Entain - Will The UK Take A Gamble?

In December 2023 the CPS issued its first ever £615m DPA agreement with Entain, but what does this mean for the future of white collar crime in the UK - Will the UK take a gamble, or we will we see more of the same old, same old.

DPA offer exciting potential, this week weather report forecasts that the UK will break away from a history of long burdensome trials, to a new proactive approach which embraces the use of DPAs in the wake of a new age for corporate liability.

Entain DPA

In December 2023 the CPS agreed to enter into a DPA with Entain, a global online gambling business. Entain had been under investigation for its failure to prevent bribery under s.7 of the Bribery Act 2010, which makes it an offence for companies to fail to prevent bribery.

The CPS agreed to enter into a DPA after Entain had made "sweeping" changes to the company's compliance programme, and had taken action to address and report any failings to prevent bribery under the Bribery Act.

DPAs ensure that regulators can avoid lengthy and costly trials. By avoiding lengthy and costly trials, DPA offer the regulators the opportunity to use their limited resources more effectively. However, is Entain a one off, or will we see a wave of DPAs in the coming years.

The History of DPAs in the UK

Since the DPAs introduction in 2014, the UK has issued 13 agreements as of May 2024, equating to roughly 1 DPA per year. Currently there are 11 live cases where a business is under investigation for criminal misconduct, with a further 24 cases under review for investigation.

In 2023 the Government introduced a new Economic Crime and Transparency Act, which create a new failure to prevent fraud offence. Additionally, the act widening the scope of corporate liability, by creating liability for companies where a senior manager commits a crime in the course of their occupation.

The extension of corporate liability to senior managers, and the introduction of a new criminal offence may increase the amount of investigations, given the regulator ample opportunity to impose more DPAs, but will they?

Will the UK take a Gamble? 

Entain is significant because it indicates that the CPS is willing to issue DPAs, and thus cooperate with business . In the past, practitioners have indicated that the CPS has been hesitant to enter into the DPA space, allowing the SFO mainly to have remit over such agreements.

The CPS taking initiative, and issuing their first DPA, is hopefully, a potential sign of what is to come, that being more cooperation between the CPS and businesses, but what about the SFO the organisation which has issued the lion share of DPAs.

The SFO has recently released its new strategy for 2024-2029, in its report the SFO states that it committed to becoming more pro-active organisation, using its powers more frequently to progress cases at a faster rate. To progress cases at a faster rate SFO states that it needs to be more open to alternatives to prosecution such as DPAs.

In light of Entain, and the SFO new Strategic Strategy, the signs indicate that the UK regulators are prepared to take a gamble, by breaking away from the past of long costly trials, to a new future. A future which looks to embrace DPAs as part of a pro-active approach towards white collar crime enforcement.

The next weather report will examine whether the UK is entering into a new age of corporate liability in the wake of recent legislative changes - so stayed tuned for after the news the FCWR will follow.