8. By fostering a supportive work environment and investing in employee development, the company promotes decent work opportunities and economic growth for its workforce.
4. Goal 10 (Reduced Inequality): Entain strives to reduce inequality by promoting diversity and inclusion within its organization. Through initiatives aimed at creating equal opportunities for all employees, regardless of background or identity, the company works towards fostering a more inclusive workplace culture and reducing inequality.
5. Goal 12 (Responsible Consumption and Production): Entain is committed to responsible consumption and production practices within the gaming industry. By promoting responsible gambling, minimizing environmental impact, and adhering to ethical business practices, the company supports sustainable consumption and production patterns.
6. Goal 17 (Partnerships for the Goals): Entain collaborates with various stakeholders, including government agencies, industry partners, and community organizations, to achieve sustainable development goals. By fostering partnerships and collective action, the company maximizes its positive impact on society and contributes to achieving shared goals.

Conclusion

Entain PLC, a significant player in the gaming and betting industry, demonstrates a strong commitment to transparency, environmental sustainability, and social responsibility. The company’s extensive reporting practices, including annual and ESG reports, showcase its dedication to disclosure and accountability. With a well-defined ESG strategy, Entain aims to reduce its carbon footprint with ambitious targets, aligning its efforts with global initiatives such as the Paris Agreement.

Despite challenges in compliance and governance, such as recent regulatory fines and investigations, Entain’s efforts towards improvement are evident. The company’s mixed Glassdoor reviews indicate varying employee experiences, while its recognition for responsible gambling initiatives and positive public perception highlight its efforts in social responsibility.

Answering Initial Questions

• Transparency: Entain PLC earns a 4 for its high transparency, evidenced by detailed reporting practices.
• ESG Strategy: The company scores a 3 for its solid ESG strategy, lacking Science-based Targets (SBTs) but showing clear dedication to sustainability.
• Sanctions and Controversies: Entain’s score is 3, reflecting past challenges with sanctions and controversies, with room for improvement.
• 3rd Party Rating: With a score of 4, Entain PLC maintains a positive public rating and has received recognition for its responsible gambling efforts.

Verdict & Scorecard

Final Score: 3.5 Rounded to 4(Good – Nice choice! Go have fun!)

Entain PLC receives a final score of approximately 3.5, rounded up to 4, indicating a “Good” rating. This reflects the company’s commitment to transparency, sustainability, and responsible business practices.

Strengths:

• Transparency: Entain’s extensive reporting practices provide detailed insights into its sustainability efforts.
• ESG Strategy: The company’s well-defined ESG strategy showcases a commitment to environmental sustainability.
• 3rd Party Rating: Positive public ratings and recognition validate Entain’s efforts, reflecting a favorable perception among stakeholders.

Areas for Improvement:

• Compliance and Governance: Continued focus on compliance and ethical practices to avoid future sanctions.
• ESG Strategy: Developing Science-based Targets (SBTs) and a roadmap to net positive would enhance the ESG strategy.
• Public Reputation: Seeking further awards and recognitions could enhance public perception.

Entain PLC is on a positive trajectory toward sustainable and responsible gaming practices. Continued efforts in compliance, transparency enhancement, and maintaining a robust ESG strategy will further solidify its position as a leader in the industry.

Note: This scorecard is based on BWC’s rating system, providing an assessment of Entain PLC’s sustainability performance across transparency, ESG strategy, sanctions, and public rating. It offers a snapshot of the company’s sustainability practices for stakeholders and investors.

Disclaimer data: This analysis is based on publicly available information, and future reviews will delve deeper into ESG reporting and potential improvements through interviews with company representatives.

Source Material: Refer to the provided hyperlinks for detailed sources.