game
your
It’s
Annual Report 2021
Explore more in our
online annual report:
www.entaingroup.com/
2021annualreport
Overview
02 We are Entain
Strategic report
06 Chairman’s introduction
10 Chief Executive’s Review
20 Our strategic framework
22 How we create value
24 Strategy in action
32 The industry in which we operate
34 Regulatory Update
36 Engaging with stakeholders
40 Sustainability
44 Safer betting and gaming
54 Covid-19
57 Investing in people
and communities
64 TCFD Statement
66 Business Review
ǪǥɆ ķļėį DļŝëŝĉļëŒ {įǘĉėƎȼƖ ¡ėǁļėǂ
ǪǫɆ ķļėįEŨǁėƎŝëŝĉė{įǘĉėƎȼƖ¡ėǁļėǂ
79 Risk management
81 Principal Risks
86 Viability Statement
Governance
88 Board of Directors
ǬǤɆ ķļėį EŨǁėƎŝëŝĉė {įǘĉėƎȼƖ ¡ėƋŨƎƢ
95 Governance framework
103 Report of the Audit Committee
109 Report of the ESG Committee
112 Nomination Committee Report
116 Directors’ Remuneration Report
141 Directors’ Report
Financial statements
144 Independent Auditor’s Report
152 Consolidated income statement
153 Consolidated statement of
comprehensive income
154 Consolidated balance sheet
155 Consolidated statement of
changes in equity
156 Consolidated statement of
ĉëƖķ ǙŨǂƖ
157 Notes to the consolidated
ǘŝëŝĉļëŒ ƖƢëƢėśėŝƢƖ
204 Company income statement
205 Company balance sheet
ǥǣǩɆ ŨśƋëŝLj ƖƢëƢėśėŝƢ Ũį ĉķëŝİėƖɇ
in equity
207 Notes to the Company
ǘŝëŝĉļëŒ ƖƢëƢėśėŝƢƖ
212 Glossary
213 Shareholder information
213 Corporate information
Start here
We are Entain.
A world leader in sports
betting, gaming and
interactive entertainment
with a clear strategy to
deliver sustainability
and growth. Our purpose
is to bring moments
of excitement into our
customers’ lives.
It’s our game,
ļƢȼƖɇƢķėļƎɇİëśėșșș
șșșļƢȼƖɇ
your game.
Read more about our best entertainment:
pages 24 to 25
Read more about our
new experiences:
pages 26 to 27
Read more about
doing the right thing:
pages 30 to 31
Read more about our
support for customers:
pages 28 to 29
1Overview
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Strategic report
|
Governance
|
Financial statements
Entain plc
|
Annual Report 2021
Continued success
Our market-leading platform enables us to deliver robust,
ƖƪƖƢëļŝëĈŒėëŝĐĐļǁėƎƖļǘėĐİƎŨǂƢķșQŝǥǣǥǤǂėŨŝĉėëİëļŝ
performed strongly in all of our major markets. BetMGM, our hugely
exciting business in the US, which is now the second largest in the
market, was a particular highlight.
In addition to growing in our traditional areas of strength, we have
broadened our horizons, investing in new areas of interactive
entertainment such as esports and virtual reality (“VR”) while
providing a broader and richer experience for our customers.
Equally important to our growth story is our focus on sustainability.
We believe that the most sustainable business in our sector will be
the most successful. That is why we continue to lead the way in the
critically important area of player protection, via our technology-
based Advanced Responsibility and Care™ (“ARC™”) programme,
and why we are investing in programmes to encourage diversity
through technology and support grass roots sport.
Where we’re heading
Our purpose is clear – bring moments of excitement into our
ĉƪƖƢŨśėƎƖȼŒļǁėƖșɇƢėĉķŝŨŒŨİLjĉŨśƋëŝLjƢŨŨƪƎĉŨƎėȚǂėëƎė
uniquely positioned amongst our peers to innovate for customers,
enabling us to grow in regulated markets both old and new,
ǂķļŒėɇėŝƖƪƎļŝİƢķėķļİķėƖƢŒėǁėŒƖŨįƋŒëLjėƎɇƋƎŨƢėĉƢļŨŝș
Entain plc
|
A
nnual Report 2021
2 Overview
We are Entain
ɆɆDƪŒǘŒɆŨƪƎɆĉŨƎėɆƖƢƎëƢėİļĉɆŨĈŌėĉƢļǁėƖɆƢŨɆ
ĐėŒļǁėƎɇİƎŨǂƢķɆëŝĐɆƖƪƖƢëļŝëĈļŒļƢLjș
Now live in 21 US jurisdictions, our BetMGM
joint venture is the second largest in the US
and the clear leader in iGaming..
Strong growth across the Group with
śëƎŏėƢɇƖķëƎėɆİëļŝƖɆļŝɆ댌ɆśëŌŨƎɆśëƎŏėƢƖș
Full year online net gaming revenue up 13%
in constant currency and total net gaming
ƎėǁėŝƪėɆɣǫɼɆļŝɆĉŨŝƖƢëŝƢɇĉƪƎƎėŝĉLjș
Launch of Ennovate, our new innovation
hub with £100m investment to develop
and showcase disruptive technologies
ëŝĐɆǘƎƖƢɆĉŨŝƖƪśėƎɆƋƎŨĐƪĉƢƖɆįŨƎɆƢķėɆƖƋŨƎƢƖɆ
ëŝĐɇėŝƢėƎƢëļŝśėŝƢɆśėƢëǁėƎƖėș
Roll-out ARC™, our technology led safer
gaming programme with real-time customer
interaction tools.
Through our Entain Foundation, invest in
socially positive programmes to support
grassroots sports and increase diversity
ļŝɇƢķėɆǘėŒĐɆŨįɆƢėĉķŝŨŒŨİLjș
Operational highlights
1. From continuing operations.
Financial highlightsȂ
Group Revenue
ɞǦșǬĈŝ
+8% (constant currency)
2020: £3.6bn
Online Net Gaming Revenue
ɞǦșǤĈŝ
+13% (constant currency)
2020: £2.7bn
BetMGM Net Gaming Revenue
$850m
+378%
2020: $178m
Group Underlying EBITDA
£881.7m
+5%
2020: £843m
ƎŨǘƢɆįƢėƎɆ¶ëLJ
£275.6m
+142%
2020: £113.8m
pėƢɆ$ėĈƢ
£2.1ĈŝɆȩǥșǧLJȪ
2020: £1.8bn (2.1x)
Diluted EPS
53.8p
-14%
2020: 62.8p
ĐŌƪƖƢėĐɆ$ļŒƪƢėĐɆ,©ɆȩėLJĉŒƪĐļŝİɆ½©Ɇ`ÔȪ
81.1p
+11%
2020: 73.1p
3 Overview
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Strategic report
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Governance
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Financial statements
Entain plc
|
Annual Report 2021
Our commitments
We have long held the view that the most sustainable
business will be the most successful business in our industry.
We aim to meet the highest standards in everything we do,
from the way we run our business to the way we support our
ĉŨŒŒėëİƪėƖȚɆŨƪƎɇĉƪƖƢŨśėƎƖɆëŝĐɆŨƪƎɇĉŨśśƪŝļƢļėƖș
{ƪƎɆƖƪƖƢëļŝëĈļŒļƢLjɆ
commitments
An exclusive focus on regulated markets
– we have committed that by the end of
2023 we will only operate in domestically
regulated markets. We now generate
nearly 100% of our NGR from regulated
markets, more than any other major
global operator.
Lead on safer betting and gaming –
provide our customers with the safest
and most trusted environment to play.
Pursue the highest levels of corporate
governance with rigorous processes and
oversight through a diverse Board.
Invest in people and communities
ȱɇǂėɇǂëŝƢɆ,ŝƢëļŝɆƢŨɆĈėɆƎėĉŨİŝļƖėĐɆëƖɆƢķėɆ
best place to work in the industry as well
as ensure we make a positive impact on
the communities and markets in which
we are based and operate.
Our culture commitments
Five values guide every decision we
śëŏėɇëŝĐɆëĉƢļŨŝɆǂėɆƢëŏėșɆ¶ķėLjɆëƎėɆǁļƢëŒɆ
ƢŨɇŨƪƎɆĉƪŒƢƪƎėș
Why? Well that’s simple…because they
map out how we do things. They’re at the
heart of how we work together, serve our
customers and even celebrate success.
At Entain we strive to:
Excite our customers.
Drive innovation.
Do what is right.
Win together.
Be bold.
Customer commitments
Customers are the focus of
ėǁėƎLjƢķļŝİɇǂėɆĐŨș
Our purpose is to provide them with
moments of excitement.
We will offer them exciting and trusted
entertainment products and services.
Listen to and respond to customer needs.
Using our technology platform, we will
continuously innovate to introduce new
products and create a personalised
experience for each of our customers.
We are Entain continued
Entain plc
|
Annual Report 2021
4 Ov
erview
Our divisions
Market position
Online Retail
4,300+ global outlets
>100 Licences across 31 regulated
territories
100+
dėëĐļŝİɆĈƎëŝĐƖɆ
24
UK
#1
Belgium
#1
Italy
#3
Ireland
#3
{įǘĉėƖɆǂŨƎŒĐǂļĐėɆ
20+
Employees & contractors
c.25,000
Currencies accepted
42
dëŝİƪëİėƖɆŨįįėƎėĐ
33
UK
#2
Italy
#1
US
#2
Germany
#2
Australia
#3
Brazil
#1
Online sports wagers
ɞǤǧșǥĈŝ
+20% (+22%cc)
2020: £11.8bn
¡ėƢëļŒɆƖƋŨƎƢƖɆǂëİėƎƖɆȩŒļŏėȯįŨƎȯŒļŏėȪ
ɞǥșǦĈŝ
-10% (-9%cc)
2020: £2.6bn
2021 NGR Split
1. Online 78.8%
2. Retail 20.3%
3. Other 0.8%
1
2
3
1
2
2021 EBITDA Split
1
1. Online 92.5%
2. Retail 6.9%
3. Other 0.6%
3
1. New Opportunities and Corporate
ëƎėɇėLJĉŒƪĐėĐëƖƢķėLjëƎėŝėİëƢļǁėș
5Overview
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Strategic report
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Governance
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Financial statements
Entain plc
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Annual Report 2021
Chairman’s introduction
Entain has now
delivered nine years of
double-digit growth in
our online business.”
J M Barry Gibson
Chairman
Entain plc | Annual Report 2021
6
Strategic report
If 2020 was the year in which Entain
ƎėĐėǘŝėĐɆļƢƖɆƖƢƎëƢėİLjɆëŝĐɆëƎƢļĉƪŒëƢėĐɆļƢƖɆ
ambition to be the world-leader in sports
betting and gaming entertainment, then
2021 has been the year in which we
ėśƋķëƢļĉ댌LjɆĐėŒļǁėƎėĐɆŨŝɆƢķėɆǘƎƖƢɆƖƢëİėɆŨįɆ
that journey.
Entain has now delivered nine years of
double-digit growth in our online business,
ƖŨɆǂėɆįėėŒɆĉŨŝǘĐėŝƢɆļŝɆëƖƖėƎƢļŝİɆŨƪƎɆƖƢƎŨŝİɆ
belief that this is a business that is capable
of delivering sustainable and meaningful
long-term returns for all of its stakeholders.
¶ķļƖɆĉŨŝǘĐėŝĉėɆļƖɆƪŝĐėƎƋļŝŝėĐɆĈLjɆŨƪƎɆ
powerful, unique and market-leading
platform, which encompasses everything
from our outstanding proprietary
technology to our capabilities in digital
marketing, customer interaction, regulatory
engagement, and M&A. And, of course, the
foundation on which the Entain platform is
built – and which connects it directly to our
customers – is the industry-leading talent
that we have across the business. On this
front, we are working hard to continue to
attract and retain the very best people at
all levels at Entain and we know that, as a
world-leader in technology, we need to be
able to compete with the global tech giants
in order to do so.
It is the strength and viability of this
platform which is behind our conviction
that, as we announced in August, our total
addressable market will grow more than
three-fold to $160bn. There are vast growth
opportunities ahead of us, which we intend
to capture by: achieving leadership in the
US market; growing our presence in core
markets; expanding into new regulated
markets; and extending into new interactive
entertainment experiences.
As a result, it was no surprise that Entain
attracted interest from other industry
players during the year. We strongly felt
that the proposals that we received from
MGM Resorts in January and DraftKings in
September both substantially undervalued
the Company and its prospects. But their
interest was a great endorsement of the
attractiveness of our strategy, operations,
technology, and people. In the case of
MGM Resorts, our relationship through our
BetMGM joint venture in the US continues to
go from strength to strength.
Read more about our Board:
pages 89 to 90
2021 has been an extraordinarily successful
and eventful year for Entain, albeit one in which
ǂėɆĉŨŝƢļŝƪėĐɆƢŨɆĉŨŝƢėŝĐɆǂļƢķɆƢķėɆƖļİŝļǘĉëŝƢɆ
challenges of operating against the backdrop
ŨįɆƢķėɇŨǁļĐȯǤǬɆƋëŝĐėśļĉșɆQŝɆƖƪĉĉėƖƖįƪŒŒLjɆĐŨļŝİɆ
so, we proved beyond doubt the resilience of
our business model as well as our ability to take
advantages of growth opportunities in the most
ĉķ댌ėŝİļŝİɆŨįɇĉļƎĉƪśƖƢëŝĉėƖș
Entain plc | Annual Report 2021
7
Overview | Strategic report | Governance | Financial statements
Chairman’s introduction continued
ESG at the heart of Entain
2021 was also a year in which we
cemented our commitment to putting ESG
at the heart of everything that we do.
We are clear that this approach will make
us an even more successful business for
the future, and we want to take a lead on
the issues that matter most to us including
sustainability, diversity, and responsibility.
As part of this, our goal is to provide the
most trusted environment for betting and
gaming in the world, so that our customers
know that they can have a fantastic
experience with us and that we have their
interests at heart. This philosophy has been
the driving force behind the development
of our Advanced Responsibility and
Care™ (“ARC™”) programme, which has
made great strides during the year and is
ƎėĐėǘŝļŝİɆƢķėɆĉƎļƢļĉ댌LjɆļśƋŨƎƢëŝƢɆëƎėëɆŨįɆ
player protection.
As a further demonstration of the fact
that safer gambling sits at the core of
our strategy, we have incorporated a
safer gambling metric into remuneration.
Colleagues are now assessed against
whether certain milestones have been
achieved in implementing our ARC™
programme, as part of the conditions of
their annual bonus. We will be adding to
this further in 2022, with an additional
portion of the Group annual bonus being
ĈëƖėĐɆŨŝɇȻĉƪƖƢŨśėƎɆĉėŝƢƎļĉļƢLjȼșɆ
Read more about remuneration
metrics:
page 126
Financial performance
QȼśɆƋŒėëƖėĐɆƢŨɆĈėɆëĈŒėɆƢŨɆƎėǙėĉƢɆŨŝɆëŝŨƢķėƎɆ
set of strong results, delivered whilst both
the business and our customers continue to
įëĉėɆƢķėɆĉķ댌ėŝİėƖɆƋƎėƖėŝƢėĐɆĈLjɆŨǁļĐȯǤǬșɆ
This performance is a tribute to the quality
of our people and resilience of our business
śŨĐėŒɆĐƪėɆƢŨɆļƢƖɆĐļǁėƎƖļǘĉëƢļŨŝɆëĉƎŨƖƖɆ
product, brand, territory and channel.
Group net gaming revenue (“NGR”) was
up by 8%cc for the full year, while our
online NGR was ahead by 13%cc, the ninth
consecutive year that we have delivered
double-digit growth online. With all key
markets in growth, with the exception of
Germany and the Netherlands, which were
subject to regulatory changes – our online
business continues to go from strength-
to-strength. The performance of our US
joint venture, BetMGM, was particularly
pleasing, securing our leading position
with a 23% share of the the states we were
active in during the fourth quarter of 2021.
This is an outstanding achievement, in line
with our target to secure 20-25% of the US
market and we look forward to building on
this position as further states regulate in
2022. Overall this performance enabled us
to deliver £881.7m of underlying EBITDA,
a 5% increase on the year, and gives us
ĉŨŝǘĐėŝĉėɆƢķëƢɆŨƪƎɆƖƢƎëƢėİLjɆŨįɆİƎŨǂƢķɆëŝĐɆ
sustainability remains on course.
Entain plc
|
Annual Report 2021
8
Strategic report
Read more about our strategy:
pages 20 to 21
A clear commitment to robust
corporate governance
Our outstanding CEO, Jette Nygaard-
Andersen, has now been in the role for
over a year and, as we had hoped, her
background in fast-growing disruptive next
generation digital entertainment companies
has added fresh perspective and impetus to
Entain’s strategic direction. On behalf of the
Board, I would like to congratulate Jette on
ëɆķƪİėŒLjɆƖƪĉĉėƖƖįƪŒɆǘƎƖƢɆLjėëƎɆļŝɆĉķëƎİėș
įƢėƎɆƢķėɆƖļİŝļǘĉëŝƢɆĉķëŝİėƖɆŨįɆǥǣǥǣȚɆƢķļƖɆ
has been a year of consolidation for the
Board, although we were delighted to be
joined by Mark Gregory as an independent
Non-Executive Director in March. Mark is
now Chair of the Remuneration Committee
and a member of the Audit and Nomination
Committees. He has more than 35 years’
experience in a wide variety of senior
ŒėëĐėƎƖķļƋɆƎŨŒėƖɆëĉƎŨƖƖɆĈŨƢķɆƢķėɆǘŝëŝĉļëŒɆ
services and retail sectors.
Last year we announced that Sandeep Tiku
would be joining the Board as an Executive
Director following his relocation to Gibraltar.
DŨŒŒŨǂļŝİɆļŒŒɆķėëŒƢķɆĐƪėɆƢŨɆŨǁļĐȯǤǬȚɆ
Sandeep’s relocation was delayed and he
ķëƖɆŝŨƢļǘėĐɆƢķėɆŨśƋëŝLjɆƢķëƢɆķėɆŝŨɆŒŨŝİėƎɆ
intends to relocate to Gibraltar and will
therefore not join the Board.
We recognise the value of having an
inclusive and diverse Board and following
Sandeep’s decision we will not meet
shareholder expectations and our own
Board Diversity Policy with respect to
membership of a Director from an ethnic
minority background. The Nomination
Committee is undertaking an active search
ƢŨɆǘŝĐɆëŝɆëƋƋƎŨƋƎļëƢėɆĉëŝĐļĐëƢėș
Rewarding our outstanding
İŒŨĈëŒɇƢėëś
As ever, the hard work, dedication and
innovation of our teams across the
globe has been awe-inspiring to see,
and on behalf of the Board I would
like to thank all of our colleagues for
another year of outstanding commitment
and outperformance.
In recognition of their extraordinary
contribution, we were delighted to launch
a Group-wide employee share ownership
plan in April to give our UK and international
colleagues the opportunity to share in the
success and growth of the business.
Looking ahead: 2022 and beyond
As we look ahead to the coming year,
the UK Government’s review of the 2005
Gambling Act will be a key milestone
for our industry. We are in full support
of the review, and have been engaging
openly, proactively and transparently
with all aspects of the process. We are
hopeful that it will be a step towards
creating the highest possible regulatory
standards, and that any revised legislation
is not draconian; we have seen in other
markets that imposing arbitrarily low and
disproportionate blanket thresholds will
have the unintended consequence of driving
customers to the black market, where the
small minority of players who are at risk
of harm will have none of the protection
offered by established, regulated operators.
When we think about the future more
broadly, it is clear that the worlds of
media, entertainment, technology and
gaming are rapidly coming together, and
that Entain sits at the very heart of that
convergence. This provides us with a great
ŨƋƋŨƎƢƪŝļƢLjɆƢŨɆƎėĐėǘŝėɆŨƪƎɆļŝĐƪƖƢƎLjȚɆëŝĐɆ
also to meet the changing demands of
customers who now want a richer and more
engaging experience, with more content,
social interaction, analytics, data, and live
statistics. In simple terms, we are now able
to use our outstandingly strong platform to
give our customers even more reasons to
engage with and stay with us. As a result,
we are more excited than ever before about
the exciting opportunities ahead of us that
will drive Entain’s growth for many years
to come.
J M Barry Gibson
Chairman
3 March 2022
Our goal is to provide the
most trusted environment
for betting and gaming in
the world.”
9 Overview
|
Strategic report
|
Governance
|
Financial statements
Entain plc
|
Annual Report 2021
Chief Executive’s Review
Entain is a consumer-focused
growth business, and we continue
to make progress on our ambition
as a global leader in betting, gaming
ëŝĐɇļŝƢėƎëĉƢļǁėɇėŝƢėƎƢëļŝśėŝƢșȺ
Jette Nygaard-Andersen
ķļėįɆ,LJėĉƪƢļǁėɆ{įǘĉėƎ
A global leader for our industry
Entain is a consumer-focused growth business
ĐėŒļǁėƎļŝİɆƋƎŨǘƢëĈŒėɆëŝĐɆƖƪƖƢëļŝëĈŒėɆƎėƢƪƎŝƖɆįŨƎɆŨƪƎɆ
stakeholders. We continue to make progress on our
ambition as a global leader in betting, gaming and
interactive entertainment.
Entain plc
|
Annual Report 2021
10 Strategic report
Overview
|
Strategic report
|
Governance | Financial statements
Having substantially increased our online
revenues year-on-year for the last nine
years and grown at a compound annual
rate of 20%cc over the last two years, we
are clearly a business delivering growth.
Our customer base has 25% more actives
than in 2020. Our operations now span 31
regulated or regulating territories and we
have established leading positions in each
of our key markets. We also have further
ƖļİŝļǘĉëŝƢɆİƎŨǂƢķɆŨƋƋŨƎƢƪŝļƢļėƖɆëķėëĐɆŨįɆƪƖɆ
with our addressable markets set to grow
to more than $160bn over the medium term
– providing us with the opportunity to treble
the size of our business. Entain is a business
with growth built into our model, driven by
our industry leading platform comprising our
unique technology, people and capabilities.
It is this platform that enables us to deliver
an ever-better customer experience, evolve
into emerging customer trends and grow into
new markets and products. We continue to
evolve as a business and position ourselves
as a leader in our industry across growth,
innovation, capabilities, player protection
and customer centricity.
By expanding content, products and
experiences to broaden our customer
appeal, creating moments of excitement
across betting, gaming and interactive
entertainment, we are rapidly laying the
foundations to drive customer centric
growth into new markets and products.
This will further broaden our customer base,
ļŝĉƎėëƖėɆŒŨLjëŒƢLjȚɆĐƎļǁėɆİƎėëƢėƎɆĐļǁėƎƖļǘĉëƢļŨŝɆ
in our revenue streams and reduce
acquisition costs.
We have established ourselves at the
forefront of sustainability in our industry
with recognition across a number of indices
as well as earning numerous awards.
Importantly we are delivering ground-
breaking improvements in player protection
through our Advanced Responsibility and
Care™ programme (“ARC™”).
We delivered a strong performance in 2021
with Group NGR up +8%cc (up +15%cc
including our 50% share of BetMGM)
and EBITDA up +5%. Online NGR was
up +13%cc with signs of the new normal
ėśėƎİļŝİɆĐƪƎļŝİɆƢķėɆǘŝëŒɆƍƪëƎƢėƎșɆ
We have made great progress in 2021 and
I am delighted all my colleagues hard work
has been recognised externally, especially in
being awarded Operator of the year by EGR
and being recognised as one of the most
admired companies in 2021 by Management
Today. These great achievements are
testament to the high quality and talented
team we have at Entain. I would like to
thank each and everyone of them for the
dedication and the commitment they have
demonstrated throughout the year.
Entain plc
|
Annual Report 2021
11 Overview | Strategic report | Governance | Financial statements
Chief Executive’s Review continued
We have a clear strategy that levers this platform to deliver on our
core pillars of growth and sustainability. Our ambition is to be the
world’s leading betting, gaming and entertainment company with our
ĉƪƖƢŨśėƎƖɆëƢɆƢķėɆĉŨƎėɆŨįɆėǁėƎLjƢķļŝİɆǂėɆĐŨșɆQƢɇļƖɆƢķƎŨƪİķɆƢķļƖɆƖƢƎëƢėİLjɆ
ƢķëƢɆǂėɆǂļŒŒɆĉŨŝƢļŝƪėɆƢŨɆĐƎļǁėɆƖļİŝļǘĉëŝƢɆǁëŒƪėɆįŨƎɆŨƪƎɆƖƢëŏėķŨŒĐėƎƖș
Customer centric Entain platform
Our Entain platform distinguishes us from competitors, powering our growth, supporting
our customer centric focus and driving value creation. It comprises our unique in-house
technology, our industry leading talent and our customer focused capabilities. It enables
ƪƖɆƢŨɆëĉƢɆĐļįįėƎėŝƢŒLjȚɆĈėɆǙėLJļĈŒėɆëŝĐɆëİļŒėɆëŝĐɆĐėŒļǁėƎɆŨŝɆĈėļŝİɆëɆƎėƖƋŨŝƖļĈŒėɆėŝƢėƎƢëļŝśėŝƢɆ
ĉŨśƋëŝLjɆǂķļŒƖƢɆëŒƖŨɆĐƎļǁļŝİɆƖļİŝļǘĉëŝƢɆĉŨśƋėƢļƢļǁėɆëĐǁëŝƢëİėƖɆļŝɆǘǁėɆŏėLjɆƖƢƎëƢėİļĉɆëƎėëƖț
Customer centric continuous
improvement – customer centricity
is the backbone of our growth across
the Group. Ensuring our customers’
experience is engaging, exciting,
relevant and always improving means
a continuous refreshment and evolution
of our content, our offering and the way
we support our customers. By focusing
on what makes a better customer
experience and creating those little
moments of excitement, we have
grown our active base 25% in 2021
ëŝĐɇļśƋƎŨǁėĐɆĉƪƖƢŨśėƎɆŒŨLjëŒƢLjș
Driving growth ȱɆǂļƢķɆǙėLJļĈļŒļƢLjȚɆëİļŒļƢLjɆ
and scalability built in, we are able to
expand internationally, integrate new
acquisitions, support growth in existing
markets, including the US, understand
and evolve into changing customer
behaviours and grow into new products
as demonstrated by our successful M&A
and integration delivery to date.
Player protection and Advanced
Responsibility and Care™ – ARC™ is
Entain’s industry-leading approach to
customer protection. It is a proactive
player programme that navigates each
customer journey in real-time, using
advanced analytics to monitor markers
of protection and behavioural triggers to
ļĐėŝƢļįLjɆƎļƖŏƖɆƖƋėĉļǘĉɆƢŨɆƢķëƢɆĉƪƖƢŨśėƎșɆ
Early trials have delivered encouraging
results, with a 30% overall reduction in
customers increasing their risk levels,
and we are now starting to roll out the
programme internationally.
Innovation engine – continuous
product evolution keeps the customer
experience fresh and engaging. With the
launch of Ennovate, our innovation
hub in London, supported by a £100m
investment, we are exploring new
technologies. These include AI and
both virtual and augmented reality to
create new moments of excitement for
our customers.
$ƎļǁļŝİɆėįǘĉļėŝĉļėƖɆ– maximising
cost and revenue synergies from both
ëĉƍƪļƖļƢļŨŝƖɆëŝĐɆėįǘĉļėŝĉļėƖɆëĉƎŨƖƖɆƢķėɆ
Group. Operating our own platform
enables us to operate at a lower cost
than our competitors. Having launched
our Evolve programme in 2021, we are on
ƢƎëĉŏɆƢŨɆĐėŒļǁėƎɆɞǤǣǣśɆŨįɆėįǘĉļėŝĉļėƖɆŨǁėƎɆ
three years.
As Entain continues to grow, we are
evolving our operational structures,
processes and capabilities around the
Entain Platform. This will enable us to drive
an even better customer experience and
ensure that we are able to deliver on the
ƖļİŝļǘĉëŝƢɆİƎŨǂƢķɆŨƋƋŨƎƢƪŝļƢļėƖɆŨƋėŝɆƢŨɆƪƖɆ
as a leading global sports betting, gaming
and interactive entertainment company.
We have a clear strategy that levers our
platform to deliver on our core pillars of
growth and sustainability. Our ambition is
to be the world’s leading betting, gaming
and interactive entertainment company
with our customers at the core of everything
we do. It is through this strategy that we
ǂļŒŒɆĉŨŝƢļŝƪėɆƢŨɆĐƎļǁėɆƖļİŝļǘĉëŝƢɆǁëŒƪėɆįŨƎɆ
our stakeholders.
Read more about how we create
value: pages 22-23
Entain plc
|
Annual Report 2021
12
Strategic report
Our growth strategy has four pillars that
will enable us to continue to drive the
Group’s performance and increase our
scale. These include delivering on our clear
ambition to be the leading operator in the
US through BetMGM, growing in our core
markets, entering new regulated markets
– both organically and via M&A – and
expanding to reach new audiences.
Leadership in North America
ėƢnEnɆļƖɆǘƎśŒLjɆėƖƢëĈŒļƖķėĐɆëƖɆëɆŒėëĐļŝİɆ
operator in the US market built on the
strength of the technology and capabilities
of the Entain platform as well as the brand
strength of our joint venture partner, MGM
Resorts International. The North American
market is expected to be worth around
$32bn over the long term. Throughout
2021, BetMGM has gone from
strength-to- strength and, in the three
months to December 2021, delivered a
market share across sports betting and
iGaming of 23% in the markets in which
it operated. This is in line with our long-
term objective of 20% to 25%, and while
that secured BetMGM as the number two
operator, we are ready to challenge for the
number one position in these markets.
BetMGM continues to lead in iGaming with
ëɆǥǬɼɆśëƎŏėƢɆƖķëƎėɆļŝɆǧȚɆëŝĐɆļŝɆ©ƋŨƎƢƖɆ
betting BetMGM further built its position
across its markets with an 18% share
ļŝɆǧșɆ¶ķėɆƪŝļƍƪėɆƎëŝİėɆŨįɆĈėƖƋŨŏėɆëŝĐɆ
exclusive products provided through the
Entain platform differentiate BetMGM’s
offer, provide a competitive advantage
and supports growth with over 70% of
BetMGM customers engaging with these
exclusive products.
During the year BetMGM went live in nine
śëƎŏėƢƖșɆQŝɆƢķėɆǘƎƖƢɆƢǂŨɆśŨŝƢķƖɆŨįɆǥǣǥǥɆǂėɆ
added a further four jurisdictions taking the
total to 21. BetMGM is live with 11 retail,
15 online sports betting and four iGaming
markets, reaching approximately 37%
of the US adult population. In addition, it
has launched its horse racing product in
three further markets leveraging our global
expertise in this category. With Ontario
opening up to regulation, we look forward
to taking the BetMGM brand into that
market as well as launching in Illinois during
ƢķėɆǘƎƖƢɆķëŒįș
QŝɆǥǣǥǤȚɆǂėɆŒëƪŝĉķėĐɆŨƪƎɆǘƎƖƢɆŝëƢļŨŝëŒɆ
advertising campaign featuring Jamie
Foxx which resonated strongly with
customers as a differentiated approach in
the emergent betting and gaming market.
This was followed by a further campaign
and a refreshed advert ahead of the 2022
NFL Superbowl.
ėƢnEnɆĈėŝėǘƢƖɆįƎŨśɆƢķėɆƋŨǂėƎįƪŒɆ
Entain platform that provides best in class
digital marketing tools, deep database
analytics and bespoke in-house products.
ėƢnEnɆëŒƖŨɆĈėŝėǘƢƖɆįƎŨśɆnEnɆ¡ėƖŨƎƢƖɆ
omni-channel presence and loyalty
ƋƎŨİƎëśśėɆǂļƢķɆëƎŨƪŝĐɆǤǧɼɆŨįɆŝėǂɆ
sign-ups having a pre-existing relationship
through one of these channels. During the
year we leveraged Entain’s global leadership
in bingo and horse racing to launch several
ground-breaking products such as Borgata
Bingo in New Jersey and a horse racing app
in three states where we did not have pre-
existing operations.
As a result, BetMGM has grown its
leadership position rapidly while maintaining
ǘŝëŝĉļëŒɆĐļƖĉļƋŒļŝėșɆ©ëśėɆƖƢëƢėɆƎėǁėŝƪėƖɆ
ǂėƎėɆƪƋɆëƎŨƪŝĐɆǤǧǣɼɆLjėëƎȯŨŝȯLjėëƎɆëŝĐɆ
ŨǁėƎ댌ɆƎėǁėŝƪėƖɆǂėƎėɆƪƋɆŝėëƎŒLjɆǘǁėɆƢļśėƖɆƢŨɆ
$850m in the full year. Costs per acquisition
ǂėƎėɆļŝɆŒļŝėɆǂļƢķɆįŨƎėĉëƖƢƖɆǂķļĉķɆƎėëįǘƎśƖɆ
our expectation of achieving a long-term
cost per acquisition of $250. We are already
achieving positive contribution in several
markets, some within 12 months of opening.
We anticipate that we will deliver revenues
of over $1.3bn in 2022 and reach positive
EBITDA in 2023.
QŝɆƖƪśśëƎLjȚɆėƢnEnɆļƖɆǘƎśŒLjɆŨŝɆƢƎëĉŏɆƢŨɆ
realising its ambition of being a leader in the
US sports-betting and iGaming market and
expects to achieve a 20-25% market share.
Growth
Entain is a growth business. We have grown Online revenues at a
compound annual growth rate of 20%cc over the last two years.
ÕėɇŨƋėƎëƢėɆļŝɆǦǤɆƎėİƪŒëƢėĐɆƢėƎƎļƢŨƎļėƖɆëĉƎŨƖƖɆĈėƢƢļŝİɆëŝĐɆİëśļŝİɆëŝĐɆ
ǂėɇķëǁėɆëśĈļƢļŨƪƖɆƋŒëŝƖɆƢŨɆėLJƋëŝĐɆļŝƢŨɆŝėǂɆśëƎŏėƢƖɆëŝĐɆŝėǂɆƋƎŨĐƪĉƢƖɆ
as we lean into interactive entertainment opportunities.
13 Overview
|
Strategic report
|
Governance
|
Financial statements
Entain plc
|
Annual Report 2021
Chief Executive’s Review continued
Grow core markets
Our operations now span 31 regulated
or regulating territories and we have
established leading positions in each of our
key markets. Our combination of customer
focus, strong brands, great products and
digital marketing expertise has enabled us
to grow across all our major online markets.
Our current markets are expected to grow
by a compound annual growth rate of over
8% and are expected to be worth around
ɏǩǣĈŝɆȩƪƋɆįƎŨśɆëƎŨƪŝĐɆɏǧǣĈŝɆƢŨĐëLjȪɆŨǁėƎɆ
the medium term.
The Entain platform enables us to deliver
a great experience for our customers with
ease of use, stability, great service, and
protection enhanced by fresh, unique and
exciting content. We continue to evolve our
offering and appeal to create moments of
excitement for a broader, more recreational
customer base. Not only will this grow and
deepen our presence in our markets, but it
will deliver earnings with greater stability
and of a higher quality.
In the UK, our brands continue to resonate
with, and be enjoyed by, a growing
number of customers with online actives
growing by 15% in 2021. We have made
ƖļİŝļǘĉëŝƢɆƋƎŨİƎėƖƖɆļŝɆƎėȯƋŨƖļƢļŨŝļŝİɆ
the UK brands, particularly Ladbrokes
and Coral, to maximise their appeal to a
broader audience. Our new advertising
ƖëǂɆƪƖɆŒëƪŝĉķɆƢķėɆļŝĐƪƖƢƎLjȼƖɆǘƎƖƢɆĈƎëŝĐȯ
led marketing campaigns with both
our “Drummers” and “Balloon” adverts
captivating and exciting audiences, whilst
our new range of TV adverts for Foxy and
sponsorship of First Dates also landed
well. We also further enhanced our offering
and user experience, engaging customers
with new games, products and content.
We are creating free-to-play games
in sports and gaming to provide more
options for customers. Our partnership
with ITV to create documentaries around
inspiring stories in sports has reached an
ëǁėƎëİėɆǫǣǣŏɆǁļėǂėƎƖɆƋŒƪƖɆǘǁėɆśļŒŒļŨŝɆŨŝɆ
social channels.
Our digital businesses in Italy and Belgium
both performed strongly, despite the
retail environment across Europe facing
challenges due to Covid restrictions.
The online winners during 2021 were
those operators with the largest retail
network, with omnichannel operations
ƖėėļŝİɆëɆƖļİŝļǘĉëŝƢɆëĐǁëŝƢëİėșɆQŝɆQƢëŒLjɆ
actives and NGR both saw strong growth,
+18% and +31%cc respectively, as our
ŨįįėƎļŝİɆĈėŝėǘƢėĐɆįƎŨśɆƋƎŨĐƪĉƢɆëŝĐɆįėëƢƪƎėɆ
enhancements as well as user experience
improvements. We also introduced new
NBA game footage, new pre-match
football player markets and in-house
Eurobet games across bwin and Gioco
Digitale. Eurobet continued to bring new
and exciting content to customers with the
release of over 300 new casino games as
well as adding esports streaming to bwin.
tv. The relaunch of Ladbrokes.be in Belgium
drove almost 72% growth in actives, with
ƢķėɆĐļİļƢëŒɆŨįįėƎļŝİɆëŒƖŨɆĈėŝėǘƢļŝİɆįƎŨśɆ
refreshed advertising campaigns and
bwin’s sponsorship of Jupiler Pro League
enabling live streaming of football matches
both online and mobile.
During 2021, the German market further
digested the new regulatory regime
including both the Interstate Treaty and the
new Turnover Tax. This structure brought
welcome clarity to the German online
betting and gaming market, however,
challenges remain. We look forward to full
licensing and regulatory oversight, creating
an orderly market that delivers a properly
regulated environment and protects
customers from unregulated operators.
We have continued to differentiate bwin’s
offer with a number of products and
enhancements. During the year bwin
entered into a sponsorship agreement
ǂļƢķɆ½,DɆƢķëƢɆƋƎŨǁļĐėƖɆƖļİŝļǘĉëŝƢɆĈƎëŝĐɆ
exposure through stadia and media
backdrops, not just in Germany, but also in
many other countries around the world that
follow the Europa League and the Europa
Conference League. In addition, bwin’s
exclusive free to play product partnership
ǂļƢķɆįŨŨƢĈ댌ɆįŨĉƪƖėĐɆĉŨŝƢėŝƢɆƋŒëƢįŨƎśȚɆǧǦǦȚɆ
ķëƖɆķėŒƋėĐɆƢŨɆĐƎļǁėɆëɆǧǣɼɆļŝĉƎėëƖėɆļŝɆĈǂļŝɆ
Instagram followers.
Our Australian business continues to go
from strength to strength with excellent
performances from both Ladbrokes and
pėĐƖɆĈƎëŝĐƖɆǂļƢķɆëĉƢļǁėƖɆɣǬɼȚɆǁėƎƖƪƖɆ
strong 2020 comparators, and NGR +20%
(+18%cc) year-on-year. Its refreshed
approach has engaged with new and
lapsed customers delivering exciting
content, engaging material, eye-catching
adverts, and an unwavering focus on
customer experience. Since kicking off
our content-led growth strategy, we
have produced over 250 content pieces
with Ladbrokes Deep Dives for both the
Melbourne Cup and the Ladbrokes Cox
ŒëƢėȚɆëƖɆǂėŒŒɆëƖɆŨƪƎɆȻnŨŨĐLjɆŨŝɆƢķėɆnļĉȼɆ
podcast. To date, this content has had more
ƢķëŝɆǧǧǣśɆļśƋƎėƖƖļŨŝƖȚɆǂļƢķɆėƢėƎɆnŨŨĐLjȼƖɆ
podcast reaching an average of 2.5m
people per episode. We launched free-to-
play games and a new quiz-based game
to coincide with the launch of the domestic
20/20 cricket season.
Enlabs in the Baltics continues to perform
ahead of our expectations with Entain’s
core products now fully integrated in the
Optibet offering helping to drive actives
up +38% on a proforma basis. During H2
2021, Optibet rolled out a new esports
betting product in Latvia and Estonia,
with customers now able to bet and watch
gaming such as eFIFA, eNBA, Fortnite, and
Call Of Duty.
Our acquisition of Bet.pt saw Entain enter
Portugal, one of Europe’s fastest growing
markets. Since its platform migration and
brand alignment to bwin.pt the business
ŝŨǂɆĈėŝėǘƢƖɆįƎŨśɆëɆŒëƎİėƎɆëŝĐɆĈƎŨëĐėƎɆ
range of products with greater availability
of live games whilst also leveraging our
existing sportsbook strength alongside
bwin’s partnership with Liga Portugal.
Crystalbet continues to deliver strong
growth with a leading market share of 32%
and retaining its position as number one
operator in the Georgian market.
ÕėɆŨƋėŝėĐɆŨƪƎɆȻƖķŨƋɆŨįɆƢķėɆįƪƢƪƎėȼɆļŝɆ
the UK that better connects with the
retail environment.”
Entain plc
|
Annual Report 2021
14
Strategic report
Our business in Brazil continues to be
the market leader, delivering exceptional
growth with actives +156% and NGR
+111%cc in 2021. Performance remains
very strong and despite the heightened
competition ahead of regulation of sports
betting expected during 2022 (and gaming
in 2023), the strength of our Sportingbet
brands and operational expertise ensure we
continued to outperform other operators, as
there is clear demand for the high quality
experience and breadth of product offering
which Entain provides.
PartyCasino and partypoker brands
were consolidated to become One Party.
The business performance was in-line
with expectations, with pleasing growth
in casino actives in particular. One Party
continues its renewed focus on recreational
players and their entertainment experience.
The impact of Covid restrictions and
associated disruptions impacted all our
Retail operations throughout 2021, but
to varying degrees. However, we were
encouraged by the resilience of our Retail
operations as customers demonstrated
that they enjoy the in-store experience
with volumes growing quickly as
restrictions eased.
Our shops in Europe were a step behind
the UK on the recovery path due to the
later easing of restrictions. Early reopening
activity was machine-led with sports
volumes returning with the football season
and broader sporting calendar.
Evolving the customer experience across
Retail, leveraging digitalisation and
improving the omni-channel journey is a
key driver across our retail business in the
UK with customers highly engaged with
the range and depth of our offering. As part
of our brand reinvigoration we leveraged
the media value of our store windows
through digitalisation of displays. Omnia,
our proprietary EPOS system, is now fully
rolled out in Great Britain and our in-
house Betstation terminals, being enjoyed
by customers in over 200 shops, have
supercharged our machine-led growth for
both sports and gaming. Positive feedback
and encouraging data suggests customers
are enjoying our Digital Hubs in the current
30 locations.
Expanding into new markets
¶ķėƎėɆëƎėɆƖļİŝļǘĉëŝƢɆİƎŨǂƢķɆŨƋƋŨƎƢƪŝļƢļėƖɆ
ëĉƎŨƖƖɆƢķėɆİŒŨĈėɆǂļƢķɆëƎŨƪŝĐɆɏǧǣɆĈļŒŒļŨŝɆļŝɆ
long-term gross gaming revenues in over
50 regulated markets in Central & Eastern
Europe, Latin America and Africa where we
do not currently operate today.
We have a strong track record of integration
and value creation through M&A and
completed four acquisitions during 2021
including Enlabs across the Baltics, Bet.pt
in Portugal, Impala to drive access across
Africa and Unikrn to take us into the esports
wagering market. We have already been
active in 2022 with three transactions
to date.
In February 2022, we acquired Avid Gaming
which, through Sports Interaction, provides
access to the highly attractive, fast growing
and regulating sports betting and gaming
market in Canada. Sports Interaction’s
sports-led offering is highly complementary
to Entain’s existing business, and the
combination will provide customers
with a broader offering of engaging
products and services for customers in the
Canadian market.
With a portfolio of strong brands across the
Group, some with global recognition such
as bwin and Party, we are able to grow into
new markets organically. We were one of
ƢķėɆǘƎƖƢɆŨƋėƎëƢŨƎƖɆƢŨɆŒëƪŝĉķɆļŝɆŨŒŨśĈļëɆëƖɆ
that market regulated and having acquired
the enabling tools in Impala we will launch
organically across Africa through 2022
and beyond.
New market entries, both through M&A and
organic expansion, collectively contributed
3% of Online NGR during the year.
We continue to look for further opportunities
to enter new, growing and regulated or
regulating markets where we can drive
greater value for shareholders.
15
Overview
|
Strategic report
|
Governance
|
Financial statements
Entain plc
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Annual Report 2021
Chief Executive’s Review continued
Engaging and attracting
ŝėǂɇëƪĐļėŝĉėƖ
Technology is changing consumer
behaviour with new trends and ecosystems
creating exciting opportunities. We are
listening to the customers, we understand
these changes, and we adapt and
innovate to drive further growth across
new audiences.
Customers are seeking more content,
more engagement, more interactive and
social experiences, more video, more audio
and more free-to-play entertainment.
Simply put, interactive entertainment and
media are converging with our traditional
markets of betting and gaming.
Entain sits at the heart of this convergence
and provides us with a tremendous
opportunity to leverage our platform to
meet customers’ needs whilst attracting
more customers into our network. This not
only increases engagement and stickiness,
ĈƪƢɆëŒƖŨɆƖƢëƎƢƖɆĉƎėëƢļŝİɆƋŨǂėƎįƪŒɆǙLjǂķėėŒɆ
effects that enhance product cross-sell and
reduce acquisition costs.
During the year, we laid some of the
foundations to grow into these markets
ëŝĐɆƖƢëƎƢɆƢŨɆĈėŝėǘƢɆįƎŨśɆƢķŨƖėɆǙLjǂķėėŒɆ
effects. As discussed above, in markets like
the UK, Australia and Germany we have
created rich content and media to engage
customers around sports. These have
ëŒƎėëĐLjɆƖķŨǂŝɆƖļİŝļǘĉëŝƢɆƖƪĉĉėƖƖɆļŝɆ
broadening our actives base. We have
created new products across both our
free-to-play and real money offering that
broadens engagement with customers.
In August, we acquired Unikrn to provide
access to the esports wagering market
that we expect to be worth c$12bn over
the medium term. Since the acquisition we
have been re-setting the product suite and
working with partners and regulators to
develop a product that we will launch later
this year.
The casual mobile gaming market has
grown rapidly in recent years and our
technology, data analytics and other
capabilities align with how this market
ŨƋėƎëƢėƖșɆ¶ŨɆįƪŒŒLjɆĈėŝėǘƢɆįƎŨśɆƢķļƖɆśëƎŏėƢɆ
we will likely acquire or partner with an
existing operator. We believe that this
market aligns closely with the evolving
demands of our customers and will help
ĐƎļǁėɆǙLjǂķėėŒɆėįįėĉƢƖɆŨįɆƎėĐƪĉļŝİɆĉŨƖƢƖȚɆ
increasing stickiness and diversifying our
revenue base.
As we evolve Entain to address these
changing customer needs and broaden
our product markets, we will increasingly
look to partnerships to expand our growth.
For example, our partnership with McLaren
provides richer and more engaging
experiences for Formula 1 fans that are not
available anywhere else. Our partnerships
ǂļƢķɆ¶ɆʁɆÔėƎļǒŨŝɆǂļŒŒɆķėŒƋɆƪƖɆĈėŝėǘƢɆįƎŨśɆ
innovative new experiences for customers.
Technology continues to evolve and the
Entain platform puts us in a unique position
to be able to explore and innovate to
create exciting new unique products and
experiences for our customers. In order
to accelerate that we have created the
Ennovate hub supported by a £100m
investment over three years. The Ennovate
hub will develop new products around
augmented reality (“AR”), virtual reality
(“VR”), 5G and edge computing technology
both directly and through funding for
incubators and accelerators. We recently
acquired an interest in Draw & Code, a
leading immersive experience studio to
develop VR products. We will also work
with a number of partners such as Verizon,
BT and Theta Labs in developing the
technology and products that drive the
emerging ecosystems within the metaverse.
In addition, it will support initiatives in
Entain’s Sustainability Charter around
environmental and social issues as well as
supporting EnTrain the Group’s global D&I
initiative to provide more opportunities in
technology and technology-related careers.
We positively promote an inclusive
culture as we believe that the
more diverse your colleague group
the better the business.”
Entain plc
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Annual Report 2021
16
Strategic report
Sustainability
©ƪƖƢëļŝëĈļŒļƢLjɆļƖɆëƢɆƢķėɆķėëƎƢɆŨįɆėǁėƎLjƢķļŝİɆǂėɆĐŨȚɆëŝĐɆǂėɆǘƎśŒLjɆ
believe that the most sustainable business will be the most
successful business in our industry. Our Sustainability Charter
underpins this approach and is built around four core principles: an
exclusive focus on regulated markets; continuing to take the lead on
responsible betting and gaming; best in class corporate governance;
and investing in our people and local communities.
Read more about our Sustainability
Charter:
pages 40 to 65
ÕėɆśëĐėɆƖļİŝļǘĉëŝƢɆƋƎŨİƎėƖƖɆëĉƎŨƖƖɆ댌Ɇ
four of these during the year, many of
ǂķļĉķɆǂėɆķļİķŒļİķƢėĐɆëƢɆŨƪƎɆǘƎƖƢɆ,ŝƢëļŝɆ
Sustain event in November. Globally, we
lead the industry on responsibility, with
revolutionising player protection at the
core of our approach. We continue to make
great progress with ARC™ with both the
real-time customer interaction trials and the
international rollout well underway.
It is pleasing to see our efforts being
recognised externally with Entain being
awarded Operator of the Year by EGR, and
Socially Responsible Operator of the Year
at the SBC Awards North America, our
ĉŨŝƢļŝƪėĐɆƋëƎƢļĉļƋëƢļŨŝɆļŝɆƢķėɆD¶©,ǧEŨŨĐɆ
index and the Dow Jones sustainability
index as well as being recognised as a most
admired company in Management Today’s
annual awards.
Focus on regulated markets
We continue to make progress towards our
commitment that all our revenues will come
from regulated markets by the end of 2023.
As at end of 2021, almost 100% of our NGR
was from regulated or regulating markets,
with Brazil, Canada and Netherlands
ĈėļŝİɆƢķėɆśŨƖƢɆƖļİŝļǘĉëŝƢɆļŝɆƢķėɆƋƎŨĉėƖƖɆŨįɆ
regulating within this.
Being a trusted entertainment provider,
protection of our customers is fundamental
to our customer centric strategy.
Operating in a well-structured regulatory
regime ensures revenues have greater
clarity and certainty and are ultimately
more sustainable and therefore are of
higher quality than earnings from non-
regulated markets.
Having withdrawn from a number of
markets since November 2020, we continue
to monitor the regulatory timetable for
other countries, working closely with the
relevant authorities to help develop a
robust framework that protects players and
maintains the highest regulatory standards.
In October 2021, we ceased trading in the
Netherlands whilst we await the licensing
process to complete.
We actively engage with regulators in
order to help support a well-structured
regulatory environment that balances a fair
and open recreational market with the need
to provide protections for the small minority
of customers who may run into problems.
In the UK, the 2005 Gambling Act is
currently under a much-needed review that
will set out the regulatory framework for
years to come. We are contributing to this
process both directly and with our industry
peers through the Betting & Gaming
ŨƪŝĉļŒɆƢŨɆķėŒƋɆǘŝĐɆƢķėɆƎļİķƢɆĈëŒëŝĉėɆįŨƎɆ
a well-regulated market that protects the
minority at risk, polices the fringes of the
industry such as the black market and
preserves the market as entertainment
for the vast majority of customers who
enjoy betting and gaming as part of their
recreational activity.
We are also engaging with regulators
around the world to support emerging
regulation around esports skill-based
wagering as this market opens up across
the world.
17 Overview
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Strategic report
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Governance
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Financial statements
Entain plc
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Annual Report 2021
ARC™ employs sophisticated algorithms,
using 26 different markers of protection
to identify signs of risk and, when needed,
steps in to interact with the customer,
modify the operation of games such as
limiting stakes or slowing down play and
suppressing marketing activity. Our initial
trials have been very encouraging, with
results showing a risk assessment accuracy
of over 80%, a 120% uplift in the use of
safer gambling tools by those most at risk
and a 30% overall reduction in customers
increasing their risk levels.
Lead on Responsibility
We continue to lead the market in the
critically important area of responsible
ĈėƢƢļŝİɆëŝĐɆİëśļŝİșɆƖɆëɆƎėǙėĉƢļŨŝɆŨįɆƢķėɆ
importance of this across our business, in
2021 we introduced a responsible betting
and gaming metric to our Group wide
remuneration policy which, in 2022, will
expand its measurement and accountability
further into our international markets.
Through our award-winning Changing
for the Bettor safer betting and gaming
programme, we take a holistic approach
to protecting customers, investing millions
into research, education and treatment.
In 2021, we introduced ARC™ which, using
revolutionary AI technology, operates in
real-time, and, crucially, is individually
tailored for each customer. It is built
on a foundation of academic research
and is designed to work invisibly in the
background stepping in when needed.
ƖɆëɆƎėǙėĉƢļŨŝɆŨįɆƢķėɆļśƋŨƎƢëŝĉėɆŨįɆƢķļƖɆ
across our business, last year we introduced
a responsible betting and gaming metric to
our Group-wide remuneration policy.”
ÕėɆĉŨŝƢļŝƪėɆƢŨɆƎėǘŝėɆ¡ʆȚɆëƖɆƢķėɆ
programme continuously improves through
machine-learning. Having been initially
trialled in the UK, the programme is now
being rolled-out internationally.
$ƪƎļŝİɆƢķėɆŨǁļĐȯǤǬɆŒŨĉŏĐŨǂŝƖȚɆśļŝĐįƪŒɆŨįɆ
the impact of restrictions on customers, we
expanded our monitoring and markers of
protection and increased communication
and messaging to all customers on the
importance of safer betting and gaming.
Chief Executive’s Review continued
Entain plc
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Annual Report 2021
18
Strategic report
Best in class corporate governance
As a world-leading company we are
committed to the highest standards of
governance in all areas of our operations
and our Board has been strengthened and
revitalised during the year. In March 2021,
Mark Gregory was appointed to the Board
as an independent Non-Executive Director
and as the Chair of the Remuneration
Committee. The Board is now made-up
of a Chairman, three Executive Directors
and seven independent Non-Executive
$ļƎėĉƢŨƎƖȚɆǂļƢķɆëɆǩǧɼțǦǩɼɆśëŒėɆƢŨɆįėśëŒėɆ
gender split.
In line with our objective to operate
best in class corporate governance, we
commissioned Alvarez & Marsal (“A&M”),
ëŝɆļŝĐėƋėŝĐėŝƢɆƋƎŨįėƖƖļŨŝëŒɆǘƎśɆƢŨɆĉŨŝĐƪĉƢɆ
a comprehensive review of the Group’s
governance and compliance practices.
Having completed their review, A&M
concluded the Group had “put in place
all the key components of a compliance
framework to enable it to identify and
manage its general compliance and
regulatory risks”. While welcoming this
positive assessment, the Group is taking
ŨŝɆëɆŝƪśĈėƎɆŨįɆƖƋėĉļǘĉɆƎėĉŨśśėŝĐëƢļŨŝƖɆ
within A&M’s report to further strengthen
our processes.
Best place to work and investing in
our communities
We want Entain to be a great place for
our people to thrive, develop careers
and feel empowered to do what’s right
for our customers, our colleagues and
our communities.
We positively promote an inclusive culture
as we believe that the more diverse your
colleague group the better the business
will be and, as importantly, will be better
representative of our customer base.
ÕėɆķëǁėɆëŒǂëLjƖɆķëĐɆëɆǙėLJļĈŒėɆëƋƋƎŨëĉķɆ
ƢŨɆŨįǘĉėȯĈëƖėĐɆǂŨƎŏļŝİɆëŝĐɆǂļƢķɆƢķėɆ
evolution taking place as a result of the
Covid pandemic, we are further evolving
ƢķëƢɆǙėLJļĈļŒļƢLjɆƎėĉŨİŝļƖļŝİɆƢķėɆŝėėĐƖɆŨįɆ
ĐļįįėƎėŝƢɆƢėëśƖɆëŝĐɆĐļįįėƎėŝƢɆİŒŨĈëŒɆŨįǘĉėƖɆ
will vary. We want to provide the right
environment to continue to attract the
best talent and to enable them to thrive.
However, the power of collective thought
and idea creation, particularly in face-to-
face environments will remain a core part of
how we do business and so we are evolving
ŨƪƎɆǂŨƎŏƖƋëĉėƖɆƢŨɆėŝëĈŒėɆƢķëƢɆǙėLJļĈŒėɆĉŨȯ
ordination to evolve. We have completely
ƎėįƪƎĈļƖķėĐɆŨƪƎɆŨįǘĉėƖɆļŝɆ©ƢƎëƢįŨƎĐȚɆdŨŝĐŨŝɆ
to create the right sort of collaborative
environment for our people. We will be
ƢėƖƢļŝİɆëŝĐɆƎėǁļėǂļŝİɆŨƪƎɆǘŝĐļŝİƖɆįƎŨśɆ
this and take those into development of our
ŨƢķėƎɆŨįǘĉėƖș
We are committed to lightening our
footprint on the planet and have already
reduced our greenhouse gas emissions
by 15% from 2018 to 2021. Last year, we
committed to Net Zero carbon emissions
by 2035 – 15 years ahead of the target set
by the Paris Agreement on climate change.
In doing so we have formally joined the
Science Based Target initiative and are
seeking to demonstrate leadership within
our sector.
Our two Foundations – the Entain
Foundation and the Entain Foundation US,
continue to support research into problem
gambling, education initiatives that align
with our sustainability ambitions as well
as investing into local communities and
grass roots sports across our key markets.
In November we launched EnTrain, an
initiative to provide access, education and
technology for groups underrepresented
across all sectors. EnTrain set the ambitious
target to positively impact one million
people through increased diversity in
technology by the end of the decade.
This builds on our partnerships with
organisations such as Girls Who Code,
ƢķėɇļŝƢėƎŝëƢļŨŝëŒɆŝŨŝȯƋƎŨǘƢɆĈŨĐLjɆǂŨƎŏļŝİɆ
to close the gender gap in technology and
ƎėĐėǘŝėɆƢķėɆļśëİėɆŨįɆǂķëƢɆëɆƋƎŨİƎëśśėƎɆ
does; and The Tech Girls Movement
Foundation, the Australian based
foundation which is challenging gender
stereotypes to increase female participation
in STEM industries. The Entain Foundation
is looking to build on these partnerships
throughout 2022.
The Entain Foundation has also continued
to invest in grassroots sports through its
Pitching In programme and partnered
with the Pitching In Trident Leagues
ĉŨŝƢëļŝļŝİɆǥǧǨɆĉŒƪĈƖɆëŝĐɆŨǁėƎɆǤǨȚǣǣǣɆ
community based non-league football
players. In addition to funding the running
of the leagues, the Foundation is also
the Founding partner in the Trident
Community Fund, which enables clubs
to run community engagement projects.
In 2021 we also extended our long-term
collaboration with SportsAid, the UK
based sports charity, through which we
sponsor and provide personal development
coaching to 50 young athletes each
year. We are also internationalising
our investment in grassroots sport and
are backing projects in Italy, Greece
and Colombia.
In Canada, since our recent acquisition of
Avid Gaming and its Sports Interaction
brand, Entain are delighted that our new
unique relationship allows us to support
the socioeconomic efforts of the Mohawks
of Kahnawà:ke through our Mohawk
Online agreement.
Jette Nygaard-Andersen
ķļėįɆ,LJėĉƪƢļǁėɆ{įǘĉėƎ
3 March 2022
19
Overview
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Strategic report
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Governance
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Financial statements
Entain plc
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Annual Report 2021
Our strategic framework
The world leader in betting, gaming
and interactive entertainment
2021 priorities 2021 progress
Growth
1 – Leadership in North America
Clear ambition to be the leading operator in the North American
sports betting and iGaming market through BetMGM.
Now the second biggest US operator, BetMGM
achieved a 23% market share in the markets which it
operates in, in the fourth quarter, in line with our long-
term objective of 20% to 25.
2 – Grow our core markets
Continue to grow rapidly in the 31 territories
in which we already operate.
We have now delivered nine years
ŨįɆĐŨƪĈŒėȯĐļİļƢɆİƎŨǂƢķɆļŝɆŨŝŒļŝėɆpE¡ɆǂļƢķɆëɆ
two-year compound annual growth rate of 20%cc.
3 – Expanding into new markets
©ļİŝļǘĉëŝƢɆŨƋƋŨƎƢƪŝļƢļėƖɆėLJļƖƢɆįŨƎɆėLJƋëŝĐɆļŝƢŨɆŝėǂɆƎėİƪŒëƢėĐɆ
markets through organic opportunities as well as M&A.
Completed acquisitions of Enlabs in the Baltics, Bet.pt
in Portugal, Impala to drive access across Africa and
Unikrn to take us into the esports wagering market.
4 – Engaging and attracting new audiences
Entain will be at the forefront of leveraging opportunities
created as new technology-enabled forms of entertainment
continuously evolve.
Broadened focus to new areas of gaming
entertainment, exploring new partnerships
and opportunities.
Sustainability
5 – Focus on regulated markets
All revenues to derive from regulated markets by end of 2023.
In 2021 nearly 100% of our revenue derived
from nationally regulated or regulating markets.
6 – Lead on responsibility
Our technology enables us to continuously upgrade and
personalise our protections for customers.
¶Ǝļ댌ėĐɆŨƪƎɆĐǁëŝĉėĐɆ¡ėƖƋŨŝƖļĈļŒļƢLjɆʁɆëƎėʆɆ
ȩȹ¡ʆȺȪɆƋƎŨİƎëśśėɆƢŨɆƪƖėɆƢėĉķŝŨŒŨİLjɆƢŨɆ
proactively intervene to prevent betting and gaming
related harm developing. Establish appropriate safer
betting and gaming metric to link remuneration with
safer betting and gaming practices.
7 – Best in class standards of corporate governance
Ensuring the highest standards in all areas of our operations.
©ƢƎėŝİƢķėŝėĐɆëŝĐɆĐļǁėƎƖļǘėĐɆŨƪƎɆŨëƎĐɆëŝĐɆ
governance practices under Chairman
ëƎƎLjɆEļĈƖŨŝșɆƋƋŨļŝƢėĐɆ¡ŨĈėƎƢɆLŨƖŏļŝɆëƖɆ
ķļėįɇEŨǁėƎŝëŝĉėɆ{įǘĉėƎș
8 – Best place to work and investing in our
people and communities
Ensure Entain is the best place to work while contributing
to communities where we are based and operate.
In line with its with its commitment to donate £100m
ƢŨɆİŨŨĐɆĉëƪƖėƖɆŨǁėƎɆǘǁėɆLjėëƎƖȚɆƢķėɆ,ŝƢëļŝɆDŨƪŝĐëƢļŨŝɆ
invested in research, education and treatment of
problem gambling; its grassroots sports investment
fund; and launched EnTrain, its diversity through
technology programme.
Our vision
Entain plc
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Annual Report 2021
20
Strategic report
Bring moments of excitement
into people’s lives
Priorities for 2022 KPIs Risks Remuneration
Enter new states as they
regulate with market
leading customer offer.
Continue to innovate in
existing markets focusing
on product, brands and
marketing.
Identify new opportunities
in the 50 regulated
markets where we do not
currently operate.
Deliver new customer
propositions outside of our
traditional product offer.
Market access
150m
people
NGR growth
+13%cc
Online net gaming revenue
£3,067m
Underlying EBITDA
£881.7m
Technology failure.
Loss of key locations.
Trading, liability and
pricing management.
Increased cost of product.
Executive annual bonus
ëƎėɇŒļŝŏėĐɆƢŨɆ{ƋėƎëƢļŝİɆ
ƎŨǘƢȚɆ{ŝŒļŝėɆpE¡ɆİƎŨǂƢķɆ
and safer betting and
gaming targets and
customer metrics.
Work with authorities in
ƎėśëļŝļŝİɆśëƎŏėƢƖɆƢŨɆǘŝĐɆ
ëɇƋëƢķɆƢŨɆƎėİƪŒëƢļŨŝșɆ
ŨŝƢļŝƪėɆƎŨŒŒȯŨƪƢɆŨįɆ¡ʆɆ
and increase investment
in all areas of research,
education and treatment
of problematic behaviour.
Continuation of safer
betting and gaming metric
to make-up 15% of 2022
bonus payments for all
ŨįǘĉėɆĈëƖėĐɆėśƋŒŨLjėėƖș
Continue to diversify Board
and evolve governance
best practice.
¡ŨŒŒȯŨƪƢɆDŨƪŝĐëƢļŨŝɆ
investment programmes in
more international markets.
Contribution to safer betting
and gaming initiatives
£12.9m
Employee satisfaction with
approach to wellbeing
87%
Target set for carbon Net
Zero throughout operations
2035
Commitment to Entain
DŨƪŝĐëƢļŨŝɆŨǁėƎɆǘǁėɆLjėëƎƖ
£100m
Ensuring health, safety and
wellbeing of our people.
Ability to recruit and
retain employees.
Data breach and
cybersecurity.
Changes in betting and
gaming legislation.
Changes in betting and
gaming tax regimes.
Continued impact of
Covid-19.
DƪƎŒŨƪİķėĐɆĉŨŒŒėëİƪėƖɆ
received 100% of salary.
Safer betting and gaming
metric for 2021 bonus
schemes implemented.
Achieved On target Not achieved
¡ėëĐɆśŨƎėțɆ
pages 79–85
¡ėëĐɆśŨƎėțɆ
pages 40–65
¡ėëĐɆśŨƎėțɆ
pages 116–140
Key:
Our purpose
21 Overview
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Strategic report
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Governance
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Financial statements
Entain plc
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Annual Report 2021
Bring moments
of excitement into
people’s lives
1. Our purpose
LŨǂɆǂėɆĉƎėëƢėɆǁëŒƪė
Growth
We are focused on a range of
exciting growth opportunities
ƢķëƢɆǂļŒŒɆƖļİŝļǘĉëŝƢŒLjɆļŝĉƎėëƖėɆ
the value of the Group.
Sustainability
We believe the most
sustainable business will be
the most successful business.
3. Our strategy
¡ėëĐɆśŨƎėțɆ
pages 20 to 21
2. Our platform
People and Talent
Content Creation and Products
Global Scale and
Brand Awareness
Marketing Excellence
Proprietary Technology
Ɇ nʁɆëŝĐɆQŝƢėİƎëƢļŨŝɆ¶ƎëĉŏɆ¡ėĉŨƎĐ
Ɇ ƪƖƢŨśėƎɆ¡ėŒëƢļŨŝƖķļƋƖɆëŝĐɆ$ëƢë
ɆɆ¡ėİƪŒëƢŨƎLjɆ,LJƋėƎƢļƖėɆ
ëŝĐɆ¡ėƖƋŨŝƖļĈļŒļty
The Entain Platform
provides us with unique
competitive advantages
to provide customers
with a great experience
and to deliver on our
strategy
Understanding and responding to
customers’ needs, particularly as they
ėǁŨŒǁėȚɆėŝëĈŒėƖɆƪƖɆƢŨɆĈėŝėǘƢɆįƎŨśɆ
ƋŨǂėƎįƪŒɆǙLjǂķėėŒɆėįįėĉƢƖɆƢķëƢȚɆļŝɆ
turn, broadens our customer reach,
increases engagement and loyalty,
grows revenues and drives down
acquisition costs.
4. Delivering a differentiated
customer experience
Expanded
interactive
entertainment
experience
Great
experience in
real money
gaming
Enhanced
content and
media
experience
The Entain
platform
Entain plc
|
Annual Report 2021
22
Strategic report
Customers
Best betting and gaming experience
We are focused on delivering our customers
the most exciting and trusted entertainment.
Online performance
+19% pE¡ɆE¡ɆǥǣǤǬȱǥǣǥǤ
ȩɣǥǣɼĉĉȪ
Our people
Great place to work
In a global ‘Your Voice’ survey 87% of respondents
reported that they felt Entain genuinely cared
about our people.
Satisfaction
87%
Communities
Community activity
We actively support the communities in
which we operate.
Entain Foundation
£100m
ĉŨśśļƢƢėĐɆŨǁėƎɆǘǁėɆLjėëƎƖ
Investors
Positive returns
Everything we do is ultimately focused
on delivering value to our shareholders.
Underlying EBITDA
£881.7m +5%
ǥǣǥǣțɆɞǫǧǦșǤś
Dividends
¡ėĉŨİŝļƖļŝİɆƢķėɆļśƋŨƎƢëŝĉėɆŨįɆĐļǁļĐėŝĐƖɆƢŨɆ
shareholders alongside our capital allocation
priorities in support the Group’s growth strategy,
ƢķėɇŨëƎĐɆĉŨŝƢļŝƪėɆƢŨɆŏėėƋɆƢķėɆƎėĉŨśśėŝĉėśėŝƢɆ
ŨįɇƢķėɆƋëLjśėŝƢɆŨįɆĐļǁļĐėŝĐƖɆƪŝĐėƎɆŨŝİŨļŝİɆƎėǁļėǂș
6. Our stakeholder outcomes
¡ėëĐɆśŨƎėțɆ
pages 66 to 76
Create moments of excitement
Personalised offers.
Effective marketing.
Omni-channel approach.
Great customer experience.
Grow our business
Gain market share.
Maximise US opportunity.
Enter new markets.
Innovate for new audiences.
Strengthen the quality
of our earnings
Diversify geographic and product mix.
Broaden our customer base.
Ɇ DŨĉƪƖɆŨŝɆƎėİƪŒëƢėĐɆśëƎŏėƢƖș
Ɇ $ėŒļǁėƎɆƖĉëŒėɆėįǘĉļėŝĉļėƖș
Ensure sustainability
Be a great place to work.
Ɇ $ėŒļǁėƎɆ¡ʆș
Protect the environment.
Support our communities.
5. How we add value
¡ėëĐɆśŨƎėțɆ
pages 40 to 65
¡ėëĐɆśŨƎėțɆ
pages 13 to 18
¡ėëĐɆśŨƎėțɆ
pages 13 to 16
¡ėëĐɆśŨƎėțɆ
pages 24 to 25
23 Overview
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Strategic report
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Governance
|
Financial statements
Entain plc
|
Annual Report 2021
enter
be
Entain plc
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ɆŝŝƪëŒɆ¡ėƋŨƎƢɆǥǣǥǤ
Our strategy in action
We are constantly working to provide a richer and
more engaging experience for our customers. At
the product level this means a continuous process
of optimising our sites, apps and games to create
the smoothest, most enjoyable experience.
Free-to-play
We have a built a hugely popular free-to-play
portfolio that provides great entertainment at
no cost to the customer. In Australia our Neds
brand has introduced a live trivia quiz which takes
place while sports are in play. At Coral we have
a fully featured free arcade where customers can
ǂļŝɆƋƎļǒėƖȚɆǂķļŒėɆdëĐĈƎŨŏėƖɆŨįįėƎƖɆǤȯǥȯDƎėėȚɆëɆ
prediction game offering free bets. In the UK, our
six free-to-play games are enjoyed by 700,000
customers a week, many of whom go on to enjoy
our real money offer.
Explore more in our
ŨŝŒļŝėɆëŝŝƪëŒɆƎėƋŨƎƢțɆ
www.entaingroup.com/2021annualreport
m
ore in our
ŝƪëŒ ƎėƋŨƎƢț
ŝƪëŒ
Ɇ
ƎėƋŨƎƢț
Ɇ
t
i
/
20
21
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ɆŝŝƪëŒɆ¡ėƋŨƎƢɆǥǣǥǤ
24 Strategic report
tained
Entain plc
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ɆŝŝƪëŒɆ¡ėƋŨƎƢɆǥǣǥǤ
esports
With our acquisition of Unikrn in August 2021, we
got serious about esports. Boasting an audience
ŨįɆŨǁėƎɆǧǨǣɆśļŒŒļŨŝɆǁļėǂėƎƖɆëŝŝƪ댌LjȚɆƢķėɆƖėĉƢŨƎɆ
ļƖɆśŨƎėɆƋŨƋƪŒëƎɆǂļƢķɆǁļėǂėƎƖɆƢķëŝɆƢķėɆpDdȚɆpɆ
or NLB. The global esports betting market is
projected to be valued at $12bn by 2025. We are
developing a dynamic new offer which will enable
customers to bet against each other on their
own performance, in either casual, skill-based
games or in the massively popular blockbusters
titles such as League of Legends and Counter
Strike. The Group is also building an esports book
where bets can be placed on professional esports
athletes. The experience will be surrounded with
rich media and social integrations.
McLaren F1
In 2021 our partypoker and PartyCasino brands
ƢėëśėĐȯƪƋɆǂļƢķɆnĉdëƎėŝɆ¡ëĉļŝİșɆDėëƢƪƎļŝİɆƢķėɆ
Party brands on two of the fastest cars in
DŨƎśƪŒëɆǤɆǂëƖɆŨŝŒLjɆƢķėɆĈėİļŝŝļŝİɆŨįɆƢķėɆƖƢŨƎLjșɆ
Working with the McLaren team, we took fans
behind the pit wall with the See the Unseen video
ƖėƎļėƖɆļŝɆǂķļĉķɆĐƎļǁėƎɆ$ëŝļėŒɆ¡ļĉĉļëƎĐŨɆİëǁėɆķļƖɆ
ƪŝļƍƪėɆļŝƖļİķƢƖɆļŝƢŨɆƢķėɆǂŨƎŒĐɆŨįɆDǤșɆ¶ķėɆƖėƎļėƖɆ
proved a massive hit, having been viewed
ŨǁėƎɆǧǣȚǣǣǣɆƢļśėƖșɆ©ėėɆƢķėɆ½ŝƖėėŝɆǂëƖɆƋëƎƢɆ
of a broader McLaren Access content package
that included rich media and money-can’t-buy
competition prizes.
Against the Odds
2021 was also the year that Coral turned
documentary maker, creating Against the Odds,
a groundbreaking series of 10 full-length sporting
documentaries broadcast on primetime television
ĈLjɆQ¶ÔșɆDėëƢƪƎļŝİɆƢķėɆƪŝļƍƪėɆƖƢŨƎļėƖɆŨįɆ$ëŝļƖķɆ
international goalkeeper Kasper Schmeichel,
ƢƎëļŒĈŒëǒļŝİɆįėśëŒėɆǙëƢɆŌŨĉŏėLjɆLŨŒŒļėɆ$ŨLjŒėɆëŝĐɆ
darts world champion Gerwyn Price, the series
captures some of the most inspiring stories
in sport. Backed by social media campaigns,
Against the Odds, which runs until July 2022, is
enabling Coral to engage with customers in a
more thought-provoking way.
25
Entain plc
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ɆŝŝƪëŒɆ¡ėƋŨƎƢɆǥǣǥǤ
Overview | Strategic report | Governance | DļŝëŝĉļëŒɆƖƢëƢėśėŝƢƖ
new
experie
Our strategy in action continued
Entain plc
|
ɆŝŝƪëŒɆ¡ėƋŨƎƢɆǥǣǥǤ
VR Arcades
Through Ennovate, we are taking the immersive
Ô¡ɆėLJƋėƎļėŝĉėɆƢŨɆĉƪƖƢŨśėƎƖɆŨŝɆƢķėɆķļİķɆƖƢƎėėƢȚɆ
converting two of our betting shops into new
Ô¡ɆƎėƢëļŒɆėLJƋėƎļėŝĉėɆǒŨŝėƖșɆŨŝƖƪśėƎƖɆǂļŒŒɆ
soon be able to try out ground-breaking new
experiences in immersive sports and interactive
ėŝƢėƎƢëļŝśėŝƢɆįŨƎɆƢķėśƖėŒǁėƖșɆ{ƪƎɆǘƎƖƢɆÔ¡Ɇ
arcades are expected to open in 2022.
While we enrich the betting and gaming
experiences on our core products to entertain
our customers in the present, we are also looking
to the future, expanding our horizons to develop
new cutting-edge products which will thrill our
customers tomorrow and beyond. In January
2022 we announced the launch of Ennovate, our
global innovation hub, with a brand-new London-
based lab, backed by £100m of funding.
Entain plc
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Annual Report 2021
26 Strategic report
nces
Entain plc
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ɆŝŝƪëŒɆ¡ėƋŨƎƢɆǥǣǥǤ
Virtual Sports Club
Soon to launch, we have developed a brand-new
ĉŨŝĉėƋƢɆįŨƎɆƖŨĉļëŒļƖļŝİɆëƎŨƪŝĐɆƖƋŨƎƢɆȱɆƢķėɆǁļƎƢƪëŒɆ
sports club. Utilising the world’s most popular
Ô¡ɆķėëĐƖėƢƖɆƢķėɆ{ĉƪŒƪƖɆƪėƖƢɆǥȚɆĉƪƖƢŨśėƎƖɆǂļŒŒɆ
be able to meet and hang out with each other
in a virtual environment. There they will be able
to chat, play games against each other, watch
ĈƎŨëĐĉëƖƢɆƍƪëŒļƢLjɆŒļǁėȯƖƢƎėëśėĐɆƖƋŨƎƢļŝİɆǘLJƢƪƎėƖɆ
and even place a bet.
NFTs
pD¶ƖɆŨƎɆpŨŝȯįƪŝİļĈŒėɆƢŨŏėŝƖȚɆëƎėɆƪŝļƍƪėɆĐļİļƢëŒɆ
collectible assets which have rapidly exploded
in popularity over the past year. In partnership
ǂļƢķɆ¶ķėƢëɆdëĈƖȚɆǂėɆëƎėɆĐėǁėŒŨƋļŝİɆpD¶ƖɆƢŨɆ
enable our customers to own unique moments
ŨįɆĐļİļƢëŒɆķļƖƢŨƎLjșɆ{ƪƎɆǘƎƖƢɆpD¶ƖɆįƎŨśɆƋëƎƢLjƋŨŏėƎɆ
will showcase some of the most iconic moments
and tournament hands in the history of poker,
while others will feature PokerApes, a series of
ķļİķȯĐėǘŝļƢļŨŝɆļśëİėƖɆǂļƢķɆëɆƋëƎƢLjƋŨŏėƎɆƢǂļƖƢȚɆ
featuring full 3D artwork.
27
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Overview | Strategic report | Governance | Financial statements
Our strategy in action continued
Entain plc
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ɆŝŝƪëŒɆ¡ėƋŨƎƢɆǥǣǥǤ
As we entertain our customers, our number one
priority remains ensuring they can play safely
and within their means. Through our award-
winning Changing for the Bettor safer betting and
gaming programme, we take a holistic approach
to protecting the customers, investing millions into
research, education and treatment.
prot
player
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ɆŝŝƪëŒɆ¡ėƋŨƎƢɆǥǣǥǤ
ARC™
QŝɆǥǣǥǤɆǂėɆļŝƢƎŨĐƪĉėĐɆ¡ʆ ȱɆĐǁëŝĉėĐɆ¡ėƖƋŨŝƖļĈļŒļƢLjɆëŝĐɆëƎėʆɆ
ȱɆǂķļĉķɆƢëŏėƖɆëɆƢėĉķŝŨŒŨİLjȯŒėĐɆļŝƢėŒŒļİėŝƢɆëƋƋƎŨëĉķɆƢŨɆƎļƖŏɆƎėĐƪĉƢļŨŝșɆ
½ƖļŝİɆƎėǁŨŒƪƢļŨŝëƎLjɆQɆƢėĉķŝŨŒŨİLjȚɆ¡ʆ
operates in real-time, and
crucially, it is individually tailored for each customer. It is built on a
foundation of academic research and will always be working invisibly in the
background stepping in when needed.
¡ʆ
employs sophisticated algorithms, utilising 26 different markers of
protection to identify signs of risk and when needed steps in to interact
with the customer, modify the operation of games such as limiting stakes or
slowing down play and suppressing marketing activity.
Our initial trials have been very encouraging, with results showing a risk
assessment accuracy of over 80%, a 120% uplift in the use of safer gambling
tools by those most at risk and a 30% overall reduction in customers
increasing their risk levels.
ÕėɆĉŨŝƢļŝƪėɆƢŨɆƎėǘŝėɆ¡ʆ
, as the programme continuously improves
ƢķƎŨƪİķɆśëĉķļŝėȯŒėëƎŝļŝİșɆLëǁļŝİɆĈėėŝɆļŝļƢļ댌LjɆƢƎļ댌ėĐɆļŝɆƢķėɆ½bȚɆƢķėɆ
programme is now being rolled-out internationally.
¡ėëĐɆśŨƎėț pages 46 to 47
HUMAN INTERVENTION
GAME MODIFICATION
COMMUNICATION
CUSTOMER TOOLS
POP-UPS
MARKETING SUPPRESSION
INTERVENE AND
CONTINUE TO MONITOR
IDENTIFY AND
ASSESS RISK
ection
29
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the
right
Our strategy in action continued
Entain plc
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ɆŝŝƪëŒɆ¡ėƋŨƎƢɆǥǣǥǤ
Pitching In
Sport is in our DNA at Entain and we are focused
on providing support at the grassroots level,
where it is most needed. In the UK we operate
ƢǂŨɆǙëİƖķļƋɆƋƎŨŌėĉƢƖȚɆƋëƎƢŝėƎļŝİɆǂļƢķɆ©ƋŨƎƢƖļĐȚɆ
ƢŨɆƋƎŨǁļĐėɆLjŨƪŝİɆëƢķŒėƢėƖɆǂļƢķɆƢķėļƎɆǘƎƖƢɆėLJƢėƎŝëŒɆ
funding and personal development training and
the Pitching In Trident Leagues, made up of
ǥǧǨɆĉŒƪĈƖɆëƢɆƢķėɆķėëƎƢɆŨįɆŝŨŝȯŒėëİƪėɆįŨŨƢĈ댌șɆ
QŝɆEƎėėĉėɆǂėɆƎƪŝɆŨƪƎɆ¶ėëśɆDƪƢƪƎėɆƋƎŨİƎëśśėȚɆ
supporting the next generation of Greek athletes
to reach their potential, with six bwin sponsored
athletes featuring at the Tokyo Olympics.
Elsewhere we are backing community football
projects in countries including Italy, Germany
and Colombia.
¡ėëĐɆśŨƎėț page 61
As a major international business, we embrace our responsibility
to make a positive contribution to the societies and communities
ļŝɆǂķļĉķɆǂėɆŨƋėƎëƢėɆȱɆļƢȼƖɆǂķëƢɆŨƪƎɆĉƪƖƢŨśėƎƖɆëŝĐɆĉŨŒŒėëİƪėƖɆ
rightly expect of us. Our Sustainability Charter is at the heart of
our business and sets out our commitment to operate exclusively
in regulated or regulating markets, to lead on responsible
gambling, pursue the highest standards in corporate governance
and invest in our people and our communities.
Net Zero
We have taken an industry leading role on
the environment, by formally committing to
reach net zero for carbon emissions by 2035,
15 years ahead of the target set at the Paris
Agreement. To deliver on this we are working
with the Carbon Trust to develop our carbon
reduction plan before submitting it to the Science
Based Target Initiative. We are also working
with an independent third-party to plant a one
million tree Entain forest to capture carbon from
the environment.
¡ėëĐɆśŨƎėțɆpages 63 to 65
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Annual Report 2021
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thing
Entain plc
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ɆŝŝƪëŒɆ¡ėƋŨƎƢɆǥǣǥǤ
Chance for Childhood
At the community level one of our
largest projects has been supporting
Chance for Childhood, the award-
winning charity working in Africa to
help the most vulnerable children.
In partnership with them we are
working to break the vicious cycle
of poverty and exclusion through
an approach tailored to the unique
needs of each child. With this support
įƎŨśɆƢķėɆ,ŝƢëļŝɆDŨƪŝĐëƢļŨŝȚɆļŝɆǥǣǥǤɆ
Chance for Children supported
ǪǤǧɆśëƎİļŝëŒļƖėĐɆǂŨśėŝȚɆĉķļŒĐƎėŝɆ
and families.
EnTrain
ƢɆ,ŝƢëļŝț©ƪƖƢëļŝɆǂėɆŒëƪŝĉķėĐɆ
EnTrain, a global programme to
promote increased access to, and
diversity within, technology. We set
a bold ambitious target for EnTrain
to positively impact the lives of one
śļŒŒļŨŝɆƋėŨƋŒėɆëƎŨƪŝĐɆƢķėɆǂŨƎŒĐɆȱɆėļƢķėƎɆ
directly or through their families and
ĐėƋėŝĐëŝƢƖɆȱɆĈLjɆǥǣǦǣșɆÕŨƎŏļŝİɆǂļƢķɆ
ŝŨŝȯƋƎŨǘƢɆƋëƎƢŝėƎƖɆƖƪĉķɆëƖɆEļƎŒƖɆÕķŨɆ
Code and the Tech Girls Movement
DŨƪŝĐëƢļŨŝȚɆǂėɆëƎėɆĐėŒļǁėƎļŝİɆ
programmes to inspire, educate
and equip young women with the
technology and IT skills to help them
take leading roles in STEM industries
ļŝɆƢķėɆįƪƢƪƎėșɆ,ŝ¶ƎëļŝɆėŝĉŨśƋëƖƖėƖțɆ
the Entain Academy to develop tech
skills; scholarships to provide academic
learning; and apprenticeships to
provide in-job training.
¡ėëĐɆśŨƎėțɆpages 61 to 62
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2017
£38.4bn
2012 £22.0bn
2018
£43.4bn
2013
£24.0bn
2019
£48.7bn
2014
£27.2bn
2020 £60.1bn
2015 £30.3bn
2021E £74.5bn
2016
£34.0bn
The industry in which we operate
Online Europe
Geographically, the combined Online UK
ëŝĐɆ,ƪƎŨƋėëŝɆśëƎŏėƢɆƎėƋƎėƖėŝƢƖɆǧǪɼɆŨįɆ
the total online gaming market in 2021,
with year-on-year growth of 18% and 20%
ƎėƖƋėĉƢļǁėŒLjșɆ,ŝƢëļŝȼƖɆ{ŝŒļŝėɆƋƎŨįŨƎśëɆpE¡Ɇ
in Europe represents over 70% of total
EƎŨƪƋɆ{ŝŒļŝėɆpE¡ɆļŝɆǥǣǥǤș
The next largest market is the unregulated
Asian market (where Entain does not
ŨƋėƎëƢėȪɆǂķļĉķɆƎėƋƎėƖėŝƢƖɆǥǫɼɆŨįɆƢķėɆ
global total, followed by North America
ȩǤǨɼȪȚɆ{ĉėëŝļëɆȩǪɼȪȚɆdëƢļŝɆśėƎļĉëɆ
ȩǥɼȪȚɆëŝĐɆįƎļĉëɆȩǤɼȪșɆ,ŝƢëļŝɆëŒƖŨɆķëƖɆ
online operations in Australia, Brazil,
ëŝĐɇpŨƎƢķɆśėƎļĉëș
Global Online Growth
Entain operates in the global online gaming
market, which is estimated to be worth
c£75bn in 2021. Over the past 10 years
ƢķėɆśëƎŏėƢɆİƎėǂɆëƢɆǤǧɼɆE¡ɆëŝĐɆİƎŨǂƢķɆ
įƎŨśɆǥǣǥǣɆƢŨɆǥǣǥǤɆǂëƖɆǥǧɼȚɆĐƎļǁėŝɆĈLjɆ
channel shift from pandemic enforced retail
closures and the increasing number of US
states legalising online gaming.
14%
The global online market
İƎėǂɆëƢɆǤǧɼɇE¡ɆŨǁėƎɆ
the last 10 years.
47%
UK and Europe represent half of the
global online gaming market in 2021.
1. UK 13%
2. Europe 34%
3. Asia / Middle East 28%
4. North America 15%
5. Oceania 7%
6. Latin America / Caribbean 2%
7. Africa 1%
1
2
3
4
5
6
7
©ŨƪƎĉėțɆ$ëƢëɆƋƎŨǁļĐėĐɆĈLjɆLǥɆEëśĈŒļŝİɆëƋļƢëŒȚɆ
ƪŝŒėƖƖɇŨƢķėƎǂļƖėɆļŝĐļĉëƢėĐș
Online Market by Product
Online growth has been driven by product
development, with the fastest growing
product areas, Betting and Casino, growing
at 29% and 23% vs. 2020 respectively.
Entain’s brands offer online betting, casino,
bingo, and poker; these products represent
87% of the total online gaming market
in 2021.
87%
Online betting, casino, bingo and poker
represented 87% of all online gambling
in 2021, with betting and casino
forecast to have grown 27% globally.
1. Betting 54%
2. Casino 27%
3. State lotteries 12%
4. Poker 4%
5. Bingo 2%
6. Skill / other gaming / 1%
commercial lotteries
1
2
3
4
56
Entain plc
|
Annual Report 2021
32
Strategic report
Total Market
©ļǒėɆȱɆɞĈŝ
Betting
Casino
Machines
Bingo
Lottery
UK 4.8 14% 11% 24% 3% ǧǫɼ
Italy 8.8 7% 1% ǧǦɼ 1% ǧǫɼ
¡{Q
0.5 29% 3% 36% 5% 28%
Belgium 0.8 8% 6% 25% 0% 61%
ȩ,ŝƢëļŝɆëƎėëƖɆŨįɆŨƋėƎëƢļŨŝƖɆëƎėɆķļİķŒļİķƢėĐȪ
>85%
Four operators account for over
ǫǨɼɇŨįɇ댌Ɇ½bɆĈėƢƢļŝİɆƖķŨƋƖș
11%
Online gaming is forecast to grow 11%
CAGR between 2021 and 2026, with
the US growing at 23%.
2022E
2023E
2024E
2025E
2026E
2021E
£bn
100
110
120
130
90
80
70
60
50
40
30
20
10
0
Global Online
UK Retail
(Betting & Gaming)
Italy Retail (Betting)
Belgium Retail (Betting)
ROI Retail (Betting)
Forecast
The Online gaming market is forecast
ƢŨɆİƎŨǂɆëƢɆǤǤɼɆE¡ɆŨǁėƎɆƢķėɆŝėLJƢɆǘǁėɆ
years driven by US regulation, product
innovation, mobile growth, and the
ƎėƢƪƎŝɆŨįɆ¡ėƢëļŒșɆ¶ķėɆ½©ɆİëśļŝİɆśëƎŏėƢɆ
is forecast to grow at 23% over the next
ǘǁėɆLjėëƎƖșɆ
½bɆ¡ėƢëļŒɆĈėƢƢļŝİɆëŝĐɆİëśļŝİɆļƖɆįŨƎėĉëƖƢɆ
ƢŨɆİƎŨǂɆëƢɆǥɼɆE¡ɆƋŨƖƢɆƢķėɆƋëŝĐėśļĉɆ
between 2023 to 2026. In our smaller
¡ėƢëļŒɆĈėƢƢļŝİɆĈƪƖļŝėƖƖėƖȚɆįŨƎėĉëƖƢėĐɆ
İƎŨǂƢķɆļŝɆQƢëŒLjȚɆėŒİļƪśɆëŝĐɆ¡{QɆļƖɆǙëƢɆ
ĈėƢǂėėŝɆǥǣǥǦɇƢŨɆǥǣǥǩșɆ
Retail
,ŝƢëļŝȼƖɆŏėLjɆ¡ėƢëļŒɆŨƋėƎëƢļŨŝƖɆëƎėɆļŝɆƢķėɆ½bȚɆ
QƢëŒLjȚɆėŒİļƪśȚɆëŝĐɆƢķėɆ¡ėƋƪĈŒļĉɆŨįɆQƎėŒëŝĐɆ
ȩ¡{QȪș
¶ķėɆ½bɆ¡ėƢëļŒɆśëƎŏėƢɆȩėLJĉŒƪĐļŝİɆŒŨƢƢėƎļėƖȪɆ
is estimated to be worth £2.5bn in 2021,
a small decline from £3.0bn in 2020
ëŝĐɆƖļİŝļǘĉëŝƢŒLjɆŒŨǂėƎɆƢķëŝɆƢķėɆɞǨșǣĈŝɆ
market in 2019. This decline is a direct
result of enforced shop closures due to
the pandemic.
,LJĉŒƪĐļŝİɆƢķėɆƋëŝĐėśļĉȚɆƢķėɆ½bɆ¡ėƢëļŒɆ
śëƎŏėƢɆķëƖɆƎėśëļŝėĐɆƎėŒëƢļǁėŒLjɆǙëƢɆŨǁėƎɆ
the past 10 years, with growth in machines
ŨįįƖėƢɆĈLjɆƢķėɆɞǥɆǥȯśëĉķļŝėɆȩDļLJėĐɆ{ĐĐƖɆ
ėƢƢļŝİɆ¶ėƎśļŝëŒƖȪɆƖƢëŏėɆŒļśļƢɆļśƋŒėśėŝƢėĐɆ
in April 2019 and the decline in betting
driven by online channel shift.
¶ķėɆ½bɆ¡ėƢëļŒɆĈėƢƢļŝİɆƖėĉƢŨƎɆļƖɆĐŨśļŝëƢėĐɆ
by four operators which account for over
85% of all betting shops. Entain is the
number one operator in the UK, operating
under the Ladbrokes and Coral brands.
¶ķėɆQƢëŒļëŝɆ¡ėƢëļŒɆĈėƢƢļŝİɆśëƎŏėƢɆļƖɆ
estimated to be worth £0.7bn in 2021, a
decline from £0.8bn in 2020 and £1.1bn in
2019, as enforced closures and restrictions
as a result of Covid-19 impact the market.
Entain operates via the Eurobet brand as
the third largest operator in the market for
over the counter sports betting in Italy.
¶ķėɆ¡{QɆëŝĐɆėŒİļƪśɆ¡ėƢëļŒɆĈėƢƢļŝİɆśëƎŏėƢƖɆ
are much smaller, estimated to be worth
£0.2bn and £0.1bn respectively in 2021.
,ŝƢëļŝɆŨƋėƎëƢėƖɆļŝɆėŒİļƪśɆëŝĐɆƢķėɆ¡{QɆ
via the Ladbrokes brand and is the largest
operator in Belgium and third largest in
ƢķėɆ¡{Qș
33 Overview
|
Strategic report
|
Governance
|
Financial statements
Entain plc
|
Annual Report 2021
¡ėİƪŒëƢŨƎLjɆ½ƋĐëƢė
Gaming is a truly global market and in 2021 the
Group held licences in 31 territories and jurisdictions.
By the end of 2023, we have committed to only
operate in regulated or regulating markets.
The UK
The UK Government’s review of the
2005 Gambling Act is ongoing, with the
promise of a white paper setting out its
conclusions sometime in 2022. We continue
to engage government actively in this
process, both directly and via our trade
body. It is our consistent view, based on the
experience we have with customers, that
it is more sensible to target interventions
on the small minority who may develop
gambling problems, than to penalise the
responsible majority. We therefore have
continued to develop and enhance our
ĐǁëŝĉėĐɆ¡ėƖƋŨŝƖļĈļŒļƢLjɆëŝĐɆëƎėʆɆ
ȩȹ¡ʆȺȪɆƋƎŨİƎëśśėȚɆǂķļĉķɆŨįįėƎƖɆƢëļŒŨƎėĐɆ
ļĐėŝƢļǘĉëƢļŨŝɆŨįɆĉƪƖƢŨśėƎƖɆǂķŨɆśëLjɆĈėɆëƢɆ
risk, as well as targeted interventions and
ļŝƢėƎëĉƢļŨŝƖșɆLŨǂėǁėƎȚɆǂėɆįƪŒŒLjɆƖƪƋƋŨƎƢɆ
sensible additional regulation where
ŌƪƖƢļǘėĐșɆÕėɆëƎėɆƋëƎƢļĉļƋëƢļŝİɆļŝɆëɆƢƎļëŒɆŨįɆ
an industry-wide database of those with
gambling problems and working to develop
a new industry ombudsman. Many of these
changes can be implemented without the
delay inherent in primary legislation and
would represent the most expedient path.
Germany
On 1 July 2021, the new German online
betting and gaming regulation (Interstate
¶ƎėëƢLjɆŨŝɆEëśĈŒļŝİȪɆĉëśėɆļŝƢŨɆėįįėĉƢșɆ
Additionally, the new Joint Gambling
ƪƢķŨƎļƢLjɆȩȹEEdȺȪɆļŝɆ©ëLJŨŝLjȯŝķëŒƢɆķëƖɆ
been established on 1 July but will not
be operational until 2023. With the new
regulation entering into force, operators
were able to apply for nationwide slots
and poker licences. As a result, the Group
submitted three slots and two poker licence
applications for its key German facing
brands at the end of August 2021. Due to
various delays on the side of the licensing
authority, no licences have been issued to
this day, but the Group still fully expects its
applications to be successful.
Unlike slots and poker, casino table games
will be regulated on a state-by-state, as
opposed to nationwide, basis. The states
may either create a monopoly or issue as
many licences as the state has land-based
casinos. By the end of 2021, only the states
ŨįɆ©ĉķŒėƖǂļİȯLŨŒƖƢėļŝɆëŝĐɆpŨƎƢķɆ¡ķļŝėȯ
Westphalia opted for a licensing system,
with the tendering process not yet released.
The Group has been taking steps towards
securing adequate market access for
these products.
DƪƎƢķėƎśŨƎėȚɆëɆŝėǂŒLjɆļśƋŒėśėŝƢėĐɆǨșǦɼɆ
stake tax on virtual slots came into effect on
1 July 2021. Entain has been taking steps
ƢŨɆǘŒėɆëɆĉŨśƋŒëļŝƢɆëİëļŝƖƢɆƢķļƖɆƖƢëŏėɆƢëLJɆëƢɆ
an EU Commission level as well as on an
administrative court level in Berlin.
United States
The sports betting regulatory activity
continues at pace in the United States.
Arizona, Louisiana, Maryland and South
Dakota are amongst the US states that
have regulated and launched their sport
betting markets in 2021 or early 2022.
Crucially, the state of New York opened
up its mobile sports betting market in
early January 2022. In addition, other US
states such as Massachusetts, Missouri
and Georgia continue their efforts to
regulate throughout 2022, with Ohio,
having adopted sports betting legislation,
launching its regulated sports betting
market no later than on 1 January 2023.
Indiana and Illinois continue to explore
potential expansion of their markets to
cover online casino. In light of the fact that
some 30 US states have already allowed
for sports betting in one form or another,
the Group remains of the view that in the
ĉŨśļŝİɆLjėëƎƖɆƖŨśėɆǦǨɆƢŨɆǧǣɆ½©ɆƖƢëƢėƖɆǂļŒŒɆ
have regulated sports-betting, which will
provide BetMGM, the Group’s US JV, with
even broader market access across the
country. The number of states that permit
online casino is also expected to grow.
Entain plc
|
Annual Report 2021
34
Strategic report
Ǥș ©ŨƪƎĉėțɆLǥɆEëśĈŒļŝİɆëƋļƢëŒɆȩļŝĉŒƪĐļŝİɆĈŨƢķɆƎėİƪŒëƢėĐɆ
ëŝĐɆŝŨŝȯƎėİƪŒëƢėĐɆEE¡Ȫș
2021 Global online gross
gaming revenue
In 2021 online global gross gaming revenue
ǂëƖɆėƖƢļśëƢėĐɆƢŨɆĈėɆǁëŒƪėĐɆëƢɆɞǪǧșǨĈŝ
1
.
Below are the largest 15 markets that
are either regulated or in the process
of regulating.
Other Europe
DŨŒŒŨǂļŝİɆëɆƖƪĐĐėŝɆĉķëŝİėɆļŝɆėŝįŨƎĉėśėŝƢɆ
policy by the Dutch authorities, Entain ceased
its offering to players in the Netherlands
on 1 October 2021. In December we were
able to submit our licence application and
are currently awaiting feedback from the
regulator. We hope to receive a licence
ŒëƢėƎɆļŝɆLǤɆƢķļƖɆLjėëƎɆëŝĐɆėŝƢėƎɆƢķėɆƎėİƪŒëƢėĐɆ
Dutch market.
In 2021, we were granted permanent
operating licences for our brands in Greece
and we also relaunched the bwin brand in
Portugal following our acquisition of bet.pt
earlier in the year.
dŨŨŏļŝİɆëķėëĐȚɆëɆŝėǂɆ¡ėƖƋŨŝƖļĈŒėɆEëśĈŒļŝİɆ
¡ŨLjëŒɆ$ėĉƎėėɆǂļŒŒɆĉŨśėɆļŝƢŨɆįŨƎĉėɆļŝɆ©ƋëļŝɆ
in July 2022 which will require us to make
adjustments to the way we interact with
certain customers. In Italy, the Government
is expected to announce gambling market
reforms later this year, including reconciling
national and local regulations; amendments
to licensing rules; and new measures to
tackle problem gambling. In Georgia, new
online casino regulations will come into force
in the Spring bringing new taxes, a ban on
advertising and increasing the minimum age
for gambling from 18 to 25.
In Sweden, the Government recently
announced that it would not reimpose
Covid-19 related deposit and bonusing limits,
instead opting to consolidate its efforts
into a new gambling regulation bill, which
will include provisions on B2B licences,
śëƎŏėƢļŝİɇƎėƖƢƎļĉƢļŨŝƖɆëŝĐɆśėëƖƪƎėƖɆƢŨɆ
tackle illegal gambling.
Elsewhere in Europe, we are still expecting
the Austrian Government to announce
reforms to its online casino market and, in the
meantime, continue to make the case for an
open EU compliant licensing regime.
Canada
The regulated Ontario online gambling
śëƎŏėƢɆǂļŒŒɆŒëƪŝĉķɆŨŝɆǧɆƋƎļŒɆǥǣǥǥșɆ
{ŝƢëƎļŨɆǂļŒŒɆķëǁėɆƢķƪƖɆĈėĉŨśėɆƢķėɆǘƎƖƢɆ
Canadian Province to allow for licensing
of private operators, with other Provinces
such as Alberta expected to follow in the
foreseeable future. The Ontario regulation
allows for sports betting, including single
sports wagering (following the removal
ŨįɆƢķėɆƋƎėǁļŨƪƖŒLjɆėLJļƖƢļŝİɆįėĐėƎëŒɆĈëŝȪɆ
betting on esports, as well as online
casino and poker. Entain has applied for
ëŝɇ{ŝƢëƎļŨɆŒļĉėŝĉėș
Latin America
¶ķėɆEƎŨƪƋɆǂëƖɆŨŝėɆŨįɆƢķėɆǘƎƖƢɆİŒŨĈëŒɆ
operators to obtain a Colombian online
betting and gaming licence in late 2020
and continues to deploy its Latin American
regulatory strategy. The Group expects that
the Brazilian sports betting market will be
ƎėİƪŒëƢėĐɆĈLjɆƢķėɆƢļśėɆŨįɆƢķėɆǥǣǥǥɆDŨŨƢĈ댌Ɇ
World Cup, with Entain entering the
regulated market at that time pursuant to
a domestic licence. In addition, the Chilean
government remains on track to have
regulated its online betting and gaming
market by the end of 2022.
¡ėëĐɆśŨƎėɆëĈŨƪƢɆŨƪƎɆėŝİëİėśėŝƢɆ
ǂļƢķɆƎėİƪŒëƢŨƎƖțɆpage 39
£9,068.25m
£7,966.21m
£2,650.65m
£3,279.02m
£2,785.22m
£4,764.39m
United Kingdom
United States
Germany
Italy
France
Australia
£1,523.77m
£1,856.32m
£1,164.84m
£840.29m
£702.90m
£945.32m
£822.82m
£774.55m
£733.58m
Sweden
Canada
Spain
Finland
Denmark
Greece
Netherlands
Poland
Ireland
35Overview
|
Strategic report
|
Governance
|
Financial statements
Entain plc
|
Annual Report 2021
The Board recognises the importance of effective governance and operates
in line with the UK reporting regulations. The information below should be
ƎėëĐɆļŝɆĉŨŝŌƪŝĉƢļŨŝɆǂļƢķɆƢķėɆƎėƖƢɆŨįɆƢķėɆ©ƢƎëƢėİļĉɆ¡ėƋŨƎƢș
Section 172 of the Companies Act 2006
imposes a general duty on Directors to act
in a way that they consider, in good faith,
to most likely promote the success of the
ŨśƋëŝLjɆįŨƎɆƢķėɆĈėŝėǘƢɆŨįɆƖķëƎėķŨŒĐėƎƖɆëƖɆ
a whole. The Directors in setting policies
and strategies continue to have regard to
the interests of the Group’s employees,
shareholders, investors, suppliers,
customers, regulators, including the impact
of its activities on the community and on the
Group’s reputation. These factors underpin
the way in which the Directors discharge
their duties and the Board is cognisant of
the need to foster strong relationships with
all stakeholders to help the Group deliver its
strategy and support its long-term values
including sustainability.
Our approach
The Board understands the importance
of effective engagement with all of its
stakeholders. Depending on the nature
of the issue in question, the relevance of
each stakeholder group may differ and
not every decision the Board makes will
necessarily result in a positive outcome for
every stakeholder.
The Board at each meeting ensures that the
process of considering its stakeholders is
embedded in papers it receives to enable it
to discharge its duties. The Board monitors
the progress and delivery of strategic
initiatives through metrics reported
in meetings.
QŝɆëĐĐļƢļŨŝȚɆƢķėɆ¡ėśƪŝėƎëƢļŨŝɆŨśśļƢƢėėɆ
assesses the overall performance of
the Group, including progress against
its responsible betting and gaming
ambitions as well as delivery against its
Environmental, Social and Governance
ȩȹ,©EȺȪɆƖƢƎëƢėİLjɆƢŨɆƖƪƋƋŨƎƢɆĐėĉļƖļŨŝɆśëŏļŝİɆ
on remuneration outcomes.
To ensure that the Group continues to
operate in line with good corporate practice,
Directors as part of their induction receive
training on the scope and application of
Section 172 to ensure that they are aware
of how a Board, in its decision making,
śƪƖƢɇĉŨŝƖļĐėƎɆļƢƖɆƖƢëŏėķŨŒĐėƎƖș
Engaging with stakeholders
Colleagues
While the Board’s ability to meet with colleagues in person was again limited in 2021
by Covid-19 related restrictions, Board members have taken part in virtual employee
events and heard colleagues around the Group giving their views on our strategy,
purpose and responsible betting and gaming commitments.
Virginia McDowell, Chair of the
ESG Committee, was appointed as
Designated Workforce Director in
2019. She has attended our Employee
DŨƎƪśƖɆȩƎėƋƎėƖėŝƢļŝİɆƎėƢëļŒɆëŝĐɆĈƪƖļŝėƖƖɆ
ĉŨŒŒėëİƪėƖȪɆëŝĐɆėŝİëİėĐɆļŝɆĐļƖĉƪƖƖļŨŝƖɆŨŝɆ
topics including protecting our customers
and how the Company has supported
colleagues during Covid-19. Our CEO,
Jette Nygaard-Andersen and Deputy CEO
ëŝĐɆD{ȚɆ¡ŨĈɆÕŨŨĐɆëŒƖŨɆëƢƢėŝĐėĐɆƢķėɆ
,śƋŒŨLjėėɆDŨƎƪśȚɆǂļƢķɆ`ėƢƢėɆëŝƖǂėƎļŝİɆ
questions from colleagues around the
EƎŨƪƋɆŨŝɆķėƎɆƋƎļŨƎļƢļėƖɆëŝĐɆƎėǙėĉƢļŨŝƖɆ
following her appointment.
We do not discriminate on the basis
of age, disability, gender or gender
reassignment, pregnancy or maternity,
race, religion or belief, sexual orientation
or marriage/civil partnership.
¡ėëĐɆśŨƎėțɆpages 57 to 59
Entain plc
|
Annual Report 2021
36
Strategic report
Customers
Our customers’ interests range from product availability, ethical behaviour, service,
ƋƎļĉļŝİɇëŝĐɆƋƎŨśŨƢļŝİɆƎėƖƋŨŝƖļĈŒėɆëƢƢļƢƪĐėƖɆƢŨɆĈėƢƢļŝİɆëŝĐɆİëśļŝİșɆ¶ķėɆEƎŨƪƋȚɆëƖɆ
part of its commitment to safer betting and gaming, engages through initiatives such
ëƖɆ¡ėƖƋŨŝƖļĈŒėɆEëśĈŒļŝİɆÕėėŏȚɆǂķėƎėɆƎėƖƋŨŝƖļĈŒėɆĈėƢƢļŝİɆëŝĐɆİëśļŝİɆśėƖƖëİėƖɆ
ĐŨśļŝëƢėĐɇŨƪƎɆǂėĈƖļƢėƖɆëŝĐɆƖŨĉļëŒɆśėĐļëɆĉķëŝŝėŒƖșɆ
In addition, the Group offers the Gamban software which blocks access to thousands of
betting and gaming sites. In early 2021, the Group commissioned independent research
to survey the views of the general public on betting and gaming related issues. We also
established ‘The Players’ Panel’ to provide consumers with a platform to voice their
opinions on issues relating to the regulation of betting and gaming in the UK.
¡ėëĐɆśŨƎėțɆpages 44 to 53
Shareholders
The Group’s investors and shareholders expect, and get, a comprehensive view of the
ǘŝëŝĉļëŒɆëŝĐɆƖƪƖƢëļŝëĈŒėɆƋėƎįŨƎśëŝĉėɆŨįɆƢķėɆĈƪƖļŝėƖƖɆëƖɆǂėŒŒɆëƖɆëɆĉŒėëƎɆĉŨśśļƢśėŝƢɆ
to, and delivery against ESG objectives. The Group undertakes regular conference
calls and meetings with investors through roadshows, investor conferences, one to one
ëŝĐɆİƎŨƪƋɆĉ댌ƖȚɆƋƪĈŒļĉëƢļŨŝɆŨįɆƢķėɆŝŝƪëŒɆ¡ėƋŨƎƢȚɆƋƎėƖƖɆƎėŒėëƖėƖɆëŝĐɆ©ƢŨĉŏɆ,LJĉķëŝİėɆ
announcements. In 2021, much of this activity was conducted virtually due to the
limitation imposed by Covid-19 restrictions. During the year the Group conducted a
ƢŨƢëŒɆŨįɆǪǧǪɆļŝǁėƖƢŨƎɆļŝƢėƎëĉƢļŨŝƖȚɆǂļƢķɆŨǁėƎɆǦǣǣɆƪŝļƍƪėɆļŝƖƢļƢƪƢļŨŝƖșɆ¶ķėƖėɆļŝƢėƎëĉƢļŨŝƖɆ
ļŝǁŨŒǁėĐɆëɆĉŨśĈļŝëƢļŨŝɆŨįɆƢķėɆ,{ȚɆD{ȚɆƢķėɆķëļƎśëŝȚɆƢķėɆķļėįɆQ¡ɆʁɆŨśśƪŝļĉëƢļŨŝƖɆ
{įǘĉėƎȚɆLėëĐɆŨįɆQ¡ɆëŝĐɆŨƢķėƎɆśëŝëİėśėŝƢɆëƖɆëƋƋƎŨƋƎļëƢėșɆ
In addition to these meetings, the Group
also held three shareholder events
ƢķƎŨƪİķŨƪƢɆƢķėɆLjėëƎșɆ¶ķėɆǘƎƖƢȚɆķėŒĐɆļŝɆƋƎļŒɆ
2021 provided a detailed update on the
Group’s BetMGM joint venture. This was
followed in August with a capital markets
day, updating on the Group’s strategic
direction and opportunities, while in
November, the Group held its inaugural
,ŝƢëļŝț©ƪƖƢëļŝɆƖƪƖƢëļŝëĈļŒļƢLjɆƖķŨǂĉëƖėȚɆ
with a comprehensive presentation on the
Group ESG and sustainability strategy.
The Board receives feedback on
shareholder views in different ways,
including through the Chairman and
executive management who meet
regularly with shareholders throughout
the year. In the past year the investor
relations team conducted two feedback
and audit exercises to better understand
investors views based on a number of
ƖëƢļƖįëĉƢļŨŝɆëŝĐɆĉŨŝǘĐėŝĉėɆśėëƖƪƎėƖɆ
ȱɆļŝĉŒƪĐļŝİɆƋėƎĉėƋƢļŨŝɆŨįɆƢķėɆEƎŨƪƋȼƖɆ
strategy, management and opportunities
as well as delivery versus expectations
and transparency.
The quantitative analysis and qualitative
feedback were presented to the Board
during the year. The audits showed
positive progress in investor engagement
through the year with Entain performing
more positively than the benchmark
in all measures. In addition, Board
members listen in to results and trading
updates held by the Group for analysts
and institutional investors and can hear
directly the questions and comments
on Company performance and are
ŏėƋƢɆëĈƎėëƖƢɆŨįɆƎėŒėǁëŝƢɆŝėǂƖǙŨǂɆëŝĐɆ
commentary on the Company throughout
the year.
¡ėëĐɆśŨƎėțɆpage 99
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Engaging with stakeholders continued
Suppliers
The Group works responsibly with its suppliers and regularly reviews its customer and
creditor payment policies. In 2021 we updated our Modern Slavery Statement to set out
the steps taken to prevent modern slavery in our business and various supply chains.
Our supplier interests range from fair trading, payment terms, success of the business
and long-term partnerships. The Group engages with suppliers by direct engagement,
supplier conferences and corporate responsibility and ethics reporting. The Board in its
duties receives regular reporting on retail performance and modern slavery.
¡ėëĐɆśŨƎėțɆpage 111
The Community
As set out in the Company’s Sustainability Charter, Entain is committed to supporting
ƢķėɆĉŨśśƪŝļƢļėƖɆļŝɆǂķļĉķɆļƢɆļƖɆĈëƖėĐɆëŝĐɆŨƋėƎëƢėƖșɆ¶ķƎŨƪİķɆƢķėɆ,ŝƢëļŝɆDŨƪŝĐëƢļŨŝȚɆƢķėɆ
EƎŨƪƋɆķëƖɆĉŨśśļƢƢėĐɆƢŨɆļŝǁėƖƢļŝİɆɞǤǣǣśɆŨǁėƎɆǘǁėɆLjėëƎƖɆŨŝɆëɆƎëŝİėɆŨįɆƋƎŨŌėĉƢƖɆëŝĐɆ
good causes including safer betting and gaming measures, investment in grassroots
sport, reducing environmental impact, diversity in technology and projects with a clear
link to our local communities.
ɆǙëİƖķļƋɆƋƎŨŌėĉƢɆŨįɆ,ŝƢëļŝɆDŨƪŝĐëƢļŨŝɆļƖɆ
the Group’s Pitching In grassroots sport
investment programme through which
ƢķėɆ,ŝƢëļŝɆDŨƪŝĐëƢļŨŝɆƖƪƋƋŨƎƢƖɆ¶ķėɆ
Trident Leagues in the UK, made up of
ǥǧǨɆĉŒƪĈƖɆëƢɆƢķėɆķėëƎƢɆŨįɆ,ŝİŒëŝĐȼƖɆŝŨŝȯ
league football pyramid. In November, the
Group announced its EnTrain initiative,
setting a target of positively impacting
one million lives through a range of
diversity in technology projects by the end
of the decade. The Company engages
through the publication of its ESG report
and employee-matched funding for
charity policy.
The Board has overall oversight of
corporate responsibility planning
and reporting as well as involvement
in corporate affairs strategy which
is delegated to the ESG Committee.
The ESG Committee is advised by the
executive ESG Steering Group and
also works with external consultants
which assist the operational units and
review the environmental and social
performance data.
¡ėëĐɆśŨƎėțɆpages 57 to 63
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Regulators
As a global operator and one of the world’s largest online betting and gaming companies,
Entain engages with a wide variety of stakeholders. These include regulators, investors,
trade associations, safer betting and gaming charities and customers. This engagement is
ĉŨƎėɆƢŨɆŨƪƎɆëĈļŒļƢLjɆƢŨɆŨįįėƎɆǘƎƖƢɆĉŒëƖƖɆƋŒëLjėƎɆƋƎŨƢėĉƢļŨŝɆƢķƎŨƪİķɆŨƪƎɆĉƪƢƢļŝİɆėĐİėɆƢėĉķŝŨŒŨİLjɆ
and product platform, while upholding all licensing objectives, across multiple jurisdictions.
One of the key relationships we maintain is with our regulators. Liaising with our regulators
on an open and regular basis helps us to ensure that each of them are fully apprised of our
operating practices. Through this process we can help policymakers shape our industry
environment to best serve our stakeholder group whilst operating in a legal and fair way.
Governments and regulators
UK Government departments.
UK Gambling Commission.
Governments and regulators
in territories where we hold
gaming licences.
US state licensing bodies.
National information commissioners.
Domestic and International
trade Associations.
What are their expectations?
Providing an enjoyable and
safe leisure experience.
Making sure we operate legally
and in a fair manner.
Minimising harm and maximising
player protection.
Ensuring that we protect the
young and the vulnerable.
Ɇ ¡ėĐƪĉļŝİɆĉƎļśėɆëŝĐɆ
unlawful behaviour.
How we engage
Ongoing dialogue with regulators,
domestic and international trade
associations and local authorities.
Ɇ ¡ėƖƋŨŝĐļŝİɆƢŨɆƢķėɆ½bɆEŨǁėƎŝśėŝƢȼƖɆ
¡ėǁļėǂɆŨįɆƢķėɆǥǣǣǨɆEëśĈŒļŝİɆĉƢș
Numerous face-to-face meetings
bilaterally or as part of industry meetings.
Ɇ ƪëƎƢėƎŒLjɆśėėƢļŝİƖȚɆëƢɆëɆśļŝļśƪśȚɆ
between the UK Gambling Commission
and senior members of Entain’s
leadership team.
Detailing governance, risk management
and safer betting and gaming
strategies through submission to the
UK Gambling Commission Annual
Assurance Statement process.
Ɇ ëƎƢŝėƎƖķļƋƖɆǂļƢķɆƢķėɆEɆLėëŒƢķɆʁɆ
Safety Executive.
Engagement with the Nevada Gaming
Commission’s Compliance Committee
Ɇ LŨƖƢļŝİɆëɆ©ëįėƎɆėƢƢļŝİɆëŝĐɆEëśļŝİɆ
¡ėƖėëƎĉķɆ©LjśƋŨƖļƪśɆǂļƢķɆļŝƢėƎŝëƢļŨŝëŒɆ
thought leaders, researchers
and academics.
Ɇ DŨƎśëŒɆśėėƢļŝİƖɆǂļƢķɆŨƪƎɆƎėİƪŒëƢŨƎƖɆļŝɆ
Gibraltar, Malta, the US and our other
global regulated jurisdictions.
Engage with the Department of Justice in
Ireland as it implements new Anti-Money
dëƪŝĐėƎļŝİɆȩȹndȺȪɆƎėƍƪļƎėśėŝƢƖș
Ɇ ¡ėƖƋŨŝĐɆƢŨɆįŨƎśëŒɆƎėİƪŒëƢŨƎLjɆ
consultations including most recently
the call for evidence on affordability
by the UK Gambling Commission and
¡EɇĉŨŝƖƪŒƢëƢļŨŝƖɆļŝɆ©ƋëļŝɆëŝĐɆ©ǂėĐėŝș
e-betting and gaming international
workshops in Spain, annual industry
meeting in Denmark and the ‘Licensing
information session’ in Germany.
Suspicious activity disclosed to relevant
national bodies and membership
ŨįɆŝëƢļŨŝëŒɆśëƢĉķȯǘLJļŝİɆƋŒëƢįŨƎśƖɆ
ȩėİɆ©ƋëļŝȪș
Engagement with regulatory authorities
in regulating markets via local
associations and advisors in the run up
ƢŨɆŒļĉėŝƖļŝİɆȩėİɆpėƢķėƎŒëŝĐƖȚɆƎëǒļŒȪș¡ėëĐɆśŨƎėțɆpages 34 to 35
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At Entain, we have proudly put sustainability on an equal footing to our growth
strategy. We embrace our role within society and want to take the lead on the
issues that matter to us – sustainability, diversity, and responsibility – with the
strongly held belief that the most sustainable business in our industry will be the
śŨƖƢɆƖƪĉĉėƖƖįƪŒșɆ¶ķļƖɆļƖɆƎėǙėĉƢėĐɆļŝɆŨƪƎɆ©ƪƖƢëļŝëĈļŒļƢLjɆķëƎƢėƎȚɆǂķļĉķɆŨƪƢŒļŝėƖɆŨƪƎɆ
,©EɆŒėëĐėƎƖķļƋɆëśĈļƢļŨŝƖɆëĉƎŨƖƖɆįŨƪƎɆƋļŒŒëƎƖș
Commitments:
Only operate in regulated
markets by the end of 2023
Commitments:
Take the lead on safer
betting and gaming
Commitments:
Best-in class
corporate governance
Commitments:
Best place to work
Net-zero greenhouse gas
ȩȹELEȺȪɆėśļƖƖļŨŝƖɆĈLjɆǥǣǦǨ
2021 highlights:
Nearly 100% of revenues
from regulated markets
Exited three markets
with no clear path to a
sustainable and safe
regulated betting and
gaming industry
2021 highlights:
ɆɆ©ƪĉĉėƖƖįƪŒɆƎŨŒŒȯŨƪƢɆŨįɆ
ŨƪƎɆƋļŨŝėėƎļŝİɆ¡ʆɆ
player protection
programme across all UK
online products
Increased UK contributions
ƢŨɆ¡,¶ɆƢŨɆǣșǨɼɆŨįɆEEÛ
2021 highlights:
Jette Nygaard-Andersen
ëƋƋŨļŝƢėĐɆëƖɆ,{ɆȱɆƢķėɆ
ǘƎƖƢɆįėśëŒėɆ,{ɆŨįɆëɆ
UK-listed betting and
gaming company
2021 highlights:
Launched Entrain
#1 in the All-In
Diversity Index
ɆɆǪɼɆƎėĐƪĉƢļŨŝɆŨįɆELEɆ
emissions from 2020, with
100% renewable energy in
the UK and ROI retail estate
Regulation
Responsibility
Corporate
Governance
People &
Communities
Long-term sustainability = Long-term success
©ƪƖƢëļŝëĈļŒļƢLj
Our commitment to
sustainability
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Strategic report
Governance for long-term success
,ŝǁļƎŨŝśėŝƢëŒȚɆ©ŨĉļëŒɆëŝĐɆEŨǁėƎŝëŝĉėɆȩȹ,©EȺȪɆļƖƖƪėƖɆŒėëĐėƎƖķļƋɆ
starts with strong governance. This is crucial to managing our non-
ǘŝëŝĉļëŒɆƎļƖŏƖɆëŝĐɆŨƋƋŨƎƢƪŝļƢļėƖɆėįįėĉƢļǁėŒLjɆëŝĐɆėįǘĉļėŝƢŒLjȚɆǂķļŒƖƢɆ
creating value for all our stakeholders. Our governance structure
is now fully embedded and has proved effective in managing
ƢķėɆļŝĉƎėëƖėĐɆƖĉëŒėȚɆĉŨśƋŒėLJļƢLjȚɆëŝĐɆėLJƋėĉƢëƢļŨŝƖɆŨįɆƢķėɆEƎŨƪƋșɆ
{ƪƎɆĈėƖƢȯļŝȯĉŒëƖƖɆEŨǁėƎŝëŝĉėɆļƖɆŨǁėƎƖėėŝɆĈLjɆ¡ŨĈėƎƢɆLŨƖŏļŝɆëƖɆŨƪƎɆ
ķļėįɆEŨǁėƎŝëŝĉėɆ{įǘĉėƎș
The ESG Committee
¶ķėɆŨëƎĐȯŒėǁėŒɆ,©EɆŨśśļƢƢėėɆķëƖɆƪŒƢļśëƢėɆƎėƖƋŨŝƖļĈļŒļƢLjɆįŨƎɆ
safer betting and gaming, regulatory compliance, anti-money
ŒëƪŝĐėƎļŝİɆȩȹndȺȪɆëŝĐɆĉŨƪŝƢėƎȯƢėƎƎŨƎļƖśɆǘŝëŝĉļŝİȚɆëŝƢļȯĈƎļĈėƎLjɆ
ʁɆĉŨƎƎƪƋƢļŨŝɆȩȹȺȪȚɆķėëŒƢķɆëŝĐɆƖëįėƢLjȚɆėŝǁļƎŨŝśėŝƢëŒɆļśƋëĉƢȚɆ
ĐëƢëɆƋƎŨƢėĉƢļŨŝɆëŝĐɆĐļǁėƎƖļƢLjɆļŝɆƢķėɆǂŨƎŏƋŒëĉėșɆķëļƎėĐɆĈLjɆÔļƎİļŝļëɆ
nĉ$ŨǂėŒŒɆŨŝėɆŨįɆŨƪƎɆpŨŝȯ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖȚɆƢķėɆŨśśļƢƢėėɆ
ķëƖɆįŨƪƎɆśėśĈėƎƖɆëŝĐɆİƪļĐėƖɆƢķėɆĈƪƖļŝėƖƖɆŨŝɆ댌ɆëƖƋėĉƢƖɆŨįɆ,©EɆ
strategy, sets targets and monitors our performance.
The ESG Steering Group
¶ķėɆ,©EɆ©ƢėėƎļŝİɆEƎŨƪƋɆǂķļĉķɆśėėƢƖɆŨŝɆëɆśŨŝƢķŒLjɆĈëƖļƖɆĉŨŝƖļƖƢƖɆ
of functional leaders from across the business, including Investor
¡ėŒëƢļŨŝƖȚɆLƪśëŝɆ¡ėƖŨƪƎĉėƖȚɆŨƎƋŨƎëƢėɆįįëļƎƖȚɆdėİëŒȚɆLėëŒƢķȚɆ
©ëįėƢLjɆʁɆ©ėĉƪƎļƢLjȚɆ{ƋėƎëƢļŨŝƖȚɆëŝĐɆŨśśƪŝļĉëƢļŨŝƖșɆŨŝǁėŝėĐɆĈLjɆ
ŨƪƎɆLėëĐɆŨįɆ,©EɆëŝĐɆķëļƎėĐɆĈLjɆŨƪƎɆķļėįɆEŨǁėƎŝëŝĉėɆ{įǘĉėƎȚɆƢķėɆ
EƎŨƪƋɆŨǁėƎƖėėƖɆƢķėɆļśƋŒėśėŝƢëƢļŨŝɆŨįɆŨƪƎɆƖƪƖƢëļŝëĈļŒļƢLjɆƖƢƎëƢėİLjș
ESG Committee
Strategy
ESG steering group Oversight
Co-ordination
DeliveryOperational teams
Operating units Central functions
Board
Our governance
structure is now
fully embedded and
has proved effective
in managing the
ļŝĉƎėëƖėĐɇƖĉëŒėȚɆ
complexity and
expectations of
ƢķėɇEƎŨƪƋșȺ
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Our performance across ESG ratings providers
ÕėȼƎėɆƋƎŨƪĐɆƢŨɆĈėɆëɆƖėĉƢŨƎɆŒėëĐėƎɆëśŨŝİƖƢɆśëŝLjɆŨįɆƢķėɆŒėëĐļŝİɆļŝĐėƋėŝĐėŝƢɆ,©EɆƎëƢļŝİƖɆƋƎŨǁļĐėƎƖșɆ¶ķėɆĈėŒŨǂɆƢëĈŒėɆƖƪśśëƎļƖėƖɆŨƪƎɆ
ƋėƎįŨƎśëŝĉėȚɆëŝĐɆļśƋƎŨǁėśėŝƢɆŨǁėƎɆƢļśėșɆÕėɆǂļŒŒɆĉŨŝƢļŝƪėɆƢŨɆǂŨƎŏɆƢļƎėŒėƖƖŒLjɆƢŨɆįƪƎƢķėƎɆļśƋƎŨǁėɆŨƪƎɆ,©EɆƋƎëĉƢļĉėƖɆëŝĐɆƋėƎįŨƎśëŝĉėȚɆ
ëŝĐɇķŨƋėɆƢŨɆƖėėɆƢķļƖɆƎėǙėĉƢėĐɆļŝɆƢķėƖėɆėLJƢėƎŝëŒɆëƖƖėƖƖśėŝƢƖșɆ
Sustainability continued
Agency Rating Evaluation Score Industry rank
ƪƎƎėŝƢ Previous
MSCI ,©EɆ©ĉŨƎė ɆȩŒėëĐėƎȪ
6.7
Ǩșǩ N/A
Sustainalytics ,©EɆ¡ļƖŏɆ¡ëƢļŝİ Medium risk
21.5
27 ǤǨȦǫǫɆļŝɆƢķėɆ
ëƖļŝŨƖɆʁɆEëśļŝİɆ
©ƪĈļŝĐƪƖƢƎLjɆ
ISS ESG ,©EɆ©ĉŨƎė
C
ȯ 2
nd
highest decile
S&P Global ,©EɆ©ĉŨƎė ©ʁɆ©ƪƖƢëļŝëĈļŒļƢLjɆ
ÛėëƎĈŨŨŏɆȩƎŨŝǒėɆĉŒëƖƖȪ
ɆʁɆ$`©QɆ,ƪƎŨƋėɆĉŨŝƖƢļƢƪėŝƢ
67
ǩǦ 94
th
percentile
¡ėǘŝļƢļǁ ,©EɆ©ĉŨƎė Top quar tile
83
N/A 11/319
FTSE4Good ,©EɆ©ĉŨƎė Inclusion in
D¶©,ǧEŨŨĐɆQŝĐėLJ
3.4
4.1 ǫǪ
th
percentile
CDP ŒļśëƢėɆĉķëŝİėɆƖĉŨƎė Management
B-
D Taking coordinated
action on climate
issues
Entain plc
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Strategic report
Showcasing our ESG leadership
at Entain:Sustain
In November 2021, we held an in-depth sustainability showcase
ƢŨɆķļİķŒļİķƢɆŨƪƎɆëƋƋƎŨëĉķɆƢŨɆ,©EɆëŝĐɆƋƎŨǁļĐėɆĐėƢëļŒɆŨŝɆëɆƎëŝİėɆ
ŨįɆƖƪƖƢëļŝëĈļŒļƢLjɆƎėŒëƢėĐɆļŝļƢļëƢļǁėƖșɆLėŒĐɆëƖɆĈŨƢķɆëɆǁļƎƢƪëŒɆëŝĐɆļŝȯ
ƋėƎƖŨŝɆėǁėŝƢɆļŝɆdŨŝĐŨŝȚɆȹ,ŝƢëļŝț©ƪƖƢëļŝȺɆįėëƢƪƎėĐɆƋƎėƖėŝƢëƢļŨŝƖɆ
įƎŨśɆƢķėɆEƎŨƪƋȼƖɆƖėŝļŨƎɆśëŝëİėśėŝƢȚɆƢķėɆļŝĐėƋėŝĐėŝƢɆķëļƎɆŨįɆ
ƢķėɆ,ŝƢëļŝɆDŨƪŝĐëƢļŨŝɆëŝĐɆëĉëĐėśļĉƖɆįƎŨśɆƢķėɆLëƎǁëƎĐɆnėĐļĉëŒɆ
©ĉķŨŨŒȼƖɆ$ļǁļƖļŨŝɆŨŝɆĐĐļĉƢļŨŝșɆ¶ķėɆĐëLjɆëŒƖŨɆļŝĉŒƪĐėĐɆëɆŝƪśĈėƎɆ
of panel discussions, featuring a cross section of sustainability
experts. Alongside the main presentation the event also featured
an exhibition area with representatives from a range of the internal
,ŝƢëļŝɆļŝļƢļëƢļǁėƖɆëƖɆǂėŒŒɆëƖɆƢķėɆEƎŨƪƋȼƖɆėLJƢėƎŝëŒɆĉŨśśƪŝļƢLjɆ
ļŝǁėƖƢśėŝƢɆƋëƎƢŝėƎƖɆƖƪĉķɆëƖɆķëŝĉėɆįŨƎɆķļŒĐķŨŨĐɆëŝĐɆ©ƋŨƎƢƖļĐș
ƢɆƢķėɆėǁėŝƢȚɆǂėɆƖķëƎėĐɆƢķėɆǘƎƖƢɆƎėƖƪŒƢƖɆëŝĐɆśļŒėƖƢŨŝėƖɆįƎŨśɆ
ƢķėɆƢƎļëŒƖɆŨįɆ¡ʆȚɆŨƪƎɆƋļŨŝėėƎļŝİȚɆƢėĉķŝŨŒŨİLjȯŒėĐɆëƋƋƎŨëĉķɆƢŨɆ
personalised player protection. We also announced the launch of
our EnTrain initiative, with its target to positively impact a million
people across the globe through providing greater diversity
in technology.
The inaugural event was attended by over 100 delegates in person,
with nearly 200 joining virtually. We plan to share our progress in
this format again in 2022.
ESG Materiality
We have a long-established discipline of assessing our material
,©EɆļƖƖƪėƖșɆ¶ķėƖėɆśëƢėƎļëŒɆļƖƖƪėƖɆëƎėɆƎėǁļėǂėĐɆëŝŝƪ댌LjɆëƖɆƋëƎƢɆ
ŨįɆŨƪƎɆļŝƢėƎŝëŒɆ,©EɆƎėƋŨƎƢļŝİɆƋƎŨĉėƖƖɆëŝĐɆƪƋĐëƢėĐɆĈëƖėĐɆŨŝɆëŝLjɆ
strategic and operational changes, as well as developments in the
wider industry and society. Our current top material issues include:
Ɇ QŝĐƪƖƢƎLjɆƖėŒįȯƎėİƪŒëƢļŨŝɆȩƖëįėƎɆĈėƢƢļŝİɆëŝĐɆİëśļŝİȪ
Protecting the young and the vulnerable through
working practices
Providing support for customers at risk and problem gamblers
Ɇ ƪƖƢŨśėƎɆƋƎļǁëĉLjɆëŝĐɆĐëƢëɆƖėĉƪƎļƢLj
Providing safe and responsible products, including safeguards
inherent in design
Promotion of safer betting and gaming
Talent attraction and retention
Preventing betting and gaming being used to support crime or
associated with crime
Diversity and equal opportunity
Towards the end of 2021, we commenced a project to conduct
a full-scale review of our materiality assessment framework.
This update will draw upon evolutions in materiality best practice,
and align our process and issues considered to the strategic
reorientation of our business and external landscape. The outputs
ëŝĐɆƋƎŨĉėƖƖɆǂļŒŒɆļŝįŨƎśɆŨƪƎɆ,©EɆƖƢƎëƢėİLjɆİŨļŝİɆįŨƎǂëƎĐȚɆķėŒƋɆƪƖɆ
ƢŨɆļĐėŝƢļįLjɆėśėƎİļŝİɆ,©EɆļƖƖƪėƖȚɆëŝĐɆƋƎļŨƎļƢļƖėɆƢķėɆśëƢėƎļëŒɆ,©EɆ
issues relevant to investors, as well as our wider stakeholders.
As part of this process, we will conduct a comprehensive
consultation across a broad range of our stakeholder groups
through surveys, interviews and desk-based research. The outputs
of our new materiality assessment will be presented in our 2022
Annual Report.
43 Overview
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Annual Report 2021
©ëįėƎɆĈėƢƢļŝİɆëŝĐɆİëśļŝİ
¡ėëĐɆśŨƎėɆëĈŨƪƢɆŨƪƎɆ©ƪƖƢëļŝëĈļŒļƢLjɆ
ķëƎƢėƎțɆpage 40
It all starts with our seven principles
for safer betting and gaming:
Understand
the problem
To reduce gambling harm, we need to know
ëƖɆśƪĉķɆëƖɆƋŨƖƖļĈŒėɆëĈŨƪƢɆļƢșɆ©ŨɆǂėȼƎėɆįƪŝĐļŝİɆ
ƎėƖėëƎĉķɆƢŨɆķėŒƋɆƪƖɆǘŝĐɆƢķėɆĈėƖƢɆƖŨŒƪƢļŨŝƖș
1
Through advertising, marketing
and sponsorships we’re promoting
social responsibility.
Promote
responsible attitudes
3
With ‘responsible design’ principles, we’re
making sure our products are safe as well
as fun.
Champion responsible
product design
ǩ
We’re helping to educate thousands of
young people and professionals about the
potential risks of gambling harm and how to
avoid them.
Educate
stakeholders
2
We’re funding treatment and support for
people who suffer from gambling harm.
Fund treatment for
those in need
Ǩ
Within our products, we’re adding features
that help customers to gamble safely.
Within our processes, we’re using tech to
lead the way in detecting problematic play,
and within our industry we’re working to
collaborate and innovate.
Empower
customers
4
At Entain, safer betting and gaming
ļƖɇėǁėƎLjŨŝėȼƖɆĈƪƖļŝėƖƖșɆÕėȼƎėɆśëŏļŝİɆƖƪƎėɆƢķëƢɆ
everyone we work with knows safer betting
and gaming is core to all that we do.
Change ourselves
for the bettor
7
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Annual Report 2021
44
Strategic report
Our purpose is to bring moments of excitement to people’s lives.
We do this by putting our customers at the centre of everything we
do. This includes providing the best experience and taking the lead
ŨŝɆƖëįėƎɆĈėƢƢļŝİɆëŝĐɆİëśļŝİșɆÕķļŒƖƢɆƢķėɆEëśĈŒļŝİɆŨśśļƖƖļŨŝɆ
found that 99.7% of betting and gaming players in the UK use
these products safely, there are still customers that are at-risk of
ķëƎśįƪŒɆĈėƢƢļŝİɆëŝĐɆİëśļŝİșɆ{ƪƎɆķëŝİļŝİɆįŨƎɆƢķėɆėƢƢŨƎɆƖëįėƎɆ
betting and gaming strategy focuses on making Entain the safest
and most trusted betting and gaming environment in the world.
We have a vision to use data, technology, and evidence-based
insights to deliver the most sophisticated and effective player
ƋƎŨƢėĉƢļŨŝșɆÕėɆĐėŒļǁėƎɆƢķļƖɆǁļƖļŨŝɆëƖɆƋëƎƢɆŨįɆŨƪƎɆ¡ʆȺɆƋƎŨİƎëśśėȚɆ
ǂķļĉķɆǂėɆķëǁėɆëĐǁëŝĉėĐɆƖļİŝļǘĉëŝƢŒLjɆļŝɆǥǣǥǤșɆ¡ʆɆĉƪƢƖɆëĉƎŨƖƖɆ
댌ɆƖƢƎëŝĐƖɆŨįɆƢķėɆķëŝİļŝİɆįŨƎɆƢķėɆėƢƢŨƎɆ©ƢƎëƢėİLjɆëŝĐɆƋŨƖļƢļŨŝƖɆ
Entain as a leader in player protection. This section provides an
ƪƋĐëƢėɆŨŝɆ¡ʆɆëŝĐɆŨƢķėƎɆŒėëĐļŝİɆļŝļƢļëƢļǁėƖɆƢķëƢɆëƎėɆĐėŒļǁėƎļŝİɆ
on the seven pillars of our strategy.
ķëŝİļŝİɆįŨƎɆƢķėɆėƢƢŨƎɆļƖɆįƪŒŒLjɆëŒļİŝėĐɆǂļƢķɆƢķėɆ½bɆEëśĈŒļŝİɆ
ŨśśļƖƖļŨŝȼƖɆƋƎļŝĉļƋëŒɆŨĈŌėĉƢļǁėƖɆƢŨɆėŝƖƪƎėɆƢķëƢɆĈėƢƢļŝİɆëŝĐɆ
gaming is crime-free, fair, conducted openly, and protecting
children and other vulnerable persons. Our strategy is global, and
we pursue these objectives across all our operations.
The safer betting and gaming regulatory landscape continues to
evolve, and we work proactively with regulators globally to ensure
that regulation protects players from betting and gaming related
harm, without excessive restrictions that run the risk of driving
customers to the unregulated black market.
In the UK, we provided evidence and engagement as part of the
½bɆEŨǁėƎŝśėŝƢȼƖɆEëśĈŒļŝİɆĉƢɆƎėǁļėǂșɆÕėɆĉŨŝƢļŝƪėɆƢŨɆƖƪƋƋŨƎƢɆ
the review, which is a step towards creating the highest possible
regulatory standards. We co-ordinated the response with other
betting and gaming operators, together with our industry body, the
ėƢƢļŝİɆëŝĐɆEëśļŝİɆŨƪŝĉļŒɆȩȹEȺȪɆƢŨɆėŝƖƪƎėɆƢķėɆĈėƖƢɆƋŨƖƖļĈŒėɆ
outcomes for players and the regulated marketplace.
QŝɆǥǣǥǤȚɆǂėɆĉŨŝƢļŝƪėĐɆƢŨɆļŝĉƎėëƖėɆƢķėɆƋƎŨƋŨƎƢļŨŝɆŨįɆ½bɆEƎŨƖƖɆ
EëśļŝİɆÛļėŒĐɆȩȹEEÛȺȪɆƢķëƢɆļƖɆĉŨŝƢƎļĈƪƢėĐɆƢŨɆŨƎİëŝļƖëƢļŨŝƖɆǂŨƎŏļŝİɆ
ŨŝɆ¡ėƖėëƎĉķȚɆ,ĐƪĉëƢļŨŝɆëŝĐɆ¶ƎėëƢśėŝƢɆȩȹ¡,¶ȺȪɆƢŨɆǣșǨɼȚɆǂķļĉķɆ
ėƍƪëƢėĐɆƢŨɆɞǤǥșǨśɆļŝɆǥǣǥǤɆȱɆŨǁėƎɆƖėǁėŝɆƢļśėƖɆśŨƎėɆƢķëŝɆƢķėɆ
ƎėĉŨśśėŝĐėĐɆƎėƍƪļƎėśėŝƢɆĈLjɆƢķėɆ½bɆEëśĈŒļŝİɆŨśśļƖƖļŨŝșɆ
The four largest operators in the UK have pledged to scale up RET
funding to 1% by 2023. Entain has gone further and committed
to reach this commitment one year earlier by 2022. These RET
ĉŨŝƢƎļĈƪƢļŨŝƖɆǂėƎėɆƋƎŨǁļĐėĐɆƢŨɆEëśĈŒėǂëƎėȚɆëɆİƎëŝƢȯśëŏļŝİɆ
charity that is wholly independent and has a framework agreement
ǂļƢķɆƢķėɆļŝĐƪƖƢƎLjɆƢŨɆĐėŒļǁėƎɆƢķėɆpëƢļŨŝëŒɆ©ƢƎëƢėİLjɆƢŨɆ¡ėĐƪĉėɆ
EëśĈŒļŝİɆLëƎśƖș
QŝɆƢķėɆ½©ɆëŝĐɆƢķėɆśėƎļĉëƖȚɆëƖɆëɆŝƪśĈėƎɆŨįɆŌƪƎļƖĐļĉƢļŨŝƖɆŒëƪŝĉķɆ
regulated betting markets, we are scaling up our level of support of
safer betting and gaming organisations to ensure that the correct
support processes and pathways are established in these new
and growing markets. We continue to proactively engage with
regulators in these markets, including a digital roadshow. We have
ëŒƖŨɆƖėƢɆƪƋɆëɆ½©Ɇ¡ėİƪŒëƢŨƎLjɆĐǁļƖŨƎLjɆŨśśļƢƢėėɆĉŨŝƖļƖƢļŝİɆ
ŨįɆ,ŝƢëļŝɆpŨŝȯ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎɆ$ëǁļĐɆ©ëƢǒȚɆƢķƎėėɆįŨƎśėƎɆ½©Ɇ
ƎėİƪŒëƢŨƎƖɆëŝĐɆśėśĈėƎƖɆŨįɆƢķėɆ,ŝƢëļŝɆEŨǁėƎŝëŝĉėɆƢėëśȚɆƢŨɆëĉƢɆëƖɆ
a sounding board to review Entain’s regulatory policies.
We have also implemented our commitment to include a safer
ĈėƢƢļŝİɆëŝĐɆİëśļŝİɆśėƢƎļĉɆļŝɆŨƪƎɆEƎŨƪƋȯǂļĐėɆëŝŝƪëŒɆĈŨŝƪƖɆ
ƖĉķėśėɆȩƖėėɆƋëİėɆǤǥǩȪșɆ¶ķļƖɆLjėëƎȼƖɆƢëƎİėƢƖɆǂėƎėɆëƖƖėƖƖėĐɆëİëļŝƖƢɆ
ĉėƎƢëļŝɆśļŒėƖƢŨŝėƖɆŨįɆƢķėɆĐėŒļǁėƎLjɆŨįɆƢķėɆ¡ʆɆƋƎŨİƎëśśėșɆ
In 2022, as the programmes mature, we will be shifting to
outcomes-based performance metrics – to ensure that our world-
leading player protection features are having a positive and
measurable impact on our customers.
Our leadership in this area was recognised at the end of the year
on both sides of the Atlantic with Entain being named Operator of
ƢķėɆÛėëƎɆëƢɆƢķėɆǥǣǥǤɆ,E¡Ɇ{ƋėƎëƢŨƎɆǂëƎĐƖȚɆƢķėɆļŝĐƪƖƢƎLjȼƖɆƋƎėśļėƎɆ
ëǂëƎĐƖɆėǁėŝƢȚɆëŝĐɆëƖɆ©Ũĉļ댌LjɆ¡ėƖƋŨŝƖļĈŒėɆ{ƋėƎëƢŨƎɆŨįɆƢķėɆÛėëƎɆëƢɆ
ƢķėɆ©ɆǂëƎĐƖɆpŨƎƢķɆśėƎļĉëș
45 Overview
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Strategic report
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Governance
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Financial statements
Entain plc
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Annual Report 2021
¡ʆɆļƖɆŨƪƎɆƋļŨŝėėƎļŝİɆëƋƋƎŨëĉķɆƢŨɆĉƪƖƢŨśėƎɆƋƎŨƢėĉƢļŨŝȚɆĈLjɆ
limiting customer exposure to risk at an individual level. It switches
our player protection approach from reactive to proactive, and
allows players to receive the intervention they need in real time,
ŝŨƢɆëįƢėƎɆƢķėɆįëĉƢșɆ¡ʆɆƎėƋƎėƖėŝƢƖɆëɆįƪŝĐëśėŝƢëŒɆƖķļįƢɆļŝɆŨƪƎɆ
approach to player protection, and is the driving force behind our
vision to be the go-to platform for safe play.
Using behavioural indicators, data science and analytics to assess
ƎļƖŏɆļŝɆĈėƢƢļŝİɆëŝĐɆİëśļŝİȚɆ¡ʆɆǂŨƎŏƖɆĈėķļŝĐɆƢķėɆƖĉėŝėƖɆƪƖļŝİɆ
ëĐǁëŝĉėĐɆëƎƢļǘĉļëŒɆļŝƢėŒŒļİėŝĉėɆƢŨɆŒėëƎŝɆëŝĐɆļĐėŝƢļįLjɆƎļƖŏƖɆļŝɆƋŒëLjėƎɆ
behaviour so we can intervene before a problem develops.
QŝɆǥǣǥǤȚɆǂėɆĉŨśśėŝĉėĐɆŒļǁėɆƢƎļ댌ļŝİɆŨįɆ¡ʆɆļŝɆƢķėɆ½bȚɆëŝĐɆĈLjɆƢķėɆ
ėŝĐɆŨįɆǥǣǥǤȚɆ¡ʆɆǂëƖɆƎŨŒŒėĐɆŨƪƢɆëĉƎŨƖƖɆŨƪƎɆėŝƢļƎėɆƋŒëƢįŨƎśɆįŨƎɆ댌Ɇ
UK jurisdictions. In 2022, we will commence our work on adapting
ëŝĐɆļśƋŒėśėŝƢļŝİɆ¡ʆɆļŝɆƖŨśėɆŨįɆŨƪƎɆŏėLjɆśëƎŏėƢƖɆŨƪƢƖļĐėɆŨįɆ
the UK.
Advanced Responsibility & Care™: Using data and
technology to provide sector-leading player protection
What does ARC™ involve?
Protector Model: Identifying high-risk behaviour in real time
Our leading Protector Model was launched in June 2021. It allows us
to identify and understand customers who need our support the most,
ļŝƢėƎǁėŝļŝİɆǂļƢķɆśėëƖƪƎėƖɆǂķļĉķɆëƎėɆƖƋėĉļǘĉɆƢŨɆƢķėļƎɆŝėėĐƖșɆ¡ʆɆ
ƖļİŝļǘĉëŝƢŒLjɆėLJƢėŝĐƖɆƢķėɆśëƎŏėƎƖɆŨįɆƋƎŨƢėĉƢļŨŝɆĈėLjŨŝĐɆśėƎėŒLjɆǘŝëŝĉļëŒɆ
markers to other behavioural characteristics that might suggest high-
ƎļƖŏɆƋŒëLjļŝİșɆ{ƪƎɆśŨĐėŒɆĐƎëǂƖɆƪƋŨŝɆǥǩɆƎėƖėëƎĉķȯĈëĉŏėĐɆśëƎŏėƎƖɆȱɆŨǁėƎɆ
three times more than in the past – adding further sophistication to
improve the accuracy of identifying high-risk behaviour. As a result, we
found that our predictor model is able to identify high-risk behaviour
ǂļƢķɆǫǣɼɆëĉĉƪƎëĉLjș
These markers developed through our partnerships with leading
research institutions and consultancies, including lived experience
ļŝƖļİķƢƖɆįƎŨśɆ,QɆ¡ļƖŏɆnëŝëİėśėŝƢȚɆƎŨįėƖƖŨƎɆnëƎŏɆEƎļįǘƢķƖɆŨįɆ
pŨƢƢļŝİķëśɆ¶ƎėŝƢɆ½ŝļǁėƎƖļƢLjȚɆëŝĐɆëśĈƎļĐİėɆLėëŒƢķɆŒŒļëŝĉėɆ$ļǁļƖļŨŝɆŨŝɆ
ĐĐļĉƢļŨŝȚɆëɆLëƎǁëƎĐɆnėĐļĉëŒɆ©ĉķŨŨŒɆDëĉƪŒƢLjșɆ,LJëśƋŒėƖɆŨįɆƢķėƖėɆśëƎŏėƎƖɆ
ļŝĉŒƪĐėɆǙƪĉƢƪëƢļŨŝƖɆļŝɆƖƢëŏėɆŒėǁėŒƖȚɆėƎƎëƢļĉɆƋŒëLjɆĐƪƎļŝİɆëɆƖļŝİŒėɆƖėƖƖļŨŝɆ
and signs that a player might be chasing losses.
Safer betting and gaming continued
Entain plc
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Annual Report 2021
46
Strategic report
Support for higher-risk players
Through a complete redesign of the user experience and customer
communications together with the deployment of two new
İëśĈŒļŝİɆĉŨŝƢƎŨŒƖɆȩŒëLjɆƎėëŏɆëŝĐɆ$ėƋŨƖļƢɆƪƎįėǂȪɆǂėɆķëǁėɆ
ĈėėŝɆëĈŒėɆƢŨɆƖļİŝļǘĉëŝƢŒLjɆļŝĉƎėëƖėɆƢķėɆƪƖėɆŨįɆëĉĉŨƪŝƢɆĉŨŝƢƎŨŒƖșɆ
The on-site interactive interceptors have meant that as well as
being able to intervene and speak to a customer quickly, we can
also recommend a gambling control for that customer based on
ƢķėļƎɆƖƋėĉļǘĉɆƋŒëLjɆëŝĐɆŝėėĐƖșɆ¶ķėƖėɆļŝƢėƎĉėƋƢŨƎƖɆķëǁėɆƎėƖƪŒƢėĐɆļŝɆ
more than 90% of our highest-risk players showing a reduction in
risky play.
ƖɆƋëƎƢɆŨįɆ¡ʆɆǂėɆķëǁėɆëŒƖŨɆśëĐėɆƖƢėƋȯĉķëŝİėɆļśƋƎŨǁėśėŝƢƖɆ
in some of our safer gambling tools, including a budget calculator
and improvements to our safer gambling help page – providing
players with seamless access to engaging and research-backed
safer gambling support and content.
Protect using real-time interventions
We are using advanced analytics real-time capabilities of our
Protector Model to identify customers who deposit more than they
ƪƖƪ댌LjɆǂŨƪŒĐɆǂļƢķļŝɆëɆƖėƖƖļŨŝɆŨįɆƋŒëLjșɆ{ŝĉėɆļĐėŝƢļǘėĐȚɆëɆĉƪƖƢŨśėƎɆ
will initially be advised that they are depositing more than normal
and offered the chance to reassess their depositing. If they do not
take action by setting a control themselves, we will step in and
prevent further deposits being made.
As a result, we are seeing positive actions by customers with a
ƎėĐƪĉƢļŨŝɆļŝɆķļİķėƎɆĐėƋŨƖļƢƖɆëŝĐɆëɆƖļİŝļǘĉëŝƢɆƎėĐƪĉƢļŨŝɆļŝɆƢķėɆ
number of customers who raise their depositing. Encouragingly we
ëŒƖŨɆƖėėɆëɆǥǨɼɆĐėĉƎėëƖėɆļŝɆĐėƋŨƖļƢƖɆįŨŒŒŨǂļŝİɆƢķėɆļŝļƢļëŒɆļŝƢėƎëĉƢļŨŝȚɆ
ëŝĐɆëɆǪǨɼɆĐėĉƎėëƖėɆļŝɆƢķėɆŝƪśĈėƎɆŨįɆƋŒëLjėƎƖɆǂķŨɆƋƎėǁļŨƪƖŒLjɆǂŨƪŒĐɆ
have continued to increase their spending. Almost all customers
return to their previous betting norms shortly after intervention
ĈLjɆ¡ʆșɆ¶ķļƖɆśėëŝƖɆŨƪƎɆśėƖƖëİļŝİɆļƖɆƋŨƖļƢļǁėŒLjɆİƪļĐļŝİɆƢķėļƎɆ
experience to remain safe.
Our plans for 2022
¡ʆɆļƖɆĉŨŝƢļŝƪ댌LjɆļśƋƎŨǁļŝİȚɆǂļƢķɆƎėİƪŒëƎɆƢėƖƢļŝİɆëŝĐɆėLJƋėƎƢɆ
analysis to build on our initial successes and further enhance
player protection. In 2022, we will continue to build on the success
ŨįɆ¡ʆȚɆǂļƢķɆëŝɆėLJĉļƢļŝİɆƎŨëĐśëƋɆŨįɆļŝĐļǁļĐƪëŒļƖėĐɆįėëƢƪƎėƖɆ
and improved modelling that will enhance its effectiveness
and functionality.
Real-time tools: Over the coming months we will be implementing
more real-time tools including those concerning long session
lengths, declined deposits and large withdrawals.
ƎŨĐƪĉƢȯƖƋėĉļǘĉɆļŝļƢļëƢļǁėƖ: We will also be implementing product-
ƖƋėĉļǘĉɆļŝļƢļëƢļǁėƖɆƢķëƢɆǂļŒŒɆƋƎŨǁļĐėɆƋŒëLjėƎɆƖƪƋƋŨƎƢɆëƢɆëɆśŨƎėɆ
granular level.
¡ėëŒȯƢļśėɆƋŒëLjėƎɆļĐėŝƢļǘĉëƢļŨŝ: We are further developing our
Protector Model to enhance its real-time predictive nature and
potentially halt any risk-conducive behaviour before it becomes
a problem.
InternationalțɆQŝɆëĐĐļƢļŨŝȚɆǂėɆǂļŒŒɆëŒƖŨɆļŝƢƎŨĐƪĉėɆ¡ʆɆļŝƢŨɆśëƎŏėƢƖɆ
beyond the UK, with a target to introduce it to nine new markets
in 2022. We will adopt a staged approach to the international
ƎŨŒŒɆŨƪƢȚɆƢŨɆėŝƖƪƎėɆƢķëƢɆ¡ʆɆƋƎŨǁļĐėƖɆƢķėɆƖëśėɆķļİķɆŒėǁėŒɆŨįɆ
player protection, whilst adapting it to meet the unique regulatory,
ĉƪŒƢƪƎëŒȚɆëŝĐɆİëśėȯƖƋėĉļǘĉɆƎėƍƪļƎėśėŝƢƖɆļŝɆėëĉķɆśëƎŏėƢș
The effectiveness of ARC™ is linked to remuneration
¶ķėɆļśƋŨƎƢëŝĉėɆŨįɆ¡ʆɆëŝĐɆŨƪƎɆĉŨśśļƢśėŝƢɆƢŨɆ,©EɆëŝĐɆƖëįėƎɆ
İëśĈŒļŝİɆļƖɆƎėǙėĉƢėĐɆļŝɆŨƪƎɆĉŨŒŒėëİƪėɆëŝĐɆėLJėĉƪƢļǁėɆƎėśƪŝėƎëƢļŨŝɆ
ƖƢƎƪĉƢƪƎėșɆQŝɆǥǣǥǤȚɆǤǨɼɆŨįɆƢķėɆEƎŨƪƋɆëŝŝƪëŒɆĈŨŝƪƖɆƖĉķėśėɆļƖɆ
ĈëƖėĐɆŨŝɆƢķėɆĈƪƖļŝėƖƖɆĐėśŨŝƖƢƎëƢļŝİɆƢķëƢɆƢķėɆ¡ʆɆśŨĐėŒƖɆëƎėɆ
successfully implemented, able to understand who the problem
İëśĈŒėƎƖɆëƎėȚɆëŝĐɆǂķLjɆƢķėLjȼƎėɆĉŒëƖƖļǘėĐɆëƖɆƖƪĉķșɆ¶ŨɆėŝƖƪƎėɆƢķėɆ
ĉƎėĐļĈļŒļƢLjɆŨįɆƢķėɆƋƎŨĉėƖƖȚɆǂėɆĉŨśśļƖƖļŨŝėĐɆ,QɆ¡ļƖŏɆnëŝëİėśėŝƢɆ
to provide an independent review to determine whether we
reached our targets for the year.
QŝɆǥǣǥǥȚɆƢķėɆ,©EɆĉŨśƋŨŝėŝƢɆŨįɆŨƪƎɆEƎŨƪƋɆëŝŝƪëŒɆĈŨŝƪƖɆƖĉķėśėɆ
ǂļŒŒɆĉŨŝƢļŝƪėɆƢŨɆįŨĉƪƖɆŨŝɆ¡ʆȚɆĈƪƢɆǂļŒŒɆƋļǁŨƢɆƢŨɆļŝĉėŝƢļǁļƖėɆƢķėɆ
ļŝƢėƎŝëƢļŨŝëŒɆƎŨŒŒȯŨƪƢɆŨįɆ¡ʆȚɆëŝĐɆļƢƖɆëĈļŒļƢLjɆƢŨɆĐƎļǁėɆĈėķëǁļŨƪƎëŒɆ
change in customers – including the uptake of safer gambling tools
to medium and high-risk players.
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ɆŏėLjɆįŨĉƪƖɆįŨƎɆŨƪƎɆķëŝİļŝİɆįŨƎɆƢķėɆėƢƢŨƎɆƖƢƎëƢėİLjɆļƖɆƢŨɆĉŨŝƢļŝƪ댌LjɆ
deepen our understanding of gambling-related harm, disseminate
this knowledge with the wider industry, and incorporate this
knowledge into our processes, policies and culture. This work is
catalysed by developing long-term research partnerships with
world-leading institutions in safer betting and gaming.
{ƪƎɆǘǁėȯLjėëƎɆƎėƖėëƎĉķɆĉŨŒŒëĈŨƎëƢļŨŝɆǂļƢķɆëśĈƎļĐİėɆLėëŒƢķɆ
ŒŒļëŝĉėɆ$ļǁļƖļŨŝɆŨŝɆĐĐļĉƢļŨŝɆļƖɆŨƪƎɆǙëİƖķļƋɆƎėƖėëƎĉķɆƋƎŨİƎëśśėȚɆ
ǂķėƎėɆǂėɆķëǁėɆĉŨśśļƢƢėĐɆɞǨśɆŨǁėƎɆǘǁėɆLjėëƎƖșɆÛŨƪɆĉëŝɆƎėëĐɆśŨƎėɆ
about this collaboration below.
QŝɆƢķėɆ½©ȚɆǂėɆķëǁėɆƋëƎƢŝėƎėĐɆǂļƢķɆƢķėɆ½ŝļǁėƎƖļƢLjɆŨįɆpėǁëĐëȚɆdëƖɆ
ÔėİëƖɆëŝĐɆƢķėļƎɆQŝƢėƎŝëƢļŨŝëŒɆEëśļŝİɆQŝƖƢļƢƪƢėɆȩȹQEQȺȪșɆQŝɆ©ėƋƢėśĈėƎɆ
ǥǣǥǤȚɆǂėɆƋƎŨǁļĐėĐɆëɆįŨƪŝĐļŝİɆİƎëŝƢɆƢŨɆƢķėɆQEQɆƢŨɆėƖƢëĈŒļƖķɆëɆ
pioneering betting and gaming research initiative which, for the
ǘƎƖƢɆƢļśėɆļŝɆƢķėɆ½©ȚɆǂļŒŒɆĉŨśĈļŝėɆƖĉļėŝƢļǘĉɆƎėƖėëƎĉķɆǂļƢķɆŨƋėƎëƢļŨŝëŒɆ
expertise to apply best practice in responsible gambling, policy,
ëŝĐɆķėëŒƢķșɆ½ƖļŝİɆëɆśƪŒƢļĐļƖĉļƋŒļŝëƎLjɆëƋƋƎŨëĉķȚɆƢķėɆQEQɆƋŒëŝƖɆƢŨɆ
take a holistic look at all aspects of betting and gaming from
various perspectives, including problem gambling, responsible
gaming, public health, education, economic impacts, research,
ëŝĐɇƢėĉķŝŨŒŨİLjșɆ¶ķėɆĉėŝƢƎėɆļƖɆƋŒëŝŝėĐɆƢŨɆŒëƪŝĉķɆļŝɆǥǣǥǥș
Safer betting and gaming continued
1
Understand the problem
and best solutions
Entain plc
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Annual Report 2021
48
Strategic report
Entain’s cutting edge research
collaborative with Cambridge Health
Alliance Division on Addiction, a
Harvard Medical School Faculty.
{ƪƎɆǘǁėȯLjėëƎɆƎėƖėëƎĉķɆĉŨŒŒëĈŨƎëƢļǁėɆǂļƢķɆƢķėɆ$ļǁļƖļŨŝɆĉŨŝƢļŝƪėƖɆ
to go from strength-to-strength. Now in its third year, we
have already contributed $3.2m to this cutting-edge research
programme that is having real-world impact. The programme
has progressed beyond expectations. It was originally expected
to produce three papers annually, but in two and a half years the
research teams have already submitted 11 papers for review
and has an additional four papers in active development for
submission to peer review.
Our ongoing support for the collaboration currently funds the
equivalent of eight full-time researchers: six researchers at the
doctoral level, a part-time researcher at the masters level, and
two researchers at the baccalaureate level. Entain not only
provides funding but gives access to anonymised data from
player records, ensuring that the research is based on real-life
data and behavioural patterns.
The ongoing projects with the Division fall under the four
categories below. This important research is published in
ƋėėƎȯƎėǁļėǂėĐɆëŝĐɆķļİķȯļśƋëĉƢɆƖĉļėŝƢļǘĉɆƎėƖėëƎĉķɆëƎƢļĉŒėƖȚɆ
with worldwide circulation. The journals include Psychology
ŨįɆĐĐļĉƢļǁėɆėķëǁļŨƎƖȚɆd{©Ɇ{ŝėɆëŝĐɆQŝƢėƎŝëƢļŨŝëŒɆ
EëśĈŒļŝİɆ©ƢƪĐļėƖș
Player data research projects
Using real-life, anonymised player records from Entain to
contribute to a growing body of knowledge revealing the
ŝëƢƪƎėɆŨįɆëĉƢƪëŒɆŨŝŒļŝėɆİëśĈŒļŝİșɆ¶ķėƖėɆƋƎŨŌėĉƢƖɆķėŒƋɆƎėǘŝėɆ
our understanding of evidence-based markers of disordered
gambling and expand our search for potential markers.
Safer betting and gaming training projects
This in-depth understanding from the research is vital
to strengthening our culture, processes and policies.
We disseminate learnings from the research to employees
through various training activities. The Division conducted
reviews of 14 existing Entain employee training programmes,
two teach-in seminars with select Entain employees to assist
ļŝɆƢķėɆĐļİėƖƢļŨŝɆëŝĐɆƪŝĐėƎƖƢëŝĐļŝİɆŨįɆƢķėɆǘŝĐļŝİƖȚɆëŝĐɆƢķėɆ
creation of four research snapshots with graphical summaries
ŨįɇƋƪĈŒļƖķėĐɆƎėƖėëƎĉķș
Open science projects
Projects that relate to the Division’s and Entain’s commitment to
the highest standards, and upholding the principles of academic
freedom. In addition to engaging in open science practices for
these research projects, including research pre-registration and
data transparency, the Division has engaged in multiple projects
ëŝĐɆƋëƋėƎƖɆƢŨɆëĐǁëŝĉėɆƢķėɆǘėŒĐɆŨįɆİëśĈŒļŝİɆƖƢƪĐļėƖɆƢŨǂëƎĐɆśŨƎėɆ
open science practices.
General research projects
¶ķėƖėɆƋƎŨŌėĉƢƖɆëĐĐƎėƖƖɆļśƋŨƎƢëŝƢɆëƎėëƖɆļŝɆƢķėɆǘėŒĐɆŨįɆİëśĈŒļŝİɆ
ƖƢƪĐļėƖșɆ©ŨɆįëƎȚɆƢķėLjɆķëǁėɆļŝĉŒƪĐėĐɆëɆƖƢƪĐLjɆŨŝɆƢķėɆƖƢëƢėɆŨįɆƢķėɆ
literature about gambling and self-harm and understanding
gambling product safety features.
The programme has
progressed beyond
ėLJƋėĉƢëƢļŨŝƖșȺ
Grainne Hurst
EƎŨƪƋɆ$ļƎėĉƢŨƎɆŨįɆŨƎƋŨƎëƢėɆįįëļƎƖ
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We continue to partner with charities and other organisations to
support their important work in preventing vulnerable audiences
from potential betting and gaming harm.
QŝɆƢķėɆ½bȚɆǂėɆƖƪƋƋŨƎƢėĐɆ,QȼƖɆ¡ļƖŏɆnëŝëİėśėŝƢȼƖɆ©ƢëƢėɆ©ĉķŨŨŒƖɆ
ƋƎŨİƎëśśėșɆ,QɆĐėŒļǁėƎėĐɆļśƋëĉƢįƪŒɆİëśĈŒļŝİɆķëƎśɆëǂëƎėŝėƖƖɆ
ƖėƖƖļŨŝƖɆƢŨɆǤǨȚǥǫǧɆLjŨƪŝİɆƋėŨƋŒėɆëĉƎŨƖƖɆǫǤɆƖĉķŨŨŒɆǁļƖļƢƖɆļŝɆƢķėɆ
2020/21 academic year.
ÕėɆƖƪƋƋŨƎƢɆÛŨƪŝİɆėŨƋŒėȼƖɆEëśĈŒļŝİɆLëƎśɆƎėǁėŝƢļŨŝɆ
ƎŨİƎëśśėɆȩȹÛEnȺȪɆƢķƎŨƪİķɆEëśëƎėɆëŝĐɆÛEnɆëƖɆƋëƎƢɆŨįɆŨƪƎɆ
ļŝǁŨŒǁėśėŝƢɆǂļƢķɆėƢƢļŝİɆëŝĐɆEëśļŝİɆŨƪŝĉļŒșɆLjɆǥǣǥǧȚɆÛEnɆëŝĐɆ
EëśëƎėɆëļśɆƢŨɆǂŨƎŏɆǂļƢķɆŨǁėƎɆǤǦȚǧǣǣɆƋƎëĉƢļƢļŨŝėƎƖɆëŝĐɆƋëƎƢŝėƎɆ
organisations, resulting in millions of young people aged 11-19
receiving at least one awareness session during their secondary
or further education. By the end of 2021, the programme delivered
ƢƎëļŝļŝİɆƢŨɆǧȚǨǣǣɆLjŨƪŝİɆƋėŨƋŒėȚɆǂļƢķɆǬǣɼɆŨįɆƢķŨƖėɆƋëƎƢļĉļƋëƢļŝİɆ
reporting that they better understand how to make safe choices
about betting and gaming, and where to get help if they were
experiencing problems.
QŝɆëĐĐļƢļŨŝȚɆǂėɆķëǁėɆƖƪƋƋŨƎƢėĐɆÛEnɆƢŨɆĐėŒļǁėƎɆƢķėļƎɆļƢLjɆʁɆEƪļŒĐƖɆ
ƖƖƪƎėĐɆƢƎëļŝļŝİɆƢŨɆǦȚǫǬǨɆƋƎŨįėƖƖļŨŝëŒƖɆƢķëƢɆǂŨƎŏɆǂļƢķɆLjŨƪŝİɆ
people. This training is focused on identifying signs of harm and
signposting to the help and support available.
We also know that our customer services teams are an important
resource for our customers to learn more about safer betting and
gaming. In 2021, we streamlined our processes for these teams,
providing them with all customer due diligence, anti-money
laundering, affordability and player protection all within one
dashboard – allowing these representatives to provide informed
advice based on the customer’s individual circumstances.
Safer betting and gaming continued
2
Educate our key stakeholders
QŝɆƢķėɆ½©ȚɆǂėɆƖƪƋƋŨƎƢėĐɆ,QɆƢŨɆĐėŒļǁėƎɆǪǤɆǘƎƖƢȯŨįȯļƢƖȯŏļŝĐɆ
education and advice sessions to groups that may be more
likely to experience problems with betting and gaming – such as
college and professional athletes. As sports betting is licensed
and launched in an increasing number of states, this programme
– sharing knowledge about harm prevention and sports betting
integrity is front and centre of conversations at a time when it is
needed most. We will continue to scale up this programme in 2022.
QŝɆƢķėɆ½©ȚɆǂėɆŒëƪŝĉķėĐɆƢķėɆEëśĈŒėɆ¡ėƖƋŨŝƖļĈŒLjɆśėƎļĉëɆƋƋșɆ
The app – freely available on phone iPhone and Android – provides
a host of educational resources and tools to help and support
anyone facing potential issues with problem gambling. It is the
ǘƎƖƢɆëƋƋɆŨįɆļƢƖɆŏļŝĐɆļŝɆƢķėɆ½©ɆƢķëƢɆļƖɆįƎŨśɆƢķėɆŨƪƢƖėƢɆëǁëļŒëĈŒėɆļŝɆ
ĈŨƢķɆ,ŝİŒļƖķɆëŝĐɆ©ƋëŝļƖķșɆEëśĈŒėɆ¡ėƖƋŨŝƖļĈŒLjɆśėƎļĉëɆķëƖɆĈėėŝɆ
ėŝĐŨƎƖėĐɆĈLjɆƢķėɆśėƎļĉëŝɆEëśļŝİɆƖƖŨĉļëƢļŨŝɆëƖɆŨŝėɆŨįɆƢķėɆŏėLjɆ
sources of problem and responsible gambling information.
Entain plc
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Strategic report
ƖɆƋëƎƢɆŨįɆŨƪƎɆ¡ʆɆƋƎŨİƎëśśėȚɆǂėɆśëĐėɆƖƢėƋȯĉķëŝİėƖɆļŝɆƢķėɆ
safer betting and gaming tools that we provide to customers
to empower them to be in control of their play. As part of the
ėŝķëŝĉėĐɆĉƪƖƢŨśėƎɆŌŨƪƎŝėLjƖɆļŝɆ¡ʆȚɆǂėɆëƎėɆŝŨǂɆëĈŒėɆƢŨɆ
proactively provide players with tailored recommendations and
informative content based on their style of play. In addition,
we have implemented an improved budget calculator to help
customers understand a safe level to play based on their individual
circumstances, and recommendations on setting deposit limits.
These will be further enhanced in 2022 with the introduction
of our safer gambling questionnaire, which will help customers
understand whether a gambling control is needed and, if so,
which one. We will also continue to improve our real-time
interactions and intervention with customers, to provide them with
recommendations that empower them to put in place the tools that
help them to continue playing responsibly.
For those customers who wish to take time out altogether, we also
ĉŨŝƢļŝƪėĐɆƢŨɆƋƎŨśŨƢėɆƢķėɆƪƖėɆŨįɆƢķėɆEëśĈëŝɆƖŨįƢǂëƎėȚɆǂķļĉķɆǂėɆ
śëŏėɆįƎėėŒLjɆëǁëļŒëĈŒėɆƢŨɆ댌ɆŨįɆŨƪƎɆĉƪƖƢŨśėƎƖșɆEëśĈëŝɆ댌ŨǂƖɆƪƖėƎƖɆ
to block betting and gaming websites and apps globally from a
user’s devices. We continue to take part in all relevant industry-
wide self-exclusion programmes in the markets where we operate.
QŝɆƢķėɆ½©ȚɆ,ŝƢëļŝɆǂļƢķɆŌŨļŝƢȯǁėŝƢƪƎėɆƋëƎƢŝėƎɆėƢnEnɆëƎėɆëśŨŝİƖƢɆ
ƢķėɆǘƎƖƢɆŨƋėƎëƢŨƎƖɆƢŨɆķëǁėɆƖƪƋƋŨƎƢėĐɆŒëLjëƪƖėȚɆëɆƋƎŨŌėĉƢɆļŝƢėŝĐėĐɆ
to introduce cross-state self-exclusion.
Our approach to promoting responsible attitudes is focused on
embedding these principles into our advertising and marketing.
Responsible attitudes to advertising and marketing start with
us, and we’re committed to ensuring that our activities in these
areas uphold both the letter and spirit of the relevant legislation,
ƎėİƪŒëƢļŨŝƖɆëŝĐɆļŝĐƪƖƢƎLjɆŨĐėƖɆŨįɆƎëĉƢļĉėșɆÕėɆëƎėɆëɆƖļİŝëƢŨƎLjɆŨįɆ
ƢķėɆ,ƪƎŨƋėëŝɆėƢƢļŝİɆëŝĐɆEëśļŝİɆƖƖŨĉļëƢļŨŝȼƖɆŨĐėɆŨįɆŨŝĐƪĉƢșɆ
{ƪƎɆëƋƋƎŨëĉķɆļƖɆİƪļĐėĐɆĈLjɆŨƪƎɆEƎŨƪƋɆ¡ėƖƋŨŝƖļĈŒėɆnëƎŏėƢļŝİɆ
ŨŒļĉLjɆȩȹŨŒļĉLjȺȪșɆ¶ķļƖɆŨŒļĉLjɆļƖɆƖƋŨŝƖŨƎėĐɆĈLjɆƢķėɆķļėįɆEŨǁėƎŝëŝĉėɆ
{įǘĉėƎɆȱɆëŒƖŨɆëɆ$ļƎėĉƢŨƎɆŨŝɆƢķėɆEƎŨƪƋɆŨëƎĐșɆ¶ķėɆŨŒļĉLjɆëƋƋŒļėƖɆƢŨɆ
댌ɆśëƎŏėƢļŝİɆëĉƢļǁļƢLjɆƪŝĐėƎƢëŏėŝɆĈLjɆ댌ɆĈƎëŝĐƖɆǂļƢķļŝɆƢķėɆEƎŨƪƋȚɆ
and applies to all marketing activities and channels. The Policy
is complemented by internal guidelines for each market where
we operate, including examples of acceptable and unacceptable
marketing behaviour.
QŝɆƢķėɆ½bȚɆǂėɆǂŨƎŏɆǂļƢķɆƢķėɆļŝĐƪƖƢƎLjɆǁļëɆƢķėɆėƢƢļŝİɆëŝĐɆEëśļŝİɆ
ŨƪŝĉļŒɆȩȹEȺȪșɆ¶ķļƖɆļŝĉŒƪĐėƖɆƪƢļŒļƖļŝİɆŨƪƎɆśëƎŏėƢļŝİɆĈƪĐİėƢɆëŝĐɆ
airtime for responsible gambling initiatives.
We also use our reach and partnerships to bring safer betting and
gaming to life via compelling content. Through our partypoker
brand, we worked with the McLaren Formula 1 team to produce the
ȹ¶ļśėɆƢŨɆļƢȺɆĉëśƋëļİŝșɆ©ƢëƎƎļŝİɆnĉdëƎėŝɆDǤɆƖƢëƎɆ$ëŝļėŒɆ¡ļĉĉļëƎĐŨȚɆ
the video and microsite draws parallels between racing and betting
and gaming, and the importance of knowing your limits and staying
ļŝɆĉŨŝƢƎŨŒșɆ¶ķėɆȹ¶ļśėɆƢŨɆļƢȺɆĉëśƋëļİŝɆķëƖɆĈėėŝɆǁļėǂėĐɆŨǁėƎɆ
40,000 times.
4
Empower customers
3
Promote responsible
attitudes
51Overview
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Annual Report 2021
ÕėɆǂŨƎŏɆĉŒŨƖėŒLjɆǂļƢķɆŨİŝëĉļƢLjȚɆëɆǂŨƎŒĐɆŒėëĐļŝİɆśėŝƢëŒɆķėëŒƢķɆ
ŨƎİëŝļƖëƢļŨŝɆǂķŨɆëƎėɆëŝɆëƋƋƎŨǁėĐɆdɆ¡ėƖėëƎĉķɆ,ĐƪĉëƢļŨŝɆëŝĐɆ
¶ƎėëƢśėŝƢɆȩȹ¡,¶ȺȪɆƋƎŨǁļĐėƎȚɆƢŨɆŨįįėƎɆëĐĐļƢļŨŝëŒɆƖƪƋƋŨƎƢɆįŨƎɆƢķŨƖėɆ
customers requiring clinical diagnosis, or support/signposting
for treatment. The outcome of the assessment may result in a
referral to a fully funded residential treatment programme with
ŨİŝëĉļƢLjʀdėŨŝɆLŨƪƖėșɆ{ǁėƎɆƢķėɆƋëƖƢɆƢǂŨɆLjėëƎƖȚɆ,ŝƢëļŝɆįƪŝĐļŝİɆ
ķëƖɆėŝëĈŒėĐɆǤǨǧɆĉŨśƋƎėķėŝƖļǁėɆëƖƖėƖƖśėŝƢƖɆëŝĐɆǤǣǣɆļŝĐļǁļĐƪëŒƖɆ
ƢŨɆëĉĉėƖƖɆƖƪƋƋŨƎƢșɆ¶ķļƖɆļŝĉŒƪĐėƖɆǩǪɆļŝĐļǁļĐƪëŒƖɆëĉĉėƖƖļŝİɆƢķƎėėȯ
day intensive residential gambling treatment programme at Leon
LŨƪƖėɆȩŨƎɆŨŝŒļŝėɆĐƪƎļŝİɆƢķėɆŨǁļĐȯǤǬɆƋëŝĐėśļĉȪɆįŨŒŒŨǂėĐɆĈLjɆ
individual follow-up therapy and relapse prevention (a minimum
ŨįɆƖļLJɆƖėƖƖļŨŝƖɆƋėƎɆƋėƎƖŨŝȚɆǂļƢķɆëɆƢŨƢëŒɆŨįɆǥǨǫɆŨŝėȯƢŨȯŨŝėɆ
ƖėƖƖļŨŝƖɆĐėŒļǁėƎėĐȪș
¶ķļƖɆƋƎŨİƎëśśėɆķëƖɆķëĐɆëɆƖļİŝļǘĉëŝƢŒLjɆķļİķėƎɆƎėƢėŝƢļŨŝɆƎëƢėɆ
than the national average, with 70% of those seeking support at
ŨİŝëĉļƢLjʀdėŨŝɆLŨƪƖėɆĉŨśƋŒėƢļŝİɆƢķėɆĉŨƪƎƖėȚɆëŝĐɆǫǩɼɆƎėƋŨƎƢļŝİɆ
abstinence from gambling at last observation (six or 12 months after
ƢķėɆƋƎŨİƎëśśėȪș
ÕėɆëŒƖŨɆƋƎŨǁļĐėĐɆįƪŝĐļŝİɆƢŨɆEŨƎĐŨŝɆnŨŨĐLjȼƖɆŨŝŒļŝėɆEëśĈŒļŝİɆ
Therapy service which has enabled the charity to reach an increasing
ŝƪśĈėƎɆŨįɆƋėŨƋŒėɆŝėėĐļŝİɆƖƪƋƋŨƎƢɆǂŨƎŒĐǂļĐėȚɆǂļƢķɆŨǁėƎɆǘǁėɆśļŒŒļŨŝɆ
people accessing the service.
At the heart of championing responsible product design is our
İƎŨƪŝĐĈƎėëŏļŝİɆ¡ʆɆƋƎŨİƎëśśėȚɆǂķļĉķɆķëƖɆĉëƢëŒLjƖėĐɆëɆƖƢėƋɆ
change in the way our online products are designed in order to
śëLJļśļƖėɆƋŒëLjėƎɆƋƎŨƢėĉƢļŨŝșɆŒėëƖėɆƎėįėƎɆƢŨɆƋëİėƖɆǧǩɆƢŨɆǧǪɆįŨƎɆ
ļŝįŨƎśëƢļŨŝɆëŝĐɆëŝɆƪƋĐëƢėɆŨŝɆ¡ʆș
To be effective as an organisation in responsible product design,
we understand the need for engagement from the wider industry.
To do this, we engage directly via our involvement in the Betting
ëŝĐɆEëśļŝİɆŨƪŝĉļŒɆȩȹEȺȪɆEëśėɆ$ėƖļİŝɆÕŨƎŏļŝİɆEƎŨƪƋșɆ
The group focuses on game characteristics, informed player choice,
enhancing control innovation and governance and continuous
ļśƋƎŨǁėśėŝƢƖșɆQŝɆǥǣǥǤȚɆǂėɆļśƋŒėśėŝƢėĐɆƢķėɆEɆǂŨƎŏļŝİɆİƎŨƪƋɆ
ķëƖėɆQQɆƋƎļŝĉļƋŒėƖɆŨŝɆEëśėɆ$ėƖļİŝȚɆļŝĉŒƪĐļŝİɆİƪļĐëŝĉėɆŨŝɆǂļŝƖɆ
ĈėŒŨǂɆƢķėɆƖƢëŏėɆŒļŝėȚɆëŝĐɆĈŨŝƪƖɆİëśėɆŝŨƢļǘĉëƢļŨŝƖș
Responsibility is also about protecting our customers’ data, which
is why we continue to roll out and implement our privacy-by-design
principles, which puts privacy at the centre of our product design
cycle early in its development. A full outline of our data privacy and
ĉLjĈėƎƖėĉƪƎļƢLjɆļƖɆļŝĉŒƪĐėĐɆŨŝɆƋëİėɆǩǨș
Safer betting and gaming continued
Ǩ
ǩ
Fund treatment for those
in need
Champion responsible
product design
Entain plc
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Annual Report 2021
52
Strategic report
We strive to enable all colleagues, relevant suppliers, contractors,
and secondees to undertake training on safer betting and gaming,
with additional in-depth training that is tailored to role types. At the
ėŝĐɆŨįɆǥǣǥǤȚɆǫǫɼɆŨįɆĉŨŒŒėëİƪėƖɆǂėƎėɆƪƋɆƢŨɆĐëƢėɆŨŝɆƢķėļƎɆśëŝĐëƢŨƎLjɆ
ƖëįėƎɆĈėƢƢļŝİɆëŝĐɆİëśļŝİɆƢƎëļŝļŝİȚɆǂļƢķɆǤǤȚǥǤǩɆƎėƢëļŒɆëŝĐɆǬǤǧɆ
ĐļİļƢëŒɆĉŨŒŒėëİƪėƖɆƎėĉėļǁļŝİɆįëĉėȯƢŨȯįëĉėɆƢƎëļŝļŝİɆƖƋėĉļǘĉɆƢŨɆƢķėļƎɆ
roles. In addition, our customer service teams received training
įƎŨśɆŨƪƎɆƋëƎƢŝėƎƖɆ,QɆ¡ļƖŏɆnëŝëİėśėŝƢȚɆǂķļĉķɆėśƋŨǂėƎėĐɆ
them to spot the signs of risky behaviour and utilise behavioural
and interaction training to provide effective and empathetic
customer interactions.
{ƪƎɆƪƖƢŨśėƎɆ{śĈƪĐƖśëŝɆ$ļƎėĉƢŨƎɆȩȹ{$ȺȪȚɆļŝļƢļ댌LjɆëƋƋŨļŝƢėĐɆ
in 2020, continues to protect our customers in everything that
ǂėɆĐŨșɆ¶ķėɆ{$ɆėǁëŒƪëƢėƖɆƢķėɆƍƪëŒļƢLjɆŨįɆļŝƢėƎëĉƢļŨŝƖɆǂļƢķɆŨƪƎɆ
players, reviews how complaints are handled, and suggests ways
in which we can improve our service in a measured, consistent and
responsible manner whilst ensuring the business is protected from
ƪŝŌƪƖƢļǘėĐɆĉŨśƋŒëļŝƢƖș
¡ėëĐɆƢķėɆ¡ėƋŨƎƢɆŨįɆŨƪƎɆ,©EɆ
ŨśśļƢƢėėțɆpages 109-111
Safer betting and gaming
performance
2021 2020 2019
ëƖķɆëŝĐɆļŝȯŏļŝĐɆ
contributions towards
responsible betting and
gaming initiatives
£12.9m £9.7m ɞǦșǩś
ƪƖƢŨśėƎɆļŝƢėƎëĉƢļŨŝƖɆ
regarding problem
gambling
1,2
2,268,550 ǤȚǦǬǣȚǬǣǩ ǤȚǣǩǪȚǬǣǫ
ƪƖƢŨśėƎɆĉŨśƋŒëļŝƢƖ
1,2
4,045 ǩȚǦǪǫ ǤǨȚǩǬǥ
ƪƖƢŨśėƎɆĉŨśƋŒëļŝƢƖɆ
ƖƋėĉļǘĉ댌LjɆƎėŒëƢėĐɆƢŨɆ
a betting and gaming
transaction
1,2
655 919 2,031
©ėŒįȯėLJĉŒƪƖļŨŝƖɆśëĐė
1,2,3
61,644 ǨǬȚǧǩǨ 137,391
Robberies 36 ǧǨ 110
Anti-social behaviour
4,216 ǧȚǪǩǣ ǩȚǣǩǨ
Assaults 132 204 ǦǧǨ
1. Data covers all UK licences.
2. 2020 and 2019 data have been restated to removed discontinued licences,
to be comparable to 2021 data.
3. Data only includes self-exclusions made via Entain’s own processes (eg via
ĉƪƖƢŨśėƎɆƖėƎǁļĉėƖȪȚɆëŝĐɆĐŨėƖɆŝŨƢɆļŝĉŒƪĐėɆƢķļƎĐȯƋëƎƢLjɆƖėŒįȯėLJĉŒƪƖļŨŝɆƖĉķėśėƖɆƖƪĉķɆ
ëƖȚɆįŨƎɇėLJëśƋŒėȚɆEn©¶{ɆȩpëƢļŨŝëŒɆ{ŝŒļŝėɆ©ėŒįȯ,LJĉŒƪƖļŨŝɆ©ĉķėśėȪɆëŝĐɆƢķėɆnƪŒƢļɆ
{ƋėƎëƢŨƎɆ©ėŒįɆ,LJĉŒƪƖļŨŝɆ©ĉķėśėș
7
Change ourselves for
the bettor
53 Overview
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ŨǁļĐȯǤǬ
Putting our
colleagues and
ĉƪƖƢŨśėƎƖɆǘƎƖƢ
Covid-19 continued throwing serious challenges at
businesses and societies in 2021 – and we were no
exception. We started the year suspending our entire retail
estate over three months. Throughout the ups and downs
of 2021, we spared no effort to continue protecting our
customers and colleagues.
Protecting our colleagues
©ķŨƋɆĉŒŨƖƪƎėɆëƢɆƢķėɆĈėİļŝŝļŝİɆŨįɆƢķėɆǥǣǥǤɆśėëŝƢɆƢķëƢɆĉșǤǧȚǣǣǣɆ
ĉŨŒŒėëİƪėƖɆǂėƎėɆƋŒëĉėĐɆŨŝɆƢķėɆ½bɆEŨǁėƎŝśėŝƢȼƖɆįƪƎŒŨƪİķɆƖĉķėśėșɆ
As in 2020, we topped up furlough payments to full salary to
ƋƎŨƢėĉƢɆŨƪƎɆƖƢëįįȼƖɆǘŝëŝĉļëŒɆƖëįėƢLjșɆÕėɆĉŨŝƢļŝƪėĐɆļŝǁėƖƢļŝİɆ
heavily in wellbeing initiatives to support colleagues whilst they
were placed on furlough, working from home, or returning to the
workplace post-lockdown. Our Employee Assistance Programme
ƋƎŨǁļĐėĐɆƖƢëįįɆǂļƢķɆǥǧȦǪɆƖƪƋƋŨƎƢȚɆļŝĉŒƪĐļŝİɆĉŨŝǘĐėŝƢļëŒɆĉŨƪŝƖėŒŒļŝİɆ
and legal advice. We also delivered 11 wellbeing campaigns across
our global operations and trained 100 colleagues to become Mental
LėëŒƢķɆDļƎƖƢɆļĐėƎƖșɆ¶ŨɆƎėëĐɆśŨƎėɆëĈŨƪƢɆŨƪƎɆÕėŒŒȯnėɆƖƢƎëƢėİLjȚɆ
ƋŒėëƖėɆİŨɆƢŨɆƋëİėɆǨǫș
$ƪƎļŝİɆƢķėɆǘƎƖƢɆǂėėŏƖɆŨįɆƢķėɆƋëŝĐėśļĉȚɆǂėɆƎëƋļĐŒLjɆŒėëƎŝėĐɆƢķëƢɆ
the unprecedented levels of isolation and anxiety could put at-
risk online gamblers in a vulnerable position. We were one of the
ǘƎƖƢɆŨƋėƎëƢŨƎƖɆļŝɆǥǣǥǣɆƢŨɆļŝƢƎŨĐƪĉėɆëĐĐļƢļŨŝëŒɆƖëįėİƪëƎĐƖȚɆëŝĐɆ
we continued in 2021 to bolster and adapt our player protection
ƋƎŨİƎëśśėƖɆƢŨɆƢķėɆƪŝļƍƪėɆĉķ댌ėŝİėƖɆĈƎŨƪİķƢɆĈLjɆŨǁļĐȯǤǬșɆ
We have given colleagues a platform to share their amazing
stories of working together whether that be raising money for
charity or keeping up the team spirit when working from home.
Protecting our customers during Covid-19
Entain Live, our annual all colleague event, went virtual this year,
with over 10,000 people joining to hear who we are and where
we’re heading with the launch of our new strategy, purpose
and vision.
Entain plc
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Annual Report 2021
54
Strategic report
Protecting our customers during Covid-19
1.
Increase safer betting and gaming messages
ëĉƎŨƖƖɇ댌ɇƖļƢėƖɆëŝĐɆĐļƎėĉƢɆƢŨɆ댌ɆĉƪƖƢŨśėƎƖș
We increased responsible betting and gaming messaging on our
homepage and throughout all sites, with a new page providing
dedicated advice on keeping betting sensible and enjoyable during
the crisis. Our gaming brands also ran multi-channel advertising
and marketing campaigns to promote responsible betting and
gaming to our customers while they enjoy time on our sites.
2.
Step up interventions if customers increase time
ëŝĐɇƖƋėŝĐɆĈėLjŨŝĐɆŝŨƎśëŒɆƋƎėȯĉƎļƖļƖɆƋëƢƢėƎŝƖș
We took our player protection interventions a step further,
introducing additional safeguarding measures to ensure that we
can rigorously monitor and protect anyone who may be vulnerable
at this time. This includes the introduction of two new Markers of
Protection indicators to our safer betting and gaming algorithm,
to factor in the evolving betting and gaming behaviour caused by
ƢķėɆƋëŝĐėśļĉȚɆėŝëĈŒļŝİɆƢķėɆļĐėŝƢļǘĉëƢļŨŝɆŨįɆƋŨƢėŝƢļ댌LjɆƋƎŨĈŒėśëƢļĉɆ
betting and gaming behaviour at an earlier stage.
3.
Actively promote deposit limits.
In addition to promoting deposit limits as part of our safer betting
and gaming promotion, we introduced a new maximum stakes tool
across our slots brand.
4.
Take action to ensure appropriate and responsible
advertising, including monitoring volume of
placements.
ÕėɆëĐŨƋƢėĐɆƢķėɆėƢƢļŝİɆëŝĐɆEëśļŝİɆŨƪŝĉļŒȼƖɆǁŨŒƪŝƢëƎLjɆĈëŝɆ
on all UK broadcast gaming advertising, and its replacement
with responsible betting and gaming messaging during the
lockdown period.
Ǩș
Report all illegal, rogue advertising from black
market online operators.
We continued to work with local enforcement agencies if we
detect these issues, and encouraged colleagues to speak up if
ƢķėLjɇƖƋŨƢɆëŝLjƢķļŝİɆƢķëƢɆĈƎėëĉķėƖɆŨƪƎɆėśƋŒŨLjėėɆŨĐėɆŨįɆŨŝĐƪĉƢș
ǩș
Enforce a one-strike-and-you’re-out policy where
ëįǘŒļëƢėƖɆĈƎėëĉķɆƋŒėĐİėƖș
ÕėɆļśƋŒėśėŝƢėĐɆƖƋėĉļǘĉɆİƪļĐëŝĉėɆëŝĐɆƎėƖƢƎļĉƢļŨŝƖɆƢŨɆ댌ɆëįǘŒļëƢėƖȚɆ
preventing them from referencing the pandemic or encouraging
excessive play due to boredom or isolation. This advice includes
ëɇƖƋėĉļǘĉɆĈŒëĉŏŒļƖƢɆŨįɆĈëŝŝėĐɆƢėƎśƖș
7.
Signpost help to GAMCARE and the National
Gambling Helpline and GamStop for self-exclusion.
ÕėɆĉŨŝƢļŝƪėĐɆƢŨɆƋƎŨśŨƢėɆEnpɆƢķƎŨƪİķŨƪƢɆǥǣǥǤș
ǫș
Ensure continued funding for Research Education
ëŝĐɇ¶ƎėëƢśėŝƢɆȩȹ¡,¶ȺȪș
QŝɆǥǣǥǤȚɆǂėɆļŝĉƎėëƖėĐɆŨƪƎɆ½bɆEƎŨƖƖɆEëśļŝİɆÛļėŒĐɆȩȹEEÛȺȪɆƢķëƢɆļƖɆ
contributed to organisations working on the Research, Education
ëŝĐɆ¶ƎėëƢśėŝƢɆȩȹ¡,¶ȺȪɆƢŨɆǣșǨɼș
9.
Provide welfare checks and wellbeing help for staff.
Due to the pandemic, we brought forward our delivery of Well-
Me, Entain’s colleague wellbeing strategy, to provide additional
support for our staff. This is outlined above.
10.
Support the UK government’s ‘National Effort’
ǂļƢķɇǁŨŒƪŝƢėėƎƖɆëŝĐɆįëĉļŒļƢļėƖș
ŒŒɆƖƢŨƎėƖɆļśƋŒėśėŝƢėĐɆƢķėɆpL©Ɇ¶ƎëĉŏɆëŝĐɆ¶ƎëĉėɆƋƎŨĉėĐƪƎėƖș
55 Overview
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Annual Report 2021
Keeping our shops safe for everyone
We take every measure possible to ensure our colleagues and
customers are safe in our shops. After an initial investment of
over £3m in 2020, we continued to invest in measures to keep
our colleagues and customers safe. Our c.3,000 shops operate
with strict procedures in place – including limited shop occupancy
ŒėǁėŒƖȚɆƖļİŝëİėɆëŝĐɆǙŨŨƎɆśëƎŏļŝİȚɆśëĉķļŝėƖɆëŝĐɆƢļŒŒɆĐļǁļĐėƎƖȚɆëŝĐɆ
personnel protective equipment. We continued our participation
ļŝɆƢķėɆ½bȼƖɆpL©Ɇ¶ƎëĉŏɆʁɆ¶ƎëĉėɆƖLjƖƢėśȚɆļĐėŝƢļįLjļŝİɆëŝĐɆļƖŨŒëƢļŝİɆ
colleagues who may have been in contact with someone who had
ƢėƖƢėĐɆƋŨƖļƢļǁėɆįŨƎɆŨǁļĐȯǤǬșɆ
We asked that colleagues who displayed symptoms, even minor,
self-isolate immediately. We opened a hotline to help local teams
deal with staff being unexpectedly off work.
Supporting our communities
The pandemic has never altered our commitment to supporting
communities. In 2021, we extended our long-term partnership with
©ƋŨƎƢƖļĐȚɆļŝĉƎėëƖļŝİɆŨƪƎɆƢŨƢëŒɆĉŨśśļƢśėŝƢɆƢŨɆëƎŨƪŝĐɆɞǨǣǣȚǣǣǣɆ
by 2024 and thereby supporting more up-and-coming athletes.
Through Pitching in, our multi-million investment programme,
we have continued promoting grassroot sports and delivering
vital support to sport clubs and organisations. We also launched
EnTrain, a global programme to increase access to, and diversity
within, technology. To read more about these initiatives and the
,ŝƢëļŝɆDŨƪŝĐëƢļŨŝȚɆƋŒėëƖėɆİŨɆƢŨɆƋëİėƖɆǩǣɆƢŨɆǩǦș
Covid-19 continued
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Strategic report
Investing in people and communities
One of the key pillars of our Sustainability Charter is
to continue investing in our people and communities.
We understand the importance of recruiting, retaining, and
nurturing top talents from diverse backgrounds – especially
as our people are central to our Entain platform. We are
aware of our role in limiting global warming to no more than
1.5
o
C and we have pledged to be Net Zero by no later than
2035. We also contribute to the wider communities in which
we operate, supporting community organisation via the
Entain Foundation.
Best place to work
Everyone’s in the Game: Diversity and Inclusion at Entain
Our vision is to create a best place to work where our colleagues
feel valued, respected, and engaged. We want to revolutionise the
betting and gaming industry and become the technology employer
of choice for all talented people regardless of who they are.
ǥǣǥǤɆǂëƖɆƢķėɆǘŝëŒɆLjėëƎɆŨįɆƢķėɆ,ǁėƎLjŨŝėȼƖɆļŝɆƢķėɆEëśėɆƖƢƎëƢėİLjșɆ
During this time, we started building a more intersectional and
localised approach to diversity and inclusion. We are expanding
our focus beyond gender equality, as well as ensuring our
interventions are tailored to the context in which our colleagues
live. We launched an Inclusion Ambassadors programme, Entain
Nationals, and recruited 30 ambassadors across our global
footprint. Those colleagues help us to better understand local
ĉķ댌ėŝİėƖɆëŝĐɆƢŨɆëĐëƋƢɆëŝĐɆėśĈėĐɆŨƪƎɆƋƎŨİƎëśśėƖɆļŝɆėëĉķɆŨįǘĉėșɆ
We invested in educating Entain’s senior leaders on the importance
of diversity & inclusion. Our Inclusion Team engaged with each
,LJėĉƪƢļǁėɆŨśśļƢƢėėɆȩȹ,LJŨȺȪɆśėśĈėƎɆëŝĐɆƢķėļƎɆĐļƎėĉƢɆƎėƋŨƎƢƖȚɆ
presenting the diversity demographics of their team and helping
them create tailored action plans for all business areas. We started
ƎėëĉķļŝİɆƢŨɆŨƪƎɆǂļĐėƎɆĉŨŒŒėëİƪėȯĈëƖėɆǂļƢķɆƢķėɆEŒŨĈëŒɆQŝĉŒƪƖļŨŝɆ
Learning, a new interactive and immersive training delivered by
ǨǣɆįëĉļŒļƢëƢŨƎƖɆëĉƎŨƖƖɆƢķėɆĈƪƖļŝėƖƖșɆëƖėĐɆŨŝɆƎėëŒȯŒļįėɆƢėƖƢļśŨŝļëŒƖɆ
from our colleagues, the course discusses how to be more inclusive
in day-to-day business interactions and to challenge negative
behaviours. Our aim is for all our people to have completed the
programme by the end of 2022.
We also broadened our inclusion partnerships by teaming up
with global organisations. On International Women’s Day, we
ëŝŝŨƪŝĉėĐɆŨƪƎɆĉŨŒŒëĈŨƎëƢļŨŝɆǂļƢķɆEļƎŒƖɆǂķŨɆŨĐėȚɆĐŨŝëƢļŝİɆ
ɏǥǨǣȚǣǣǣɆƢķƎŨƪİķɆƢķėɆ,ŝƢëļŝɆDŨƪŝĐëƢļŨŝɆƢŨɆƢķėļƎɆǂŨƎŏɆŨŝɆ
encouraging more young girls of diverse backgrounds to study
technology. In November, we launched our new multi-million-pound
global initiative called EnTrain. Our goal is to positively impact
the lives of one million people by 2030 by enabling access to
technology and changing the diversity within technology. To read
śŨƎėɆëĈŨƪƢɆƢķėƖėɆƋëƎƢŝėƎƖķļƋƖȚɆƋŒėëƖėɆƖėėɆƋëİėƖɆǩǣɆƢŨɆǩǥș
Recognising our ambition and that there is still much to do,
2022 will see us launching the next iteration of our Diversity &
QŝĉŒƪƖļŨŝɆ©ƢƎëƢėİLjșɆÕėɆǂļŒŒɆĐėŒļǁėƎɆëɆƖļLJȯśŨŝƢķɆ¡ėǁėƎƖėɆnėŝƢŨƎļŝİɆ
programme to help our leaders stay in touch with colleagues
and understand the lived experience of different groups. We are
ƋëƎƢŝėƎļŝİɆǂļƢķɆEŒŨĈëŒɆEëśļŝİɆÕŨśėŝɆëŝĐɆƢķėɆŒŒȯQŝɆ$ļǁėƎƖļƢLjɆ
Project to create ‘Lean In’ circles across Entain and connect
our women across the globe with each other and other women
within the broader technology and entertainment sectors.
We will continue improving our talent attraction, selection, and
development processes to remove bias and improve representation,
using well-tested methods such as diverse candidate slates
and interview panels, as well as gender neutralisation and bias
removal in job adverts. We will also be investing in the creation
of employee resource groups who will help us to better engage
In the past three years, we have made
improvements across our gender diversity
at senior leadership level and across the
business. We are now moving towards a
more holistic approach to diversity, creating
a workplace where everyone belongs and
where access to opportunities is equal
ƎėİëƎĐŒėƖƖɆŨįɆǂķŨɆLjŨƪɆëƎėșȺ
Sophie Hawley
LėëĐɆŨįɆ$ļǁėƎƖļƢLjȚɆQŝĉŒƪƖļŨŝȚɆʁɆ,ƍƪëŒļƢLj
Diversity at Entain 2021 2020 2019
Employees worldwide 25,554 ǥǦȚǨǪǦ ǥǧȚǩǤǧɆ
Female employees 11,583 ǤǤȚǦǦǩ ǤǥȚǤǫǬɆ
% female employees
45% ǧǫɼ Ǩǣɼ
Part-time employees
1
4,328 ǥȚǨǥǨ ǤȚǧǨǫɆ
% part-time employees
17% 11% ǩɼ
Employee Engagement Index
78% Ǫǫɼ 74%
Median hourly pay difference
ĈėƢǂėėŝɇśëŒėɆëŝĐɆįėśëŒėɆĉŨŒŒėëİƪėƖɆ
ȩEėŝĐėƎɆëLjɆEëƋȪȃ
5% 7% 4%
nėëŝɆLŨƪƎŒLjɆƋëLjɆĐļįįėƎėŝĉėɆ
ĈėƢǂėėŝɇśëŒėɆëŝĐɆįėśëŒėɆĉŨŒŒėëİƪėƖɆ
ȩEėŝĐėƎɆëLjɆEëƋȪȃ 16% ǤǨɼ Ǥǫɼ
Median bonus pay difference
ĈėƢǂėėŝɇśëŒėɆëŝĐɆįėśëŒėɆĉŨŒŒėëİƪėƖȃ 60% 13% Ǧǩɼ
Mean bonus pay difference
ĈėƢǂėėŝɇśëŒėɆëŝĐɆįėśëŒėɆĉŨŒŒėëİƪėƖȃ
63% 19% ǫǦɼ
ǤșɆ $ëƢëɆįŨƎɆǥǣǤǬɆëŝĐɆǥǣǥǣɆķëƖɆĈėėŝɆƎėƖƢëƢėĐɆĐƪėɆƢŨɆƢķėɆśėƎİļŝİɆŨįɆL¡ɆƖLjƖƢėśƖɆëŝĐɆƢķėɆ
ķëƎśŨŝļƖëƢļŨŝɆŨįɆƢķėɆĐėǘŝļƢļŨŝɆŨįɆƋëƎƢȯƢļśėɆėśƋŒŨLjėėƖɆĈėƢǂėėŝɆƢķėƖėɆƖLjƖƢėśƖșɆ
ǥșɆ $ëƢëɆĉŨǁėƎƖɆ댌Ɇ½bɆĉŨŒŒėëİƪėƖșɆ$ëƢëɆļƖɆĈëƖėɆŨŝɆëɆƖŝëƋƖķŨƢɆĐëƢėɆŨįɆǨɆƋƎļŒɆįŨƎɆƢķėɆLjėëƎɆ
ƖƢëƢėĐȚɆëƖɆƋėƎɆƢķėɆƎėƍƪļƎėśėŝƢƖɆŨįɆƢķėɆ½bȼƖɆEėŝĐėƎɆëLjɆEëƋɆ¡ėƋŨƎƢļŝİș
and advocate for minority groups at Entain. Additionally we are
expanding our education and awareness-building efforts to cover
topics including allyship and the use of inclusive language to set
the foundations of creating a psychologically safe culture at Entain.
We will also work to improve our diversity data collection with a
new global self-declaration campaign, encouraging our colleagues
to disclose demographics beyond gender on our internal people
management system.
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Annual Report 2021
Well-Me: Wellbeing at Entain
The delivery of our well-me strategy went from strength-to-
strength in 2021, as we further embedded wellbeing in every
aspect of the employee lifecycle, from recruitment and onboarding
ƢŨɆƎėǂëƎĐƖɆëŝĐɆĐėǁėŒŨƋśėŝƢșɆ{ƪƎɆEŒŨĈëŒɆÕėŒŒĈėļŝİɆpėƢǂŨƎŏɆ
ėLJƋëŝĐėĐɆëĉƎŨƖƖɆŨƪƎɆŨįǘĉėƖɆƢŨɆǤǦɆǂėŒŒĈėļŝİɆŒėëĐƖȚɆǂķŨɆëƎėɆ
helping us to shape our global wellbeing strategy and adapt it to
local contexts.
In the past months, we continued to focus on supporting our
colleagues through the pandemic. We have offered Well-Me
booster sessions twice a week, alternating between yoga and
meditation, and provided an interactive toolkit with resources
to help our people adjust with returning to the workplace post
lockdown. Throughout the year we continued the roll-out of our
nėŝƢëŒɆLėëŒƢķɆDļƎƖƢɆļĐɆȩȹnLDȺȪɆƋƎŨİƎëśśėȚɆķëǁļŝİɆƎėĉƎƪļƢėĐɆ
ëŝĐɆƢƎëļŝėĐɆŨǁėƎɆǤǣǣɆĉŨŒŒėëİƪėƖɆİŒŨĈ댌LjɆƢŨɆëĉƢɆëƖɆƢķėɆǘƎƖƢɆƋŨļŝƢɆŨįɆ
contact for people with mental health issues. Launched in 2020,
ŨƪƎɆ,śƋŒŨLjėėɆƖƖļƖƢëŝĉėɆƎŨİƎëśśėɆȩȹ,ȺȪɆƎėśëļŝƖɆëɆśëŌŨƎɆ
ƖŨƪƎĉėɆŨįɆƖƪƋƋŨƎƢɆįŨƎɆŨƪƎɆĉŨŒŒėëİƪėƖȚɆǂļƢķɆǫɼɆŨįɆƪƢļŒļƖëƢļŨŝɆȩëɆķļİķɆ
ƢëŏėȯƪƋɆƎëƢėɆǂķėŝɆĉŨśƋëƎėĐɆƢŨɆƖļśļŒëƎȯƖļǒėĐɆĉŨśƋëŝļėƖȪșɆÕėɆëŒƖŨɆ
delivered 11 global campaigns on a variety of wellbeing topics,
ëĉķļėǁļŝİɆǤǦǣȚǣǣǣɆǁļėǂƖɆëŝĐɆļŝƢėƎëĉƢļŨŝƖɆİŒŨĈ댌LjȚɆëɆǦǨɼɆļŝĉƎėëƖėɆ
in engagement from 2020.
ƖɆƋëƎƢɆŨįɆŨƪƎɆĈƎŨëĐėƎɆƎėƖƋŨŝƖėɆƢŨɆŨǁļĐȯǤǬȚɆǂėɆŒëƪŝĉķėĐɆ
ƢķėɆDƪƢƪƎėɆŨįɆƢķėɆ{įǘĉėɆȱɆëɆƖƢƎëƢėİļĉɆƎėǁļėǂɆŨįɆŨƪƎɆǂŨƎŏļŝİɆ
ƋƎëĉƢļĉėƖȚɆėLJƋŒŨƎļŝİɆķŨǂɆǂėɆĉëŝɆƪƖėɆėLJƋėƎļėŝĉėɆŨįɆķŨǂɆŨįǘĉėȯ
ĈëƖėĐɆĉŨŒŒėëİƪėƖɆëĐëƋƢėĐɆĐƪƎļŝİɆŒŨĉŏĐŨǂŝƖɆƢŨɆĈėŝėǘƢɆĈŨƢķɆŨƪƎɆ
ĈƪƖļŝėƖƖɆëŝĐɆŨƪƎɆƋėŨƋŒėșɆÕėɆķëǁėɆëĐŨƋƢėĐɆİƎėëƢėƎɆǙėLJļĈļŒļƢLjɆļŝɆ
ŨƪƎɆĉŨŒŒėëİƪėƖȼɆëĈļŒļƢLjɆƢŨɆǂŨƎŏɆǂļƢķļŝɆƢķėɆŨįǘĉėɆŨƎɆįƎŨśɆëɆķŨśėȯ
setting. We are also looking at how we can radically change our
ƋķLjƖļĉëŒɆŒŨĉëƢļŨŝƖɆƢŨɆĉƎėëƢėɆśŨƎėɆļŝƖƋļƎļŝİɆëŝĐɆǙėLJļĈŒėɆǂŨƎŏƖƋëĉėƖȚɆ
while increasing the use of existing buildings and maximising
ƖƪƖƢëļŝëĈļŒļƢLjșɆƖɆëɆǘƎƖƢɆƖƢėƋȚɆļŝɆƋƎļŒɆǥǣǥǥȚɆǂėɆǂļŒŒɆŨƋėŝɆëɆƎėȯ
ļśëİļŝėĐɆëŝĐɆƎėŝŨǁëƢėĐɆŨįǘĉėɆļŝɆ©ƢƎëƢįŨƎĐȚɆdŨŝĐŨŝȚɆǂķėƎėɆǂėɆ
ǂļŒŒɆƋƎŨǁļĐėɆëɆƎëĐļĉ댌LjɆśŨƎėɆĉƎėëƢļǁėɆëŝĐɆǙėLJļĈŒėɆǂŨƎŏƖƋëĉėșɆ
Through these developments, we want to deliver a more
ƋėƎƖŨŝëŒļƖėĐɆŨįǘĉėɆėLJƋėƎļėŝĉėɆǂķļĉķɆǂėɆĈėŒļėǁėɆǂļŒŒɆķėŒƋɆƪƖɆƢŨɆ
attract and retain the best talent.
ŒƖŨȚɆŒëƢėƎɆƢķļƖɆLjėëƎȚɆǂėɆǂļŒŒɆƋëƎƢŝėƎɆǂļƢķɆ¡ŨĈėƎƢƖŨŝɆŨŨƋėƎɆƢŨɆ
ƪŝĐėƎƢëŏėɆëɆEŒŨĈëŒɆÕėŒŒĈėļŝİɆ©ƪƎǁėLjșɆ¶ķļƖɆļŝȯĐėƋƢķɆëƖƖėƖƖśėŝƢɆ
will help us to better understand the root causes of mental health
risks at Entain and to tailor future interventions in different areas of
the business. We will also focus on our ‘frontline’ people who are
providing support to colleagues and customers and are at greater
risk of mental health issues, developing an end-to-end process to
assist them in their roles.
I became a mental health
ǘƎƖƢɆëļĐėƎɆëƖɆQɆĈėŒļėǁėɆƢķëƢɆ
everyone has a right to be
heard and that we all need to
be placing equal importance
on our mental health as we
ĐŨɇŨƪƎɆƋķLjƖļĉëŒɆķėëŒƢķșȺ
Jo Bleasdale
$ļƎėĉƢŨƎɆŨįɆQŝƢėƎŝëŒɆŨśśƪŝļĉëƢļŨŝƖ
ǪǨɼɆŨįɆŨƪƎɆĉŨŒŒėëİƪėƖɆƢķļŝŏɆ,ŝƢëļŝɆ
takes genuine interest in colleagues’
ǂėŒŒĈėļŝİșȺ
Jo Bleasdale
$ļƎėĉƢŨƎɆŨįɆQŝƢėƎŝëŒɆŨśśƪŝļĉëƢļŨŝƖ
Gender Diversity at Entain
2019
3 out of
9 (33%)
2020
3 out of
10 (30%)
4 out of
11 (36%)
2021
2019
101 out of
384 (26%)
2020
181 out of
524 (35%)
163 out of
463 (35%)
2021
2019
12,189 out of
24,614 (50%)
2020
11,336 out of
23,573 (48%)
11,583 out of
25,554 (45%)
2021
Group Board
36%
Male Female
Senior Managers
35%
All Employees
45%
Investing in people and communities continued
Entain plc
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Annual Report 2021
58
Strategic report
Our economic contributions
¶ķėɆEƎŨƪƋɆėśƋŒŨLjƖɆëɆƖļİŝļǘĉëŝƢɆŝƪśĈėƎɆŨįɆƋėŨƋŒėɆëĉƎŨƖƖɆŨǁėƎɆ
ǧȚǦǧǩɆƎėƢëļŒɆŨƪƢŒėƢƖɆëŝĐɆŨįǘĉėƖɆļŝɆśŨƎėɆƢķëŝɆǥǣɆƢėƎƎļƢŨƎļėƖșɆƖɆƖƪĉķȚɆ
ŨƪƎɆėĉŨŝŨśļĉɆįŨŨƢƋƎļŝƢɆļƖɆƖļİŝļǘĉëŝƢșɆQŝɆǥǣǥǤȚɆǂėɆƋëļĐɆɞǤșǤĈŝɆļŝɆ
taxes and levies across our countries of operation. This comes in
ëĐĐļƢļŨŝɆƢŨɆƢķėɆɞǨǪǬșǤśɆǂėɆƋëļĐɆļŝɆėśƋŒŨLjėėɆǂëİėƖɆëŝĐɆƖëŒëƎļėƖș
Economic contributions 2021 2020 2019
Net gaming revenue
ȩpE¡Ȫ £3,886.3m ɞǦȚǩǥǫșǨś ɞǦȚǩǦǥșǪś
Underlying EBITDA
£881.7m ɞǫǧǦșǤś ɞǪǩǤșǧś
Total tax paid
£1,055m ɞǬǩǥś £927m
Employee wages and
salaries
£579.1m ɞǨǥǧșǣś ɞǩǪǤșǥś
Payments to providers
of capital (interest &
ĐļǁļĐėŝĐƖȪ £63.9m ɞǩǥșǫś ɞǥǩǪșǤś
In January 2022, we launched Ennovate, our new global
innovation hub. Through Ennovate we are investing up to £100m
in innovation projects, start-up investments and collaborations
ǂļƢķɆ½bȚɆ,ƪƎŨƋėëŝɆëŝĐɆİŒŨĈëŒɆƋëƎƢŝėƎƖșɆ{ƪƎɆǘƎƖƢɆŒëĈɆļŝɆdŨŝĐŨŝɆ
ǂļŒŒɆŨƋėŝɆŒëƢėƎɆļŝɆƢķėɆǘƎƖƢɆķëŒįɆŨįɆƢķėɆLjėëƎȚɆǂļƢķɆɞǧǣśɆƖƋėĉļǘĉ댌LjɆ
of investment allocated to pursue UK-based innovation initiatives.
,ŝŝŨǁëƢėɆƎėǙėĉƢƖɆ,ŝƢëļŝȼƖɆëśĈļƢļŨŝɆƢŨɆĈėɆëɆİŒŨĈëŒɆŒėëĐėƎɆļŝɆ
interactive entertainment and provide great products and moments
of excitement for customers. As the media, entertainment and
gaming sectors converge, we are adapting to offer customers
the richer experiences they now expect, with a greater variety
of content, immersive experiences, personalisation, and social
interaction which increase their enjoyment and engagement.
Through Ennovate we are partnering with cutting-edge technology
ĉŨśƋëŝļėƖɆƖƪĉķɆëƖɆÔėƎļǒŨŝȚɆ¶ȚɆëŝĐɆ¶ķėƢëɆdëĈƖȚɆƢŨɆĐėǁėŒŨƋɆ
groundbreaking experiences for customers in gaming and
interactive entertainment.
Committed to colleague development
In 2021, we delivered important milestones in improving the way
people learn and grow at Entain. At the beginning of the year, we
introduced a new performance management strategy called Entain
& Perform. Our ambition was to harmonise how our colleagues
and teams are supported to set and meet their objectives.
The strategy has been underpinned by learning camps for all our
people managers and a new online tool where colleagues can
capture their goals, learnings, career conversations, and reviews.
In June, we also launched Learning Moments, a global learning
platform accessible to all our colleagues. Learning Moments
provides an online library with podcasts, articles, LinkedIn Learning
courses, getAbstract book summaries, and other video content.
The platform is a great example of self-led learning and has been
nominated for the 2022 RAD Innovation Award.
Best place to work performance
indicators 2021 2020 2019
ƪƖƢŨśėƎɆ©ëƢļƖįëĉƢļŨŝ 60% ǩǣɼ ǩǣɼ
ėŝƢƎëŒɆdʁ$ɆļŝǁėƖƢśėŝƢ
£2.6m £1.2m n/a
Average hours per employee of
ƢƎëļŝļŝİɇëŝĐɇĐėǁėŒŨƋśėŝƢ
10.5
hours n/a n/a
Average amount spent per employee
on training and development
£116 n/a n/a
Average hours per manager of
training and development
38.5
hours n/a n/a
Average amount spent per manager
on training and development £577 n/a n/a
Employee turnover – all 32% ǥǩɼ 44%
Employee turnover – voluntary 25% 17% 33%
Whistleblowing incidents reported
and investigated
29 34 34
Employee accidents 117 137 179
Employee reportable incidents
5 4 ǫ
Public accidents
9 31 24
Public reportable incidents
1 00
59 Overview
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Strategic report
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Governance
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Financial statements
Entain plc
|
Annual Report 2021
Investing in Communities
We aim for our impact on society to be positive, whether in terms
of creating a great place to work, supporting communities, and
promoting diversity and healthy lifestyles, and entertainment.
We work with a range of partner organisations to bring this
ambition to life.
The Entain Foundation
ÕėɆŨƎļİļŝ댌LjɆŒëƪŝĉķėĐɆƢķėɆ,ŝƢëļŝɆDŨƪŝĐëƢļŨŝɆȩȹƢķėɆDŨƪŝĐëƢļŨŝȺȪ
ļŝɆ©ėƋƢėśĈėƎɆǥǣǤǬɆƢŨɆķėŒƋɆĐėŒļǁėƎɆƢķėɆEƎŨƪƋȼƖɆëśĈļƢļŨŝɆƢŨɆƢëŏėɆƢķėɆ
lead on safer betting and gaming and support the communities
in which we operate. In addition to the main global Foundation,
ǂėɆëŒƖŨɆŨƋėƎëƢėɆƢķėɆ,ŝƢëļŝɆDŨƪŝĐëƢļŨŝɆ½©ȚɆëɆĐėĐļĉëƢėĐɆ½©ȯĈëƖėĐɆ
ŝŨƢȯįŨƎȯƋƎŨǘƢșɆQŝɆpŨǁėśĈėƎɆǥǣǥǣȚɆƢķėɆEƎŨƪƋɆëŝĐɆļƢƖɆƎėŝëśėĐɆ
Entain Foundation, which now enjoys registered charitable status,
ĉŨśśļƢƢėĐɆƢŨɆļŝǁėƖƢļŝİɆɞǤǣǣśɆƢŨɆİŨŨĐɆĉëƪƖėƖɆŨǁėƎɆǘǁėɆLjėëƎƖș
¶ķėɆǂŨƎŏɆŨįɆƢķėɆDŨƪŝĐëƢļŨŝɆƖƪƋƋŨƎƢƖɆƢķėɆEƎŨƪƋȼƖɆƋļŨŝėėƎļŝİɆ
©ƪƖƢëļŝëĈļŒļƢLjɆķëƎƢėƎɆëŝĐɆǂļĐėƎɆ,©EɆļŝļƢļëƢļǁėƖȚɆëŝĐɆƋŒëLjƖɆëŝɆ
ļŝƢėİƎëŒɆƎŨŒėɆļŝɆĐėŒļǁėƎļŝİɆëİëļŝƖƢɆƢķėɆķëƎƢėƎȼƖɆƋļŒŒëƎƖɆŨįɆėŨƋŒėɆëŝĐɆ
ŨśśƪŝļƢļėƖȚɆëŝĐɆ¡ėƖƋŨŝƖļĈļŒļƢLjșɆ¶ķėɆDŨƪŝĐëƢļŨŝȼƖɆŏėLjɆëƎėëƖɆŨįɆ
focus are safer betting and gaming, grassroots sports, diversity in
technology and projects with a clear link to where we operate.
Investing in people and communities continued
Only operate in regulated
markets by 2023.
We support partner
organisations that are
engaged in research,
education and treatment of
problem gambling to bolster
ŨƪƎɆļŝƢėƎŝëŒɆķëŝİļŝİɆįŨƎɆ
the Better safer betting and
gaming strategy.
©ƋŨƎƢƖɆëŝĐɆƖƋŨƎƢƖɆĈėƢƢļŝİɆ
are what we do. We give
back by supporting the next
crop of athletes, and work
with organisations that
are making sport inclusive
to bring everyone into
the game.
As a technology company
at heart, we are supporting
organisations that are
working with young people
that may currently be
underrepresented in the tech
talent pool. Promoting tech
careers and ensuring that
the future talent pipeline is
inclusive, making sure that
,ǁėƎLjŨŝėȼƖɆļŝɆƢķėɆEëśėșɆ
Our operations are truly
global – embedded in
communities in more than
ǤǨɆĉŨƪŝƢƎļėƖșɆ
Taking the lead on
responsible betting
ëŝĐɇİëśļŝİș
Best-in-class standards
ŨįɇĉŨƎƋŨƎëƢėɆİŨǁėƎŝëŝĉėș
Creating the best place to
work, net-zero emissions
by 2035, and support the
communities where we
operate.
Safer betting and gaming Grassroots, women’s
and disability sports
Diversity in technology Projects in the
communities where
we operate
Responsibility
People &
Communities
Why it matters Social impact areas
of focus
Entain group sustainability charter
How our social impact focus supports the Entain Sustainability Charter
Corporate
Governance
Regulation
Entain plc
|
Annual Report 2021
60
Strategic report
avoiding any promotion of our betting brands – Entain not only
supports running of the Trident Leagues, but has also established
ƢķėɆ¶ƎļĐėŝƢɆŨśśƪŝļƢLjɆDƪŝĐȚɆǂķļĉķɆėŝëĈŒėƖɆĉŒƪĈƖɆƢŨɆƎėĉėļǁėɆ
funding to run community engagement projects.
In 2022 a key focus for the programme is to facilitate and
encourage community volunteers to do some pitching in of their
own and contribute their time and effort. A Pitching In online
volunteering hub will launch in Q1, providing a national framework
to connect volunteers with their local club. The scheme will also
encourage UK based Entain colleagues to connect with their local
clubs to further strengthen community ties.
SportsAid
,ŝƢëļŝɆķëƖɆĈėėŝɆƋëƎƢŝėƎėĐɆǂļƢķɆ©ƋŨƎƢƖļĐɆƖļŝĉėɆǥǣǤǫșɆ©ƋŨƎƢƖļĐɆļƖɆ
the only national charity in the UK of its kind, helping young British
athletes aspiring to be the country’s next Olympic, Paralympic,
ŨśśŨŝǂėëŒƢķɆëŝĐɆǂŨƎŒĐɆĉķëśƋļŨŝƖșɆ¶ķƎŨƪİķɆƢķėɆƋëƎƢŝėƎƖķļƋɆ
,ŝƢëļŝɆƖƪƋƋŨƎƢƖɆŨǁėƎɆǨǣɆëƢķŒėƢėƖɆėëĉķɆLjėëƎɆĈLjɆƋƎŨǁļĐļŝİɆƢķėśɆ
ǂļƢķɆëɆǘŝëŝĉļëŒɆëǂëƎĐɆƢŨɆķėŒƋɆƢŨǂëƎĐƖɆƢƎëļŝļŝİȚɆėƍƪļƋśėŝƢɆëŝĐɆ
competition costs, as well as personal development training.
QŝɆǥǣǥǤɆǂėɆėLJƢėŝĐėĐɆŨƪƎɆŒŨŝİȯƢėƎśɆƋëƎƢŝėƎƖķļƋɆǂļƢķɆ©ƋŨƎƢƖļĐɆ
ƢķƎŨƪİķɆƢŨɆƢķėɆëƎļƖɆǥǣǥǧɆ{ŒLjśƋļĉɆëŝĐɆëƎëŒLjśƋļĉɆEëśėƖȚɆ
ĐŨƪĈŒļŝİɆƢķėɆǘŝëŝĉļëŒɆĈëĉŏļŝİɆśëĐėɆƢķƪƖɆįëƎɆëŝĐɆļŝĉƎėëƖļŝİɆŨƪƎɆ
ƢŨƢëŒɆĉŨśśļƢśėŝƢɆƢŨɆëƎŨƪŝĐɆɞǨǣǣȚǣǣǣɆĈLjɆǥǣǥǧȚɆƢķėƎėĈLjɆėŝƖƪƎļŝİɆ
śŨƎėɆƪƋȯëŝĐȯĉŨśļŝİɆëƢķŒėƢėƖɆĈėŝėǘƢɆįƎŨśɆƢķėɆƋƎŨİƎëśśėș
©ƋŨƎƢƖļĐɆëŒƖŨɆƋƎŨǁļĐėƖɆëĉĉėƖƖɆƢŨɆëɆǁëƎļėƢLjɆŨįɆŨŝŒļŝėɆǂŨƎŏƖķŨƋƖɆ
for athletes and their parents, online access to Olympians and
ëƎëŒLjśƋļëŝƖȚɆëŝĐɆëƢƢėŝĐëŝĉėɆëƢɆƢķėɆLŨƪƖėɆŨįɆŨśśŨŝƖɆȩǂķėƎėɆ
nƖɆśėėƢɆëƢķŒėƢėƖȪșɆ¶ķėƖėɆëƢķŒėƢėƖɆëƎėɆEƎėëƢɆƎļƢëļŝȼƖɆĈƎļİķƢėƖƢɆ
ƖƋŨƎƢļŝİɆƋƎŨƖƋėĉƢƖșɆ¶ķėLjɆëƎėɆŝŨśļŝëƢėĐɆƢŨɆ©ƋŨƎƢƖļĐɆĈLjɆƢķėɆ
ŝëƢļŨŝëŒɆİŨǁėƎŝļŝİɆĈŨĐļėƖɆŨįɆśŨƎėɆƢķëŝɆǩǣɆƖƋŨƎƢƖșɆ©ƋŨƎƢƖļĐɆįŨƪŝĐɆ
ƢķëƢɆǩǤɼɆȩŨƎɆǥǧǥɆëƢķŒėƢėƖȪɆŨįɆƢķŨƖėɆƖėŒėĉƢėĐɆƢŨɆƎėƋƎėƖėŝƢɆ¶ėëśɆEɆ
ëƢɆƢķėɆ¶ŨŏLjŨɆǥǣǥǣɆ{ŒLjśƋļĉɆEëśėƖɆķëǁėɆƎėĉėļǁėĐɆǘŝëŝĉļëŒɆƖƪƋƋŨƎƢɆ
and recognition from the charity during their careers. Through our
śƪŒƢļȯLjėëƎɆƖƢƎëƢėİļĉɆƋëƎƢŝėƎƖķļƋȚɆ,ŝƢëļŝȼƖɆĉŨŝƢƎļĈƪƢļŨŝƖɆƢŨɆ©ƋŨƎƢƖļĐɆ
ƋƎŨǁļĐėƖɆǨǣɆƪƋɆëŝĐɆĉŨśļŝİɆëƢķŒėƢėƖɆėëĉķɆLjėëƎɆǂļƢķɆǘŝëŝĉļëŒɆ
support, recognition and personal development opportunities.
Promoting diversity in technology
In November 2021, we launched EnTrain, a global programme to
promote increased access to, and diversity within, technology.
We have set the ambitious target for EnTrain to positively impact
the lives of one million people around the world – either directly or
through their families and dependants – by 2030.
Supporting
academic
research
Raising
awareness
amongst key
stakeholders
Providing
treatment for
those who
need it
Focus on safer betting and gaming
As noted above, within our seven principles of safer betting
ëŝĐɆİëśļŝİɆȩƖėėɆƋëİėƖɆǧǧɆƢŨɆǨǦȪȚɆƢķėɆDŨƪŝĐëƢļŨŝȼƖɆƢŨƋɆƋƎļŨƎļƢLjɆ
is to further our promotion of safer betting and gaming and our
contributions to partner organisations support the delivery of the
EƎŨƪƋȼƖɆķëŝİļŝİɆįŨƎɆƢķėɆėƢƢŨƎɆƖëįėƎɆĈėƢƢļŝİɆëŝĐɆİëśļŝİɆƖƢƎëƢėİLjșɆ
Our work with our partner organisations supports this strategy
across three key focus areas.
ƖɆƋëƎƢɆŨįɆŨƪƎɆŨƋėƎëƢļŨŝƖɆļŝɆƢķėɆ½bȚɆļŝɆǥǣǥǤɆǂėɆĉŨŝƢƎļĈƪƢėĐɆǣșǨɼɆ
ŨįɆŨƪƎɆEƎŨƖƖɆEëśļŝİɆÛļėŒĐɆȩȹEEÛȺȪɆƢŨɆƖƪƋƋŨƎƢɆ¡ėƖėëƎĉķȚɆ,ĐƪĉëƢļŨŝɆ
ëŝĐɆ¶ƎėëƢśėŝƢɆȩȹ¡,¶ȺȪɆŨįɆƋƎŨĈŒėśɆİëśĈŒļŝİȚɆƢķļƖɆǂļŒŒɆƎļƖėɆƢŨɆǣșǪǨɼɆ
ļŝɆǥǣǥǥșɆ¶ķļƖɆįƪŝĐļŝİɆļƖɆƋƎŨǁļĐėĐɆĐļƎėĉƢŒLjɆƢŨɆEëśĈŒėǂëƎėɆȱɆëɆ
wholly independent grant-making charity that has a framework
ëİƎėėśėŝƢɆëśŨŝİƖƢɆƢķėɆQŝĐƪƖƢƎLjɆƢŨɆĐėŒļǁėƎɆƢķėɆpëƢļŨŝëŒɆ©ƢƎëƢėİLjɆƢŨɆ
¡ėĐƪĉėɆEëśĈŒļŝİɆLëƎśƖș
In addition to these contributions, we work with a range of
organisations that are leading on groundbreaking safer betting and
gaming initiatives and research. We also leverage the expertise of
our academic partners to ensure our own player protection culture,
ƋƎŨĉėƖƖėƖɆëŝĐɆĐėĉļƖļŨŝƖɆëƎėɆļŝįŨƎśėĐɆĈLjɆƖĉļėŝƢļǘĉɆƎėƖėëƎĉķɆëŝĐɆ
lived experience.
QŝɆƢķėɆ½©ȚɆëƖɆëŝɆļŝĉƎėëƖļŝİɆŝƪśĈėƎɆŨįɆƖƢëƢėƖɆŒëƪŝĉķɆƎėİƪŒëƢėĐɆ
betting markets, we are also scaling up our level of support of
safer gambling organisations to ensure that the correct support
processes and pathways are established in these new and
growing markets.
Promoting grassroots sport
As a business Entain is closely linked to the world of sport, and
we believe an important way we can make impactful contribution
is by investing at the grassroots level. The Foundation currently
ƖƪƋƋŨƎƢƖɆƢǂŨɆŏėLjɆǙëİƖķļƋɆƋƎŨŌėĉƢƖɆļŝɆƢķėɆ½bɆëƖɆǂėŒŒɆļŝļƢļëƢļǁėƖɆļŝɆ
EƎėėĉėɆëŝĐɆŨŒŨśĈļëșɆQŝɆǥǣǥǥȚɆǂėɆǂļŒŒɆĈėɆėLJƋëŝĐļŝİɆƢķļƖɆƖƪƋƋŨƎƢɆƢŨɆ
projects internationally.
Pitching In
ÔļëɆļƢĉķļŝİɆQŝȚɆŨƪƎɆƢķėɆśƪŒƢļȯśļŒŒļŨŝȯƋŨƪŝĐȚɆśƪŒƢļȯLjėëƎȚɆļŝǁėƖƢśėŝƢɆ
programme, the Foundation is partnered with the with the
QƖƢķśļëŝȚɆpŨƎƢķėƎŝɆƎėśļėƎɆëŝĐɆ©ŨƪƢķėƎŝɆdėëİƪėƖɆȱɆĉŨŒŒėĉƢļǁėŒLjɆ
known as The Trident Leagues – which make-up levels seven
and eight of the English football leagues pyramid. The Trident
Leagues, which trace their roots back to the nineteenth century,
ëƎėɆëƢɆƢķėɆķėëƎƢɆŨįɆƢķėɆŝëƢļŨŝëŒɆİëśėȚɆǂļƢķɆǥǧǨɆĉŒƪĈƖɆëŝĐɆǤǨȚǣǣǣɆ
players registered across the three leagues in many villages, towns
and cities of England and Wales. Under the Pitching In banner –
Research papers
Building credible institutions
Ɇ EėŝėƎëƢļŝİɆļŝƢėƎėƖƢɆļŝɆëĐǁëŝĉėɆ
methods of gambling research
Ɇ ½ƖļŝİɆǘŝĐļŝİƖɆļŝɆŨƪƎɆŨǂŝɆŨƋėƎëƢļŨŝƖ
Training
Outreach and awareness training
Ɇ ©ļİŝƋŨƖƢļŝİɆƢŨɆķļİķȯ
quality resources
Ɇ ©ƪƋƋŨƎƢɆëŝĐɆëƖƖėƖƖśėŝƢƖ
Intensive treatment
Improving retention
61
Overview
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Strategic report
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Governance
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Financial statements
Entain plc
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Annual Report 2021
As new and future generations face an increasingly digital world,
ƢķėɆŨƋƋŨƎƢƪŝļƢLjɆƢŨɆŒėǁėŒɆƢķėɆƋŒëLjļŝİɆǘėŒĐɆĈLjɆĐļǁėƎƖļįLjļŝİɆķƪśëŝɆ
capital, reorienting, and reskilling the workforce has never been
more pressing. As of July 2021, over 40% of the world’s population
did not have access to the internet, which, if not addressed, could
ŒėëĐɆƢŨɆëɆĐļİļƢëŒɆƖŏļŒŒƖɆİëƋɆƢķëƢɆƎėƖƪŒƢƖɆļŝɆëɆŒŨƖƖɆŨįɆɏǤǤșǨƢƎŝɆĈLjɆ
ǥǣǥǫșɆƖɆëɆĉŨśƋëŝLjɆƢķëƢɆĐėǁėŒŨƋƖɆĉƪƢƢļŝİȯėĐİėɆƢėĉķŝŨŒŨİLjȚɆǂėȼƎėɆ
determined to use our position to provide opportunities that will
help to address this picture. The EnTrain programme is comprised
of four core initiatives:
Ɇ ,ŝƢëļŝɆĉëĐėśLjțɆ©ƪƋƋŒLjļŝİɆƢƎëŝƖįŨƎśëƢļǁėɆƢėĉķɆƢƎëļŝļŝİɆįŨƎɆ
ƢķėɇŝėLJƢɆİėŝėƎëƢļŨŝȜɆ
Ɇ ,ŝƢëļŝɆ©ĉķŨŒëƎƖķļƋƖțɆƎŨǁļĐļŝİɆƢķėɆƋŒëƢįŨƎśɆįŨƎɆëɆĐļǁėƎƖėɆ
ƖėŒėĉƢļŨŝɆŨįɆĉëŝĐļĐëƢėƖɆƢŨɆĈėĉŨśėɆĐļİļƢëŒɆƋļŨŝėėƎƖȜ
Entain Apprenticeships: Expanding internal and external
apprenticeship schemes with new and existing partners.
Enabling our apprenticeship partners to provide technology
ĉŨƪƎƖėƖɆįŨƎɆƋėŨƋŒėɆļŝɆĐėǁėŒŨƋļŝİɆĉŨƪŝƢƎļėƖȜɆëŝĐ
Entain Partnerships: Building on our existing partnerships
ǂļƢķɆŨƎİëŝļƖëƢļŨŝƖɆļŝĉŒƪĐļŝİɆEļƎŒƖɆÕķŨɆŨĐėɆëŝĐɆķëŝĉėɆįŨƎɆ
ķļŒĐķŨŨĐɆëŝĐɆįŨƎśļŝİɆŝėǂɆĉŨŒŒëĈŨƎëƢļŨŝƖɆǂļƢķɆĉķëƎļƢļėƖɆëŝĐɆ
ŝŨŝȯƋƎŨǘƢɆŨƎİëŝļƖëƢļŨŝƖɆƢŨɆļśƋƎŨǁėɆĐļǁėƎƖļƢLjɆëŝĐɆļŝĉƎėëƖėɆ
ëĉĉėƖƖɇƢŨɆƢėĉķŝŨŒŨİLjɆįŨƎɆėĐƪĉëƢļŨŝëŒɆƋƪƎƋŨƖėƖș
Investing in people and communities continued
I started out playing for Wealdstone
DɆĈėįŨƎėɆŌŨļŝļŝİɆŨǁėŝƢƎLjɆļƢLjɆƖŨɆQɆ
understand how important funding is to
ƢķėɆŝŨŝȯŒėëİƪėɆİëśėșɆEƎëƖƖƎŨŨƢƖɆįŨŨƢĈ댌Ɇ
is facing huge challenges at the moment
and many clubs are struggling to stay
ëǙŨëƢșɆ,ŝƢëļŝȼƖɆļƢĉķļŝİɆQŝɆļŝǁėƖƢśėŝƢɆǂļŒŒɆ
help make a big difference to hundreds
of clubs and thousands of players across
ƢķėɇĉŨƪŝƢƎLjșȺ
Stuart Pearce
Pitching In Ambassador
Two organisations that Entain has worked with under our
,ŝ¶ƎëļŝɆļŝļƢļëƢļǁėɆëƎėɆEļƎŒƖɆÕķŨɆŨĐėɆëŝĐɆƢķėɆ¶ėĉķɆEļƎŒƖɆ
Movement Foundation:
Girls Who Code
EļƎŒƖɆÕķŨɆŨĐėɆļƖɆëŝɆļŝƢėƎŝëƢļŨŝëŒɆŝŨŝȯƋƎŨǘƢɆŨƎİëŝļƖëƢļŨŝɆǂŨƎŏļŝİɆ
to close the gender gap in technology and change the image of
what a programmer looks like and does. With their initiatives,
EļƎŒƖɆÕķŨɆŨĐėɆëƎėɆŒėëĐļŝİɆƢķėɆśŨǁėśėŝƢɆƢŨɆļŝƖƋļƎėȚɆėĐƪĉëƢėȚɆ
and equip young women with the computing skills to pursue 21
st
century opportunities.
QŝɆnëƎĉķɆǥǣǥǤȚɆǂėɆëŝŝŨƪŝĉėĐɆƢķëƢɆǂėɆëƎėɆƋƎŨǁļĐļŝİɆɏǥǨǣȚǣǣǣɆ
of funding to the organisation to expand its global pipeline of
programmes to spark girls’ interest in technology. This pipeline
includes free coding clubs, at home modules, virtual mentoring,
panels and workshops as well as career fairs. Through these
ƋƎŨİƎëśśėƖȚɆEļƎŒƖɆÕķŨɆŨĐėɆķëƖɆƎėëĉķėĐɆśŨƎėɆƢķëŝɆǦǣǣȚǣǣǣɆ
young women globally and has nearly 90,000 college-aged
ëŒƪśŝļȚɆǂķŨɆëƎėɆśëŌŨƎļŝİɆļŝɆŨśƋƪƢėƎɆ©ĉļėŝĉėɆëŝĐɆƎėŒëƢėĐɆǘėŒĐƖșɆ
ŒƪśŝļɆëƎėɆǤǨɆƢļśėƖɆśŨƎėɆŒļŏėŒLjɆƢŨɆƖƢƪĐLjɆƖƪĉķɆĐėİƎėėƖȚɆǂķėŝɆ
ĉŨśƋëƎėĐɆƢŨɆƢķėɆ½©ɆëǁėƎëİėɆįŨƎɆįėśëŒėɆėŝƎŨŒśėŝƢƖșɆ{ǁėƎɆķëŒįɆ
ŨįɆƢķėɆİļƎŒƖɆƖėƎǁėĐɆĈLjɆEļƎŒƖɆÕķŨɆŨĐėɆëƎėɆįƎŨśɆķļƖƢŨƎļĉ댌LjɆ
underrepresented groups.
The Tech Girls Movement Foundation
¶ķėɆ¶ėĉķɆEļƎŒƖɆnŨǁėśėŝƢɆDŨƪŝĐëƢļŨŝɆǂëƖɆįŨƪŝĐėĐɆļŝɆƪėėŝƖŒëŝĐȚɆ
Australia in 2014 with the aim of actively challenging gender
ƖƢėƎėŨƢLjƋėƖɆƢķëƢɆŒļśļƢɆİļƎŒƖȼɆƋëƎƢļĉļƋëƢļŨŝɆļŝɆ©ĉļėŝĉėȚɆ¶ėĉķŝŨŒŨİLjȚɆ
,ŝİļŝėėƎļŝİȚɆëŝĐɆnëƢķėśëƢļĉƖɆȩȹ©¶,nȺȪɆƖƪĈŌėĉƢƖșɆ¶ķėļƎɆǁļƖļŨŝɆ
ļƖɆƢŨɆĉƎėëƢėɆëɆƖŨĉļėƢLjɆļŝɆǂķļĉķɆİļƎŒƖɆĉŨŝǘĐėŝƢŒLjɆŒėëĐɆļŝɆ©¶,nɆ
entrepreneurship and contribute to their community and
the economy.
¶ķƎŨƪİķɆƖƪƋƋŨƎƢɆįƎŨśɆƢķėɆ,ŝƢëļŝɆDŨƪŝĐëƢļŨŝȚɆ¶ėĉķɆEļƎŒƖɆnŨǁėśėŝƢɆ
Foundation was able to provide free competition places for girls
ǂķŨɆįëĉėĐɆǘŝëŝĉļëŒɆĈëƎƎļėƎƖɆƢŨɆƋëƎƢļĉļƋëƢļŝİș
Entain plc
|
Annual Report 2021
62
Strategic report
Reduce environmental Impact
2021 has been pivotal in our efforts to address climate change and
reduce our environmental impact. At the start of 2021, we pledged
ƢŨɆĈėĉŨśėɆŝėƢɆǒėƎŨɆįŨƎɆİƎėėŝķŨƪƖėɆİëƖɆėśļƖƖļŨŝƖɆȩELEɆėśļƖƖļŨŝƖȪɆ
ĈLjɆŝŨɆŒëƢėƎɆƢķëŝɆǥǣǦǨȚɆǤǨɆLjėëƎƖɆëķėëĐɆŨįɆƢķėɆǥǣǨǣɆƢëƎİėƢɆƪŝĐėƎɆ
the Paris Agreement. As part of this, we are formally submitting
ëɆŝėëƎȯƢėƎśɆƖĉļėŝĉėȯĈëƖėĐɆƢëƎİėƢɆƢŨɆƢķėɆ©ĉļėŝĉėɆëƖėĐɆ¶ëƎİėƢɆ
ļŝļƢļëƢļǁėɆȩȹ©¶ļȺȪɆǂķļĉķɆǂļŒŒɆĈėɆėįįėĉƢļǁėɆįƎŨśɆǥǣǥǥșɆ¶ķļƖɆļƖɆƢķėɆŝėLJƢɆ
step on our journey to net zero, and we will outline our pathway
ƢŨɆëĉķļėǁļŝİɆŨƪƎɆëśĈļƢļŨƪƖɆƢëƎİėƢɆļŝɆŨƪƎɆƪƋĉŨśļŝİɆ,©EɆ¡ėƋŨƎƢșɆ
ÕėɆƖƪĉĉėƖƖįƪŒŒLjɆļŝĉƎėëƖėĐɆŨƪƎɆƖĉŨƎėɆƢŨɆ$ȼƖɆŒļśëƢėɆķëŝİėɆ
questionnaire, moving from a D in 2020 to a B-. We also achieved
ŨƪƎɆǘƎƖƢɆQ©{ǤǧǣǣǣǤțǥǣǤǨɆ,ŝǁļƎŨŝśėŝƢëŒɆnëŝëİėśėŝƢɆ©LjƖƢėśɆ
ëĉĉƎėĐļƢëƢļŨŝȚɆĉŨǁėƎļŝİɆëɆŝƪśĈėƎɆŨįɆŨƪƎɆ½bɆŨįǘĉėƖȚɆƖƢëĐļëȚɆëŝĐɆ
c.3,000 shops. In 2022, we will expand this coverage across our UK
operations and, in later years, to our global operations.
In the UK all of our electricity supply contracts for our shops and
greyhound stadia have switched over to 100% renewable energy.
With the renewable supply we already used in the Republic
ŨįɆQƎėŒëŝĐȚɆƢķļƖɆëśŨƪŝƢƖɆƢŨɆǪǤɼɆŨįɆƢķėɆEƎŨƪƋȼƖɆƢŨƢëŒɆėŒėĉƢƎļĉļƢLjɆ
consumption being actively sourced from renewables, and a
reduction of over 4,000 tons of our market-based emissions
compared to 2020.
We continued to support climate mitigation beyond our own value
chain by partnering with an independent platform to support tree
ƋŒëŝƢļŝİɆëŝĐɆƎėįŨƎėƖƢëƢļŨŝɆƋƎŨŌėĉƢƖɆİŒŨĈ댌LjșɆLjɆƢķėɆėŝĐɆŨįɆƢķėɆǘƎƖƢɆ
half of 2022 we will have planted one million trees in our Entain
forest. By 2032 it is forecast that these trees with sequester 21,000
ƢŨŝŝėƖɆŨįɆ{
2
e from the atmosphere and provide employment
and training for local people as well as localised environmental
ëŝĐɆƖŨĉļëŒɆĈėŝėǘƢƖșɆÕėɆǂļŒŒɆĉŨŝƢļŝƪėɆƢŨɆėǁŨŒǁėɆŨƪƎɆëƋƋƎŨëĉķɆƢŨɆ
offsetting in line with best practice.
We are also working to understand and reduce emissions
ƢķƎŨƪİķŨƪƢɆŨƪƎɆǁëŒƪėɆĉķëļŝșɆÕėɆǂŨƎŏėĐɆǂļƢķɆƢķėɆëƎĈŨŝɆ¶ƎƪƖƢɆƢŨɆ
ĉŨŝĐƪĉƢɆëɆƖĉƎėėŝļŝİɆëƖƖėƖƖśėŝƢɆŨįɆŨƪƎɆ©ĉŨƋėɆǦɆėśļƖƖļŨŝƖȚɆǂķļĉķɆ
ǂėɆǂļŒŒɆƋƪĈŒļĉŒLjɆƎėƋŨƎƢɆįŨƎɆƢķėɆǘƎƖƢɆƢļśėɆļŝɆŨƪƎɆǥǣǥǥɆ,©EɆ¡ėƋŨƎƢșɆ
ÕėɆëŒƖŨɆëĉķļėǁėĐɆdėǁėŒɆǤɆėƎƢļǘĉëƢļŨŝɆŨįɆƢķėɆëƎĈŨŝɆ¶ƎƪƖƢɆ©ƪƋƋŒLjɆ
ķëļŝɆ©ƢëŝĐëƎĐȚɆëŝɆļśƋŨƎƢëŝƢɆǘƎƖƢɆƖƢėƋɆļŝɆĐėĉëƎĈŨŝļƖļŝİɆŨƪƎɆǁëŒƪėɆ
ĉķëļŝșɆÕļƢķɆƢķļƖɆėLJėƎĉļƖėȚɆǂėȼǁėɆĉŨŝǘƎśėĐɆƢķëƢɆ,ŝƢëļŝȼƖɆ©ĉŨƋėɆǦɆ
ėśļƖƖļŨŝƖɆśëŏėɆƪƋɆǬǩɼɆŨįɆŨƪƎɆƢŨƢëŒɆǁëŒƪėɆĉķëļŝɆėśļƖƖļŨŝƖșɆÕėȼǁėɆ
also mapped hotspots across our value chain, identifying where
carbon emissions are greatest. We’re now planning to engage with
those these key suppliers and value chain partners that represent
ǪǨɼɆŨįɆŨƪƎɆǁëŒƪėɆĉķëļŝɆėśļƖƖļŨŝƖș
Our colleagues also play an important role in our decarbonisation
strategy, and we make sure to bring them along in this journey.
,ƖƢëĈŒļƖķėĐɆļŝɆǥǣǤǬȚɆŨƪƎɆEƎėėŝɆśĈëƖƖëĐŨƎƖɆpėƢǂŨƎŏɆķëƖɆİƎŨǂŝɆ
İŒŨĈ댌LjɆƢŨɆǤǥǣɆĉŨŒŒėëİƪėƖɆǂķŨɆķėŒƋɆƪƖɆǘŝĐɆƋƎëĉƢļĉëŒɆǂëLjƖɆƢŨɆ
ļśƋƎŨǁėɆėŝǁļƎŨŝśėŝƢëŒɆėįǘĉļėŝĉLjɆļŝɆƢķėɆǂŨƎŏƋŒëĉėșɆÕļƢķɆƢķėļƎɆ
support and guidance, we’ve piloted two environmental awareness
campaigns in 2021:
Make Today Matter
, to communicate our Net
Zero target across the organisation, and
It’s a Turn-Off
, to drive
positive behaviour change around energy consumption in our
operations. As more colleagues return to the workplace this year,
we will focus our awareness activities on waste and recycling.
ÕėɆķëǁėɆëŒƖŨɆƖėƢɆƪƋɆëɆpėƢɆåėƎŨɆĉƢļŨŝɆEƎŨƪƋȚɆĉŨŝǁėŝļŝİɆƖėŝļŨƎɆ
colleagues across departments to develop and accelerate our
decarbonisation strategy with practical measures which can be
implemented throughout our global operations.
63 Overview
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Strategic report
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Governance
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Financial statements
Entain plc
|
Annual Report 2021
¶ëƖŏɆDŨƎĉėɆįŨƎɆŒļśëƢėȯƎėŒëƢėĐɆDļŝëŝĉļëŒɆ
$ļƖĉŒŨƖƪƎėƖɆȩȹ¶D$ȺȪɆ©ƢëƢėśėŝƢ
,ŝƢëļŝɆļƖɆëɆƖƪƋƋŨƎƢėƎɆŨįɆƢķėɆƎėĉŨśśėŝĐëƢļŨŝƖɆŨįɆƢķėɆ¶ëƖŏɆDŨƎĉėɆįŨƎɆŒļśëƢėȯƎėŒëƢėĐɆDļŝëŝĉļëŒɆ
$ļƖĉŒŨƖƪƎėƖɆȩȹ¶D$ȺȪȚɆëŝĐɆļƢɆļƖɆĉŨśśļƢƢėĐɆƢŨɆļśƋŒėśėŝƢļŝİɆƢķėɆ¶D$ɆƎėĉŨśśėŝĐëƢļŨŝƖșɆÕėɆ
ëŒƖŨɆǂėŒĉŨśėɆƢķėɆļŝƢƎŨĐƪĉƢļŨŝɆŨįɆƢķėɆDɆƎėƍƪļƎėśėŝƢƖɆįŨƎɆ½bɆƎėśļƪśɆdļƖƢėĐɆŨśƋëŝļėƖɆƢŨɆ
ƎėƋŨƎƢɆļŝɆŒļŝėɆǂļƢķɆƢķėɆ¶D$ɆƎėĉŨśśėŝĐëƢļŨŝƖșɆ
In this section, we outline our approach to climate-related risks and opportunities. This
ƖƢëƢėśėŝƢɆļƖɆļŝɆŒļŝėɆǂļƢķɆƢķėɆįŨƪƎɆƋļŒŒëƎƖɆŨįɆƢķėɆƎėĉŨśśėŝĐëƢļŨŝƖțɆEŨǁėƎŝëŝĉėȚɆ©ƢƎëƢėİLjȚɆ¡ļƖŏɆ
Management and Metrics and Targets. Whilst we discuss in general terms the resilience of
our strategy and approach considering different climate-related scenarios, we plan to further
specify this and include quantitative measures in future years.
Governance
¶ķėɆEƎŨƪƋɆŨëƎĐɆļƖɆƪŒƢļśëƢėŒLjɆ
responsible for climate-related risks and
opportunities, with overall ownership
of this agenda sitting driven by our
,{șɆ¡ėƖƋŨŝƖļĈļŒļƢLjɆįŨƎɆļĐėŝƢļįLjļŝİɆëŝĐɆ
managing risk is delegated to both the
ŨëƎĐȯŒėǁėŒɆ,©EɆŨśśļƢƢėėɆëŝĐɆƢķėɆ
ƪĐļƢɆŨśśļƢƢėėȚɆǂķŨɆëƎėɆëĉĉŨƪŝƢëĈŒėɆ
for monitoring our progress against
targets, and ensuring climate-related
risks are adequately addressed,
respectively. The involvement of two
ŨëƎĐɆŨśśļƢƢėėƖɆƎėǙėĉƢƖɆƢķėɆļŝƢėƎȯ
related nature of climate-related risks
and opportunities, and our commitment
ƢŨɆĉŒļśëƢėɆëĉƢļŨŝșɆŒļśëƢėȯƎėŒëƢėĐɆļƖƖƪėƖɆ
are raised at least quarterly with the
,©EɆŨśśļƢƢėėș
¶ķėƖėɆŨśśļƢƢėėƖɆëƎėɆƖƪƋƋŨƎƢėĐɆĈLjɆƢķėɆ
,©EɆ©ƢėėƎļŝİɆŨśśļƢƢėėɆȩǂķļĉķɆƎėƋŨƎƢƖɆ
ƢŨɆƢķėɆŨëƎĐɆ,©EɆŨśśļƢƢėėȪɆëŝĐɆŨƪƎɆ
pėƢɆåėƎŨɆĉƢļŨŝɆEƎŨƪƋɆƢŨɆĉķ댌ėŝİėɆ
and advise on the prioritisation and
mitigation of climate-related risks and
opportunities, as well as implement our
ĉŒļśëƢėɆƖƢƎëƢėİLjșɆ¶ķėɆ¡ļƖŏɆŨśśļƢƢėėȚɆ
ǂķļĉķɆƎėƋŨƎƢƖɆƢŨɆƢķėɆƪĐļƢɆŨśśļƢƢėėɆ
and is chaired by Rob Wood, has
operational responsibility for managing
ƎļƖŏɆǂļƢķļŝɆƢķėɆEƎŨƪƋȚɆļŝĉŒƪĐļŝİɆĉŒļśëƢėȯ
related risks.
Physical risks
As the operator of a large retail estate
and four stadia in the UK and ROI, there
is the risk that climate change will bring
about increased exposure of these sites
to extreme weather events in the longer
ƢėƎśȚɆėƖƋėĉļ댌LjɆǙŨŨĐļŝİșɆ¶ķļƖɆĉŨƪŒĐɆĉëƪƖėɆ
shop closures and increased insurance
claims liability. This exposure varies
across our estate, based on geography.
EļǁėŝɆƢķėɆİėŨİƎëƋķļĉëŒɆĐļƖƋėƎƖļŨŝɆŨįɆŨƪƎɆ
ėƖƢëƢėȚɆëƖɆǂėŒŒɆëƖɆƢķėɆĐļǁėƎƖļǘĉëƢļŨŝɆŨįɆŨƪƎɆ
business into digital, this risk has not yet
ĈėėŝɆļĐėŝƢļǘėĐɆëƖɆëɆƋƎļŝĉļƋëŒɆƎļƖŏș
Transition risks
As part of the transition to a lower-carbon
economy, we expect an increase in the
requirements for and expectations on
our organisation to accurately report
and reduce greenhouse gas emissions.
We are managing this risk through our
ambitious climate commitments – to
reduce our greenhouse gas emissions
ļŝɆŒļŝėɆǂļƢķɆëɆƖĉļėŝĉėȯĈëƖėĐɆǤșǨɆĐėİƎėėɆ
scenario, and reach net-zero emissions by
ǥǣǦǨșɆQŝɆǥǣǥǥȚɆǂėɆëŒƖŨɆƋƪƎĉķëƖėĐɆǤǣǣɼɆ
renewable electricity across our UK and
Irish retail estate, as well as many of our
śëŌŨƎɆŨįǘĉėƖșɆEŒŨĈ댌LjȚɆŨǁėƎɆǪǣɼɆŨįɆŨƪƎɆ
electricity purchased was from renewable
energy contracts. This provides us with
an opportunity to improve our trust and
reputation with key stakeholders and
realise cost savings through our energy
ėįǘĉļėŝĉLjɆļśƋƎŨǁėśėŝƢƖɆëƖɆƋëƎƢɆŨįɆŨƪƎɆ
ongoing shop refurbishment scheme.
We have also undertaken a screening
ëƖƖėƖƖśėŝƢɆŨįɆŨƪƎɆ©ĉŨƋėɆǦɆėśļƖƖļŨŝƖȚɆ
which is outlined in this report. We have
started to engage our key suppliers
to support them in reducing their own
emissions. We will start to report
ƖLjƖƢėśëƢļĉ댌LjɆŨŝɆŨƪƎɆ©ĉŨƋėɆǦɆėśļƖƖļŨŝƖɆ
in the coming years, improving the
data quality and coverage of primary
information obtained directly from our
value chain partners.
Risk management
The process for identifying, assessing,
and managing climate-related risks
is integrated into our overall risk
management and governance framework,
ǂķļĉķɆļƖɆŨƪƢŒļŝėĐɆŨŝɆƋëİėƖɆǪǫɆƢŨɆǫǨșɆ
As part of this process, mitigation
ëŝĐɆśëŝëİėśėŝƢɆŨįɆƖƋėĉļǘĉɆƎļƖŏƖɆļƖɆ
delegated to the relevant divisional or
functional heads.
At the end of 2021, we initiated a project
to review the climate-related risks
ļĐėŝƢļǘėĐɆļŝɆŨƪƎɆƎļƖŏɆśëŝëİėśėŝƢɆƋƎŨĉėƖƖșɆ
This will involve an in-depth review of
ƢķėɆĉƪƎƎėŝƢɆƎļƖŏƖɆļĐėŝƢļǘėĐȚɆëƖɆǂėŒŒɆëƖɆ
considering future climate scenarios, in
ŒļŝėɆǂļƢķɆƢķėɆ¶D$ɆƎėĉŨśśėŝĐëƢļŨŝƖșɆ
In Q2 of 2022, we will convene leaders
across Entain to carefully consider three
climate change scenarios describing a
ƢėśƋėƎëƢƪƎėɆƎļƖėɆŨįɆǤșǨʇȚɆǥșǣʇȚɆëŝĐɆ
ǦșǣʇɆĉŨśƋëƎėĐɆƢŨɆƋƎėȯļŝĐƪƖƢƎļëŒɆŒėǁėŒƖșɆ
This exercise will enable us to sense check
our current risks, identify additional risks
and opportunities, and communicate their
ļśƋëĉƢɆŨŝɆƢķėɆEƎŨƪƋɆëŝĐɆŨƪƎɆƖƢëŏėķŨŒĐėƎƖșɆ
The project is being championed by our
,{ȚɆǂļƢķɆƢķėɆŨƪƢƋƪƢɆļŝįŨƎśļŝİɆŨƪƎɆŝėLJƢɆ
¶D$ɆĐļƖĉŒŨƖƪƎėș
By involving senior leaders across the
EƎŨƪƋɆļŝɆƢķļƖɆǂŨƎŏȚɆǂėɆķŨƋėɆƢŨɆėŝĉŨƪƎëİėɆ
holistic thinking about climate-related risk.
We want our leaders to provide guidance
and support for further incorporating
ĉŒļśëƢėȯƎėŒëƢėĐɆƎļƖŏɆļĐėŝƢļǘĉëƢļŨŝɆëŝĐɆ
management into the operational risk
registers of each division and function.
As the time horizons for climate-related
risks tend to span longer into the future
than many other risks, we will implement
a parallel process to ensure that longer
term risks are formally considered as part
of our climate and business strategies.
Strategy
We identify climate-related risks as
ƋëƎƢɆŨįɆŨƪƎɆEƎŨƪƋɆƎļƖŏɆśëŝëİėśėŝƢɆ
system. Through this process, we have
ļĐėŝƢļǘėĐɆĈŨƢķɆƋķLjƖļĉëŒɆëŝĐɆƢƎëŝƖļƢļŨŝɆ
risks and opportunities, with the key
risks explained below. As a result of this
assessment, no climate-related risks
ķëǁėɆĈėėŝɆļĐėŝƢļǘėĐɆëƖɆƋƎļŝĉļƋëŒɆƎļƖŏƖɆƢŨɆ
ƢķėɆEƎŨƪƋȚɆëŝĐɆƢķėLjɆëƎėɆëĐĐƎėƖƖėĐɆëƢɆƢķėɆ
functional and divisional levels.
Entain plc
|
Annual Report 2021
64
Strategic report
Targets and metrics
QŝɆƢķėɆƢëĈŒėɆĈėŒŨǂȚɆǂėɆŨƪƢŒļŝėɆŨƪƎɆİƎėėŝķŨƪƖėɆİëƖɆėśļƖƖļŨŝƖȚɆǂļƢķɆëɆįƪƎƢķėƎɆĈƎėëŏĐŨǂŝɆƢŨɆĈėɆƋƎŨǁļĐėĐɆļŝɆŨƪƎɆƪƋĉŨśļŝİɆ,©EɆƎėƋŨƎƢșɆ
We also report on our global energy consumption, and the percentage of electricity purchased on renewable energy contracts.
These metrics are used to monitor our performance in managing our transition risks, and to monitor our progress against our science-
based greenhouse gas reduction targets.
EļǁėŝɆƢķėɆƖļİŝļǘĉëŝĉėɆŨįɆƢķļƖɆëƎėëȚɆƢķėɆƎėƋƪƢëƢļŨŝëŒɆƎļƖŏɆŨįɆļŝëĉĉƪƎëƢėɆƎėƋŨƎƢļŝİȚɆëŝĐɆƢķėɆŝėėĐɆįŨƎɆķļİķȯƍƪëŒļƢLjɆ,©EɆĐëƢëȚɆǂėɆ
ĉŨśśļƖƖļŨŝėĐɆƢķėɆëƎĈŨŝɆ¶ƎƪƖƢɆƢŨɆëƖƖƪƎėɆŨƪƎɆ©ĉŨƋėɆǤȚɆǥɆëŝĐɆĈƪƖļŝėƖƖɆƢƎëǁėŒɆĐëƢëșɆ¶ķļƖɆëƖƖƪƎëŝĉėɆķëƖɆƢëŏėŝɆƋŒëĉėɆįŨƎɆŨƪƎɆǥǣǤǬɆëŝĐɆ
2020 data, with our 2021 data to be assured in 2022.
,ŝǁļƎŨŝśėŝƢëŒɆbQƖȚɆļŝĉŒƪĐļŝİɆ©ƢƎėëśŒļŝėĐɆ,ŝėƎİLjɆëŝĐɆëƎĈŨŝɆ¡ėƋŨƎƢļŝİɆȩ©,¡ȪɆĐëƢë 2021
1
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2019
2
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UK 86,962,233 92,776,583 123,723,097
Rest of the world (“ROW”) 25,073,014 18,978,687 26,253,400
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26,960 ǥǫȚǬǨǫ ǧǤȚǦǨǦ
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231,789 ǥǨǥȚǦǧǨ ǨǥǪȚǩǬǧ
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emissions factors and 2021 IEA emissions factors for non-UK grid electricity. We have excluded fugitive emissions from refrigerants, as they have been deemed de minimis in
previous years. Emissions reported above are calculated using the location-based method, using an operational control boundary.
ǧșɆ ELEɆėśļƖƖļŨŝƖɆĐëƢëɆķëƖɆĈėėŝɆĉëŒĉƪŒëƢėĐɆĈëƖėĐɆŨŝɆƋƎļśëƎLjɆĐëƢëɆĉŨǁėƎļŝİɆǤǣǣɼɆŨįɆ½bɆŨƋėƎëƢļŨŝƖȚɆëŝĐɆǬǨɼɆŨįɆİŒŨĈëŒɆŨƋėƎëƢļŨŝƖȚɆĈëƖėĐɆŨŝɆķėëĐĉŨƪŝƢșɆ¶ķėɆELEɆĐëƢëɆļƖɆƖĉëŒėĐɆ
ƪƋɆƢŨɆėƖƢļśëƢėɆƢķėɆƢŨƢëŒɆİŒŨĈëŒɆELEɆėśļƖƖļŨŝƖɆëŝĐɆėŝėƎİLjɆĉŨŝƖƪśƋƢļŨŝș
ǨșɆ ɆŒŒɆǂëƢėƎɆǂļƢķĐƎëǂŝɆļƖɆƖŨƪƎĉėĐɆįƎŨśɆśƪŝļĉļƋëŒɆǂëƢėƎɆƖƪƋƋŒļėƖșɆÕëƢėƎɆĐëƢëɆļŝĉŒƪĐėƖɆŨƪƎɆŨƋėƎëƢļŨŝƖɆļŝɆƢķėɆįŨŒŒŨǂļŝİɆĉŨƪŝƢƎļėƖțɆƪƖƢƎļëȚɆėŒİļƪśȚɆƪŒİëƎļëȚɆEļĈƎëŒƢëƎȚɆQŝĐļëȚɆ
QƎėŒëŝĐȚɆQƖƎëėŒȚɆķļŒļƋƋļŝėƖȚɆ½bȚɆ½ƎƪİƪëLjșɆ¶ķļƖɆśëŏėƖɆƪƋɆǫǫɼɆŨįɆ,ŝƢëļŝȼƖɆİŒŨĈëŒɆķėëĐĉŨƪŝƢșɆpŨƢėɆƢķëƢɆƢķļƖɆĐëƢëɆļƖɆŝŨƢɆƖĉëŒėĐɆƪƋɆƢŨɆėƖƢļśëƢėɆƢķėɆƢŨƢëŒɆİŒŨĈëŒɆĉŨŝƖƪśƋƢļŨŝȚɆ
ĈƪƢɇƎėƋŨƎƢėĐɆĉŨŝƖļƖƢėŝƢŒLjɆįŨƎɆƢķėɆŨƋėƎëƢļŨŝƖɆǂķėƎėɆĐëƢëɆļƖɆëǁëļŒëĈŒėș
Our Commitment to Human Rights
We are committed to act morally, honestly, openly
ëŝĐɆǂļƢķɆļŝƢėİƎļƢLjɆļŝɆėǁėƎLjƢķļŝİɆǂėɆĐŨșɆÕėɆǘƎśŒLjɆ
believe that a robust approach to protect human
rights and prevent modern slavery is one way we
can evidence this, as well as demonstrating our
positive contribution to the communities in which we
ǂŨƎŏɆëŝĐɆƢŨɆƖŨĉļėƢLjɆëƢɆŒëƎİėșɆÕėɆķëǁėɆļĐėŝƢļǘėĐɆƢķëƢɆ
the two main potential risk areas for our business
ëƎėɆļŝɆƢķėɆƎėĉƎƪļƢśėŝƢɆëŝĐɆŨŝĈŨëƎĐļŝİɆŨįɇƖƢëįįɆëŝĐɆļŝɆ
our broader our supply chain.
In 2021 we partnered with Unseen, a UK-based
ĉķëƎļƢLjɆǘİķƢļŝİɆśŨĐėƎŝɆƖŒëǁėƎLjȚɆƢŨɆƖƢƎėŝİƢķėŝɆŨƪƎɆ
procurement processes and policies. Unseen helped
ƪƖɆƎėǁļƖėɆŨƪƎɆ©ƪƋƋŒļėƎɆŨĐėɆŨįɆŨŝĐƪĉƢȚɆƋƎŨǁļĐļŝİɆ
greater emphasis on human rights standards within
it. Every supplier must now approve the updated
ŨĐėɆëŝĐɆƖķëƎėɆƢķėļƎɆëŝƢļȯĈƎļĈėƎLjɆëŝĐɆĉŨƎƎƪƋƢļŨŝɆ
policy before they can start doing business with us.
Unseen also helped us to upskill our procurement,
L¡ȚɆëŝĐɆƋƎŨƋėƎƢLjɆĉŨŒŒėëİƪėƖȚɆĐėŒļǁėƎļŝİɆĈėƖƋŨŏėȚɆļŝȯ
depth training courses on modern slavery. This was
rolled out to all staff with a mandatory online
ƢƎëļŝļŝİȚɆĉŨśƋŒėƢėĐɆĈLjɆǪǫɼ
colleagues in 2021.
In 2022, we will continue working with Unseen
and implementing their recommendations. We will
reinforce our supplier due diligence processes, with
additional checks for high-risk suppliers at the
onboarding stage and throughout the duration of
the contract. We are also conducting a review of
ŨƪƎɆƖƪƋƋŒļėƎɆƍƪėƖƢļŨŝŝëļƎėɆƢŨɆƎėǘŝėɆŨƪƎɆƖƪƋƋŒļėƎɆƎļƖŏɆ
assessment and escalation process. Following this
process we expect to introduce more stringent
environmental and social clauses to our standard
¶ėƎśƖɆʁɆŨŝĐļƢļŨŝƖșɆ
Data Privacy & Cybersecurity
©ëįėİƪëƎĐļŝİɆŨƪƎɆĉƪƖƢŨśėƎɆëŝĐɆĉŨƎƋŨƎëƢėɆļŝįŨƎśëƢļŨŝɆƎėśëļŝƖɆëɆƢŨƋɆ
priority for Entain, as our betting and gaming interactive entertainment
ŨįįėƎɆĉŨŝƢļŝƪėƖɆƢŨɆėLJƋëŝĐșɆ{ƪƎɆĉŨśśļƢśėŝƢɆļƖɆƎėǙėĉƢėĐɆļŝɆëɆİƎŨǂļŝİɆ
headcount and the robust governance procedures we have implemented.
{ƪƎɆķļėįɆƎļǁëĉLjɆ{įǘĉėƎɆȩǂķŨɆëŒƖŨɆķŨŒĐƖɆƢķėɆƋŨƖļƢļŨŝɆŨįɆEƎŨƪƋɆ$ëƢëɆ
ƎŨƢėĉƢļŨŝɆ{įǘĉėƎȪɆëŝĐɆŨƪƎɆķļėįɆ©ėĉƪƎļƢLjɆ{įǘĉėƎɆƋƎŨǁļĐėɆƎėİƪŒëƎɆƪƋĐëƢėƖɆƢŨɆ
ƢķėɆŨëƎĐɆëŝĐɆĐėŒļǁėƎɆĐėėƋȯĐļǁėɆƖėƖƖļŨŝƖɆƢŨɆŨƪƎɆ,LJėĉƪƢļǁėɆŨśśļƢƢėėș
QŝɆǥǣǥǤȚɆǂėɆįƪƎƢķėƎɆėśĈėĐĐėĐɆŨƪƎɆEƎŨƪƋȯǂļĐėɆ$ëƢëɆƎŨƢėĉƢļŨŝɆëŝĐɆ$ëƢëɆ
Retention policies, which apply to everyone working for Entain, including
ëİėŝĉLjɆƖƢëįįɆëŝĐɆĉŨŝƢƎëĉƢŨƎƖșɆǥǤȚǧǬǨɆĉŨŒŒėëİƪėƖɆĉŨśƋŒėƢėĐɆƢķėɆëŝŝƪëŒɆ
śëŝĐëƢŨƎLjɆE$¡ɆƢƎëļŝļŝİȚɆëŝĐɆĐëƢëɆŨǂŝėƎƖɆķëǁėɆĈėėŝɆļĐėŝƢļǘėĐɆëĉƎŨƖƖɆ댌Ɇ
departments to implement a four-stage data retention programme.
Data privacy is also built into the development of our safer betting and
İëśļŝİɆļŝļƢļëƢļǁėƖȚɆļŝĉŒƪĐļŝİɆļŝɆŨƪƎɆŝėǂɆ¡ʆɆƋƎŨİƎëśśėșɆÕķļŒƖƢɆǂėɆƪƖėɆ
ĐëƢëȯĐƎļǁėŝɆƢėĉķŝŨŒŨİļėƖɆƖƪĉķɆëƖɆƎƢļǘĉļëŒɆQŝƢėŒŒļİėŝĉėɆȩȹQȺȪɆƢŨɆĉƎėëƢėɆëɆ
safe environment for our players, we also have a duty to meet their privacy
expectations and we’re working hard to strike that balance. Our data
ƋƎļǁëĉLjɆėLJƋėƎƢƖɆëƎėɆƋëƎƢɆŨįɆƢķėɆ¡ʆɆ©ƢėėƎļŝİɆŨśśļƢƢėėȚɆƢķƎŨƪİķɆǂķļĉķɆ
they provide technical guidance to the safer betting and gaming and
customer services teams. Over the year, these teams undertook a Data
ƎļǁëĉLjɆQśƋëĉƢɆƖƖėƖƖśėŝƢɆȩȹ$QȺȪɆƋƎŨİƎëśśėȚɆķėŒƋļŝİɆƢķėśɆƢŨɆëĐĐƎėƖƖɆ
privacy-by-design requirements and implement appropriate disclosure
into privacy notices. We have also developed an AI and Data Ethics
ķëƎƢėƎȚɆŨǁėƎƖėėŝɆĈLjɆƢķėɆ,©EɆŨśśļƢƢėėȚɆǂķļĉķɆĐėǘŝėƖɆŨƪƎɆƋƎļŝĉļƋŒėƖɆŨŝɆ
the responsible use of AI to ensure it is used in the best interests of our
customers and employees.
Our investment in cybersecurity continues to grow, with our team’s
ķėëĐĉŨƪŝƢɆļŝĉƎėëƖļŝİɆĈLjɆǦǦɼɆļŝɆǥǣǥǤșɆÕėɆĉƎėëƢėĐɆëɆLjĈėƎƖėĉƪƎļƢLjɆƎļƖļƖɆ
Management Plan, which guides our response across all functions and
business units in case of a critical cybersecurity breach. We’ve also initiated
a new programme to reduce data privacy and cybersecurity risks in
śėƎİėƎƖɆʁɆëĉƍƪļƖļƢļŨŝƖɆȩȹnʁȺȪȚɆĈŨŒƖƢėƎļŝİɆĐƪėɆĐļŒļİėŝĉėɆŨŝɆnʁɆƢëƎİėƢƖɆ
ëŝĐɆƖƋėėĐļŝİɆƪƋɆƢķėɆļŝƢėİƎëƢļŨŝɆƋƎŨĉėƖƖșɆƪƖļŝėƖƖėƖɆŌŨļŝļŝİɆƢķėɆEƎŨƪƋɆśƪƖƢɆ
now align with our data privacy and cybersecurity requirements within six
months of acquisition.
65
Overview
|
Strategic report
|
Governance
|
Financial statements
Entain plc
|
Annual Report 2021
Financial Results and the use of Non-GAAP measures
¶ķėɆEƎŨƪƋȼƖɆƖƢëƢƪƢŨƎLjɆǘŝëŝĉļëŒɆļŝįŨƎśëƢļŨŝɆļƖɆƋƎėƋëƎėĐɆļŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆQŝƢėƎŝëƢļŨŝëŒɆDļŝëŝĉļëŒɆ¡ėƋŨƎƢļŝİɆ©ƢëŝĐëƎĐƖɆȩȹQD¡©ȺȪɆëŝĐɆQD¡©Ɇ
QŝƢėƎƋƎėƢëƢļŨŝƖɆŨśśļƢƢėėɆȩȹQD¡©ɆQȺȪɆƋƎŨŝŨƪŝĉėśėŝƢƖɆëƖɆëĐŨƋƢėĐɆįŨƎɆƪƖėɆļŝɆƢķėɆ,ƪƎŨƋėëŝɆ½ŝļŨŝșɆQŝɆëĐĐļƢļŨŝɆƢŨɆƢķėɆƖƢëƢƪƢŨƎLjɆļŝįŨƎśëƢļŨŝɆ
ƋƎŨǁļĐėĐȚɆśëŝëİėśėŝƢɆķëƖɆëŒƖŨɆƋƎŨǁļĐėĐɆëĐĐļƢļŨŝëŒɆļŝįŨƎśëƢļŨŝɆļŝɆƢķėɆįŨƎśɆŨįɆŨŝƢƎļĈƪƢļŨŝȚɆ,Q¶$¡ɆëŝĐɆ,Q¶$ɆëƖɆƢķėƖėɆśėƢƎļĉƖɆëƎėɆ
ļŝĐƪƖƢƎLjɆƖƢëŝĐëƎĐɆbQƖɆǂķļĉķɆķėŒƋɆįëĉļŒļƢëƢėɆƢķėɆƪŝĐėƎƖƢëŝĐļŝİɆŨįɆƢķėɆEƎŨƪƋȼƖɆƋėƎįŨƎśëŝĉėɆļŝɆĉŨśƋëƎļƖŨŝɆƢŨɆļƢƖɆƋėėƎƖșɆɆįƪŒŒɆƎėĉŨŝĉļŒļëƢļŨŝɆ
ŨįɆƢķėƖėɆŝŨŝȯEɆśėëƖƪƎėƖɆļƖɆƋƎŨǁļĐėĐɆǂļƢķļŝɆƢķėɆQŝĉŨśėɆ©ƢëƢėśėŝƢɆëŝĐɆƖƪƋƋŨƎƢļŝİɆśėśŨșɆ
¶ķėɆEƎŨƪƋȼƖɆŨƋėƎëƢļŝİɆƖėİśėŝƢƖɆëƎėɆŝŨǂɆëİİƎėİëƢėĐɆļŝƢŨɆǘǁėɆƎėƋŨƎƢëĈŒėɆƖėİśėŝƢƖȜɆ{ŝŒļŝėȚɆ¡ėƢëļŒȚɆpėǂɆ{ƋƋŨƎƢƪŝļƢļėƖȚɆ{ƢķėƎɆëŝĐɆ
ŨƎƋŨƎëƢėșɆ¶ķļƖɆƎėƋƎėƖėŝƢƖɆëɆĉķëŝİėɆįƎŨśɆǥǣǥǣɆǂļƢķɆŨƪƎɆįŨƎśėƎɆ½bɆëŝĐɆ,ƪƎŨƋėëŝɆ¡ėƢëļŒɆƖėİśėŝƢƖɆŝŨǂɆĉŨśĈļŝėĐɆƢŨɆįŨƎśɆŨŝėɆ¡ėƢëļŒɆ
ƖėİśėŝƢɆëŝĐɆƢķėɆļŝƢƎŨĐƪĉƢļŨŝɆŨįɆëɆpėǂɆ{ƋƋŨƎƢƪŝļƢļėƖɆƖėİśėŝƢɆƢŨɆƎėǙėĉƢɆƢķėɆļŝǁėƖƢśėŝƢɆƖƢƎëƢėİLjɆļŝɆļŝŝŨǁëƢļŨŝɆëŝĐɆŝėǂɆƋƎŨĐƪĉƢƖɆëŝĐɆ
ǁėƎƢļĉëŒƖɆƖƪĉķɆëƖɆėƖƋŨƎƢƖɆǂëİėƎļŝİɆƋƎŨĐƪĉƢƖɆëƖɆëŝŝŨƪŝĉėĐɆļŝɆƪİƪƖƢɆǥǣǥǤșɆŨƢķɆĉķëŝİėƖɆëƎėɆļŝɆŒļŝėɆǂļƢķɆƢķėɆĉķëŝİėƖɆļŝɆƢķėɆEƎŨƪƋȼƖɆ
ƎėƋŨƎƢļŝİɆƢŨɆƢķėɆėLJėĉƪƢļǁėɆśëŝëİėśėŝƢɆƢėëśɆȩȹ{$nȺȪȚɆǂļƢķɆƢķėɆ¡ėƢëļŒɆĉŨŝƖŨŒļĐëƢļŨŝɆëŒƖŨɆëɆƋƎŨĐƪĉƢɆŨįɆŨƪƎɆ¡ėƢëļŒɆƖėİśėŝƢɆĐļƖƋŒëLjļŝİɆ
ĉŨŝƖļƖƢėŝƢɆƢƎëĐļŝİɆƋëƢƢėƎŝƖɆëŝĐɆƎļƖŏɆƋƎŨǘŒėƖɆëĉƎŨƖƖɆƢėƎƎļƢŨƎļėƖɆëŝĐɆ댌Ɇ¡ėƢëļŒɆĈƪƖļŝėƖƖėƖɆŝŨǂɆƎėƋŨƎƢļŝİɆļŝƢŨɆƢķėɆ$ėƋƪƢLjɆķļėįɆ,LJėĉƪƢļǁėɆ
{įǘĉėƎȦķļėįɆDļŝëŝĉļëŒɆ{įǘĉėƎș
Group
Reported results
1,2
Year ended 31 December
2021
£m
ǥǣǥǣɆ
ɞś
ķëŝİėɆ
%
3
%
NGR 3,886.3 ǦȚǩǥǫșǨ 7% ǫɼ
Ô¶ȦE©¶ (56.3) ȩǩǩșǬȪ Ǥǩɼ Ǥǩɼ
Revenue 3,830.0 ǦȚǨǩǤșǩ ǫɼ Ǭɼ
EƎŨƖƖɆƋƎŨǘƢ 2,435.8 ǥȚǦǣǫșǩ ǩɼ
Contribution 1,851.5 ǤȚǪǧǣșǥ ǩɼ
Operating costs (952.7) ȩǫǪǫșǤȪ ȩǫɼȪ
Underlying EBITDAR
4
898.8 ǫǩǥșǤ ǧɼ
Rent and associated costs (17.1) ȩǤǬșǣȪ Ǥǣɼ
Underlying EBITDA
4
881.7 ǫǧǦșǤ Ǩɼ
©ķëƎėȯĈëƖėĐɆƋëLjśėŝƢƖ (12.3) ȩǤǧșǫȪ ǤǪɼ
½ŝĐėƎŒLjļŝİɆĐėƋƎėĉļëƢļŨŝɆëŝĐɆëśŨƎƢļƖëƢļŨŝ (222.8) ȩǥǦǫșǩȪ 7%
©ķëƎėɆŨįɆ`ÔɆļŝĉŨśė (162.5) ȩǩǣșǥȪ ȩǤǪǣɼȪ
½ŝĐėƎŒLjļŝİɆŨƋėƎëƢļŝİɆƋƎŨǘƢ
5
484.1 ǨǥǬșǨ ȩǬɼȪ
Reported Results
1,2
:
ÕķļŒėɆǥǣǥǤɆǂëƖɆëŝŨƢķėƎɆLjėëƎɆĐļƖƎƪƋƢėĐɆĈLjɆŨǁļĐȯǤǬɆëŝĐɆƢėśƋŨƎëƎLjɆƖķŨƋɆĉŒŨƖƪƎėƖȚɆƢķėɆEƎŨƪƋɆƖƢļŒŒɆĐėŒļǁėƎėĐɆƖƢƎŨŝİɆƪŝĐėƎŒLjļŝİɆLjėëƎɆŨŝɆ
LjėëƎɆİƎŨǂƢķɆļŝɆpE¡ɆŨįɆɣǪɼɆȩɣǫɼĉĉȪșɆ{ŝŒļŝėɆpE¡ɆǂëƖɆɣǥǫɼɆȩɣǥǪɼĉĉȪɆëķėëĐɆļŝɆƢķėɆǘƎƖƢɆķëŒįɆëƖɆ{ŝŒļŝėɆĈėŝėǘƢėĐɆįƎŨśɆ¡ėƢëļŒɆĉƪƖƢŨśėƎƖɆ
ƋŒëLjļŝİɆ{ŝŒļŝėșɆŨǁļĐȯǤǬɆƎėƖƢƎļĉƢļŨŝƖɆŨŝɆ¡ėƢëļŒɆƖëǂɆ댌ɆŨįɆŨƪƎɆ¡ėƢëļŒɆƖƢŨƎėƖɆĉŒŨƖėĐɆļŝɆǤɆëŝĐɆėLJƢėŝĐėĐɆĉŒŨƖƪƎėƖɆļŝɆ,ƪƎŨƋėɆĉŨŝƢļŝƪļŝİɆļŝƢŨɆ
ǥȚɆƎėƖƪŒƢļŝİɆļŝɆLǤɆpE¡ɆļŝɆ¡ėƢëļŒɆȯǧǩɼĉĉɆĈėķļŝĐɆƢķėɆƋƎļŨƎɆLjėëƎșɆLǥɆƖëǂɆëɆƎėƢƪƎŝɆƢŨɆśŨƎėɆŝŨƎśëŒɆƢƎëĐļŝİɆƋëƢƢėƎŝƖɆǂļƢķɆ¡ėƢëļŒɆŨƋėŝɆëŝĐɆ
ŨǁļĐȯǤǬɆƎėƖƢƎļĉƢļŨŝƖɆëĈëƢļŝİșɆ¡ėƖƪŒƢļŝİɆ¡ėƢëļŒɆpE¡ɆǂëƖɆɣǥǣɼĉĉɆëķėëĐɆļŝɆLǥɆǂļƢķɆ{ŝŒļŝėɆpE¡ɆëɆśŨƎėɆśŨĐėƖƢɆǤɼĉĉɆëķėëĐɆëƖɆļƢɆŒëƋƋėĐɆ
ŨǁļĐȯǤǬɆƎėƖƢƎļĉƢļŨŝƖɆļŝɆLǥɆǥǣǥǣșɆÕķļŒėɆŨǁļĐȯǤǬɆƎėƖƢƎļĉƢļŨŝƖɆķëǁėɆĐļƖƢŨƎƢėĐɆƢķėɆLjėëƎɆŨŝɆLjėëƎɆĉŨśƋëƎļƖŨŝƖȚɆƋŒėëƖļŝİŒLjɆǂėɆëƎėɆėLJļƢļŝİɆǥǣǥǤɆ
ǂļƢķɆ{ŝŒļŝėɆpE¡ɆļŝɆǧɆɣǥǬɼɆëķėëĐɆŨįɆǥǣǤǬɆȩɣǤǧɼɆƢǂŨɆLjėëƎɆE¡ȪɆëŝĐɆ¡ėƢëļŒɆŨǁėƎɆǬǣɼɆŨįɆƋƎėɆŨǁļĐȯǤǬɆpE¡ɆŨŝɆëɆŒļŏėȯįŨƎȯŒļŏėɆĈëƖļƖșɆ
¡ėƖƪŒƢļŝİɆįƪŒŒɆLjėëƎɆpE¡ɆǂëƖɆɣǤǦɼĉĉɆëķėëĐɆļŝɆ{ŝŒļŝėɆĈƪƢɆȯǪɼĉĉɆȩȯǦɼĉĉɆdDdȪɆĈėķļŝĐɆļŝɆ¡ėƢëļŒș
ŨŝƢƎļĈƪƢļŨŝɆįŨƎɆƢķėɆLjėëƎɆŨįɆɞǤȚǫǨǤșǨśɆǂëƖɆǩɼɆķļİķėƎɆƢķëŝɆŒëƖƢɆLjėëƎȚɆƎėƋƎėƖėŝƢļŝİɆëɆĉŨŝƢƎļĈƪƢļŨŝɆśëƎİļŝɆŨįɆǧǪșǩɼȚɆȯǣșǧƋƋɆŒŨǂėƎɆƢķëŝɆŒëƖƢɆ
LjėëƎɆĐƪėɆƢŨɆëɆķļİķėƎɆ{ŝŒļŝėɆƖėİśėŝƢëŒɆśļLJɆëŝĐɆƢķėɆļśƋŒėśėŝƢëƢļŨŝɆŨįɆİëśļŝİɆƢëLJėƖɆļŝɆEėƎśëŝLjșɆ{ƋėƎëƢļŝİɆĉŨƖƢƖɆȩĈėįŨƎėɆƎėŝƢȪɆǂėƎėɆǫɼɆ
ķļİķėƎɆĐƪėɆƢŨɆëĉƍƪļƖļƢļŨŝƖɆëŝĐɆļŝǁėƖƢśėŝƢɆļŝɆŨƪƎɆƋƎŨĐƪĉƢȚɆƢėĉķŝŨŒŨİLjɆëŝĐɆƋėŨƋŒėȚɆŒėëǁļŝİɆƪŝĐėƎŒLjļŝİɆ,Q¶$
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©ķëƎėɆĈëƖėĐɆƋëLjśėŝƢɆĉķëƎİėƖɆǂėƎėɆɞǥșǨśɆŒŨǂėƎɆƢķëŝɆŒëƖƢɆLjėëƎȚɆǂķļŒėɆƪŝĐėƎŒLjļŝİɆĐėƋƎėĉļëƢļŨŝɆëŝĐɆëśŨƎƢļƖëƢļŨŝɆǂëƖɆǪɼɆŒŨǂėƎɆëƖɆƢķėɆ
ļśƋëĉƢɆŨįɆķļƖƢŨƎļĉɆnʁɆŨŝɆĐėƋƎėĉļëƢļŨŝɆƖƢëƎƢƖɆƢŨɆƎėĐƪĉėșɆ©ķëƎėɆŨįɆ`ÔɆŒŨƖƖėƖɆŨįɆɞǤǩǥșǨśɆļŝĉŒƪĐėƖɆëɆŒŨƖƖɆŨįɆɞǤǩǤșǬśɆƎėŒëƢļŝİɆƢŨɆėƢnEnȚɆ
ǂķļĉķɆļƖɆļŝɆŒļŝėɆǂļƢķɆėLJƋėĉƢëƢļŨŝƖșɆEƎŨƪƋɆƪŝĐėƎŒLjļŝİɆŨƋėƎëƢļŝİɆƋƎŨǘƢ
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ėLJĉŒƪĐļŝİɆɞǨșǫśɆƎėĉŨƎĐėĐɆļŝɆļŝƢėƎėƖƢɆȩǥǣǥǣțɆɞǤǪǣșǩśɆėLJĉŒƪĐļŝİɆɞǨșǦśɆƎėĉŨƎĐėĐɆļŝɆļŝƢėƎėƖƢȪȚɆŨƋėƎëƢļŝİɆƋƎŨǘƢɆǂëƖɆɞǦǨǨșǫśȚɆëɆĐėĉƎėëƖėɆŨįɆ
ɞǦșǤśɆŨŝɆǥǣǥǣș
ƪƖļŝėƖƖɆ¡ėǁļėǂ
Entain plc
|
Annual Report 2021
66
Strategic report
Online
Reported results
1,2
Year ended 31 December
2021
£m
ǥǣǥǣɆ
ɞś
ķëŝİėɆ
%
3
%
Sports wagers 14,165.9 ǤǤȚǪǫǣșǬ ǥǣɼ ǥǤɼ
Sports margin 12.7% ǤǥșǪɼ – –
©ƋŨƎƢƖɆpE¡
1,444.3 ǤȚǤǬǩșǫ ǥǤɼ ǥǥɼ
EëśļŝİɆpE¡
1,595.9 ǤȚǨǦǧșǫ ǧɼ ǩɼ
ǥɆpE¡ 26.3 ǤǨșǬ ǩǨɼ ǩǫɼ
Total NGR 3,066.5 ǥȚǪǧǪșǨ Ǥǥɼ ǤǦɼ
Ô¶ȦE©¶ (56.3) ȩǩǩșǬȪ Ǥǩɼ Ǥǩɼ
Revenue
3,010.2 ǥȚǩǫǣșǩ Ǥǥɼ Ǥǧɼ
EƎŨƖƖɆƋƎŨǘƢ
1,871.5 ǤȚǪǣǫșǪ Ǥǣɼ
Contribution 1,294.7 ǤȚǤǧǪșǧ ǤǦɼ
ŨŝƢƎļĈƪƢļŨŝɆśëƎİļŝ 42.2% ǧǤșǫɼ ǣșǧƋƋ
Operating costs
(393.7) ȩǦǧǥșǨȪ ȩǤǨɼȪ
Underlying EBITDAR
4
901.0 ǫǣǧșǬ Ǥǥɼ
Rent and associated costs (2.0) ȩǤșǧȪ ȩǧǦɼȪ
Underlying EBITDA
4
899.0 ǫǣǦșǨ Ǥǥɼ
©ķëƎėɆĈëƖėĐɆƋëLjśėŝƢƖ (5.3) ȩǧșǦȪ ȩǥǦɼȪ
½ŝĐėƎŒLjļŝİɆĐėƋƎėĉļëƢļŨŝɆëŝĐɆëśŨƎƢļƖëƢļŨŝ (116.7) ȩǤǥǣșǤȪ 3%
©ķëƎėɆŨįɆ`ÔɆȩŒŨƖƖȪȦļŝĉŨśė (1.0) ǣșǤ ɆŝȦśɆ
½ŝĐėƎŒLjļŝİɆŨƋėƎëƢļŝİɆƋƎŨǘƢ
5
776.0 ǩǪǬșǥ Ǥǧɼ
Reported Results
1,2
:
{ƪƎɆ{ŝŒļŝėɆĈƪƖļŝėƖƖɆĉŨŝƢļŝƪėƖɆƢŨɆİŨɆįƎŨśɆƖƢƎėŝİƢķɆƢŨɆƖƢƎėŝİƢķɆëƢƢƎëĉƢļŝİɆŝėǂɆĉƪƖƢŨśėƎƖɆļŝɆ댌ɆŨįɆŨƪƎɆśëŌŨƎɆśëƎŏėƢƖɆƢķƎŨƪİķɆƢķėɆƋƎŨǁļƖļŨŝɆ
ŨįɆķļİķɆƍƪëŒļƢLjɆƋƎŨĐƪĉƢƖȚɆëɆśëƎŏėƢɆŒėëĐļŝİɆëƋƋƎŨëĉķɆƢŨɆƋŒëLjėƎɆƖëįėƢLjɆëŝĐɆëŝɆėLJĉėŒŒėŝƢɆĉƪƖƢŨśėƎɆėLJƋėƎļėŝĉėșɆpE¡ɆįŨƎɆƢķėɆLjėëƎɆǂëƖɆƪƋɆ
ǤǥɼɆȩɣǤǦɼĉĉȪɆLjėëƎɆŨŝɆLjėëƎȚɆƎėƋƎėƖėŝƢļŝİɆëɆƢǂŨɆLjėëƎɆE¡ɆŨįɆɣǥǣɼĉĉșɆÕķļŒėɆŨƪƎɆŒŨŝİɆƎƪŝɆŨįɆƍƪëƎƢėƎŒLjɆĐŨƪĈŒėȯĐļİļƢɆİƎŨǂƢķɆȩëƢɆĉŨŝƖƢëŝƢɆ
ĉƪƎƎėŝĉLjȪɆƢŨŨŏɆëɆƋëƪƖėɆļŝɆǧȚɆëƖɆǂėɆŒëƋƋėĐɆëɆŒŨĉŏĐŨǂŝɆĈėŝėǘƢėĐɆǥǣǥǣȚɆǂėɆëƎėɆėLJļƢļŝİɆǥǣǥǤɆļŝɆëŝɆėLJĉėŒŒėŝƢɆƋŨƖļƢļŨŝɆǂļƢķɆǧɆpE¡ɆɣǤǧɼĉĉɆ
ëķėëĐɆŨįɆǥǣǤǬɆŨŝɆëɆƢǂŨɆLjėëƎɆE¡ɆĈëƖļƖșɆ,LJĉŒƪĐļŝİɆEėƎśëŝLjɆëŝĐɆƢķėɆpėƢķėƎŒëŝĐƖȚɆǂķėƎėɆƎėİƪŒëƢŨƎLjɆĉķëŝİėƖɆëƎėɆƖļİŝļǘĉëŝƢŒLjɆļśƋëĉƢļŝİɆ
ƢķėɆśëƎŏėƢȚɆ{ŝŒļŝėɆpE¡ɆǂëƖɆƪƋɆɣǥǤɼĉĉɆLjėëƎɆŨŝɆLjėëƎɆǂļƢķɆƖƢƎŨŝİɆİƎŨǂƢķɆļŝɆ댌ɆŨįɆŨƪƎɆŏėLjɆśëƎŏėƢƖɆȩƢǂŨɆLjėëƎɆE¡ɆɣǥǪɼĉĉȪș
½ŝĐėƎŒLjļŝİɆ,Q¶$¡ȅɆŨįɆɞǬǣǤșǣśɆëŝĐɆƪŝĐėƎŒLjļŝİɆ,Q¶$ȅɆŨįɆɞǫǬǬșǣśɆǂėƎėɆǤǥɼɆëķėëĐɆŨįɆǥǣǥǣșɆ½ŝĐėƎŒLjļŝİɆŨƋėƎëƢļŝİɆƋƎŨǘƢȐɆŨįɆ
ɞǪǪǩșǣśɆǂëƖɆǤǧɼɆëķėëĐɆëŝĐȚɆëįƢėƎɆĉķëƎİļŝİɆɞǤǨǧșǣśɆŨįɆƖėƋëƎëƢėŒLjɆĐļƖĉŒŨƖėĐɆļƢėśƖȚɆŨƋėƎëƢļŝİɆƋƎŨǘƢɆǂëƖɆɞǩǥǥșǣśȚɆɞǥǧǪșǦśɆëķėëĐɆŨįɆ
ŒëƖƢɆLjėëƎșɆ
QŝɆƢķėɆ½bȚɆpE¡ɆǂëƖɆɣǤǣɼɆëķėëĐɆŨįɆƢķėɆƋƎļŨƎɆLjėëƎșɆ½bɆƖƋŨƎƢƖɆĈƎëŝĐƖɆpE¡ɆǂëƖɆɣǤǥɼĉĉɆëķėëĐɆĐƎļǁėŝɆĈLjɆļŝǁėƖƢśėŝƢɆļŝɆśëƎŏėƢļŝİɆëŝĐɆ
ƋƎŨĐƪĉƢɆļŝŝŨǁëƢļŨŝɆļŝĉŒƪĐļŝİɆƢķėɆŒëƪŝĉķɆŨįɆdëĐĈƎŨŏėƖɆǨȯëȯƖļĐėȚɆëɆƋƎŨĐƪĉƢɆǂķļĉķɆİëǁėɆįëŝƖɆëŝɆȹėƋļĉɆŝėǂɆǂëLjɆƢŨɆĈėƢȺșɆnŨƎėɆƢķëŝɆǨǣɼɆ
ŨįɆŨƪƎɆįŨŨƢĈ댌ɆëĉƢļǁėɆĉƪƖƢŨśėƎɆĈëƖėɆƋŒëLjėĐɆǨȯëȯƖļĐėɆĐƪƎļŝİɆƢķėɆ,ƪƎŨɆǥǣǥǣȚɆǂķėƎėɆļƢɆǂëƖɆƋƎŨśŨƢėĐɆëŝĐɆŨįįėƎėĐɆŨŝɆėǁėƎLjɆśëƢĉķɆļŝɆƢķėɆ
ƢŨƪƎŝëśėŝƢșɆÕėɆķëǁėɆĈėİƪŝɆƢŨɆĉķëŝİėɆŨƪƎɆëĐǁėƎƢļƖļŝİȚɆśëŏļŝİɆļƢɆśŨƎėɆėŝƢėƎƢëļŝļŝİɆëŝĐɆķļİķɆļśƋëĉƢɆƢŨɆėŝİëİėɆëŝĐɆėLJĉļƢėɆŝėǂɆëŝĐɆ
ėLJļƖƢļŝİɆëƪĐļėŝĉėƖșɆ$ƪƎļŝİɆƢķėɆLjėëƎȚɆǂėɆƖëǂɆƢķėɆƎėŒėëƖėɆŨįɆƢǂŨɆśëŌŨƎɆ¶ÔɆĉëśƋëļİŝƖɆįŨƎɆdëĐĈƎŨŏėƖȜɆȹ$ƎƪśśėƎƖȺȚɆǂķļĉķɆĉëƋƢƪƎėĐɆƢķėɆ
ėLJĉļƢėśėŝƢɆëŝĐɆëŝƢļĉļƋëƢļŨŝɆŨįɆƢķėɆƎėƢƪƎŝɆŨįɆįŨŨƢĈ댌ȚɆëŝĐɆȹ댌ŨŨŝȺȚɆëŝɆļŝĐƪƖƢƎLjɆǘƎƖƢɆĈƎëŝĐɆŒėĐɆĉëśƋëļİŝɆįŨƎɆĉëƖļŝŨɆëŝĐɆİëśļŝİȚɆĉëƋƢƪƎļŝİɆ
ƢķėɆėŝŌŨLjśėŝƢɆŨįɆƋŒëLjļŝİɆƢŨİėƢķėƎșɆ{ƪƎɆİëśļŝİɆŨįįėƎļŝİɆëĉƎŨƖƖɆĈŨƢķɆĈƎëŝĐƖɆĉŨŝƢļŝƪėƖɆƢŨɆėLJƋëŝĐɆİļǁļŝİɆŨƪƎɆĉƪƖƢŨśėƎƖɆëĉĉėƖƖɆƢŨɆƢķėɆŒëƢėƖƢɆ
ĉŨŝƢėŝƢɆļŝĉŒƪĐļŝİɆŨƎëŒȼƖɆDƎėėɆƢŨɆŒëLjɆƖŒŨƢƖɆƢŨƪƎŝëśėŝƢƖɆëƖɆǂėŒŒɆëƖɆļŝƢƎŨĐƪĉļŝİɆƢķėɆĈėƖƢɆŒļǁėɆİëśėƖɆƢŨɆdëĐĈƎŨŏėƖșɆÕėɆķëǁėɆļŝŝŨǁëƢėĐɆ
ƢķėɆǂëLjɆǂėɆƪƖėɆĐļİļƢëŒɆĉķëŝŝėŒƖɆƢŨɆĉƎėëƢėɆśŨƎėɆėŝİëİļŝİɆëŝĐɆƋėƎƖŨŝëŒļƖėĐɆļŝƢėƎëĉƢļŨŝƖɆǂļƢķɆŨƪƎɆĉƪƖƢŨśėƎƖȚɆļŝĉŒƪĐļŝİɆŨƎëŒȼƖɆķƪİėŒLjɆ
ƖƪĉĉėƖƖįƪŒɆȹİëļŝƖƢɆƢķėɆ{ĐĐƖȺɆƖƋŨƎƢļŝİɆĐŨĉƪśėŝƢëƎLjɆƖėƎļėƖɆŨŝɆQ¶ÔǧɆǂķļĉķɆĐėŒļǁėƎƖɆëɆƪŝļƍƪėɆļŝƖļİķƢɆļŝƢŨɆƖŨśėɆŨįɆƢķėɆśŨƖƢɆļŝƖƋļƎļŝİɆ
ƖƋŨƎƢļŝİɆƖƢŨƎļėƖɆëŝĐɆƢķėɆȺŒŒɆƢŨɆŒëLjɆDŨƎȺɆǂėėŏŒLjɆƋŨĐĉëƖƢȚɆǂķļĉķɆƢëŏėƖɆëɆŒŨŨŏɆëƢɆƢķėɆĈļİİėƖƢɆįŨŨƢĈ댌ɆİëśėƖɆŨįɆƢķėɆƖėëƖŨŝɆǂļƢķɆëɆƖƋėĉļëŒɆ
İƪėƖƢɆŒļŝėɆƪƋșɆ
½bɆEëśļŝİɆĈƎëŝĐƖɆpE¡ɆǂėƎėɆɣǬɼĉĉɆëķėëĐɆŨįɆŒëƖƢɆLjėëƎșɆ{ƪƎɆDŨLJLjɆĈƎëŝĐɆĉŨŝƢļŝƪėƖɆƢŨɆİŨɆįƎŨśɆƖƢƎėŝİƢķɆƢŨɆƖƢƎėŝİƢķȚɆƪƋɆɣǧǩɼĉĉɆŨŝɆƢķėɆ
ƋƎļŨƎɆLjėëƎɆëŝĐɆƪƋɆɣǨǫɼĉĉɆŨŝɆëɆƢǂŨȯLjėëƎɆE¡ɆĈëƖļƖșɆ¶ķėɆƖƢƎŨŝİɆƋėƎįŨƎśëŝĉėɆļŝɆƢķėɆ½bɆķëƖɆĈėėŝɆĐƎļǁėŝɆĈLjɆĉŨŝƢļŝƪėĐɆļŝǁėƖƢśėŝƢɆļŝɆ
ƋƎŨĐƪĉƢɆëŝĐɆśëƎŏėƢļŝİɆļŝĉŒƪĐļŝİɆƢķėɆśļİƎëƢļŨŝɆŨįɆŨƪƎɆĈļŝİŨɆƋƎŨĐƪĉƢɆŨŝɆƢŨɆƢķėɆEƎŨƪƋȼƖɆƋƎŨƋƎļėƢëƎLjɆƢėĉķŝŨŒŨİLjȚɆƢķėɆƖƋŨŝƖŨƎƖķļƋɆŨįɆDļƎƖƢɆ
$ëƢėƖɆëŝĐɆëɆŝėǂɆƎëŝİėɆŨįɆDŨLJLjɆļŝİŨɆ¶ÔɆĉëśƋëļİŝƖșɆ$ƪƎļŝİɆƢķėɆLjėëƎȚɆDŨLJLjɆǂëƖɆëǂëƎĐėĐɆƢķėɆļŝİŨɆ{ƋėƎëƢŨƎɆŨįɆƢķėɆÛėëƎɆëƢɆƢķėɆ,E¡Ɇ
ǂëƎĐƖɆƎėĉŨİŝļƖļŝİɆŨƪƎɆƖƢëŝĐȯŨƪƢɆƋƎŨƋŨƖļƢļŨŝșɆ
QŝɆQƢëŒLjȚɆpE¡ɆëĉƎŨƖƖɆƢķėɆƢķƎėėɆśëŌŨƎɆĈƎëŝĐƖɆȩ,ƪƎŨĈėƢȚɆĈǂļŝɆëŝĐɆEļŨĉŨɆ$ļİļƢëŒėȪɆǂëƖɆǦǤɼĉĉɆëķėëĐɆŨįɆǥǣǥǣșɆpE¡ɆİƎŨǂƢķɆǂëƖɆĐƎļǁėŝɆ
ĈLjɆļŝǁėƖƢśėŝƢɆļŝɆƋƎŨĐƪĉƢɆëŝĐɆįėëƢƪƎėɆėŝķëŝĉėśėŝƢƖȚɆİļǁļŝİɆŨƪƎɆĉƪƖƢŨśėƎƖɆİƎėëƢėƎɆėLJƋėƎļėŝĉėƖɆëŝĐɆėLJĉļƢļŝİɆėŝƢėƎƢëļŝśėŝƢɆŨŝŒļŝėșɆ
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Overview
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Strategic report
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Governance
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Financial statements
Entain plc
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Annual Report 2021
¶ķļƖɆļŝĉŒƪĐėĐɆƢķėɆƎėŒėëƖėɆŨįɆŝėǂɆpɆİëśėɆįŨŨƢëİėȚɆƋƎėȯśëƢĉķɆįŨŨƢĈ댌ɆƋŒëLjėƎɆśëƎŏėƢƖɆëŝĐɆǦǣǣɆŝėǂɆĉëƖļŝŨɆİëśėƖɆļŝɆ,ƪƎŨĈėƢșɆQŝɆĈǂļŝɆ
ëŝĐɆEļŨĉŨɆ$ļİļƢëŒėȚɆŨƪƎɆļŝȯķŨƪƖėɆ,ƪƎŨĈėƢɆİëśėƖɆǂėŝƢɆŒļǁėɆëƖɆǂėŒŒɆëƖɆŒëƪŝĉķļŝİɆėƖƋŨƎƢƖɆƖƢƎėëśļŝİɆƢŨɆĈǂļŝșƢǁșɆÕėɆĉŨŝƢļŝƪėɆƢŨɆĈėŝėǘƢɆ
įƎŨśɆƢķėɆƖƢƎėŝİƢķɆŨįɆŨƪƎɆŨśŝļɆĉķëŝŝėŒɆŨįįėƎļŝİȚɆĉŨśƋëƎėĐɆǂļƢķɆŨƪƎɆŨŝŒļŝėɆŨŝŒLjɆĉŨśƋėƢļƢŨƎƖȚɆƋëƎƢļĉƪŒëƎŒLjɆǂķėŝɆŨǁļĐɆƎėƖƢƎļĉƢļŨŝƖɆĉëƪƖėĐɆ
ƢėśƋŨƎëƎLjɆƎėƢëļŒɆĉŒŨƖƪƎėƖș
QŝɆƪƖƢƎëŒļëȚɆǂėɆķëǁėɆƖėėŝɆƖƢƎŨŝİɆƪŝĐėƎŒLjļŝİɆİƎŨǂƢķɆëİëļŝɆļŝɆǥǣǥǤɆǂļƢķɆpE¡ɆɣǥǣɼɆȩɣǤǫɼĉĉȪɆëķėëĐɆŨįɆǥǣǥǣɆëŝĐɆƪƋɆɣǦǨɼɆŨŝɆëɆ
ƢǂŨȯLjėëƎɆE¡ɆĈëƖļƖșɆŨƢķɆŨƪƎɆĈƎëŝĐƖȚɆdëĐĈƎŨŏėƖɆëŝĐɆpėĐƖȚɆĉŨŝƢļŝƪėɆƢŨɆƎėƖŨŝëƢėɆǂļƢķɆĉƪƖƢŨśėƎƖɆëŝĐɆŨƪƎɆƢėëśɆĉŨŝƢļŝƪėɆƢŨɆǂŨƎŏɆŨŝɆ
ƖėǁėƎëŒɆėLJĉļƢļŝİɆĉŨŝƢėŝƢɆëŝĐɆƋƎŨĐƪĉƢɆƎėŒėëƖėƖɆļŝɆëĐĐļƢļŨŝɆƢŨɆƢķŨƖėɆëŒƎėëĐLjɆƎėŒėëƖėĐɆļŝɆǥǣǥǤșɆŨƢķɆĈƎëŝĐƖɆĉŨŝƢļŝƪėɆƢŨɆİëļŝɆśëƎŏėƢɆƖķëƎėɆ
ǂļƢķɆƢķėɆƖƢƎëƢėİļĉɆįŨĉƪƖɆŨŝɆƋƎŨĐƪĉƢɆļŝŝŨǁëƢļŨŝȚɆĈƎëŝĐɆëĉƢļǁëƢļŨŝɆëŝĐɆĉƪƖƢŨśėƎɆėŝİëİėśėŝƢɆĉŨŝƢļŝƪļŝİɆƢŨɆĈėɆƎėǙėĉƢėĐɆļŝɆƢŨƋɆŒļŝėɆİƎŨǂƢķșɆ
ÕėɆķëǁėɆëɆƖƢƎŨŝİɆƋļƋėŒļŝėɆŨįɆįėëƢƪƎėɆƋƎŨĐƪĉƢƖɆëŝĐɆĈƎëŝĐɆĉëśƋëļİŝƖɆƋŒëŝŝėĐɆįŨƎɆƎėŒėëƖėɆļŝɆǥǣǥǥɆƢķëƢɆįŨĉƪƖɆŨŝɆėLJƋëŝĐļŝİɆŨŝɆƢķėɆĉƪƖƢŨśėƎɆ
ėLJƋėƎļėŝĉėɆëŝĐɆƎėǁŨŒƪƢļŨŝļƖļŝİɆƢķėɆǂëLjɆĉŨŝƖƪśėƎƖɆėŝİëİėɆǂļƢķɆŨƪƎɆĈƎëŝĐƖș
QŝɆEėƎśëŝLjȚɆƖƋŨƎƢƖɆpE¡ɆǂëƖɆǥǥɼĉĉɆëķėëĐɆŨįɆǥǣǥǣɆǂķļŒƖƢɆİëśļŝİɆǂëƖɆȯǩǤɼĉĉɆĈėķļŝĐɆëƖɆƢķėɆļśƋëĉƢɆŨįɆƢķėɆƢŨŒėƎëŝĉėɆƎėİļśėɆëŝŝƪëŒļƖėƖɆ
ëŝĐɆƢķėɆŨŝİŨļŝİɆļśƋëĉƢɆŨįɆŝŨŝȯĉŨśƋŒļëŝƢɆŨƋėƎëƢŨƎƖɆĉŨŝƢļŝƪėƖɆƢŨɆĉƎėëƢėɆëŝɆƪŝėǁėŝɆśëƎŏėƢșɆLŨǂėǁėƎȚɆƢķļƖɆǂëƖɆëķėëĐɆŨįɆėLJƋėĉƢëƢļŨŝƖɆëŝĐȚɆ
ëŒƢķŨƪİķɆǂėɆƖƢļŒŒɆëǂëļƢɆëɆĐėĉļƖļŨŝɆŨŝɆĐėƋŨƖļƢɆŒļśļƢƖɆŨŝɆƖƋŨƎƢƖɆëŝĐɆƢķėɆļƖƖƪëŝĉėɆŨįɆİëśļŝİɆŒļĉėŝĉėƖȚɆǂėɆĉŨŝƢļŝƪėɆƢŨɆĈėɆėLJĉļƢėĐɆĈLjɆƢķėɆŒŨŝİȯ
ƢėƎśɆƋƎŨƖƋėĉƢƖɆįŨƎɆƢķėɆEėƎśëŝɆśëƎŏėƢșɆQŝɆ©ėƋƢėśĈėƎȚɆǂėɆëŝŝŨƪŝĉėĐɆëɆƖƋŨŝƖŨƎƖķļƋɆëİƎėėśėŝƢɆǂļƢķɆ½,DɆįŨƎɆƢķėɆ,ƪƎŨƋëɆdėëİƪėɆëŝĐɆ
,ƪƎŨƋëɆŨŝįėƎėŝĉėɆdėëİƪėɆƢŨɆįƪƎƢķėƎɆĐƎļǁėɆĈǂļŝȼƖɆėLJƋŨƖƪƎėɆļŝɆEėƎśëŝLjɆëƖɆǂėŒŒɆëƖɆƢķėɆƎėƖƢɆŨįɆ,ƪƎŨƋėșɆ
QŝɆƢķėɆpėƢķėƎŒëŝĐƖȚɆǂėɆƖëǂɆƎėİƪŒëƢŨƎLjɆĉķëŝİėƖɆĉŨśėɆļŝƢŨɆėįįėĉƢɆļŝɆ{ĉƢŨĈėƎɆǥǣǥǤɆëŝĐɆëƖɆëɆƎėƖƪŒƢȚɆ,ŝƢëļŝɆĉėëƖėĐɆ댌ɆŨƋėƎëƢļŨŝƖɆļŝɆƢķėɆ
pėƢķėƎŒëŝĐƖɆįƎŨśɆǤɆ{ĉƢŨĈėƎɆǥǣǥǤșɆÕėɆķëǁėɆƖļŝĉėɆëƋƋŒļėĐɆįŨƎɆëɆŝėǂɆŒļĉėŝĉėɆëŝĐɆëǂëļƢɆƢķėɆŝėLJƢɆƖƢėƋƖɆļŝɆƢķėɆŒļĉėŝĉėɆ댌ŨĉëƢļŨŝɆƋƎŨĉėƖƖɆ
ǂķļĉķɆǂėɆėLJƋėĉƢɆƢŨɆĉŨŝĉŒƪĐėɆëƎŨƪŝĐɆƢķėɆśļĐĐŒėɆŨįɆǥǣǥǥșɆ
pE¡ɆļŝɆƎëǒļŒɆǂëƖɆɣǤǤǤɼĉĉɆëķėëĐɆŨįɆǥǣǥǣȚɆįƪƎƢķėƎɆĉŨŝǘƎśļŝİɆ©ƋŨƎƢļŝİĈėƢɆëƖɆƢķėɆśëƎŏėƢɆŒėëĐėƎșɆ½ŝĐėƎŒLjļŝİɆĉƪƖƢŨśėƎɆśėƢƎļĉƖɆëŒƖŨɆƎėśëļŝɆ
ƖƢƎŨŝİɆǂļƢķɆëĉƢļǁėƖɆƪƋɆɣǤǨǩɼɆļŝɆƢķėɆLjėëƎșɆÕėɆëŝƢļĉļƋëƢėɆƢķëƢɆƢķėɆƎëǒļŒļëŝɆśëƎŏėƢɆǂļŒŒɆƎėİƪŒëƢėɆƖƋŨƎƢƖɆļŝɆǥǣǥǥɆȩëŝĐɆİëśļŝİɆļŝɆǥǣǥǦȪɆëŝĐɆ
ƖėėɆƢķļƖɆëƖɆëŝɆėLJĉļƢļŝİɆŨƋƋŨƎƢƪŝļƢLjɆƢŨɆįƪƎƢķėƎɆėƖƢëĈŒļƖķɆƢķėɆ©ƋŨƎƢļŝİĈėƢɆĈƎëŝĐɆëŝĐɆİƎŨǂɆśëƎŏėƢɆƖķëƎėșɆ
,ŝŒëĈƖȚɆǂķļĉķɆǂëƖɆëĉƍƪļƎėĐɆëƢɆƢķėɆėŝĐɆŨįɆǤȚɆķëƖɆƋėƎįŨƎśėĐɆėLJĉėƋƢļŨŝ댌LjɆǂėŒŒɆĐƪƎļŝİɆǥǣǥǤɆǂļƢķɆpE¡ɆëŝĐɆ,Q¶$ɆëķėëĐɆŨįɆŨƪƎɆļŝļƢļëŒɆ
ėLJƋėĉƢëƢļŨŝƖșɆ{ŝɆëɆƋƎŨįŨƎśëɆĈëƖļƖȚɆpE¡ɆļƖɆƪƋɆɣǧǬɼɆLjėëƎɆŨŝɆLjėëƎɆëŝĐɆŨƪƎɆśëƎŏėƢɆƖķëƎėɆļŝɆƢķėɆëŒƢļĉƖɆķëƖɆļŝĉƎėëƖėĐɆƢŨɆǦǣɼȚɆƪƋɆɣǦșǣƋƋɆ
ŨŝɆǥǣǥǣșɆDŨŒŒŨǂļŝİɆļƢƖɆļŝƢėİƎëƢļŨŝɆļŝƢŨɆƢķėɆ,ŝƢëļŝɆįëśļŒLjȚɆ,ŝŒëĈƖɆļƖɆŝŨǂɆŨįįėƎļŝİɆ,ŝƢëļŝȼƖɆĉŨƎėɆƋƎŨĐƪĉƢƖɆëŝĐɆŒėǁėƎëİļŝİɆļƢƖɆƖLjƖƢėśƖɆëŝĐɆ
śëƎŏėƢļŝİɆĉëƋëĈļŒļƢļėƖɆļŝɆŨƎĐėƎɆƢŨɆĐƎļǁėɆįƪƎƢķėƎɆİƎŨǂƢķșɆ{ƋƢļĈėƢɆķëƖɆŌŨļŝėĐɆƢķėɆëƎƢLjƋŨŏėƎɆŝėƢǂŨƎŏȚɆĐŨƪĈŒļŝİɆƋŨŏėƎɆëĉƢļǁėɆƪƖėƎƖɆļŝɆƢķėɆǘƎƖƢɆ
śŨŝƢķȚɆëƖɆǂėŒŒɆëƖɆŒëƪŝĉķļŝİɆƎëİśëƢļĉɆŒëLjɆŒļǁėɆİëśėƖșɆÕėɆĉŨŝƢļŝƪėɆƢŨɆǂŨƎŏɆŨŝɆƢķėɆļŝƢėİƎëƢļŨŝɆŨįɆƢķėɆĈǂļŝɆƖƋŨƎƢƖɆįėėĐɆļŝƢŨɆƢķėɆ,ŝŒëĈƖɆ
ĈƪƖļŝėƖƖɆǂķļĉķɆǂļŒŒɆėŝëĈŒėɆƪƖɆƢŨɆŨįįėƎɆśŨƎėɆŒļǁėɆĈėƢƢļŝİɆėǁėŝƢƖɆƢŨɆŨƪƎɆĉƪƖƢŨśėƎƖɆļŝɆǥǣǥǥșɆ
QŝɆEėŨƎİļëȚɆpE¡ɆǂëƖɆɣǥǩɼĉĉɆëķėëĐɆLjėëƎɆŨŝɆLjėëƎɆǂļƢķɆƎLjƖƢëŒĈėƢɆśëļŝƢëļŝļŝİɆļƢƖɆƋŨƖļƢļŨŝɆëƖɆƢķėɆŝƪśĈėƎɆŨŝėɆŨƋėƎëƢŨƎɆǂļƢķɆǦǥɼɆśëƎŏėƢɆ
ƖķëƎėɆļŝɆǥǣǥǤșɆEļǁėŝɆƢķėɆƋŨƖļƢļŨŝɆŨįɆƢķėɆƎLjƖƢëŒĈėƢɆĈƎëŝĐɆļŝɆƢķėɆśëƎŏėƢȚɆǂėɆĈėŒļėǁėɆǂėɆëƎėɆǂėŒŒɆƋŨƖļƢļŨŝėĐɆƢŨɆëĈƖŨƎĈɆƢķėɆļśƋëĉƢɆŨįɆƢķėɆŝėǂɆ
ƎėİƪŒëƢļŨŝƖɆëŝĐɆƢëLJɆƎėƖƢƎļĉƢļŨŝƖɆëŝŝŨƪŝĉėĐɆļŝɆpŨǁėśĈėƎșɆ
QŝɆǥǣǥǤȚɆǂėɆķëǁėɆĉŨŝƖŨŒļĐëƢėĐɆŨƪƎɆëƎƢLjɆĈƎëŝĐėĐɆĈƪƖļŝėƖƖėƖɆļŝƢŨɆ{ŝėɆëƎƢLjȚɆǂļƢķɆëɆƎėŝėǂėĐɆįŨĉƪƖɆŨŝɆƎėĉƎėëƢļŨŝëŒɆƋŒëLjėƎƖșɆ$ƪƎļŝİɆƢķėɆ
LjėëƎȚɆǂėɆëŒƖŨɆŒëƪŝĉķėĐɆëƎƢLjɆ¡ėƖƋŨŝƖļĈŒLjȚɆëɆŝėǂɆļŝļƢļëƢļǁėɆǂķļĉķɆƪƖėƖɆƢķėɆƋëƎƢŝėƎƖķļƋɆĈėƢǂėėŝɆŨƪƎɆƢǂŨɆĈƎëŝĐƖȚɆëƎƢLjɆëƖļŝŨɆëŝĐɆ
ƋëƎƢLjƋŨŏėƎɆëŝĐɆnĉdëƎėŝɆ¡ëĉļŝİȚɆƢŨɆƋƎŨśŨƢėɆƖëįėƎɆĈėƢƢļŝİɆëŝĐɆİëśļŝİȚɆƢŨɆėŝƖƪƎėɆŨƪƎɆƋŒëLjėƎƖɆƎėƖƋėĉƢɆƢķėļƎɆŒļśļƢƖɆëŝĐɆėŝŌŨLjɆëɆİƎėëƢɆ
ėŝƢėƎƢëļŝśėŝƢɆėLJƋėƎļėŝĉėșɆQŝɆƢķėɆLjėëƎȚɆ{ŝėɆëƎƢLjɆpE¡ɆǂëƖɆļŝɆŒļŝėɆǂļƢķɆǥǣǥǣȚɆǂķļĉķɆƎėƋƎėƖėŝƢƖɆǥǣɼɆİƎŨǂƢķɆŨŝɆëɆƢǂŨȯLjėëƎɆE¡ɆĈëƖļƖș
ėƢșƋƢȚɆǂķļĉķɆǂëƖɆëĉƍƪļƎėĐɆëƢɆƢķėɆėŝĐɆŨįɆǤȚɆǂëƖɆƖƪĉĉėƖƖįƪŒŒLjɆƎėĈƎëŝĐėĐɆĈǂļŝɆëŝĐɆśļİƎëƢėĐɆŨŝƢŨɆƢķėɆ,ŝƢëļŝɆƋŒëƢįŨƎśɆĐƪƎļŝİɆƢķėɆƢķļƎĐɆ
ƍƪëƎƢėƎșɆ©ļŝĉėɆƢķėɆëĉƍƪļƖļƢļŨŝɆƢķėɆĈƪƖļŝėƖƖɆķëƖɆëŒƖŨɆĈėĉŨśėɆƢķėɆƖƋŨŝƖŨƎɆŨįɆdļİëɆŨƎƢƪİëŒɆǂķļĉķȚɆǂķėŝɆĉŨśĈļŝėĐɆǂļƢķɆŨƪƎɆƖƋŨŝƖŨƎƖķļƋɆ
ŨįɆ½,DɆëŝĐɆƢķėɆƋëƎƢŝėƎƖķļƋɆǂļƢķɆƢķėɆEėƎśëŝɆDȚɆįƪƎƢķėƎɆėLJƢėŝĐƖɆĈǂļŝȼƖɆƋƎėƖėŝĉėɆļŝɆįŨŨƢĈ댌ɆëĉƎŨƖƖɆ,ƪƎŨƋėșɆÕėɆëƎėɆëŒƎėëĐLjɆƖėėļŝİɆƢķėɆ
ĈėŝėǘƢƖɆŨįɆļśƋƎŨǁėĐɆƋƎŨĐƪĉƢɆëŝĐɆśëƎŏėƢļŝİɆĉëƋëĈļŒļƢļėƖɆįŨŒŒŨǂļŝİɆśļİƎëƢļŨŝɆƢŨɆƢķėɆ,ŝƢëļŝɆƋŒëƢįŨƎśșɆ
{ŝŒļŝėɆĉŨŝƢƎļĈƪƢļŨŝɆśëƎİļŝɆŨįɆǧǥșǥɼɆǂëƖɆɣǣșǧƋƋɆķļİķėƎɆƢķëŝɆŒëƖƢɆLjėëƎȚɆǂļƢķɆƢķėɆļśƋëĉƢɆŨįɆëĐǁėƎƖėɆİėŨİƎëƋķļĉëŒɆśļLJɆëŝĐɆƢķėɆŝėǂɆEėƎśëŝɆ
İëśļŝİɆƢëLJɆśŨƎėɆƢķëŝɆŨįįƖėƢɆĈLjɆƖëǁļŝİƖɆļŝɆśëƎŏėƢļŝİɆƎëƢėɆǂķļĉķɆǂëƖɆƋëƎƢļĉƪŒëƎŒLjɆŒŨǂɆļŝɆǥǣǥǤșɆ¶ķėɆśëƎŏėƢļŝİɆƎëƢėɆļƖɆėLJƋėĉƢėĐɆƢŨɆƎėƢƪƎŝɆƢŨɆ
ëɆśŨƎėɆŝŨƎśëŒļƖėĐɆǥǤɼɆļŝɆǥǣǥǥɆǂļƢķɆëɆĉŨŝƢƎļĈƪƢļŨŝɆśëƎİļŝɆŨįɆǧǣɼȯǧǤɼșɆ
{ƋėƎëƢļŝİɆĉŨƖƢƖɆȩĈėįŨƎėɆƎėŝƢȪɆǂėƎėɆǤǨɼɆķļİķėƎɆƢķëŝɆŒëƖƢɆLjėëƎșɆĉƍƪļƖļƢļŨŝƖɆëĉĉŨƪŝƢėĐɆįŨƎɆɣǪƋƋɆŨįɆƢķėɆļŝĉƎėëƖėȚɆëŝĐɆļŝǙëƢļŨŝɆëŝĐɆŨŝİŨļŝİɆ
ļŝǁėƖƢśėŝƢɆļŝɆŨƪƎɆƋėŨƋŒėȚɆƋƎŨĐƪĉƢɆëŝĐɆƢėĉķŝŨŒŨİLjɆëĉĉŨƪŝƢėĐɆįŨƎɆķļİķɆƖļŝİŒėɆĐļİļƢɆĉŨƖƢɆļŝĉƎėëƖėƖɆLjėëƎɆŨŝɆLjėëƎșɆ
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©ķëƎėɆŨįɆ`ÔɆŒŨƖƖėƖɆŨįɆɞǤșǣśɆļƖɆɞǤșǤśɆëĐǁėƎƖėɆƢŨɆƋƎļŨƎɆLjėëƎȚɆŒėëǁļŝİɆƪŝĐėƎŒLjļŝİɆŨƋėƎëƢļŝİɆƋƎŨǘƢȆɆɣǤǧɼɆķļİķėƎɆëƢɆɞǪǪǩșǣśșɆ
Business Review ĉŨŝƢļŝƪėĐ
Entain plc
|
Annual Report 2021
68
Strategic report
Retail
¶ķėɆ¡ėƢëļŒɆĈƪƖļŝėƖƖɆļƖɆśëĐėɆƪƋɆŨįɆŨƪƎɆ¡ėƢëļŒɆėƖƢëƢėƖɆļŝɆƢķėɆ½bȚɆQƢëŒLjȚɆėŒİļƪśɆëŝĐɆ¡ėƋƪĈŒļĉɆŨįɆQƎėŒëŝĐșɆ
Reported results
1,2
Year ended 31 December
2021
£m
ǥǣǥǣɆ
ɞś
ķëŝİėɆ
%
3
%
Sports wagers
6
2,330.0 ǥȚǨǫǥșǣ ȩǤǣɼȪ ȩǬɼȪ
Sports margin
6
18.1% ǤǬșǦɼ ȩǤșǥƋƋȪ ȩǤșǦƋƋȪ
©ƋŨƎƢƖɆpE¡Ȧ¡ėǁėŝƪė
426.1 ǨǦǤșǧ ȩǥǣɼȪ ȩǥǣɼȪ
nëĉķļŝėƖɆpE¡Ȧ¡ėǁėŝƪė 365.0 ǦǥǨșǪ Ǥǥɼ Ǥǥɼ
NGR/Revenue 791.1 ǫǨǪșǤ ȩǫɼȪ ȩǪɼȪ
EƎŨƖƖɆƋƎŨǘƢ
535.8 ǨǪǪșǨ ȩǪɼȪ
Contribution
529.0 ǨǪǤșǪ ȩǪɼȪ
ŨŝƢƎļĈƪƢļŨŝɆśëƎİļŝ 66.9% ǩǩșǪɼ ǣșǥƋƋ
Operating costs (447.5) ȩǧǨǩșǤȪ ǥɼ
Underlying EBITDAR
4
81.5 ǤǤǨșǩ ȩǥǬɼȪ
Rent and associated costs (14.6) ȩǤǪșǦȪ Ǥǩɼ
Underlying EBITDA
4
66.9 ǬǫșǦ ȩǦǥɼȪ
©ķëƎėɆĈëƖėĐɆƋëLjśėŝƢƖ
(1.9) ȩǤșǨȪ ȩǥǪɼȪ
½ŝĐėƎŒLjļŝİɆĐėƋƎėĉļëƢļŨŝɆëŝĐɆëśŨƎƢļƖëƢļŨŝ
(102.4) ȩǤǤǨșǫȪ Ǥǥɼ
©ķëƎėɆŨįɆ`ÔɆļŝĉŨśė
– – –
Underlying operating loss
5
(37.4) ȩǤǬșǣȪ ȩǬǪɼȪ
Reported Results
1,2
:
¡ėƢëļŒɆpE¡ɆŨįɆɞǪǬǤșǤśɆǂëƖɆǫɼɆĈėķļŝĐɆŒëƖƢɆLjėëƎɆȩȯǦɼĉĉɆŨŝɆëɆŒļŏėȯįŨƎȯŒļŏėɆĈëƖļƖȪɆǂļƢķɆŝëƢļŨŝëŒɆŒŨĉŏĐŨǂŝƖɆëŝĐɆŨǁļĐȯǤǬɆƎėƖƢƎļĉƢļŨŝƖɆ
ĉŨŝƢļŝƪļŝİɆƢŨɆëįįėĉƢɆƢķėɆĈƪƖļŝėƖƖɆƢķƎŨƪİķɆśƪĉķɆŨįɆǥǣǥǤșɆ¶ķėɆǘƎƖƢɆķëŒįɆǂëƖɆƖļİŝļǘĉëŝƢŒLjɆļśƋëĉƢėĐɆĈLjɆŒŨĉŏĐŨǂŝɆƎėƖƢƎļĉƢļŨŝƖɆǂļƢķɆƢķėɆėŝƢļƎėɆ
ėƖƢëƢėɆĉŒŨƖėĐɆļŝɆǤșɆ¶ķėɆ½bɆƎėŨƋėŝėĐɆƪŝĐėƎɆƎėƖƢƎļĉƢļŨŝƖɆļŝɆƋƎļŒɆǂļƢķɆ,ƪƎŨƋėɆŨƋėŝļŝİɆƋƎŨİƎėƖƖļǁėŒLjɆƢķƎŨƪİķŨƪƢɆǥȚɆƎėƖƪŒƢļŝİɆļŝɆpE¡Ɇ
ǂķļĉķɆǂëƖɆȯǧǩɼĉĉɆĈėķļŝĐɆLjėëƎɆŨŝɆLjėëƎɆļŝɆLǤșɆQŝɆƢķėɆƖėĉŨŝĐɆķëŒįȚɆƎėƖƢƎļĉƢļŨŝƖɆĉŨŝƢļŝƪėĐɆƢŨɆėëƖėɆëŝĐȚɆǂļƢķɆƢķėɆĈėŝėǘƢɆŨįɆŒëƋƋļŝİɆŒŨĉŏĐŨǂŝƖɆ
ļŝɆŒëƢėɆǧɆļŝɆǥǣǥǣȚɆpE¡ɆǂëƖɆǥǣɼĉĉɆëķėëĐɆŨįɆLǥɆǥǣǥǣșɆÕķļŒƖƢɆLjėëƎɆŨŝɆLjėëƎɆĉŨśƋëƎļƖŨŝƖɆëƎėɆĐļįǘĉƪŒƢɆİļǁėŝɆƢķėɆĐļƖƢŨƎƢļŨŝƖɆĉëƪƖėĐɆĈLjɆ
ŨǁļĐȯǤǬɆƎėƖƢƎļĉƢļŨŝƖȚɆėŝĉŨƪƎëİļŝİŒLjɆǂėɆëƎėɆėLJļƢļŝİɆǥǣǥǤɆǂļƢķɆŒļŏėɆįŨƎɆŒļŏėɆpE¡ɆëƢɆŨǁėƎɆǬǣɼɆŨįɆƋƎėɆŨǁļĐȯǤǬɆŒėǁėŒƖȚɆëŝĐɆǂļƢķļŝɆǨɼȇɆļŝɆŨƪƎɆ
ŒëƎİėƖƢɆėƖƢëƢėƖɆļŝɆƢķėɆ½bɆëŝĐɆQƢëŒLjȚɆǂķļŒėɆƪŝĐėƎŒLjļŝİɆ,Q¶$
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ɞǦǧșǤśɆĈėķļŝĐɆǥǣǥǣɆëŝĐɆƪŝĐėƎŒLjļŝİɆ,Q¶$ȅɆŨįɆɞǩǩșǬśɆǂëƖɆɞǦǤșǧśɆĈėķļŝĐɆëƖɆƖëǁļŝİƖɆļŝɆŨƋėƎëƢļŝİɆĉŨƖƢƖɆǂėƎėɆśŨƎėɆƢķëŝɆŨįįƖėƢɆĈLjɆ
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ƖėƋëƎëƢėŒLjɆĐļƖĉŒŨƖėĐɆļŝĉŨśėɆŨįɆɞǤșǧśȚɆŨƋėƎëƢļŝİɆŒŨƖƖɆǂëƖɆɞǦǩșǣśȚɆɞǥǧǦșǦśɆĈėķļŝĐɆŒëƖƢɆLjėëƎȚɆëɆLjėëƎɆļŝɆǂķļĉķɆƢķėɆ¡ėƢëļŒɆƖėİśėŝƢɆƎėĉėļǁėĐɆ
ëɆɞǥǥǦșǣśɆ½bɆÔ¶ɆƎėĉėļƋƢș
QŝɆƢķėɆ½bȚɆpE¡ɆǂëƖɆȯǦɼɆĈėķļŝĐɆǥǣǥǣɆǂļƢķɆƖƋŨƎƢƖɆȯǤǪɼɆĈėķļŝĐɆǥǣǥǣɆĈƪƢɆśëĉķļŝėƖɆɣǤǥɼɆëķėëĐșɆ©ļŝĉėɆƎėŨƋėŝļŝİȚɆǂėɆķëǁėɆƖėėŝɆŨƪƎɆ
śëĉķļŝėƖɆĈƪƖļŝėƖƖɆƎėƢƪƎŝɆśŨƎėɆƍƪļĉŏŒLjɆƢķëŝɆŨƪƎɆƖƋŨƎƢƖɆĈƪƖļŝėƖƖɆëƖɆƢķėɆļŝȯƋėƎƖŨŝɆİëśļŝİɆėLJƋėƎļėŝĉėɆļƖɆĐļįǘĉƪŒƢɆƢŨɆƎėƋŒļĉëƢėɆŨŝŒļŝėșɆ
ÕķļŒėɆƖƋŨƎƢƖɆǁŨŒƪśėƖɆĉŨŝƢļŝƪėɆƢŨɆļśƋƎŨǁėɆįƪƎƢķėƎɆļŝƢŨɆǥǣǥǥȚɆǂėɆëŝƢļĉļƋëƢėɆëɆƎėĈëŒëŝĉļŝİɆŨįɆƢķėɆ¡ėƢëļŒɆļŝĉŨśėɆƋŨƖƢɆŨǁļĐȯǤǬɆǂļƢķɆ
śëĉķļŝėƖɆśëŏļŝİɆƪƋɆëɆİƎėëƢėƎɆƋƎŨƋŨƎƢļŨŝɆŨįɆpE¡ɆƢķëŝɆǂëƖɆƢķėɆĉëƖėɆƋƎėɆŨǁļĐȯǤǬșɆ
ÕļƢķɆƢķėɆĉƪƖƢŨśėƎɆëƢɆƢķėɆĉėŝƢƎėɆŨįɆŨƪƎɆŨƎİëŝļƖëƢļŨŝȚɆǂėɆƎėĉŨİŝļƖėɆƢķėɆŝėėĐɆįŨƎɆĉŨŝƢļŝƪėĐɆėǁŨŒƪƢļŨŝɆŨįɆŨƪƎɆƎėƢëļŒɆŨįįėƎļŝİșɆÕļƢķɆƢķļƖɆļŝɆ
śļŝĐȚɆǂėɆëƎėɆƋƎŨİƎėƖƖļŝİɆǂļƢķɆŨƪƎɆĐļİļƢëŒļƖëƢļŨŝɆƋƎŨŌėĉƢƖɆëƢɆƋëĉėșɆÕėɆĉŨŝƢļŝƪėɆƢŨɆįŨĉƪƖɆŨŝɆļŝɆķŨƪƖėɆƢėĉķŝŨŒŨİLjɆëŝĐɆļŝŝŨǁëƢļŨŝɆëŝĐȚɆëƢɆƢķėɆ
ƖƢëƎƢɆŨįɆǥǣǥǥȚɆǂėɆƖƪĉĉėƖƖįƪŒŒLjɆĉŨśƋŒėƢėĐɆƢķėɆƎŨŒŒŨƪƢɆŨįɆŨƪƎɆƋƎŨƋƎļėƢëƎLjɆ,Ũ©ɆƖLjƖƢėśȚɆ{śŝļëɆļŝɆEƎėëƢɆƎļƢëļŝșɆ¶ķļƖɆƖLjƖƢėśɆĈƎļŝİƖɆëɆķŨƖƢɆ
ŨįɆĉƪƖƢŨśėƎɆëŝĐɆĉŨŒŒėëİƪėɆĈėŝėǘƢƖɆƋŒƪƖɆśëŝLjɆƖėƎǁļĉėɆĐėŒļǁėƎLjɆļśƋƎŨǁėśėŝƢƖșɆ{ƪƎɆėƢƖƢëƢļŨŝƖɆŝŨǂɆƎėƋƎėƖėŝƢɆëɆƢķļƎĐɆŨįɆŨƪƎɆƖƋŨƎƢƖĈŨŨŏȚɆ
İƎŨǂļŝİɆǦǦɼɆļŝɆƢķėɆŒëƖƢɆƍƪëƎƢėƎɆŨŝɆëɆƢǂŨȯLjėëƎɆdDdɆĈëƖļƖșɆ¶ķėLjɆƋƎŨǁļĐėɆŨƪƎɆĉƪƖƢŨśėƎƖɆǂļƢķɆëŝɆļśƋƎŨǁėĐɆĐļİļƢëŒļƖėĐɆļŝȯƖķŨƋɆėLJƋėƎļėŝĉėɆ
ŨįįėƎļŝİɆƖļİŝļǘĉëŝƢŒLjɆİƎėëƢėƎɆĐėƋƢķɆŨįɆƋƎŨĐƪĉƢƖɆëŝĐɆƋƎŨśŨƢļŨŝƖɆŝŨƢɆëǁëļŒëĈŒėɆŨǁėƎɆƢķėɆĉŨƪŝƢėƎșɆQŝɆëĐĐļƢļŨŝȚɆŨƪƎɆŨǂŝɆƋƎŨƋƎļėƢëƎLjɆėƢƖƢëƢļŨŝƖɆ
ëƎėɆŝŨǂɆŒļǁėɆļŝɆŨǁėƎɆǥǣǣɆƖķŨƋƖɆǂļƢķɆļŝļƢļëŒɆƎėƖƪŒƢƖɆėŝĉŨƪƎëİļŝİșɆ$ļİļƢëŒɆLƪĈƖɆëƎėɆŝŨǂɆŒļǁėɆļŝɆǦǣɆŒŨĉëƢļŨŝƖɆëĉƎŨƖƖɆƢķėɆ½bȚɆƖķŨǂĉëƖļŝİɆ
ŝėǂɆƢėĉķŝŨŒŨİļėƖɆëŝĐɆëƋƋėëŒļŝİɆƢŨɆëɆĈƎŨëĐėƎɆĉƪƖƢŨśėƎɆĈëƖėșɆQŝļƢļëŒɆƢƎļëŒƖɆŨįɆƢķėɆ$ļİļƢëŒɆLƪĈƖɆëƎėɆĐėŒļǁėƎļŝİɆƖƢƎŨŝİɆƎėƢƪƎŝƖɆǂļƢķɆƋŨƖļƢļǁėɆ
įėėĐĈëĉŏɆįƎŨśɆŨƪƎɆĉƪƖƢŨśėƎƖșɆ
ƢɆƢķėɆķėëƎƢɆŨįɆƢķėɆĉƪƖƢŨśėƎɆėLJƋėƎļėŝĉėɆļƖɆƢķėɆļŝȯƋėƎƖŨŝɆļŝƢėƎëĉƢļŨŝɆǂļƢķɆŨƪƎɆƖķŨƋɆĉŨŒŒėëİƪėƖșɆEļǁėŝɆƢķėɆļśƋŨƎƢëŝƢɆƎŨŒėɆŨƪƎɆƖķŨƋɆƖƢëįįɆƋŒëLjȚɆ
ǂėɆëƎėɆĐėŒļİķƢėĐɆƢķëƢɆǂėɆǂļŒŒɆŝŨǂɆĈėɆƋëLjļŝİɆëɆśļŝļśƪśɆŨįɆɞǤǣɆƋėƎɆķŨƪƎɆƢŨɆ댌ɆĉŨŒŒėëİƪėƖɆįƎŨśɆƋƎļŒɆǥǣǥǥșɆ
QŝɆQƢëŒLjȚɆėŒİļƪśɆëŝĐɆQƎėŒëŝĐȚɆŨƪƎɆ¡ėƢëļŒɆƖķŨƋƖɆǂėƎėɆĉŒŨƖėĐɆįŨƎɆëɆśëŌŨƎļƢLjɆŨįɆƢķėɆǘƎƖƢɆķëŒįȚɆƎėȯŨƋėŝļŝİɆƋƎŨİƎėƖƖļǁėŒLjɆƢķƎŨƪİķŨƪƢɆnëLjɆëŝĐɆļŝƢŨɆ
`ƪŝėȚɆëŒĈėļƢɆƪŝĐėƎɆƎėƖƢƎļĉƢļŨŝƖɆǂķļĉķɆĉŨŝƢļŝƪėĐɆļŝƢŨɆƢķėɆƖėĉŨŝĐɆķëŒįșɆ$ėƖƋļƢėɆƢķėɆEƎėėŝɆëƖƖɆļŝɆQƢëŒLjɆƋƎėǁėŝƢļŝİɆƪŝǁëĉĉļŝëƢėĐɆĉƪƖƢŨśėƎƖɆ
įƎŨśɆėŝƢėƎļŝİɆŨƪƎɆƖķŨƋƖȚɆŨƪƎɆ,ƪƎŨĈėƢɆėƖƢëƢėɆĐėśŨŝƖƢƎëƢėĐɆļƢƖɆƎėƖļŒļėŝĉėɆǂļƢķɆpE¡ɆǂļƢķļŝɆǨɼɆŨįɆƋƎėȯŨǁļĐɆŒėǁėŒƖɆĈLjɆƢķėɆėŝĐɆŨįɆƢķėɆLjėëƎșɆ
¶ƎëĐļŝİɆļŝɆėŒİļƪśɆƎėĉŨǁėƎėĐɆśŨƎėɆƖŒŨǂŒLjȚɆƋëƎƢļĉƪŒëƎŒLjɆļŝɆƢķėɆŒëƖƢɆƍƪëƎƢėƎɆëƖɆƢķėɆļśƋëĉƢɆŨįɆƢķėɆŨǁļĐȯǤǬɆǁëƎļëŝƢƖɆėƖĉëŒëƢėĐȚɆƎėƖƪŒƢļŝİɆļŝɆ
ėŒİļƪśɆƖķŨƋƖɆĉŒŨƖļŝİɆëİëļŝɆŨŝɆƢķėɆǥǩɆ$ėĉėśĈėƎȚɆŨŝŒLjɆƎėŨƋėŝļŝİɆŨŝɆǥǪɆ`ëŝƪëƎLjɆǥǣǥǥșɆ¡ėƖƪŒƢļŝİɆpE¡ɆëĉƎŨƖƖɆ,ƪƎŨƋėɆǂëƖɆȯǥǪɼɆȩȯǥǩɼĉĉȪɆ
ĈėķļŝĐɆļŝɆQƢëŒLjȚɆȯǥǨɼɆȩȯǥǧɼĉĉȪɆļŝɆėŒİļƪśɆëŝĐɆȯǥǦɼɆȩȯǥǥɼĉĉȪɆļŝɆ¡ėƋƪĈŒļĉɆŨįɆQƎėŒëŝĐșɆ
{ƋėƎëƢļŝİɆĉŨƖƢƖɆȩĈėįŨƎėɆƎėŝƢȪɆǂėƎėɆǥɼɆŒŨǂėƎɆƢķëŝɆǥǣǥǣȚɆŒëƎİėŒLjɆĐƪėɆƢŨɆĉŨƖƢɆśļƢļİëƢļŨŝɆëĉƢļŨŝƖɆļŝɆƎėƖƋŨŝƖėɆƢŨɆŒŨĉŏĐŨǂŝƖɆëŝĐɆƎŨĈƪƖƢɆ
ƪŝĐėƎŒLjļŝİɆĉŨƖƢɆĉŨŝƢƎŨŒșɆ$ƪƎļŝİɆLǤȚɆƢķėɆ¡ėƢëļŒɆĈƪƖļŝėƖƖɆĉŒëļśėĐɆįƪƎŒŨƪİķɆļŝɆŒļŝėɆǂļƢķɆEŨǁėƎŝśėŝƢɆİƪļĐėŒļŝėƖȚɆëŒĈėļƢɆƢķėɆëśŨƪŝƢƖɆƎėĉėļǁėĐɆ
ǂėƎėɆĉǥǨɼɆŒŨǂėƎɆƢķëŝɆļŝɆǥǣǥǣșɆ
69
Overview
|
Strategic report
|
Governance
|
Financial statements
Entain plc
|
Annual Report 2021
New Opportunities
Reported results
1,2
Year ended 31 December
2021
£m
ǥǣǥǣɆ
ɞś
ķëŝİėɆ
%
3
%
Underlying EBITDAR
4
(8.8) – –
Rent and associated costs – – –
Underlying EBITDA
4
(8.8) – –
©ķëƎėɆĈëƖėĐɆƋëLjśėŝƢƖ – – –
½ŝĐėƎŒLjļŝİɆĐėƋƎėĉļëƢļŨŝɆëŝĐɆëśŨƎƢļƖëƢļŨŝ (0.4) – –
©ķëƎėɆŨįɆ`ÔɆȩŒŨƖƖȪȦļŝĉŨśė – – –
Underlying operating loss
5
(9.2) – –
Reported Results
1,2
:
pėǂɆ{ƋƋŨƎƢƪŝļƢļėƖɆĉŨƖƢƖȅɆŨįɆɞǫșǫśɆƋƎļśëƎļŒLjɆƎėǙėĉƢɆɞǤșǥśɆŨįɆŨƋėƎëƢļŝİɆĉŨƖƢƖɆëƖƖŨĉļëƢėĐɆǂļƢķɆ½ŝļŏƎŝɆëŝĐɆɞǪșǣśɆŨįɆļŝŝŨǁëƢļŨŝɆĉŨƖƢƖșɆ
ĉƎŨƖƖɆŨƋėƎëƢļŝİɆĉŨƖƢƖɆëŝĐɆĉëƋļƢëŒɆėLJƋėŝĐļƢƪƎėȚɆƢķėɆEƎŨƪƋɆķëƖɆĉŨśśļƢƢėĐɆƢŨɆļŝǁėƖƢļŝİɆɞǤǣǣśɆļŝɆļŝŝŨǁëƢļŨŝɆƖƋėŝĐɆŨǁėƎɆƢķƎėėɆLjėëƎƖɆ
ǂļƢķɆƢķėɆŒëƪŝĉķɆŨįɆëŝɆļŝŝŨǁëƢļŨŝɆķƪĈɆëŝŝŨƪŝĉėĐɆļŝɆ`ëŝƪëƎLjɆǥǣǥǥșɆįƢėƎɆĐėƋƎėĉļëƢļŨŝɆëŝĐɆëśŨƎƢļƖëƢļŨŝȚɆpėǂɆ{ƋƋŨƎƢƪŝļƢļėƖɆƪŝĐėƎŒLjļŝİɆ
ŨƋėƎëƢļŝİɆŒŨƖƖȆɆǂëƖɆɞǬșǥśșɆ©ėƋëƎëƢėŒLjɆĐļƖĉŒŨƖėĐɆļƢėśƖɆįŨƎɆƢķėɆLjėëƎɆǂėƎėɆɞŝļŒɆƎėƖƪŒƢļŝİɆļŝɆëŝɆŨƋėƎëƢļŝİɆŒŨƖƖɆŨįɆɞǬșǥśșɆ
Business Review ĉŨŝƢļŝƪėĐ
¡ėŝƢɆëŝĐɆëƖƖŨĉļëƢėĐɆĉŨƖƢƖɆŨįɆɞǤǧșǩśɆļŝɆƢķėɆLjėëƎɆǂėƎėɆǤǩɼɆŒŨǂėƎɆƢķëŝɆƢķėɆƋƎļŨƎɆLjėëƎɆįŨŒŒŨǂļŝİɆëɆŝƪśĈėƎɆŨįɆƖķŨƋɆĉŒŨƖƪƎėƖɆļŝɆƢķėɆ½bȚɆ
ŒėëǁļŝİɆƪŝĐėƎŒLjļŝİɆ,Q¶$ȅɆŨįɆɞǩǩșǬśȚɆǦǥɼɆŒŨǂėƎɆƢķëŝɆǥǣǥǣș
ķëƎİėƖɆįŨƎɆƖķëƎėɆĈëƖėĐɆƋëLjśėŝƢƖɆǂėƎėɆɞǣșǧśɆķļİķėƎɆƢķëŝɆŒëƖƢɆLjėëƎɆëŝĐɆƪŝĐėƎŒLjļŝİɆĐėƋƎėĉļëƢļŨŝɆëŝĐɆëśŨƎƢļƖëƢļŨŝɆŨįɆɞǤǣǥșǧɆǂëƖɆǤǥɼɆ
ŒŨǂėƎɆëƖɆƢķėɆļśƋëĉƢɆŨįɆĐėƋƎėĉļëƢļŨŝɆĉķëƎİėƖɆëƎļƖļŝİɆįƎŨśɆƢķėɆįëļƎɆǁëŒƪėɆėLJėƎĉļƖėɆŨŝɆƢķėɆëĉƍƪļƖļƢļŨŝɆŨįɆdëĐĈƎŨŏėƖɆŨƎëŒɆƖƢëƎƢƖɆƢŨɆƎėĐƪĉėȚɆ
ŒėëǁļŝİɆëŝɆƪŝĐėƎŒLjļŝİɆŨƋėƎëƢļŝİɆŒŨƖƖȆɆŨįɆɞǦǪșǧśȚɆɞǤǫșǧśɆĈėķļŝĐɆǥǣǥǣș
ƖɆëƢɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤȚɆƢķėƎėɆǂėƎėɆëɆƢŨƢëŒɆŨįɆǧȚǦǧǩɆƖķŨƋƖȦŨƪƢŒėƢƖɆȩǥǣǥǣțɆǧȚǨǫǬȪțɆ½bɆǥȚǨǫǣɆȩǥǣǥǣțɆǥȚǫǧǨȪȚɆQƢëŒLjɆǬǧǣɆȩǥǣǥǣțɆǬǣǨȪȚɆėŒİļƪśɆ
ƖķŨƋƖɆǥǬǤȚɆŨƪƢŒėƢƖɆǧǣǥɆȩǥǣǥǣțɆƖķŨƋƖɆǦǣǧȚɆŨƪƢŒėƢƖɆǧǣǥȪɆëŝĐɆQƎėŒëŝĐɆǤǦǦɆȩǥǣǥǣțɆǤǦǦȪșɆ
EļǁėŝɆƢķėɆśŨƎėɆĉėƎƢëļŝɆśėĐļƪśȯƢėƎśɆŨƪƢŒŨŨŏȚɆǂėɆķëǁėɆƢëŏėŝɆƢķėɆĐėĉļƖļŨŝɆƢŨɆƎėƋëLjɆƢķėɆɞǧǧśɆƎėĉėļǁėĐɆƪŝĐėƎɆƢķėɆŨƎŨŝëǁļƎƪƖɆ`ŨĈɆ
¡ėƢėŝƢļŨŝɆ©ĉķėśėɆȩȹįƪƎŒŨƪİķɆƖĉķėśėȺȪɆļŝɆDÛǥǤșɆ¶ķėɆƖĉķėśėɆǂëƖɆëɆƖėŝƖļĈŒėɆëŝĐɆķļİķŒLjɆǂėŒĉŨśėɆƋŨŒļĉLjɆļŝƢėƎǁėŝƢļŨŝɆƢķëƢɆķėŒƋėĐɆƪƖȚɆëƖɆŨŝėɆ
ŨįɆƢķėɆĉŨƪŝƢƎLjȼƖɆŒëƎİėƖƢɆƎėƢëļŒėƎƖȚɆƢŨɆśëļŝƢëļŝɆƢķėɆŒļǁėŒļķŨŨĐƖɆŨįɆśŨƎėɆƢķëŝɆǤǧȚǣǣǣɆƎėƢëļŒɆĉŨŒŒėëİƪėƖɆŨŝɆįƪŒŒɆƋëLjșɆÕėɆķëǁėɆŏėƋƢɆƢķėɆƖļƢƪëƢļŨŝɆ
ƪŝĐėƎɆƎėǁļėǂɆƖļŝĉėɆǂėɆǘƎƖƢɆśëĐėɆƪƖėɆŨįɆƢķėɆƖĉķėśėɆëŝĐɆëƎėɆƋŒėëƖėĐɆƢŨɆĈėɆļŝɆëɆƋŨƖļƢļŨŝɆƢŨɆƎėƋëLjɆƢķėƖėɆśŨŝļėƖș
Entain plc
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Annual Report 2021
70
Strategic report
Other
Reported results
1,2
Year ended 31 December
2021
£m
ǥǣǥǣɆ
ɞś
ķëŝİėɆ
%
3
%
NGR/Revenue 32.8 ǥǪșǫ Ǥǫɼ Ǥǫɼ
EƎŨƖƖɆƋƎŨǘƢ 28.5 ǥǥșǧ ǥǪɼ
Contribution 27.8 ǥǤșǤ Ǧǥɼ
Operating costs
(22.1) ȩǥǨșǣȪ Ǥǥɼ
Underlying EBITDAR
4
5.7 ȩǦșǬȪ ǥǧǩɼ
Rent and associated costs (0.1) ȩǣșǦȪ ǩǪɼ
Underlying EBITDA
4
5.6 ȩǧșǥȪ ǥǦǦɼ
©ķëƎėɆĈëƖėĐɆƋëLjśėŝƢƖ
(0.1) – ǣɼ
½ŝĐėƎŒLjļŝİɆĐėƋƎėĉļëƢļŨŝɆëŝĐɆëśŨƎƢļƖëƢļŨŝ (2.9) ȩǥșǪȪ ɆȩǪɼȪ
©ķëƎėɆŨįɆ`ÔɆļŝĉŨśė 0.4 ǣșǦ 33%
½ŝĐėƎŒLjļŝİɆŨƋėƎëƢļŝİɆƋƎŨǘƢȦȩŒŨƖƖȪ
5
3.0 ȩǩșǩȪ ǤǧǨɼ
Reported Results
1,2
:
pE¡ɆŨįɆɞǦǥșǫśɆǂëƖɆǤǫɼɆķļİķėƎɆƢķëŝɆǥǣǥǣɆëƖɆǁŨŒƪśėƖɆƖƢëƎƢɆƢŨɆƎėƢƪƎŝɆƢŨɆŨƪƎɆİƎėLjķŨƪŝĐɆƖƢëĐļëșɆ½ŝĐėƎŒLjļŝİɆ,Q¶$¡ȅɆŨįɆɞǨșǪśɆëŝĐɆ
ƪŝĐėƎŒLjļŝİɆ,Q¶$ȅɆŨįɆɞǨșǩśɆǂėƎėɆɞǬșǩśɆëŝĐɆɞǬșǫśɆëķėëĐɆƎėƖƋėĉƢļǁėŒLjɆƋƎėĐŨśļŝëŝƢŒLjɆĐƪėɆƢŨɆƢķėɆpE¡ɆļśƋƎŨǁėśėŝƢɆëŝĐɆƎŨĈƪƖƢɆĉŨƖƢɆ
ĉŨŝƢƎŨŒșɆ½ŝĐėƎŒLjļŝİɆŨƋėƎëƢļŝİɆƋƎŨǘƢȆɆŨįɆɞǦșǣśɆǂëƖɆǤǧǨɼɆëķėëĐɆëŝĐȚɆëįƢėƎɆĉķëƎİļŝİɆɞǤșǪśɆŨįɆƖėƋëƎëƢėŒLjɆĐļƖĉŒŨƖėĐɆļƢėśƖȚɆŨƋėƎëƢļŝİɆƋƎŨǘƢɆ
ǂëƖɆɞǤșǦśȚɆɞǪșǬśɆëķėëĐɆŨįɆŒëƖƢɆLjėëƎșɆ
Corporate
Reported results
1,2
Year ended 31 December
2021
£m
ǥǣǥǣɆ
ɞś
ķëŝİėɆ
%
3
%
Underlying EBITDAR
4
(80.6) ȩǨǧșǨȪ ȩǧǫɼȪ
Rent and associated costs
(0.4) – ŝȦś
Underlying EBITDA
4
(81.0) ȩǨǧșǨȪ ȩǧǬɼȪ
©ķëƎėɆĈëƖėĐɆƋëLjśėŝƢƖ
(5.0) ȩǬșǣȪ ǧǧɼ
½ŝĐėƎŒLjļŝİɆĐėƋƎėĉļëƢļŨŝɆëŝĐɆëśŨƎƢļƖëƢļŨŝ
(0.4) – ŝȦś
©ķëƎėɆŨįɆ`ÔɆŒŨƖƖ (161.9) ȩǩǣșǩȪ ȩǤǩǪɼȪ
Underlying operating loss
5
(248.3) ȩǤǥǧșǤȪ ȩǤǣǣɼȪ
Reported Results
1,2
:
ŨƎƋŨƎëƢėɆĉŨƖƢƖȅɆŨįɆɞǫǣșǩśɆǂėƎėɆɞǥǩșǤśɆķļİķėƎɆƢķëŝɆŒëƖƢɆLjėëƎɆĐƎļǁėŝɆĈLjɆļŝĉƎėëƖėƖɆļŝɆŨƪƎɆĉŨŝƢƎļĈƪƢļŨŝƖɆƢŨɆ¡ėƖėëƎĉķȚɆ,ĐƪĉëƢļŨŝɆëŝĐɆ
¶ƎėëƢśėŝƢɆļŝĉŒƪĐļŝİɆEëśĈŒėǂëƎėȚɆëĐĐļƢļŨŝëŒɆĉŨŝƢƎļĈƪƢļŨŝƖɆƢŨɆƢķėɆ,ŝƢëļŝɆįŨƪŝĐëƢļŨŝɆëŝĐɆŨƢķėƎɆEƎŨƪƋɆ,©EɆļŝļƢļëƢļǁėƖɆëŝĐɆļŝǁėƖƢśėŝƢɆļŝɆ
ŨƪƎɆİŨǁėƎŝëŝĉėɆƋŨŒļĉļėƖɆëŝĐɆƋƎŨĉėĐƪƎėƖșɆįƢėƎɆƖķëƎėɆĈëƖėĐɆƋëLjśėŝƢƖȚɆĐėƋƎėĉļëƢļŨŝɆëŝĐɆëśŨƎƢļƖëƢļŨŝɆëŝĐɆƖķëƎėɆŨįɆ`ÔɆŒŨƖƖėƖȚɆŨƎƋŨƎëƢėɆ
ƪŝĐėƎŒLjļŝİɆŨƋėƎëƢļŝİɆŒŨƖƖȆɆǂëƖɆɞǥǧǫșǦśȚɆëŝɆļŝĉƎėëƖėɆŨįɆɞǤǥǧșǥśȚɆŒëƎİėŒLjɆëƖɆëɆƎėƖƪŒƢɆŨįɆƢķėɆėLJƋėĉƢėĐɆļŝĉƎėśėŝƢëŒɆŒŨƖƖɆļŝɆƢķėɆ½©Ɇ`ÔȚɆ
ėƢnEnșɆįƢėƎɆƖėƋëƎëƢėŒLjɆĐļƖĉŒŨƖėĐɆļŝĉŨśėɆŨįɆɞǥǩșǣśȚɆƢķėɆŨƋėƎëƢļŝİɆŒŨƖƖɆŨįɆɞǥǥǥșǦśɆǂëƖɆɞǨșǫśɆĈėķļŝĐɆǥǣǥǣș
Notes
ǤșɆ ǥǣǥǤɆëŝĐɆǥǣǥǣɆƎėƋŨƎƢėĐɆƎėƖƪŒƢƖɆëƎėɆëƪĐļƢėĐɆëŝĐɆƎėŒëƢėɆƢŨɆĉŨŝƢļŝƪļŝİɆŨƋėƎëƢļŨŝƖș
ǥșɆ ¡ėƋŨƎƢėĐɆƎėƖƪŒƢƖɆëƎėɆƋƎŨǁļĐėĐɆŨŝɆëɆƋŨƖƢɆQD¡©ǤǩɆļśƋŒėśėŝƢëƢļŨŝɆĈëƖļƖș
ǦșɆ EƎŨǂƢķɆŨŝɆëɆĉŨŝƖƢëŝƢɆĉƪƎƎėŝĉLjɆĈëƖļƖɆļƖɆĉëŒĉƪŒëƢėĐɆĈLjɆƢƎëŝƖŒëƢļŝİɆĈŨƢķɆĉƪƎƎėŝƢɆëŝĐɆƋƎļŨƎɆLjėëƎɆƋėƎįŨƎśëŝĉėɆëƢɆƢķėɆǥǣǥǤɆėLJĉķëŝİėɆƎëƢėƖș
ǧșɆ ,Q¶$¡ɆļƖɆĐėǘŝėĐɆëƖɆėëƎŝļŝİƖɆĈėįŨƎėɆļŝƢėƎėƖƢȚɆƢëLJȚɆĐėƋƎėĉļëƢļŨŝɆëŝĐɆëśŨƎƢļƖëƢļŨŝȚɆƎėŝƢɆëŝĐɆëƖƖŨĉļëƢėĐɆĉŨƖƢƖȚɆƖķëƎėɆĈëƖėĐɆƋëLjśėŝƢƖɆëŝĐɆƖķëƎėɆŨįɆ`ÔɆļŝĉŨśėșɆ
,Q¶$ɇļƖɇĐėǘŝėĐɇëƖɆ,Q¶$¡ɆëįƢėƎɆĉķëƎİļŝİɆƎėŝƢɆëŝĐɆëƖƖŨĉļëƢėĐɆĉŨƖƢƖșɆŨƢķɆ,Q¶$¡ɆëŝĐɆ,Q¶$ɆëƎėɆƖƢëƢėĐɆƋƎėɆƖėƋëƎëƢėŒLjɆĐļƖĉŒŨƖėĐɆļƢėśƖș
ǨșɆ ©ƢëƢėĐɆƋƎėɆƖėƋëƎëƢėŒLjɆĐļƖĉŒŨƖėĐɆļƢėśƖɆȩpŨƢėɆǩȪș
ǩșɆ ¡ėƢëļŒɆŝƪśĈėƎƖɆëƎėɆƍƪŨƢėĐɆŨŝɆëɆdDdɆĈëƖļƖșɆ$ƪƎļŝİɆǥǣǥǤɆƢķėƎėɆǂëƖɆëŝɆëǁėƎëİėɆŨįɆǧȚǨǧǣɆƖķŨƋƖɆļŝɆƢķėɆėƖƢëƢėȚɆĉŨśƋëƎėĐɆƢŨɆëŝɆëǁėƎëİėɆŨįɆǧȚǪǥǪɆļŝɆƢķėɆƖëśėɆƋėƎļŨĐɆŒëƖƢɆLjėëƎș
71 Overview
|
Strategic report
|
Governance
|
Financial statements
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Annual Report 2021
ķļėįɆDļŝëŝĉļëŒɆ{įǘĉėƎȼƖɆ¡ėǁļėǂ
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ɆŝŝƪëŒɆ¡ėƋŨƎƢɆǥǣǥǤ
72
Strategic report
$ėƖƋļƢėɆƢķėɆƪŝĉėƎƢëļŝƢLjɆĉëƪƖėĐɆĈLjɆŨǁļĐȯǤǬɆļŝɆ
ǥǣǥǤȚɆƢķėɆEƎŨƪƋɆķëƖɆĐėŒļǁėƎėĐɆëŝŨƢķėƎɆƖƢƎŨŝİɆLjėëƎɆ
ŨįɆİƎŨǂƢķɆǂļƢķɆ¡ėǁėŝƪėɆǫɼɆëķėëĐɆŨįɆǥǣǥǤɆëŝĐɆ
ƪŝĐėƎŒLjļŝİɆ,Q¶$ɆŨįɆɞǫǫǤșǪśȚɆǨɼɆëķėëĐșɆ{ƪƎɆ
{ŝŒļŝėɆĈƪƖļŝėƖƖɆĉŨŝƢļŝƪėƖɆƢŨɆİƎŨǂɆĐŨƪĈŒėȯĐļİļƢɆ
LjėëƎȯŨŝȯLjėëƎɆǂļƢķɆpE¡ɆǤǦɼɆëķėëĐɆŨŝɆëɆĉŨŝƖƢëŝƢɆ
ĉƪƎƎėŝĉLjɆĈëƖļƖɆëŝĐȚɆĐėƖƋļƢėɆƢķėɆĐļƖƎƪƋƢļŨŝɆĉëƪƖėĐɆ
ĈLjɆƢėśƋŨƎëƎLjɆĉŒŨƖƪƎėƖɆŨįɆŨƪƎɆ¡ėƢëļŒɆėƖƢëƢėƖɆĐƪėɆƢŨɆ
ŨǁļĐȯǤǬȚɆǂėɆėLJļƢɆǥǣǥǤɆëƢɆŨǁėƎɆǬǣɼɆŨįɆƋƎėɆŨǁļĐȯǤǬɆ
ǁŨŒƪśėƖɆļŝɆ¡ėƢëļŒșɆ
$ƪƎļŝİɆƢķėɆLjėëƎɆǂėɆķëǁėɆëŒƖŨɆǂėŒĉŨśėĐɆëɆŝƪśĈėƎɆŨįɆŝėǂɆëĉƍƪļƖļƢļŨŝƖɆƢŨɆƢķėɆ,ŝƢëļŝɆEƎŨƪƋɆ
ļŝĉŒƪĐļŝİɆ,ŝŒëĈƖȚɆǂķļĉķɆŨƋėƎëƢėƖɆļŝɆƢķėɆëŒƢļĉɆƖƢëƢėƖȚɆėƢșƋƢɆļŝɆŨƎƢƪİëŒɆëŝĐɆ½ŝļŏƎŝɆǂķļĉķɆ
ƎėƋƎėƖėŝƢƖɆƢķėɆEƎŨƪƋȼƖɆǘƎƖƢɆǁėŝƢƪƎėɆļŝƢŨɆƢķėɆėƖƋŨƎƢƖɆśëƎŏėƢșɆ
$ƪƎļŝİɆƢķėɆLjėëƎȚɆƢķėɆEƎŨƪƋɆëŒƖŨɆƎėǘŝëŝĉėĐɆļƢƖɆ½©ɆĐŨŒŒëƎɆĐėĈƢȚɆėŝƖƪƎļŝİɆƢķëƢɆ
ƖƪįǘĉļėŝƢɆįëĉļŒļƢļėƖɆëŝĐɆŒļƍƪļĐļƢLjɆƎėśëļŝƖɆëǁëļŒëĈŒėɆįŨƎɆƢķėɆEƎŨƪƋɆƢŨɆƋƪƎƖƪėɆ댌ɆŨįɆļƢƖɆ
ƖƢƎëƢėİļĉɆŨĈŌėĉƢļǁėƖșɆ
ÕėɆėŝƢėƎɆǥǣǥǥɆǂļƢķɆİŨŨĐɆśŨśėŝƢƪśɆëŝĐɆQɆëśɆëƖɇĉŨŝǘĐėŝƢɆëƖɆėǁėƎɆļŝɆ,ŝƢëļŝȼƖɆŒŨŝİȯ
ƢėƎśɆƋƎŨƖƋėĉƢƖșɆ
$ėƖƋļƢėɆƢķėɆƪŝĉėƎƢëļŝƢLjɆĉëƪƖėĐɆ
ĈLjɆŨǁļĐȯǤǬɆļŝɆǥǣǥǤȚɆƢķėɆEƎŨƪƋɆ
ķëƖɆĉŨŝƢļŝƪėĐɆƢŨɆƖķŨǂɆļƢƖɆ
ƎėƖļŒļėŝĉėɆǂļƢķɆ¡ėǁėŝƪėɆǫɼɆ
ëķėëĐɆLjėëƎȯŨŝȯLjėëƎșȺ
Rob Wood
ķļėįɆDļŝëŝĉļëŒɆ{įǘĉėƎ
Entain plc
|
ɆŝŝƪëŒɆ¡ėƋŨƎƢɆǥǣǥǤ
73 {ǁėƎǁļėǂɆ
|
Strategic report
|
ɆEŨǁėƎŝëŝĉėɆ
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ɆDļŝëŝĉļëŒɆƖƢëƢėśėŝƢƖ
ķļėįɆDļŝëŝĉļëŒɆ{įǘĉėƎȼƖɆ¡ėǁļėǂɆĉŨŝƢļŝƪėĐ
Reported results
1,2
Year ended 31 December
2021
£m
ǥǣǥǣɆ
ɞś
ķëŝİėɆ
%
3
%
NGR 3,886.3 ǦȚǩǥǫșǨ 7% ǫɼ
Revenue
3,830.0 ǦȚǨǩǤșǩ ǫɼ Ǭɼ
EƎŨƖƖɆƋƎŨǘƢ 2,435.8 ǥȚǦǣǫșǩ ǩɼ
Contribution 1,851.5 ǤȚǪǧǣșǥ ǩɼ
Underlying EBITDAR
4
898.8 ǫǩǥșǤ ǧɼ
Underlying EBITDA
4
881.7 ǫǧǦșǤ Ǩɼ
©ķëƎėȯĈëƖėĐɆƋëLjśėŝƢƖ (12.3) ȩǤǧșǫȪ ǤǪɼ
½ŝĐėƎŒLjļŝİɆĐėƋƎėĉļëƢļŨŝɆëŝĐɆëśŨƎƢļƖëƢļŨŝ (222.8) ȩǥǦǫșǩȪ 7%
©ķëƎėɆŨįɆ`ÔɆŒŨƖƖ (162.5) ȩǩǣșǥȪ ȩǤǪǣɼȪ
½ŝĐėƎŒLjļŝİɆŨƋėƎëƢļŝİɆƋƎŨǘƢ
5
484.1 ǨǥǬșǨ ȩǬɼȪ
pėƢɆǘŝëŝĉėɆĉŨƖƢƖ
(75.0) ȩǪǧșǥȪ
pėƢɆįŨƎėļİŝɆėLJĉķëŝİėȦǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖ
118.2 ȩǤǣǧșǪȪ
ƎŨǘƢɆĈėįŨƎėɆƢëLJɆƋƎėɆƖėƋëƎëƢėŒLjɆĐļƖĉŒŨƖėĐɆļƢėśƖ 527.3 ǦǨǣșǩ
©ėƋëƎëƢėŒLjɆĐļƖĉŒŨƖėĐɆļƢėśƖț
śŨƎƢļƖëƢļŨŝɆŨįɆëĉƍƪļƎėĐɆļŝƢëŝİļĈŒėƖ
(144.2) ȩǦǣǪșǣȪ
{ƢķėƎ 10.1 ǤǦǤșǤ
ƎŨǘƢɆĈėįŨƎėɆƢëLJ 393.2 ǤǪǧșǪ
¶ëLJ
(117.6) ȩǩǣșǬȪ
ƎŨǘƢɆëįƢėƎɆƢëLJɆįƎŨśɆĉŨŝƢļŝƪļŝİɆëĉƢļǁļƢļėƖ
275.6 ǤǤǦșǫ
$ļƖĉŨŝƢļŝƪėĐɆ{ƋėƎëƢļŨŝƖɆ
(14.9) ȩǦǧșǧȪ
ƎŨǘƢɆëįƢėƎɆƢëLJ
260.7 ǪǬșǧ
NGR and revenue
EƎŨƪƋɆƎėƋŨƎƢėĐɆpE¡ɆǂëƖɆǪɼɆëķėëĐɆëŝĐɆ¡ėǁėŝƪėɆǂëƖɆǫɼɆëķėëĐɆ
ŨįɆŒëƖƢɆLjėëƎȚɆǂļƢķɆƖƢƎŨŝİɆŨŝŒļŝėɆƋėƎįŨƎśëŝĉėɆśŨƎėɆƢķëŝɆŨįįƖėƢƢļŝİɆ
ŨǁļĐȯǤǬɆƎėŒëƢėĐɆƖķŨƋɆĉŒŨƖƪƎėƖșɆDƪƎƢķėƎɆĐėƢëļŒƖɆëƎėɆƋƎŨǁļĐėĐɆļŝɆƢķėɆ
ƪƖļŝėƖƖɆ¡ėǁļėǂɆƖėĉƢļŨŝș
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EƎŨƪƋɆƎėƋŨƎƢėĐɆƪŝĐėƎŒLjļŝİɆŨƋėƎëƢļŝİɆƋƎŨǘƢȆɆŨįɆɞǧǫǧșǤśɆǂëƖɆǬɼɆ
ĈėķļŝĐɆǥǣǥǣɆȩǥǣǥǣțɆɞǨǥǬșǨśȪȚɆǂļƢķɆƪŝĐėƎŒLjļŝİɆ,Q¶$
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ėLJƋėĉƢėĐɆļŝĉƎėëƖėɆļŝɆŒŨƖƖėƖɆįƎŨśɆƢķėɆEƎŨƪƋȼƖɆƖķëƎėɆŨįɆƢķėɆėƢnEnɆ
ŌŨļŝƢɆǁėŝƢƪƎėșɆėƢnEnɆŒŨƖƖėƖɆļŝɆƢķėɆLjėëƎɆǂėƎėɆɞǤǩǤșǬśȚɆɞǤǣǤșǦśɆ
ķļİķėƎɆƢķëŝɆǥǣǥǣɆëƖɆƢķėɆĈƪƖļŝėƖƖɆļŝǁėƖƢƖɆļŝɆŝėǂɆŌƪƎļƖĐļĉƢļŨŝƖɆëƖɆ
ƢķėLjɆŨƋėŝșɆŝëŒLjƖļƖɆŨįɆƢķėɆEƎŨƪƋȼƖɆƋėƎįŨƎśëŝĉėɆįŨƎɆƢķėɆLjėëƎɆļƖɆ
ĐėƢëļŒėĐɆļŝɆƢķėɆƪƖļŝėƖƖɆ¡ėǁļėǂɆƖėĉƢļŨŝș
Financing costs
DļŝëŝĉėɆĉŨƖƢƖɆŨįɆɞǪǨșǣśɆėLJĉŒƪĐļŝİɆƖėƋëƎëƢėŒLjɆĐļƖĉŒŨƖėĐɆļƢėśƖɆ
ȩǥǣǥǣțɆɞǪǧșǥśȪɆǂėƎėɆɞǣșǫśɆķļİķėƎɆƢķëŝɆǥǣǥǣșɆ¶ķėɆļŝĉƎėśėŝƢëŒɆ
ļŝƢėƎėƖƢɆĉŨƖƢƖɆëƖƖŨĉļëƢėĐɆǂļƢķɆƢķėɆļŝĉƎėëƖėĐɆŒėŝĐļŝİɆŨŝɆƢķėɆEƎŨƪƋȼƖɆ
½©ɆĐŨŒŒëƎɆŒŨëŝȚɆǂķļĉķɆƎëļƖėĐɆëŝɆëĐĐļƢļŨŝëŒɆɏǦǨǤśȚɆǂëƖɆƋëƎƢļ댌LjɆ
ŨįįƖėƢɆĈLjɆëɆįƪŒŒɆLjėëƎɆŨįɆĈėŝėǘƢƖɆįƎŨśɆƢķėɆǥǣǥǣɆƎėǘŝëŝĉļŝİșɆ
pėƢɆİëļŝƖɆŨŝɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖȚɆĐƎļǁėŝɆƋƎļśëƎļŒLjɆĈLjɆįŨƎėļİŝɆ
ėLJĉķëŝİėɆİëļŝƖɆŨŝɆĐėĈƢɆƎėŒëƢėĐɆļƢėśƖȚɆǂėƎėɆɞǤǤǫșǥśɆļŝɆƢķėɆLjėëƎɆ
ȩǥǣǥǣțɆɞǤǣǧșǪśɆŒŨƖƖȪșɆ¶ķļƖɆİëļŝɆļƖɆƋëƎƢļ댌LjɆŨįįƖėƢɆĈLjɆëɆįŨƎėļİŝɆ
ėLJĉķëŝİėɆŒŨƖƖɆŨŝɆƢķėɆƢƎëŝƖŒëƢļŨŝɆŨįɆëƖƖėƢƖɆļŝɆŨǁėƎƖėëƖɆƖƪĈƖļĐļëƎļėƖɆ
ǂķļĉķɆļƖɆƎėĉŨİŝļƖėĐɆļŝɆƎėƖėƎǁėƖɆëŝĐɆįŨƎśƖɆƋëƎƢɆŨįɆƢķėɆEƎŨƪƋȼƖɆ
ĉŨśśėƎĉļëŒɆķėĐİļŝİɆƖƢƎëƢėİLjș
Separately disclosed items
QƢėśƖɆƖėƋëƎëƢėŒLjɆĐļƖĉŒŨƖėĐɆĈėįŨƎėɆƢëLJɆįŨƎɆƢķėɆƋėƎļŨĐɆëśŨƪŝƢɆƢŨɆëɆ
ɞǤǦǧșǤśɆĉķëƎİėɆȩǥǣǥǣțɆɞǤǪǨșǬśȪɆëŝĐɆƎėŒëƢėɆƋƎļśëƎļŒLjɆƢŨɆɞǤǧǧșǥśɆ
ŨįɆëśŨƎƢļƖëƢļŨŝɆŨŝɆëĉƍƪļƎėĐɆļŝƢëŝİļĈŒėƖɆȩǥǣǥǣțɆɞǦǣǪșǣśȪȚɆëɆɞǦșǦśɆ
ȩǥǣǥǣțɆɞǨșǣśȪɆļśƋëļƎśėŝƢɆŨįɆĉėƎƢëļŝɆķėëĐɆŨįǘĉėɆƋƎėśļƖėƖɆǂķļĉķɆëƎėɆ
ŝŨǂɆǁëĉëŝƢɆëŝĐɆŨƪƎɆėLJĉķëŝİėɆĈƪƖļŝėƖƖɆėƢĐëƍȚɆļŝƢėİƎëƢļŨŝɆĉŨƖƢƖɆ
ŨįɆɞǤǪșǦśɆȩǥǣǥǣțɆɞǥǨșǤśȪȚɆĉŨƎƋŨƎëƢėɆƢƎëŝƖëĉƢļŨŝɆĉŨƖƢƖɆŨįɆɞǬșǧśɆ
ȩǥǣǥǣțɆɞŝļŒȪɆëŝĐɆɞǥǩșǥśɆŨįɆŨŝėƎŨƪƖɆĉŨƖƢƖɆëƖƖŨĉļëƢėĐɆǂļƢķɆŨǁļĐȯǤǬɆ
ƎėŒëƢėĐɆƖķŨƋɆĉŒŨƖƪƎėƖɆëŝĐɆŨƢķėƎɆŨŝėȯŨįįɆŒėİëŒɆëŝĐɆŒļƢļİëƢļŨŝɆėLJƋėŝƖėƖɆ
ȩǥǣǥǣțɆɞǫșǬśȪșɆQŝɆëĐĐļƢļŨŝȚɆƢķėɆEƎŨƪƋɆƎėĉŨƎĐėĐɆëɆɞǩșǤśɆĉķëƎİėɆ
ëƖƖŨĉļëƢėĐɆǂļƢķɆƢķėɆƎėëƖƖėƖƖśėŝƢɆŨįɆĉŨŝƢļŝİėŝƢɆĉŨŝƖļĐėƎëƢļŨŝɆ
ƋëLjśėŝƢƖɆƪŝĐėƎɆķļƖƢŨƎļĉɆëĉƍƪļƖļƢļŨŝƖɆȩǥǣǥǣțɆɞǧǥșǧśȪɆëŝĐɆɞǬșǪśɆŨįɆ
ŨƢķėƎɆėLJĉėƋƢļŨŝëŒɆļƢėśƖɆƋƎļśëƎļŒLjɆĐƪėɆƢŨɆƢķėɆǂƎļƢėȯŨįįɆŨįɆļƖƖƪėɆĉŨƖƢƖɆ
ŨŝɆƎėǘŝëŝĉļŝİɆȩǥǣǥǣțɆɞǬșǩśȪșɆ$ƪƎļŝİɆƢķėɆƋƎļŨƎɆLjėëƎɆƢķėɆEƎŨƪƋɆëŒƖŨɆ
ļŝĉƪƎƎėĐɆɞǫșǦśɆŨįɆĉŨƖƢƖɆëƖƖŨĉļëƢėĐɆǂļƢķɆƎļİķƢȯƖļǒļŝİɆƢķėɆ½bɆ¡ėƢëļŒɆ
ėƖƢëƢėɆƋŨƖƢɆƢķėɆļŝƢƎŨĐƪĉƢļŨŝɆŨįɆƢķėɆɞǥɆD{¶ɆƖƢëŏėƖɆƎėƖƢƎļĉƢļŨŝƖș
$ƪƎļŝİɆƢķėɆLjėëƎȚɆƢķėɆEƎŨƪƋɆëŒƖŨɆƎėĉŨƎĐėĐɆëɆŝėƢɆɞǫǣșǥśɆļŝĉŨśėȚɆ
ƋƎėĐŨśļŝëŝƢŒLjɆëİëļŝƖƢɆƢķėɆEƎŨƪƋȼƖɆǥǣǤǣȦǤǤɆEƎėėŏɆ¶ëLJɆƖƖėƖƖśėŝƢɆ
įŨŒŒŨǂļŝİɆëɆĉŨƪƎƢɆƎƪŒļŝİɆļŝɆƢķėɆEƎŨƪƋȼƖɆįëǁŨƪƎɆĐƪƎļŝİɆƢķėɆŒëƢƢėƎɆ
ƋëƎƢɆŨįɆǥǣǥǤɆȩǥǣǥǣțɆɞǥǥǦșǨśɆƋƎėĐŨśļŝëŝƢŒLjɆëɆ½bɆÔ¶ɆĉŒëļśɆļŝɆ
ŨƪƎɆdëĐĈƎŨŏėƖɆĈƪƖļŝėƖƖȪɆëŝĐɆëɆƋƎŨǘƢɆŨŝɆƖëŒėɆŨįɆëƖƖėƢƖɆŨįɆɞǤșǬśɆ
ȩǥǣǥǣțɆɞǩșǬśȪșɆ
Separately disclosed items
2021
£m
ǥǣǥǣɆ
ɞś
śŨƎƢļƖëƢļŨŝɆŨįɆëĉƍƪļƎėĐɆļŝƢëŝİļĈŒėƖ (144.2) ȩǦǣǪșǣȪ
QśƋëļƎśėŝƢ (3.3) ȩǨșǣȪ
QŝƢėİƎëƢļŨŝɆĉŨƖƢƖ (17.3) ȩǥǨșǤȪ
ŨƎƋŨƎëƢėɆƢƎëŝƖëĉƢļŨŝɆĉŨƖƢƖ (9.4) –
¶ëLJɆŒļƢļİëƢļŨŝȦŨŝėȯŨįįɆŒėİļƖŒëƢļǁėɆļśƋëĉƢƖ 80.2 ǥǥǦșǨ
dėİëŒɆëŝĐɆŨŝėƎŨƪƖɆĉŨŝƢƎëĉƢɆĉŨƖƢƖ
(26.2) ȩǫșǬȪ
nŨǁėśėŝƢɆļŝɆįëļƎɆǁëŒƪėɆŨįɆĉŨŝƢļŝİėŝƢɆ
ĉŨŝƖļĐėƎëƢļŨŝ
(6.1) ȩǧǥșǧȪ
{ƢķėƎɆļŝĉŒƪĐļŝİɆļƖƖƪėɆĉŨƖƢɆǂƎļƢėȯŨįį
(9.7) ȩǬșǩȪ
ƎŨǘƢɆŨŝɆƖëŒėɆŨįɆëƖƖėƢƖ
1.9 ǩșǬ
¶ƎļėŝŝļëŒɆƎėƖƢƎƪĉƢƪƎļŝİɆĉŨƖƢƖ
– ȩǫșǦȪ
¶ŨƢëŒ
(134.1) ȩǤǪǨșǬȪ
Entain plc
|
Annual Report 2021
74
Strategic report
ƎŨǘƢɆĈėįŨƎėɆƢëLJ
ƎŨǘƢɆĈėįŨƎėɆƢëLJɆëŝĐɆƖėƋëƎëƢėŒLjɆĐļƖĉŒŨƖėĐɆļƢėśƖɆǂëƖɆɞǨǥǪșǦśɆȩǥǣǥǣțɆɞǦǨǣșǩśȪȚɆëɆLjėëƎȯŨŝȯLjėëƎɆļŝĉƎėëƖėɆŨįɆɞǤǪǩșǪśȚɆŒëƎİėŒLjɆĐƎļǁėŝɆĈLjɆ
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įƢėƎɆĉķëƎİļŝİɆƖėƋëƎëƢėŒLjɆĐļƖĉŒŨƖėĐɆļƢėśƖȚɆƢķėɆEƎŨƪƋɆƎėĉŨƎĐėĐɆëɆƋƎėȯƢëLJɆƋƎŨǘƢɆįƎŨśɆĉŨŝƢļŝƪļŝİɆŨƋėƎëƢļŨŝƖɆŨįɆɞǦǬǦșǥśɆȩǥǣǥǣțɆɞǤǪǧșǪśȪșɆ
¶ëLJëƢļŨŝ
¶ķėɆƢëLJɆĉķëƎİėɆŨŝɆĉŨŝƢļŝƪļŝİɆŨƋėƎëƢļŨŝƖɆįŨƎɆƢķėɆLjėëƎɆǂëƖɆɞǤǤǪșǩśɆȩǥǣǥǣțɆĉķëƎİėɆŨįɆɞǩǣșǬśȪȚɆƎėǙėĉƢļŝİɆëŝɆƪŝĐėƎŒLjļŝİɆėįįėĉƢļǁėɆƢëLJɆƎëƢėɆ
ƋƎėȯėƢnEnɆŒŨƖƖėƖɆëŝĐɆįŨƎėļİŝɆėLJĉķëŝİėɆİëļŝƖɆŨŝɆėLJƢėƎŝëŒɆĐėĈƢɆŨįɆǤǧșǥɼɆȩǥǣǥǣțɆǤǥșǥɼȪɆëŝĐɆëɆƢëLJɆĉķëƎİėɆŨŝɆƖėƋëƎëƢėŒLjɆĐļƖĉŒŨƖėĐɆļƢėśƖɆ
ŨįɆɞǥǪșǨśɆȩǥǣǥǣțɆļŝĉŨśėɆɞǥșǤśȪșɆ
ëƖķɆǙŨǂ
Year ended 31 December
2021
£m
ǥǣǥǣɆ
ɞś
Underlying EBITDA
4
881.7 ǫǧǦșǤ
$ļƖĉŨŝƢļŝƪėĐɆ,Q¶$ (5.3) ȩǤǧșǤȪ
½ŝĐėƎŒLjļŝİɆǂŨƎŏļŝİɆĉëƋļƢëŒ 23.7 ȩǤǥșǩȪ
ëƋļƢëŒɆėLJƋėŝĐļƢƪƎė
(176.2) ȩǤǨǫșǦȪ
DļŝëŝĉėɆŒėëƖėɆƋƎļŝĉļƋëŒɆȩļŝĉŒșɆQD¡©ɆǤǩɆŒėëƖėƖȪ
(87.9) ȩǫǨșǬȪ
ŨƎƋŨƎëƢėɆƢëLJėƖ (98.7) ȩǨǬșǥȪ
½ŝĐėƎŒLjļŝİɆDƎėėɆĉëƖķɆǙŨǂ 537.3 ǨǤǦșǣ
QŝǁėƖƢśėŝƢɆļŝɆėƢnEn (164.4) ȩǩǤșǫȪ
ĉƍƪļƖļƢļŨŝƖȦĐļƖƋŨƖëŒƖɆŝėƢɆŨįɆĉëƖķ
(510.6) –
DƎėėɆĉëƖķɆǙŨǂ (137.7) ǧǨǤșǥ
QŝƢėƎėƖƢɆƋëļĐɆȩļŝĉŒșɆQD¡©ɆǤǩɆŒėëƖėƖȪ
(73.3) ȩǬǨșǦȪ
©ėƋëƎëƢėŒLjɆĐļƖĉŒŨƖėĐɆļƢėśƖ
(225.1) ǥǧșǩ
pėƢɆśŨǁėśėŝƢɆŨŝɆĐėĈƢɆëŝĐɆëƖƖŨĉļëƢėĐɆļŝƖƢƎƪśėŝƢƖ
212.0 ȩǦǣșǣȪ
,ƍƪļƢLjɆļƖƖƪė
0.7 ǫșǩ
$ļǁļĐėŝĐƖɆƋëļĐ
(24.5) ȩǤǥșǧȪ
pėƢɆĉëƖķɆǙŨǂ
(247.9) ǦǧǩșǪ
DŨƎėļİŝɆėLJĉķëŝİė
(14.8) ǤǦșǣ
pėƢɆĉëƖķɆȩŨƪƢǙŨǂȪȦİėŝėƎëƢėĐ (262.7) ǦǨǬșǪ
$ƪƎļŝİɆƢķėɆLjėëƎȚɆƢķėɆEƎŨƪƋɆķëĐɆëɆŝėƢɆĉëƖķɆŨƪƢǙŨǂɆŨįɆɞǥǧǪșǬśɆȩǥǣǥǣțɆļŝǙŨǂɆŨįɆɞǦǧǩșǪśȪȚɆĈƪƢɆëŝɆļŝǙŨǂɆŨįɆɞǧǥǪșǤśɆĈėįŨƎėɆëĉƍƪļƖļƢļŨŝƖɆëŝĐɆ
ĐļƖƋŨƖëŒƖɆëŝĐɆļŝǁėƖƢśėŝƢɆļŝɆėƢnEnɆȩǥǣǥǣțɆɞǧǣǫșǨśȪșɆ
½ŝĐėƎŒLjļŝİɆįƎėėɆĉëƖķǙŨǂɆįŨƎɆƢķėɆLjėëƎɆǂëƖɆɞǨǦǪșǦśɆȩǥǣǥǣțɆɞǨǤǦșǣśȪɆǂļƢķɆƪŝĐėƎŒLjļŝİɆ,Q¶$ɆŨįɆɞǫǫǤșǪśɆȩǥǣǥǣțɆɞǫǧǦșǤśȪɆëŝĐɆëɆǂŨƎŏļŝİɆ
ĉëƋļƢëŒɆļŝǙŨǂɆŨįɆɞǥǦșǪśɆȩǥǣǥǣțɆɞǤǥșǩśɆŨƪƢǙŨǂȪɆƋëƎƢļ댌LjɆŨįįƖėƢɆĈLjɆļŝǁėƖƢśėŝƢɆļŝɆĉëƋļƢëŒɆėLJƋėŝĐļƢƪƎėɆŨįɆɞǤǪǩșǥśɆȩǥǣǥǣțɆɞǤǨǫșǦśȪȚɆŒėëƖėɆ
ƋëLjśėŝƢƖɆŨįɆɞǫǪșǬśɆȩǥǣǥǣțɆɞǫǨșǬśȪɆļŝĉŒƪĐļŝİɆƢķŨƖėɆŨŝɆŝŨŝȯŨƋėƎëƢļŨŝëŒɆƖķŨƋƖɆëŝĐɆɞǬǫșǪśɆļŝɆĉŨƎƋŨƎëƢėɆƢëLJɆƋëLjśėŝƢƖɆȩǥǣǥǣțɆɞǨǬșǥśȪșɆ
$ļƖĉŨŝƢļŝƪėĐɆŨƋėƎëƢļŨŝƖɆļŝĉƪƎƎėĐɆëɆɞǨșǦśɆ,Q¶$ɆŒŨƖƖɆĐƪƎļŝİɆƢķėɆLjėëƎɆȩǥǣǥǣțɆɞǤǧșǤśȪșɆQŝĉŒƪĐļŝİɆĉëƖķɆŨƪƢǙŨǂƖɆįŨƎɆnʁɆëĉƢļǁļƢLjɆëŝĐɆ
ëĐĐļƢļŨŝëŒɆļŝǁėƖƢśėŝƢɆļŝɆėƢnEnɆĐƪƎļŝİɆƢķėɆLjėëƎȚɆįƎėėɆĉëƖķɆŨƪƢǙŨǂɆǂëƖɆɞǤǦǪșǪśɆȩǥǣǥǣțɆɞǧǨǤșǥśɆļŝǙŨǂȪșɆ
$ƪƎļŝİɆƢķėɆLjėëƎȚɆƢķėɆEƎŨƪƋɆƋëļĐɆɞǪǦșǦśɆŨįɆļŝƢėƎėƖƢɆȩǥǣǥǣțɆɞǬǨșǦśȪɆëŝĐɆɞǥǥǨșǤśɆŨŝɆƖėƋëƎëƢėŒLjɆĐļƖĉŒŨƖėĐɆļƢėśƖɆȩǥǣǥǣțɆɞǥǧșǩśɆļŝĉŨśėȪɆ
ļŝĉŒƪĐļŝİɆɞǤǦǣșǪśɆŨįɆĉŨŝƢļŝİėŝƢɆĉŨŝƖļĐėƎëƢļŨŝɆŨŝɆƋƎėǁļŨƪƖɆëĉƍƪļƖļƢļŨŝƖɆȩǥǣǥǣțɆɞǥǧșǫśȪȚɆɞǦǪșǣśɆŨŝɆƢëLJɆŒļƢļİëƢļŨŝɆļƢėśƖɆȩɞǤǣǥșǩśɆļŝǙŨǂȪȚɆ
ɞǥǪșǪśɆŨŝɆļŝƢėİƎëƢļŨŝɆĉŨƖƢƖɆȩǥǣǥǣțɆɞǦǣșǤśȪȚɆɞǤǫșǫśɆŨŝɆŒėİëŒɆëŝĐɆŨŝėƎŨƪƖɆĉŨŝƢƎëĉƢɆĉŨƖƢƖɆȩǥǣǥǣțɆɞǥǥșǤśȪɆëŝĐɆɞǬșǧśɆŨŝɆëĉƍƪļƖļƢļŨŝɆëŝĐɆ
ĐėëŒɆƎėŒëƢėĐɆĉŨƖƢƖɆȩǥǣǥǣțɆɞŝļŒȪșɆɞǥǤǥșǣśɆǂëƖɆƎėĉėļǁėĐɆŨŝɆĐėĈƢɆƎėŒëƢėĐɆļŝƖƢƎƪśėŝƢƖɆȩǥǣǥǣțɆɞǦǣșǣśɆƋëLjśėŝƢȪȚɆƋƎļśëƎļŒLjɆŨŝɆƢķėɆƎėǘŝëŝĉļŝİɆ
ŨįɆƢķėɆ½©$ɆŒŨëŝɆǂķļĉķɆƎëļƖėĐɆŝėƢɆƋƎŨĉėėĐƖɆŨįɆɞǥǦǫșǥśɆȩǥǣǥǣțɆɞǦǨșǣśɆƎėƋëLjśėŝƢɆŨįɆĐƎëǂŝĐŨǂŝɆ¡DȪȚɆƋëƎƢļ댌LjɆŨįįƖėƢɆĈLjɆɞǤǬșǤśɆŨįɆĉŨƖƢƖɆ
ŨŝɆƢķėɆƖėƢƢŒėśėŝƢɆŨįɆŨŝėɆŨįɆƢķėɆEƎŨƪƋȼƖɆėLJƢėƎŝëŒɆƖǂëƋɆëƎƎëŝİėśėŝƢƖɆȩǥǣǥǣțɆɞǤǥșǩśɆƎėĉėļƋƢȪșɆ$ƪƎļŝİɆƢķėɆLjėëƎȚɆƢķėɆEƎŨƪƋɆëŒƖŨɆƋëļĐɆɞǥǧșǨśɆ
ļŝɆĐļǁļĐėŝĐƖɆƢŨɆƢķėɆśļŝŨƎļƢLjɆķŨŒĐļŝİɆļŝɆƎLjƖƢëŒĈėƢɆȩǥǣǥǣțɆɞǤǥșǧśȪɆëŝĐɆƎëļƖėĐɆɞǣșǪśɆŨŝɆƢķėɆļƖƖƪėɆŨįɆėƍƪļƢLjɆƪŝĐėƎɆŒėİëĉLjɆƖķëƎėɆļŝĉėŝƢļǁėɆ
ƖĉķėśėƖɆȩǥǣǥǣțɆɞǫșǩśȪșɆpŨɆėƍƪļƢLjɆĐļǁļĐėŝĐƖɆǂėƎėɆƋëļĐɆĐƪƎļŝİɆėļƢķėƎɆƢķėɆĉƪƎƎėŝƢɆŨƎɆƋƎļŨƎɆLjėëƎș
75
Overview
|
Strategic report
|
Governance
|
Financial statements
Entain plc
|
Annual Report 2021
Net debt and liquidity
ƖɆëƢɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤȚɆŝėƢɆĐėĈƢɆǂëƖɆɞǥȚǣǫǩșǧśɆëŝĐɆƎėƋƎėƖėŝƢėĐɆëɆŝėƢɆĐėĈƢɆƢŨɆ,Q¶$ɆƎëƢļŨɆŨįɆǥșǧLJșɆ¶ķėƎėɆǂëƖɆŝŨɆĐƎëǂĐŨǂŝɆŨŝɆƢķėɆ
EƎŨƪƋȼƖɆƎėǁŨŒǁļŝİɆĉƎėĐļƢɆįëĉļŒļƢLjșɆ
Par value
£m
Issue costs/
Premium
£m
Total
£m
ŨŝĐƖ ȩǨǣǣșǣȪ ȩǤǣșǫȪ (510.8)
¶ėƎśɆŒŨëŝƖ ȩǤȚǪǪǥșǩȪ Ǥǧșǩ (1,758.0)
QŝƢėƎėƖƢɆëĉĉƎƪëŒ ȩǤǦșǩȪ – (13.6)
ȩǥȚǥǫǩșǥȪ Ǧșǫ (2,282.4)
ëƖķɆ 487.1
Accounting net debt (1,795.3)
ëƖķɆķėŒĐɆŨŝɆĈėķëŒįɆŨįɆĉƪƖƢŨśėƎƖ (205.9)
DëļƎɆǁëŒƪėɆŨįɆƖǂëƋƖɆķėŒĐɆëİëļŝƖƢɆĐėĈƢɆļŝƖƢƎƪśėŝƢƖ 57.4
©ķŨƎƢȯƢėƎśɆļŝǁėƖƢśėŝƢƖȦ$ėƋŨƖļƢƖɆķėŒĐ 20.3
ëŒëŝĉėƖɆķėŒĐɆǂļƢķɆƋëLjśėŝƢɆƖėƎǁļĉėɆƋƎŨǁļĐėƎƖ 130.8
dėëƖėɆŒļëĈļŒļƢļėƖ (293.7)
Adjusted net debt (2,086.4)
Going Concern
QŝɆëĐŨƋƢļŝİɆƢķėɆİŨļŝİɆĉŨŝĉėƎŝɆĈëƖļƖɆŨįɆƋƎėƋëƎëƢļŨŝɆļŝɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖȚɆƢķėɆ$ļƎėĉƢŨƎƖɆķëǁėɆĉŨŝƖļĐėƎėĐɆƢķėɆĉƪƎƎėŝƢɆƢƎëĐļŝİɆ
ƋėƎįŨƎśëŝĉėɆŨįɆƢķėɆEƎŨƪƋȚɆƢķėɆǘŝëŝĉļëŒɆįŨƎėĉëƖƢƖɆëŝĐɆƢķėɆƋƎļŝĉļƋëŒɆƎļƖŏƖɆëŝĐɆƪŝĉėƎƢëļŝƢļėƖȚɆļŝĉŒƪĐļŝİɆƢķėɆŨŝİŨļŝİɆļśƋëĉƢɆŨįɆŨǁļĐȯǤǬșɆ
QŝɆëĐĐļƢļŨŝȚɆƢķėɆ$ļƎėĉƢŨƎƖɆķëǁėɆĉŨŝƖļĐėƎėĐɆ댌ɆśëƢƢėƎƖɆĐļƖĉƪƖƖėĐɆļŝɆĉŨŝŝėĉƢļŨŝɆǂļƢķɆƢķėɆŒŨŝİȯƢėƎśɆǁļëĈļŒļƢLjɆƖƢëƢėśėŝƢɆļŝĉŒƪĐļŝİɆƢķėɆ
śŨĐėŒŒļŝİɆŨįɆȹƖėǁėƎėɆĈƪƢɆƋŒëƪƖļĈŒėȺɆĐŨǂŝƖļĐėɆƖĉėŝëƎļŨƖɆƖƪĉķɆëƖɆŒėİļƖŒëƢļŨŝɆĉķëŝİėƖɆļśƋëĉƢļŝİɆƢķėɆEƎŨƪƋȼƖɆ{ŝŒļŝėɆĈƪƖļŝėƖƖɆëŝĐɆŝėǂɆ
ŒŨĉŏĐŨǂŝƖɆëįįėĉƢļŝİɆƢķėɆEƎŨƪƋȼƖɆ¡ėƢëļŒɆŨƋėƎëƢļŨŝƖșɆ
$ėƖƋļƢėɆƢķėɆŝėƢɆĉƪƎƎėŝƢɆŒļëĈļŒļƢLjɆƋŨƖļƢļŨŝȚɆƢķėɆŒėǁėŒɆŨįɆƢķėɆEƎŨƪƋȼƖɆëǁëļŒëĈŒėɆĉëƖķɆȩĉɞǧǣǣśȪȚɆëǁëļŒëĈŒėɆǘŝëŝĉļŝİɆįëĉļŒļƢļėƖɆȩļŝĉŒƪĐļŝİɆëŝɆ
ƪŝĐƎëǂŝɆƎėǁŨŒǁļŝİɆĉƎėĐļƢɆįëĉļŒļƢLjɆŨįɆĉɞǨǣǣśȪɆëŝĐɆƢķėɆįŨƎėĉëƖƢɆĉŨǁėŝëŝƢɆķėëĐƎŨŨśɆėǁėŝɆƪŝĐėƎɆƢķėɆƖėŝƖļƢļƖėĐɆĐŨǂŝƖļĐėɆƖĉėŝëƎļŨƖȚɆ
ƢķėɆ$ļƎėĉƢŨƎƖɆĈėŒļėǁėɆƢķëƢɆƢķėɆEƎŨƪƋɆļƖɆǂėŒŒɆƋŒëĉėĐɆƢŨɆśëŝëİėɆƢķėɆƎļƖŏƖɆëŝĐɆƪŝĉėƎƢëļŝƢļėƖɆƢķëƢɆļƢɆįëĉėƖșɆƖɆƖƪĉķȚɆƢķėɆ$ļƎėĉƢŨƎƖɆķëǁėɆëɆ
ƎėëƖŨŝëĈŒėɆėLJƋėĉƢëƢļŨŝɆƢķëƢɆƢķėɆEƎŨƪƋɆǂļŒŒɆķëǁėɆëĐėƍƪëƢėɆǘŝëŝĉļëŒɆƎėƖŨƪƎĉėƖɆƢŨɆĉŨŝƢļŝƪėɆļŝɆŨƋėƎëƢļŨŝëŒɆėLJļƖƢėŝĉėɆëŝĐɆķëǁėȚɆƢķėƎėįŨƎėȚɆ
ĉŨŝƖļĐėƎėĐɆļƢɆëƋƋƎŨƋƎļëƢėɆƢŨɆëĐŨƋƢɆƢķėɆİŨļŝİɆĉŨŝĉėƎŝɆĈëƖļƖɆŨįɆƋƎėƋëƎëƢļŨŝɆļŝɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖș
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ǦșɆ EƎŨǂƢķɆŨŝɆëɆĉŨŝƖƢëŝƢɆĉƪƎƎėŝĉLjɆĈëƖļƖɆļƖɆĉëŒĉƪŒëƢėĐɆĈLjɆƢƎëŝƖŒëƢļŝİɆĈŨƢķɆĉƪƎƎėŝƢɆëŝĐɆƋƎļŨƎɆLjėëƎɆƋėƎįŨƎśëŝĉėɆëƢɆƢķėɆǥǣǥǤɆėLJĉķëŝİėɆƎëƢėƖș
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ķļėįɆDļŝëŝĉļëŒɆ{įǘĉėƎȼƖɆ¡ėǁļėǂɆĉŨŝƢļŝƪėĐ
Entain plc
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Annual Report 2021
76
Strategic report
¶ķėɆ$ļƎėĉƢŨƎƖɆëƎėɆƎėƖƋŨŝƖļĈŒėɆįŨƎɆƋƎėƋëƎļŝİɆƢķėɆŝŝƪëŒɆ¡ėƋŨƎƢɆëŝĐɆƢķėɆEƎŨƪƋɆëŝĐɆƋëƎėŝƢɆŨśƋëŝLjɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆļŝɆëĉĉŨƎĐëŝĉėɆ
ǂļƢķɆëƋƋŒļĉëĈŒėɆŒëǂɆëŝĐɆƎėİƪŒëƢļŨŝƖșɆ
¶ķėɆ$ļƎėĉƢŨƎƖɆķëǁėɆėŒėĉƢėĐɆƢŨɆƋƎėƋëƎėɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆļŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆQŝƢėƎŝëƢļŨŝëŒɆDļŝëŝĉļëŒɆ¡ėƋŨƎƢļŝİɆ
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¡ėĐƪĉėĐɆ$ļƖĉŒŨƖƪƎėɆDƎëśėǂŨƎŏșɆ
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Ɇ ƖėŒėĉƢɆƖƪļƢëĈŒėɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖɆëŝĐɆƢķėŝɆëƋƋŒLjɆƢķėśɆĉŨŝƖļƖƢėŝƢŒLjȜɆ
Ɇ śëŏėɆŌƪĐİėśėŝƢƖɆëŝĐɆėƖƢļśëƢėƖɆƢķëƢɆëƎėɆƎėëƖŨŝëĈŒėɆëŝĐɆƋƎƪĐėŝƢȜɆ
Ɇ įŨƎɆƢķėɆEƎŨƪƋɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖȚɆƖƢëƢėɆǂķėƢķėƎɆëƋƋŒļĉëĈŒėɆëĉĉŨƪŝƢļŝİɆƖƢëŝĐëƎĐƖɆķëǁėɆĈėėŝɆįŨŒŒŨǂėĐȚɆƖƪĈŌėĉƢɆƢŨɆëŝLjɆśëƢėƎļëŒɆ
ĐėƋëƎƢƪƎėƖɆĐļƖĉŒŨƖėĐɆëŝĐɆėLJƋŒëļŝėĐɆļŝɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖȜɆ
Ɇ įŨƎɆƢķėɆƋëƎėŝƢɆŨśƋëŝLjɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖȚɆƖƢëƢėɆǂķėƢķėƎɆëƋƋŒļĉëĈŒėɆ½bɆëĉĉŨƪŝƢļŝİɆƖƢëŝĐëƎĐƖɆķëǁėɆĈėėŝɆįŨŒŒŨǂėĐȚɆƖƪĈŌėĉƢɆƢŨɆëŝLjɆ
śëƢėƎļëŒɆĐėƋëƎƢƪƎėƖɆĐļƖĉŒŨƖėĐɆëŝĐɆėLJƋŒëļŝėĐɆļŝɆƢķėɆƋëƎėŝƢɆŨśƋëŝLjɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖȜɆ
Ɇ ëƖƖėƖƖɆƢķėɆEƎŨƪƋɆëŝĐɆƋëƎėŝƢɆŨśƋëŝLjȼƖɆëĈļŒļƢLjɆƢŨɆĉŨŝƢļŝƪėɆëƖɆëɆİŨļŝİɆĉŨŝĉėƎŝȚɆĐļƖĉŒŨƖļŝİȚɆëƖɆëƋƋŒļĉëĈŒėȚɆśëƢƢėƎƖɆƎėŒëƢėĐɆƢŨɆ
İŨļŝİɆĉŨŝĉėƎŝȜɆ
Ɇ ƪƖėɆƢķėɆİŨļŝİɆĉŨŝĉėƎŝɆĈëƖļƖɆŨįɆëĉĉŨƪŝƢļŝİɆƪŝŒėƖƖɆƢķėLjɆėļƢķėƎɆļŝƢėŝĐɆƢŨɆŒļƍƪļĐëƢėɆƢķėɆEƎŨƪƋɆŨƎɆƢķėɆƋëƎėŝƢɆŨśƋëŝLjɆŨƎɆƢŨɆĉėëƖėɆ
ŨƋėƎëƢļŨŝƖȚɆŨƎɆķëǁėɆŝŨɆƎėëŒļƖƢļĉɆëŒƢėƎŝëƢļǁėɆĈƪƢɆƢŨɆĐŨɆƖŨȜɆëŝĐ
Ɇ ƋƎėƋëƎėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆǂķļĉķɆİļǁėɆëɆƢƎƪėɆëŝĐɆįëļƎɆǁļėǂɆŨįɆƢķėɆƖƢëƢėɆŨįɆëįįëļƎƖɆŨįɆƢķėɆEƎŨƪƋɆëŝĐɆƢķėɆƋëƎėŝƢɆŨśƋëŝLjɆëŝĐɆŨįɆƢķėɆ
ƋƎŨǘƢɆŨƎɆŒŨƖƖɆŨįɆƢķėɆEƎŨƪƋɆëŝĐɆƢķėɆƋëƎėŝƢɆŨśƋëŝLjɆįŨƎɆƢķëƢɆƋėƎļŨĐș
¶ķėɆ$ļƎėĉƢŨƎƖɆëƎėɆƎėƖƋŨŝƖļĈŒėɆįŨƎɆŏėėƋļŝİɆëĐėƍƪëƢėɆëĉĉŨƪŝƢļŝİɆƎėĉŨƎĐƖɆƢķëƢɆëƎėɆƖƪįǘĉļėŝƢɆƢŨɆƖķŨǂɆëŝĐɆėLJƋŒëļŝɆƢķėɆƋëƎėŝƢɆŨśƋëŝLjȼƖɆ
ƢƎëŝƖëĉƢļŨŝƖɆëŝĐɆĐļƖĉŒŨƖėɆǂļƢķɆƎėëƖŨŝëĈŒėɆëĉĉƪƎëĉLjɆëƢɆëŝLjɆƢļśėɆƢķėɆǘŝëŝĉļëŒɆƋŨƖļƢļŨŝɆŨįɆƢķėɆƋëƎėŝƢɆŨśƋëŝLjɆëŝĐɆėŝëĈŒėɆƢķėśɆƢŨɆėŝƖƪƎėɆ
ƢķëƢɆļƢƖɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆĉŨśƋŒLjɆǂļƢķɆƢķėɆQƖŒėɆŨįɆnëŝɆŨśƋëŝļėƖɆĉƢɆǥǣǣǩșɆ¶ķėLjɆëƎėɆƎėƖƋŨŝƖļĈŒėɆįŨƎɆƖƪĉķɆļŝƢėƎŝëŒɆĉŨŝƢƎŨŒɆëƖɆƢķėLjɆ
ĐėƢėƎśļŝėɆļƖɆŝėĉėƖƖëƎLjɆƢŨɆėŝëĈŒėɆƢķėɆƋƎėƋëƎëƢļŨŝɆŨįɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆƢķëƢɆëƎėɆįƎėėɆįƎŨśɆśëƢėƎļëŒɆśļƖƖƢëƢėśėŝƢȚɆǂķėƢķėƎɆĐƪėɆƢŨɆįƎëƪĐɆ
ŨƎɆėƎƎŨƎȚɆëŝĐɆķëǁėɆİėŝėƎëŒɆƎėƖƋŨŝƖļĈļŒļƢLjɆįŨƎɆƢëŏļŝİɆƖƪĉķɆƖƢėƋƖɆëƖɆëƎėɆƎėëƖŨŝëĈŒLjɆŨƋėŝɆƢŨɆƢķėśɆƢŨɆƖëįėİƪëƎĐɆƢķėɆëƖƖėƢƖɆŨįɆƢķėɆEƎŨƪƋɆëŝĐɆƢŨɆ
ƋƎėǁėŝƢɆëŝĐɆĐėƢėĉƢɆįƎëƪĐɆëŝĐɆŨƢķėƎɆļƎƎėİƪŒëƎļƢļėƖșɆ
¶ķėɆ$ļƎėĉƢŨƎƖɆëƎėɆƎėƖƋŨŝƖļĈŒėɆįŨƎɆƢķėɆśëļŝƢėŝëŝĉėɆëŝĐɆļŝƢėİƎļƢLjɆŨįɆƢķėɆĉŨƎƋŨƎëƢėɆëŝĐɆǘŝëŝĉļëŒɆļŝįŨƎśëƢļŨŝɆļŝĉŒƪĐėĐɆŨŝɆƢķėɆŨśƋëŝLjȼƖɆ
ǂėĈƖļƢėșɆdėİļƖŒëƢļŨŝɆļŝɆƢķėɆQƖŒėɆŨįɆnëŝɆİŨǁėƎŝļŝİɆƢķėɆƋƎėƋëƎëƢļŨŝɆëŝĐɆĐļƖƖėśļŝëƢļŨŝɆŨįɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆśëLjɆĐļįįėƎɆįƎŨśɆŒėİļƖŒëƢļŨŝɆ
ļŝɇŨƢķėƎɆŌƪƎļƖĐļĉƢļŨŝƖșɆ
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ÕėɆĉŨŝǘƎśɆƢķëƢɆƢŨɆƢķėɆĈėƖƢɆŨįɆŨƪƎɆŏŝŨǂŒėĐİėțɆ
Ɇ ƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖȚɆƋƎėƋëƎėĐɆļŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆƢķėɆëƋƋŒļĉëĈŒėɆƖėƢɆŨįɆëĉĉŨƪŝƢļŝİɆƖƢëŝĐëƎĐƖȚɆİļǁėɆëɆƢƎƪėɆëŝĐɆįëļƎɆǁļėǂɆŨįɆƢķėɆ
ëƖƖėƢƖȚɆŒļëĈļŒļƢļėƖȚɆǘŝëŝĉļëŒɆƋŨƖļƢļŨŝɆëŝĐɆƋƎŨǘƢɆŨƎɆŒŨƖƖɆŨįɆƢķėɆŨśƋëŝLjɆëŝĐɆƢķėɆƪŝĐėƎƢëŏļŝİƖɆļŝĉŒƪĐėĐɆļŝɆƢķėɆĉŨŝƖŨŒļĐëƢļŨŝɆƢëŏėŝɆëƖɆëɆ
ǂķŨŒėȜɆëŝĐɆ
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ƪŝĐėƎƢëŏļŝİƖɆļŝĉŒƪĐėĐɆļŝɆƢķėɆĉŨŝƖŨŒļĐëƢļŨŝɆƢëŏėŝɆëƖɆëɆǂķŨŒėȚɆƢŨİėƢķėƎɆǂļƢķɆëɆĐėƖĉƎļƋƢļŨŝɆŨįɆƢķėɆƋƎļŝĉļƋëŒɆƎļƖŏƖɆëŝĐɆƪŝĉėƎƢëļŝƢļėƖɆƢķëƢɆ
ƢķėLjɆįëĉėșɆ
ÕėɆĉŨŝƖļĐėƎɆƢķėɆŝŝƪëŒɆ¡ėƋŨƎƢɆëŝĐɆĉĉŨƪŝƢƖȚɆƢëŏėŝɆëƖɆëɆǂķŨŒėȚɆļƖɆįëļƎȚɆĈëŒëŝĉėĐɆëŝĐɆƪŝĐėƎƖƢëŝĐëĈŒėɆëŝĐɆƋƎŨǁļĐėƖɆƢķėɆļŝįŨƎśëƢļŨŝɆ
ŝėĉėƖƖëƎLjɆįŨƎɆƖķëƎėķŨŒĐėƎƖɆƢŨɆëƖƖėƖƖɆƢķėɆEƎŨƪƋȼƖɆƋŨƖļƢļŨŝɆëŝĐɆƋėƎįŨƎśëŝĉėȚɆĈƪƖļŝėƖƖɆśŨĐėŒɆëŝĐɆƖƢƎëƢėİLjș
Rob Wood
ķļėįɆDļŝëŝĉļëŒɆ{įǘĉėƎ
ǦɆnëƎĉķɆǥǣǥǥ
©ƢëƢėśėŝƢɆŨįɆ$ļƎėĉƢŨƎƖȼɆƎėƖƋŨŝƖļĈļŒļƢļėƖɆļŝɆƎėƖƋėĉƢɆŨįɆƢķėɆ
ŝŝƪëŒɆ¡ėƋŨƎƢɆëŝĐɆƢķėɆDļŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆ
77 Overview
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Strategic report
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Governance
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Financial statements
Entain plc
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Annual Report 2021
ķļėįɆEŨǁėƎŝëŝĉėɆ{įǘĉėƎȼƖɆ¡ėǁļėǂɆŨįɆ¡ļƖŏ
ÕķļŒėɆƢķėƎėɆļƖɆƖƢļŒŒɆƖŨśėɆƪŝĉėƎƢëļŝƢLjɆļŝɆ
ƢķėɆƖķŨƎƢȯƢėƎśȚɆǂėɆķëǁėɆėŝƢėƎėĐɆǥǣǥǥɆ
ǂļƢķɆİŨŨĐɆƢƎëĐļŝİɆśŨśėŝƢƪśșȺ
Robert Hoskin
ķļėįɆEŨǁėƎŝëŝĉėɆ{įǘĉėƎ
ǥǣǥǤɆķëƖɆĈėėŝɆëŝŨƢķėƎɆLjėëƎɆŨįɆĐļƖƎƪƋƢļŨŝɆǂļƢķɆƢķėɆŨǁļĐȯǤǬɆ
ƋëŝĐėśļĉɆĉŨŝƢļŝƪļŝİɆƢŨɆļśƋëĉƢɆİŒŨĈëŒɆėĉŨŝŨśļėƖɆëŝĐɆĉëƪƖļŝİɆ
ƢėśƋŨƎëƎLjɆĉŒŨƖƪƎėƖɆŨįɆŨƪƎɆ¡ėƢëļŒɆėƖƢëƢėƖșɆƖɆǂėɆĐļƖĉƪƖƖėĐɆļŝɆ
ŨƪƎɆǥǣǥǣɆŝŝƪëŒɆ¡ėƋŨƎƢȚɆƢķėɆļśƋëĉƢɆŨįɆŨǁļĐȯǤǬɆķëƖɆĈėėŝɆįėŒƢɆ
ĈLjɆ댌ɆĉŨƎƋŨƎëƢėƖɆëŝĐɆİļǁėŝɆƢķėɆƪŝƋƎėĉėĐėŝƢėĐɆŝëƢƪƎėɆŨįɆƢķėƖėɆ
ėǁėŝƢƖȚɆŨƪƎɆƎŨĈƪƖƢɆƎļƖŏɆëƖƖėƖƖśėŝƢȚɆśëŝëİėśėŝƢɆëŝĐɆśļƢļİëƢļŨŝɆ
ƋƎŨĉėĐƪƎėƖɆķëǁėɆĈėėŝɆļśƋėƎëƢļǁėɆļŝɆķėŒƋļŝİɆƢķėɆEƎŨƪƋɆŝëǁļİëƢėɆ
ƢķėɇŒëƖƢɆƢǂŨɆLjėëƎƖșɆ
ÕķļŒėɆƢķėƎėɆļƖɆƖƢļŒŒɆƖŨśėɆƪŝĉėƎƢëļŝƢLjɆļŝɆƢķėɆƖķŨƎƢȯƢėƎśȚɆǂėɆķëǁėɆ
ėŝƢėƎėĐɆǥǣǥǥɆǂļƢķɆİŨŨĐɆƢƎëĐļŝİɆśŨśėŝƢƪśɆëŝĐɆëɆƖƢƎŨŝİɆëŒëŝĉėɆ
©ķėėƢɆëŝĐȚɆëƖɆƖƪĉķȚɆǂėɆƎėśëļŝɆëƖɆĉŨŝǘĐėŝƢɆëƖɆėǁėƎɆļŝɆ,ŝƢëļŝȼƖɆ
ŒŨŝİėƎɆƢėƎśɆƋƎŨƖƋėĉƢƖș
ÕķļŒƖƢɆŨƪƎɆƎļƖŏɆįƪŝĉƢļŨŝɆķëƖɆĉŨŝƢļŝƪėĐɆƢŨɆśŨŝļƢŨƎɆëŝĐɆëƖƖėƖƖɆƢķėɆ
ƎļƖŏƖɆëƖƖŨĉļëƢėĐɆǂļƢķɆŨǁļĐȯǤǬɆĐƪƎļŝİɆǥǣǥǤȚɆƢķėɆŒėëƎŝļŝİƖɆįƎŨśɆ
ǥǣǥǣɆëŝĐɆƢķėɆƋƎŨĉėƖƖėƖɆëĐŨƋƢėĐɆķëǁėɆëįįŨƎĐėĐɆƢķėɆƢėëśɆİƎėëƢėƎɆ
ƢļśėɆƢŨɆįŨĉƪƖɆŨŝɆƢķėɆEƎŨƪƋȼƖɆǂļĐėƎɆ¡ļƖŏɆnëŝëİėśėŝƢɆDƎëśėǂŨƎŏșɆ
ƖɆƖƪĉķȚɆĐƪƎļŝİɆǥǣǥǤɆǂėɆķëǁėɆĉŨŝƢļŝƪėĐɆƢŨɆƎėǘŝėɆŨƪƎɆëƋƋƎŨëĉķɆƢŨɆ
¡ļƖŏɆëƖɆǂėŒŒɆëƖɆĐėŒļǁėƎɆŨŝɆëɆŝƪśĈėƎɆŨįɆŨƪƎɆǥǣǥǤɆŨĈŌėĉƢļǁėƖșɆ
dŨŨŏļŝİɆĈëĉŏɆëƢɆŨƪƎɆëĉķļėǁėśėŝƢƖɆļŝɆǥǣǥǤɆëŝĐɆŨƪƎɆƋƎļŨƎļƢļėƖɆ
įŨƎɆǥǣǥǥț
Key successes in 2021
ŨŝƢļŝƪėĐɆĐėǁėŒŨƋśėŝƢɆëŝĐɆėŝķëŝĉėśėŝƢɆŨįɆŨƪƎɆĐļǁļƖļŨŝëŒȦ
įƪŝĉƢļŨŝëŒɆƎļƖŏɆƎėİļƖƢėƎƖɆëŝĐɆƎļƖŏɆśļƢļİëƢļŨŝɆëĉƢļǁļƢļėƖș
¡ŨŒŒȯŨƪƢɆŨįɆƢķėɆEƎŨƪƋɆ¡ļƖŏɆnëŝëİėśėŝƢɆƋƎŨĉėƖƖėƖɆƢŨɆ
ǥǣǥǤɆëĉƍƪļƖļƢļŨŝƖș
DŨƎśëŒļƖëƢļŨŝɆŨįɆĐėėƋɆĐļǁėɆƖėƖƖļŨŝƖɆǂļƢķɆƢķėɆEƎŨƪƋɆŨëƎĐɆëŝĐɆ
ŨśśļƢƢėėƖɆŨŝɆƢķėɆEƎŨƪƋȼƖɆƋƎļŝĉļƋëŒɆƎļƖŏƖɆŨŝɆƎŨƢëƢļŨŝș
Key priorities for 2022
¡ėǘŝėśėŝƢɆŨįɆŨƪƎɆƎļƖŏɆśëŝëİėśėŝƢɆƋƎŨĉėƖƖėƖɆƢŨɆėŝƖƪƎėɆƢķėLjɆ
ëƎėɆįƪŒŒLjɆëŒļİŝėĐɆǂļƢķɆƢķėɆEƎŨƪƋɆƖƢƎëƢėİLjɆëŝĐɆƢķėɆįŨĉƪƖɆŨŝɆ
ƖƪƖƢëļŝëĈļŒļƢLjɆëŝĐɆİƎŨǂƢķș
ɆĉŨŝƢļŝƪėĐɆĉŨśśļƢśėŝƢɆƢŨɆƎėĐƪĉėɆƎļƖŏɆƢķƎŨƪİķɆƢķėɆļŝƢƎŨĐƪĉƢļŨŝɆ
ŨįɆŝėǂɆĈƪƖļŝėƖƖɆƋƎŨĉėƖƖėƖɆǂķėƎėɆļƢɆśëŏėƖɆĉŨśśėƎĉļëŒɆƖėŝƖėɆƢŨɆ
ĐŨɆƖŨș
,ŝķëŝĉėśėŝƢɆŨįɆƢķėɆEƎŨƪƋȼƖɆƢėƖƢļŝİɆƋƎŨİƎëśśėɆŨįɆƢķėɆĉƎļƢļĉëŒɆ
ĉŨŝƢƎŨŒƖɆǂķļĉķɆķëǁėɆĈėėŝɆĐėƖļİŝėĐɆƢŨɆśļƢļİëƢėɆëŝĐɆśëŝëİėɆƢķėɆ
EƎŨƪƋȼƖɆƋƎļŝĉļƋëŒɆƎļƖŏƖș
¶ķėɆįŨŒŒŨǂļŝİɆƎļƖŏɆƎėƋŨƎƢɆĐėƢëļŒƖɆŨƪƎɆëƋƋƎŨëĉķɆƢŨɆƎļƖŏɆśëŝëİėśėŝƢȚɆ
ƢķėɆEƎŨƪƋȼƖɆƋƎļŝĉļƋëŒɆƎļƖŏƖɆëŝĐɆƢķėɆŨëƎĐȼƖɆëƖƖėƖƖśėŝƢɆŨįɆǁļëĈļŒļƢLjș
Robert Hoskin
ķļėįɆEŨǁėƎŝëŝĉėɆ{įǘĉėƎ
3 nëƎĉķɆǥǣǥǥ
Entain plc
|
Annual Report 2021
78 Strategic report
¡ļƖŏɆśëŝëİėśėŝƢɆƋƎŨĉėƖƖ
ëŝĐɆśėƢķŨĐŨŒŨİLj
The effective understanding, measurement, acceptance
and mitigation of risk is fundamental to the Group
achieving its strategic priorities. As such, over the course
of the year, the Group has continued to enhance its risk
management capabilities, improving its ability to identify,
evaluate, monitor and manage its principal risks as well
as responding to the challenges presented by new and
emerging risks.
Risk management structure and governance
Structure
¶ķėɆEƎŨƪƋɆķëƖɆĐėǁėŒŨƋėĐɆëŝĐɆĐėƋŒŨLjėĐɆëŝɆļŝƢėİƎëƢėĐɆëŝĐɆ
ƋƎŨëĉƢļǁėɆëƋƋƎŨëĉķɆƢŨɆƎļƖŏɆśëŝëİėśėŝƢɆǂļƢķɆŨƋėƎëƢļŨŝëŒɆ
śëŝëİėśėŝƢɆëŝĐɆįƪŝĉƢļŨŝëŒɆƖƋėĉļëŒļƖƢƖɆëƢɆƢķėɆķėëƎƢɆŨįɆŨƪƎɆ
ƋƎŨĉėƖƖėƖɆëŝĐɆİŨǁėƎŝëŝĉėɆƖƢƎƪĉƢƪƎėșɆÕėɆĉŨŝƢļŝƪėɆƢŨɆĉķ댌ėŝİėɆ
ŨƪƎƖėŒǁėƖɆƢŨɆļśƋƎŨǁėɆŨƪƎɆëĈļŒļƢLjɆƢŨɆĐėƢėĉƢȚɆƪŝĐėƎƖƢëŝĐɆëŝĐɆĐėĈëƢėɆ
ƎļƖŏɆǂķļŒƖƢɆëŒƖŨɆĉŨŝƢļŝƪļŝİɆƢŨɆƖƢƎėŝİƢķėŝɆŨƪƎɆƢķƎėėɆŒļŝėƖɆŨįɆĐėįėŝĉėɆ
śŨĐėŒɆƢķƎŨƪİķɆļśƋƎŨǁėĐɆƋƎŨĉėƖƖėƖɆëŝĐɆļŝǁėƖƢśėŝƢɆļŝɆƎėƖŨƪƎĉėƖșɆ
{ƪƎɆǘƎƖƢɆŒļŝėɆŨįɆĐėįėŝĉėɆļƖɆŨƪƎɆĐëLjɆƢŨɆĐëLjɆĈƪƖļŝėƖƖɆŨƋėƎëƢļŨŝɆƢėëśƖɆ
ëŝĐɆįƪŝĉƢļŨŝëŒȦĐļǁļƖļŨŝëŒɆƎļƖŏɆįŨƎƪśƖȚɆǂķŨɆëĉƢļǁėŒLjɆėǁëŒƪëƢėɆëŝĐɆ
śëŝëİėɆƎļƖŏƖɆëƖɆƋëƎƢɆŨįɆƢķėļƎɆĐëLjɆƢŨɆĐëLjɆëĉƢļǁļƢļėƖșɆ¶ķėɆƖėĉŨŝĐɆŒļŝėɆ
ŨįɆĐėįėŝĉėɆļƖɆŨƪƎɆƎļƖŏɆëŝĐɆƎėİƪŒëƢŨƎLjɆŨǁėƎƖļİķƢɆįƪŝĉƢļŨŝƖɆëŝĐɆ¡ļƖŏɆ
ŨśśļƢƢėėɆǂķļĉķɆļƖɆŨǁėƎƖėėŝɆĈLjɆƢķėɆ$ļƎėĉƢŨƎɆŨįɆDļŝëŝĉļëŒɆŨŝƢƎŨŒɆ
ëŝĐɆ¡ļƖŏșɆ¶ķėƖėɆŨǁėƎƖļİķƢɆįƪŝĉƢļŨŝƖɆƋƎŨǁļĐėɆŨƪƎɆĈƪƖļŝėƖƖėƖɆǂļƢķɆ
ėLJƋėƎƢɆëĐǁļĉėȚɆĉķ댌ėŝİėɆëŝĐɆëƖƖļƖƢëŝĉėɆļŝɆėŝƖƪƎļŝİɆƎļƖŏƖɆëƎėɆ
ëƋƋƎŨƋƎļëƢėŒLjɆļĐėŝƢļǘėĐȚɆėǁëŒƪëƢėĐȚɆśëŝëİėĐɆëŝĐɆśļƢļİëƢėĐɆļŝɆŒļŝėɆ
ǂļƢķɆƢķėɆEƎŨƪƋȼƖɆƎļƖŏɆëƋƋėƢļƢėș
{ƪƎɆƢķļƎĐɆŒļŝėɆŨįɆĐėįėŝĉėɆļƖɆƋƎŨǁļĐėĐɆĈLjɆQŝƢėƎŝëŒɆƪĐļƢȚɆǂķŨɆƋƎŨǁļĐėɆ
ļŝĐėƋėŝĐėŝƢɆëŝĐɆŨĈŌėĉƢļǁėɆëƖƖƪƎëŝĉėɆŨǁėƎɆŨƪƎɆƎļƖŏɆëƖƖėƖƖśėŝƢɆ
ƋƎŨĉėƖƖėƖɆëŝĐɆƢķėɆĐėƖļİŝɆëŝĐɆŨƋėƎëƢļŝİɆėįįėĉƢļǁėŝėƖƖɆŨįɆŨƪƎɆƎļƖŏɆ
śļƢļİëƢļŨŝɆĉŨŝƢƎŨŒɆëĉƢļǁļƢļėƖș
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įŨƎɆƢķėɆëŝŝƪëŒɆƎėǁļėǂɆŨįɆƢķėɆ
ƋƎļŝĉļƋëŒɆƎļƖŏɆŨįɆƎėƢėŝƢļŨŝɆŨįɆ
ŏėLjɆėśƋŒŨLjėėƖȚɆëƖɆƋëƎƢɆŨįɆƢķėļƎɆ
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ƖƪƖĉėƋƢļĈļŒļƢLjɆŨįɆƢķėɆEƎŨƪƋɆ
ƢŨɆƢķėɆƎļƖŏɆŨįɆƎėƢėŝƢļŨŝɆŨįɆ
ŏėLjɆėśƋŒŨLjėėƖ
ESG Committee
Delegated risk oversight
1
:
ɆɆ©ëįėƎɆėƢƢļŝİɆëŝĐɆEëśļŝİ
ɆɆLėëŒƢķȚɆƖëįėƢLjɆëŝĐɆǂėŒŒĈėļŝİ
dŨƖƖɆŨįɆŏėLjɆŒŨĉëƢļŨŝƖ
¡ļƖŏƖɆëŒƖŨɆƎėǁļėǂėĐɆĉŨŝƢļŝƪ댌LjɆ
ƪŝĐėƎɆŨśśļƢƢėėɆ¶Ũ¡țɆ¡ėİƪŒëƢŨƎLjɆ
ĉŨśƋŒļëŝĉėɆëŝĐɆŒļĉėŝƖļŝİȚɆndȚɆ
¡ėƖƋŨŝƖļĈŒė İëśĈŒļŝİȚɆĐëƢëɆ
ƋƎŨƢėĉƢļŨŝɆëŝĐɆƢķėɆėŝǁļƎŨŝśėŝƢ
Audit Committee
Delegated risk oversight
1
:
ɆɆ$ëƢëɆƎėëĉķȦLjĈėƎ
ɆɆ¶ėĉķŝŨŒŨİLjɆįëļŒƪƎė
ɆɆ¶ëLJėƖ
ɆɆ¶ƎëĐļŝİȚɆdļëĈļŒļƢLjɆëŝĐɆ
ƋƎļĉļŝİɆśëŝëİėśėŝƢ
Remuneration Committee
ÕķļŒƖƢɆƢķėɆŨëƎĐɆļƖɆƎėƖƋŨŝƖļĈŒėɆ
įŨƎɆƢķėɆëŝŝƪëŒɆƎėǁļėǂɆŨįɆƢķėɆ
ƋƎļŝĉļƋëŒɆƎļƖŏɆŨįɆƎėĉƎƪļƢśėŝƢɆ
ëŝĐɆƎėƢėŝƢļŨŝɆŨįɆŏėLjɆėśƋŒŨLjėėƖȚɆ
ëƖɆƋëƎƢɆŨįɆƢķėļƎɆƎėƖƋŨŝƖļĈļŒļƢļėƖɆ
ƢķėɆ¡ėśƪŝėƎëƢļŨŝɆŨśśļƢƢėėɆ
ĉŨŝƢļŝƪ댌LjɆƎėǁļėǂƖɆƢķļƖɆƎļƖŏɆëŝĐɆ
ƢķėɆśļƢļİëƢļŝİɆëĉƢļŨŝƖɆļŝɆƋŒëĉėɆƢŨɆ
ƋƎėǁėŝƢɆƢķėɆƎļƖŏɆĉƎLjƖƢ댌ļƖļŝİ
Group Risk Committee
PLC Board
©ƋėĉļǘĉɆƎļƖŏɆŨǁėƎƖļİķƢț
ɆɆdëǂƖȚɆƎėİƪŒëƢļŨŝƖȚɆŒļĉėŝƖļŝİɆëŝĐɆƎėİƪŒëƢŨƎLjɆĉŨśƋŒļëŝĉė
ɆɆėƢɆnEnɆëŝĐɆ½©Ɇ©ƢƎëƢėİLj
ɆɆQŝĉƎėëƖėĐɆĉŨƖƢɆŨįɆƋƎŨĐƪĉƢ
ɆɆëŝĐėśļĉ
ɆɆ¡ėĉƎƪļƢśėŝƢɆëŝĐɆƎėƢėŝƢļŨŝɆŨįɆŏėLjɆėśƋŒŨLjėėƖ
ÕķļŒƖƢɆŝŨƢɆëɆƋƎļŝĉļƋëŒɆƎļƖŏȚɆƢķėɆŨëƎĐɆëŒƖŨɆƎėǁļėǂƖɆƢķėɆEƎŨƪƋȼƖɆŒļƢļİëƢļŨŝɆƎļƖŏɆŨŝɆëŝɆŨŝİŨļŝİɆĈëƖļƖ
Ǥș $ėŒėİëƢėĐɆŨǁėƎƖļİķƢɆëŝĐɆƎėƖƋŨŝƖļĈŒėɆįŨƎɆĐėėƋɆĐļǁėɆƎėǁļėǂƖɆŨįɆEƎŨƪƋȼƖɆƋƎļŝĉļƋëŒɆƎļƖŏƖ
79Overview
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Strategic report
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Governance
|
Financial statements
Entain plc
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Annual Report 2021
¡ėëĐɆśŨƎėɆŨŝɆŨƪƎɆİŨǁėƎŝëŝĉėɆįƎëśėǂŨƎŏț
pages 95-96
QŝɆëƖƖėƖƖļŝİɆļśƋëĉƢɆëŝĐɆ
ŒļŏėŒļķŨŨĐɆǂėɆëƖƖėƖƖɆƢķėɆƎļƖŏɆ
ëİëļŝƖƢɆǘŝëŝĉļëŒɆƋėƎįŨƎśëŝĉėȚɆ
{ƋėƎëƢļŨŝëŒɆƋƎŨĉėƖƖėƖȚɆdėİëŒɆ
ëŝĐɆ¡ɆëŝĐɆLėëŒƢķɆëŝĐɆ©ëįėƢLjșȺ
Stuart Smith
$ļƎėĉƢŨƎɆŨįɆDļŝëŝĉļëŒɆŨŝƢƎŨŒɆëŝĐɆ¡ļƖŏ
Governance
¶ķėɆŨëƎĐɆƎėĉŨİŝļƖėƖɆƢķėɆĈėŝėǘƢƖɆŨįɆėŝƖƪƎļŝİɆļƢƖɆƎļƖŏɆśëŝëİėśėŝƢɆ
ƋƎŨĉėƖƖėƖɆëƎėɆļŝɆŒļŝėɆǂļƢķɆƢķėɆ½bɆŨƎƋŨƎëƢėɆEŨǁėƎŝëŝĉėɆŨĐėɆëŝĐɆ
ƢķėɆėLJƋėĉƢëƢļŨŝƖɆŨįɆŒļƖƢėĐɆĉŨśƋëŝļėƖșɆƖɆƋëƎƢɆŨįɆƢķļƖɆƋƎŨĉėƖƖɆǂėɆ
ŝŨƢɆŨŝŒLjɆëƖƖėƖƖɆƎļƖŏɆĈƪƢɆëŒƖŨɆėǁëŒƪëƢėɆƢķėɆŒėǁėŒɆŨįɆƎļƖŏɆƢķėɆEƎŨƪƋɆļƖɆ
ǂļŒŒļŝİɆƢŨɆƢëŏėȚɆëŒƖŨɆƎėįėƎƎėĐɆƢŨɆëƖɆƎļƖŏɆëƋƋėƢļƢėșɆ¶ķļƖɆƋƎŨĉėƖƖɆįŨƎśƖɆ
ëɆŏėLjɆƋëƎƢɆŨįɆƢķėɆ,ŝƢėƎƋƎļƖėɆ¡ļƖŏɆnëŝëİėśėŝƢɆȩȹ,¡nȺȪɆDƎëśėǂŨƎŏșɆ
¶ķėɆ,¡nɆDƎëśėǂŨƎŏɆļƖɆƢķėɆǁėķļĉŒėɆǂķļĉķɆĐėǘŝėƖɆëŝĐɆĐėŒļǁėƎƖɆƎļƖŏɆ
śëŝëİėśėŝƢɆëĉƎŨƖƖɆƢķėɆĈƪƖļŝėƖƖɆëŝĐɆļŝĉŒƪĐėƖɆëɆƖƢëŝĐëƎĐɆƎļƖŏɆ
ƖĉŨƎļŝİɆśëƢƎļLJɆƢŨɆėŝƖƪƎėɆëɆĉŨŝƖļƖƢėŝƢɆëƋƋƎŨëĉķɆƢŨɆƢķėɆļĐėŝƢļǘĉëƢļŨŝȚɆ
śėëƖƪƎėśėŝƢɆëŝĐɆƎėƖƋŨŝƖėɆƢŨɆƎļƖŏș
¶ķėɆEƎŨƪƋɆ¡ļƖŏɆŨśśļƢƢėėȚɆĉķëļƎėĐɆĈLjɆƢķėɆķļėįɆEŨǁėƎŝëŝĉėɆ
{įǘĉėƎȚɆļƖɆƎėƖƋŨŝƖļĈŒėɆįŨƎɆƢķėɆ,¡nɆëŝĐɆEƎŨƪƋɆ¡ļƖŏɆnëŝëİėśėŝƢɆ
ƋŨŒļĉLjșɆ¶ķėɆŨśśļƢƢėėɆśėėƢƖɆįŨƎśëŒŒLjɆįŨƪƎɆƢļśėƖɆėëĉķɆLjėëƎɆ
ëŝĐɆĉŨśƋƎļƖėƖɆŨƋėƎëƢļŨŝëŒɆśëŝëİėśėŝƢɆëŝĐɆįƪŝĉƢļŨŝëŒɆëƎėëɆ
ƖƋėĉļëŒļƖƢƖșɆÕķļŒƖƢɆƢķėɆŨśśļƢƢėėɆĉŨŝƖļĐėƎƖɆ댌ɆļĐėŝƢļǘėĐɆƎļƖŏƖɆƢŨɆ
ƢķėɆĈƪƖļŝėƖƖȚɆļƢɆįŨĉƪƖėƖɆŨŝɆƢķėɆƋƎļŝĉļƋëŒɆƎļƖŏƖș
¶ķėɆ,ŝƢëļŝɆEƎŨƪƋɆ¡ļƖŏɆnëŝëİėśėŝƢɆƋŨŒļĉLjɆĐėƢëļŒƖɆķŨǂɆƎļƖŏƖɆëƎėɆ
śëŝëİėĐɆëŝĐɆśŨŝļƢŨƎėĐșɆDŨƎɆėëĉķɆƎļƖŏɆļĐėŝƢļǘėĐȚɆƢķėɆļśƋëĉƢȚɆ
ŒļŏėŒļķŨŨĐȚɆĉŨŝƖėƍƪėŝĉėȚɆƎļƖŏɆŨǂŝėƎɆȩ,LJėĉƪƢļǁėɆŨśśļƢƢėėɆśėśĈėƎȪɆ
ëŝĐɆŨƋėƎëƢļŨŝëŒɆŒėëĐɆëƎėɆļĐėŝƢļǘėĐșɆ¶ķėɆƎļƖŏɆŨǂŝėƎɆëŝĐɆŨƋėƎëƢļŨŝëŒɆ
ŒėëĐɆëƎėɆƎėƖƋŨŝƖļĈŒėɆįŨƎɆļĐėŝƢļįLjļŝİɆƢķėɆƎėŒėǁëŝƢɆśļƢļİëƢļŝİɆĉŨŝƢƎŨŒƖɆ
ëŝĐɆƎėśėĐļëŒɆëĉƢļŨŝƖɆƎėƍƪļƎėĐɆƢŨɆśëŝëİėɆƎļƖŏɆëƋƋƎŨƋƎļëƢėŒLjșɆ
¶ķėɆ¡ļƖŏɆŨśśļƢƢėėɆŨƋļŝėɆŨŝɆƢķėɆëĐėƍƪëĉLjɆŨįɆƢķėɆĈƪƖļŝėƖƖėƖɆ
ƎļƖŏɆśļƢļİëƢļŨŝɆǂļƢķɆQŝƢėƎŝëŒɆƪĐļƢɆƢėƖƢļŝİɆƢķėɆėįįėĉƢļǁėŝėƖƖɆŨįɆƢķėɆ
ĉŨŝƢƎŨŒƖɆļĐėŝƢļǘėĐș
¶ķėɆŨëƎĐɆśëļŝƢëļŝƖɆëŝĐɆƎėǁļėǂƖɆëɆĉŨŝƖŨŒļĐëƢėĐɆǁļėǂɆŨįɆŏėLjɆƎļƖŏƖɆ
ëĉƎŨƖƖɆ댌ɆĈƪƖļŝėƖƖɆƖėİśėŝƢƖɆëŝĐɆƢëŏėƖɆëĐǁļĉėɆįƎŨśɆƢķėɆEƎŨƪƋɆ¡ļƖŏɆ
ŨśśļƢƢėėɆŨŝɆƢķėɆEƎŨƪƋȼƖɆƎļƖŏɆëƋƋėƢļƢėɆëŝĐɆƖƢƎëƢėİLjɆëƖɆǂėŒŒɆëƖɆƢķėɆ
ėįįėĉƢļǁėŝėƖƖɆŨįɆŨƪƎɆƎļƖŏɆśëŝëİėśėŝƢɆƋƎŨĉėƖƖėƖșɆ¶ķėɆŨëƎĐɆëŝĐɆ
ļƢƖɆƖƪĈȯŨśśļƢƢėėƖɆëŒƖŨɆƪŝĐėƎƢëŏėɆëɆĐėėƋȯĐļǁėɆƎėǁļėǂɆŨįɆ댌ɆŨįɆƢķėɆ
EƎŨƪƋȼƖɆƋƎļŝĉļƋëŒɆƎļƖŏƖɆŨŝɆƎŨƢëƢļŨŝɆƢķƎŨƪİķŨƪƢɆƢķėɆLjėëƎșɆ
ÕķļŒƖƢɆǂėɆƎėĉŨİŝļƖėɆƢķëƢɆǂėɆķëǁėɆŒļśļƢėĐɆĉŨŝƢƎŨŒɆŨǁėƎɆĉėƎƢëļŝɆƎļƖŏƖɆ
įëĉėĐɆĈLjɆƢķėɆEƎŨƪƋȚɆƖƪĉķɆëƖɆƢķėɆĉƪƎƎėŝƢɆƋëŝĐėśļĉȚɆśëĉƎŨėĉŨŝŨśļĉɆ
ėǁėŝƢƖɆëŝĐɆƢķėɆĉŨśƋŒėLJɆƎėİƪŒëƢŨƎLjɆėŝǁļƎŨŝśėŝƢɆļŝɆǂķļĉķɆǂėɆ
ŨƋėƎëƢėȚɆǂėɆĉŨŝƢļŝƪėɆƢŨɆśŨŝļƢŨƎɆĐėǁėŒŨƋśėŝƢƖɆļŝɆƢķėƖėɆëƎėëƖɆ
ĉŒŨƖėŒLjɆëŝĐɆļĐėŝƢļįLjɆėśėƎİļŝİɆƎļƖŏƖɆƢķƎŨƪİķɆķŨƎļǒŨŝɆƖĉëŝŝļŝİɆǂķļŒƖƢɆ
ėŝƖƪƎļŝİɆƢķëƢɆƢķėɆEƎŨƪƋɆķëƖɆëƋƋƎŨƋƎļëƢėɆƎėƖƋŨŝƖėɆƋŒëŝƖɆļŝɆƋŒëĉėș
¶ķėɆƎļƖŏɆśëŝëİėśėŝƢɆëƋƋƎŨëĉķɆļƖɆƖƪĈŌėĉƢɆƢŨɆĉŨŝƢļŝƪŨƪƖɆƎėǁļėǂɆëŝĐɆ
ƪƋĐëƢėƖɆļŝɆŨƎĐėƎɆƢŨɆƎėǙėĉƢɆŝėǂɆëŝĐɆĐėǁėŒŨƋļŝİɆļƖƖƪėƖɆǂķļĉķɆśļİķƢɆ
ļśƋëĉƢɆĈƪƖļŝėƖƖɆƖƢƎëƢėİLjșɆ,śėƎİļŝİɆŨƎɆƢŨƋļĉëŒɆƎļƖŏƖȚɆƖƪĉķɆëƖɆƢķėɆ
ƋëŝĐėśļĉɆŨƎɆƎėLJļƢȚɆëƎėɆėLJëśļŝėĐɆƢŨɆƪŝĐėƎƖƢëŝĐɆƢķėļƎɆƖļİŝļǘĉëŝĉėɆ
ƢŨɆƢķėɆĈƪƖļŝėƖƖșɆ
How risks are measured
ƖɆƋëƎƢɆŨįɆƢķėɆƎļƖŏɆśëŝëİėśėŝƢɆƋƎŨĉėƖƖȚɆ댌ɆƎļƖŏƖɆļĐėŝƢļǘėĐɆëƎėɆ
śėëƖƪƎėĐɆëİëļŝƖƢɆëɆĐėǘŝėĐɆƖėƢɆŨįɆĉƎļƢėƎļëɆƪƖļŝİɆëɆƖƢëŝĐëƎĐɆǨɆLJɆǨɆ
ƎļƖŏɆśëƢƎļLJɆǂķļĉķɆëƖƖėƖƖėƖɆĈŨƢķɆƢķėɆļśƋëĉƢɆëŝĐɆƢķėɆŒļŏėŒļķŨŨĐɆŨįɆëɆ
ƎļƖŏɆëƎļƖļŝİșɆQŝɆëƖƖėƖƖļŝİɆļśƋëĉƢɆëŝĐɆŒļŏėŒļķŨŨĐɆǂėɆëƖƖėƖƖɆƢķėɆƎļƖŏɆ
ëİëļŝƖƢɆǘŝëŝĉļëŒɆƋėƎįŨƎśëŝĉėȚɆ{ƋėƎëƢļŨŝëŒɆƋƎŨĉėƖƖėƖȚɆdėİëŒɆëŝĐɆ
¡ɆëŝĐɆLėëŒƢķɆëŝĐɆ©ëįėƢLjșɆQŝɆƋëƎƢļĉƪŒëƎț
The potential impact/consequence to the Group should the
risk materialise:
– ¶ķėɆļśƋëĉƢɆŨįɆėëĉķɆƎļƖŏɆļƖɆśėëƖƪƎėĐɆǂļƢķɆƎėįėƎėŝĉėɆƢŨɆƢķėɆ
ǘŝëŝĉļëŒɆļśƋŒļĉëƢļŨŝƖɆȩƪŝĐėƎŒLjļŝİɆ,Q¶$ɆëŝĐɆĉëƖķȪȚɆļƢƖɆ
ƋŨƢėŝƢļëŒɆŨƋėƎëƢļŨŝëŒɆļśƋëĉƢɆȩļŝĉŒƪĐļŝİɆƢķėɆƖėĉƪƎļƢLjɆŨįɆŨƪƎɆ
ĐëƢëȪȚɆƢķėɆėįįėĉƢɆŨŝɆƢķėɆƎėƋƪƢëƢļŨŝɆŨįɆŨƪƎɆĈƎëŝĐƖɆëŝĐɆǂķėƢķėƎɆ
ŨƎɆŝŨƢɆļƢɆëįįėĉƢƖɆŨƪƎɆĉŨśśļƢśėŝƢɆƢŨɆķėëŒƢķɆëŝĐɆƖëįėƢLjșɆ
¶ķėɆļśƋëĉƢɆļƖɆśėëƖƪƎėĐɆŨŝɆëɆƖĉëŒėȚɆǂķėƎėɆǤɆļƖɆŒŨǂȚɆǂļƢķɆŒļśļƢėĐɆ
ĐëśëİėɆƢŨɆëɆśļŝŨƎɆƖƢëŏėķŨŒĐėƎȚɆëŝĐɆǨɆĈėļŝİɆƖėǁėƎėȚɆǂķļĉķɆ
śëLjɆķëǁėɆëɆƖƪĈƖƢëŝƢļëŒɆļśƋëĉƢɆŨŝɆƢķėɆEƎŨƪƋɆëįįėĉƢļŝİɆśëŝLjɆ
ŏėLjɆƖƢëŏėķŨŒĐėƎƖȚɆļŝĉŒƪĐļŝİɆĉƪƖƢŨśėƎƖș
The likelihood of the risk materialising:
– ¶ķėɆėLJƢėŝƢɆƢŨɆǂķļĉķɆëŝɆėǁėŝƢɆļƖɆŒļŏėŒLjɆƢŨɆŨĉĉƪƎɆļƖɆƖĉŨƎėĐɆ
įƎŨśɆǤȯǨȚɆǤɆĈėļŝİɆƎėśŨƢėɆļșėșɆǁėƎLjɆƪŝŒļŏėŒLjɆƢŨɆŨĉĉƪƎɆëŝĐɆǨɆ
ĈėļŝİɆƋƎŨĈëĈŒėɆļșėșɆǂķėƎėɆļƢɆķëƖɆƢķėɆƋŨƢėŝƢļëŒɆƢŨɆŨĉĉƪƎɆŨƎɆķëƖɆ
ëŒƎėëĐLjɆķëƋƋėŝėĐș
¶ķėɆƋƎŨĐƪĉƢɆŨįɆĈŨƢķɆƖĉŨƎėƖɆİļǁėƖɆƎļƖėɆƢŨɆƢķėɆƎļƖŏɆƖĉŨƎėɆƢķëƢɆ
ĐėƢėƎśļŝėƖɆƢķėɆƎėŒëƢļǁėɆļśƋŨƎƢëŝĉėɆŨįɆƢķėɆļŝĐļǁļĐƪëŒɆƎļƖŏș
Risk management process and methodology ĉŨŝƢļŝƪėĐ
Entain plc
|
Annual Report 2021
80
Strategic report
ƎļŝĉļƋëŒɆ¡ļƖŏƖ
The principal risks and uncertainties,
ǂķļĉķɆëƎėɆĉŨŝƖļĐėƎėĐɆƢŨɆķëǁėɇëɆ
śëƢėƎļëŒɆļśƋëĉƢɇŨŝɆƢķėɆEƎŨƪƋȼƖɆŒŨŝİȯ
term performance and achievement
ŨįɆƖƢƎëƢėİLjȚɇëƎėɆƖėƢɆŨƪƢɆŨŝɇƢķėɆ
table opposite.
¶ķėɆƎļƖŏƖɆƎėƋƎėƖėŝƢɆëɆƖŝëƋƖķŨƢɆëƢɆëɆƋŨļŝƢɆ
ļŝɇƢļśėȚɆëŝĐɆëƖɆƢķėɆėŝǁļƎŨŝśėŝƢɆǂėɆŨƋėƎëƢėɆ
ļŝɆļƖɆĉŨŝƖƢëŝƢŒLjɆėǁŨŒǁļŝİȚɆŝėǂɆƎļƖŏƖɆśëLjɆ
ëƎļƖėȚɆƢķėɆƋŨƢėŝƢļëŒɆļśƋëĉƢɆŨįɆŏŝŨǂŝɆ
ƎļƖŏƖɆśëLjɆļŝĉƎėëƖėɆŨƎɆĐėĉƎėëƖėȚɆëŝĐɆŨƪƎɆ
ëƖƖėƖƖśėŝƢɆŨįɆëɆƎļƖŏɆśëLjɆĉķëŝİėșɆ¶ķėLjɆĐŨɆ
ŝŨƢɆļŝĉŒƪĐėɆ댌ɆƢķŨƖėɆƎļƖŏƖɆëƖƖŨĉļëƢėĐɆǂļƢķɆ
ƢķėɆEƎŨƪƋȼƖɆëĉƢļǁļƢļėƖɆëŝĐɆëƎėɆŝŨƢɆƖėƢɆŨƪƢɆ
ļŝɇëŝLjɆŨƎĐėƎɆŨįɆƋƎļŨƎļƢLjș
¶ķļƖɆļƖɆŝŨƢɆļŝƢėŝĐėĐɆƢŨɆĈėɆëŝɆėLJķëƪƖƢļǁėɆëŝĐɆ
ėLJƢėŝƖļǁėɆëŝëŒLjƖļƖɆŨįɇ댌ɇƎļƖŏƖɆǂķļĉķɆśëLjɆ
ëįįėĉƢɆƢķėɆEƎŨƪƋș
¡ėëĐɆśŨƎėɆŨŝɆƢķėɆŨëƎĐȼƖɆƎėǁļėǂɆŨįɆƎļŝĉļƋëŒɆ
¡ļƖŏƖɆŨŝțɆpage 101
Principal Risk/Uncertainty
¶ķėɆEƎŨƪƋɆŨƋėƎëƢļŨŝƖɆĐėƋėŝĐɆŨŝɆƢķėɆ
įëļƎŝėƖƖɆŨįɆļƢƖɆİëśļŝİɆėŝİļŝėƖȚɆƢķėɆ
ƋƎŨĉėƖƖļŝİɆŨįɆĉƪƖƢŨśėƎɆĐëƢëɆȩƋƎŨƢėĉƢėĐɆ
ĈLjɆƖƢƎļĉƢɆĐëƢëɆƋƎŨƢėĉƢļŨŝɆëŝĐɆƋƎļǁëĉLjɆŒëǂƖɆ
ļŝɆ댌ɆŌƪƎļƖĐļĉƢļŨŝƖɆļŝɆǂķļĉķɆƢķėɆEƎŨƪƋɆ
ŨƋėƎëƢėƖȪɆëŝĐɆƢķėɆëĈļŒļƢLjɆŨįɆĉƪƖƢŨśėƎƖɆƢŨɆ
ëĉĉėƖƖɆļƢƖɆƖėƎǁļĉėƖɆŨŝɆëɆǥǧLJǪɆĈëƖļƖșɆ
¶ķėɆEƎŨƪƋɆļƖɆėLJƋŨƖėĐɆƢŨɆƢķėɆƎļƖŏɆƢķëƢɆƢķėɆ
ļŝƢėİƎļƢLjɆŨįɆİëśļŝİȚɆĉŨŝǘĐėŝƢļëŒļƢLjɆŨįɆ
ĐëƢëɆŨƎɆëǁëļŒëĈļŒļƢLjɆŨįɆļƢƖɆƖėƎǁļĉėƖɆǂŨƪŒĐɆ
ĈėɆĉŨśƋƎŨśļƖėĐɆƢķƎŨƪİķɆëɆĉLjĈėƎëƢƢëĉŏɆ
ŨƎɆëɆĈƎėëĉķɆļŝɆĐëƢëɆƖėĉƪƎļƢLjȚɆǂķļĉķɆǂŨƪŒĐɆ
ļśƋëĉƢɆƢķėɆƢƎƪƖƢɆŨįɆļƢƖɆĉƪƖƢŨśėƎƖɆëŝĐɆ
ĉŨƪŒĐɆƎėƖƪŒƢɆļŝɆƋƎŨƖėĉƪƢļŨŝƖɆļŝĉŒƪĐļŝİɆ
ǘŝëŝĉļëŒɆƋėŝëŒƢļėƖș
How we manage and mitigate the risk
¶ķėɆEƎŨƪƋɆķëƖɆĐėĐļĉëƢėĐɆLjĈėƎƖėĉƪƎļƢLjɆ
ëŝĐɆ$ëƢëɆƎļǁëĉLjɆįƪŝĉƢļŨŝƖɆėŝƢƎƪƖƢėĐɆ
ǂļƢķɆƋƎŨƢėĉƢļŝİɆƢķėɆƖėĉƪƎļƢLjɆŨįɆ댌Ɇ
ļƢƖɆŨƋėƎëƢļŨŝƖșɆ
¶ķėɆįƪŝĉƢļŨŝƖɆėŝĉëƋƖƪŒëƢėɆƢķėɆŝėĉėƖƖëƎLjɆ
ļŝȯķŨƪƖėɆėLJƋėƎƢļƖėɆƢŨɆëĐëƋƢɆƢŨɆėśėƎİļŝİɆ
ƢķƎėëƢƖșɆ{ƋėƎëƢļŝİɆƪŝĐėƎɆëɆQ©{ǥǪǣǣǤɆ
QŝįŨƎśëƢļŨŝɆ©ėĉƪƎļƢLjɆnëŝëİėśėŝƢɆ
©LjƖƢėśɆĉėƎƢļǘĉëƢļŨŝȚɆƢķėɆLjĈėƎƖėĉƪƎļƢLjɆ
ĉŨŝƢƎŨŒƖɆëŝĐɆëƖƖŨĉļëƢėĐɆķëƎśŨŝļƖėĐɆ
ƋŨŒļĉļėƖɆëƎėɆĉŨŝƖƢëŝƢŒLjɆĈėļŝİɆėǁëŒƪëƢėĐɆ
ëŝĐɆëƋƋŒļėĐȚɆǂķėƎėɆĐėėśėĐɆƎėŒėǁëŝƢɆ
ëĉƎŨƖƖɆƢķėɆėŝŒëƎİėĐɆEƎŨƪƋșɆ
¶ķėɆ$ëƢëɆƎļǁëĉLjɆƢėëśȚɆŒėĐɆĈLjɆƢķėɆ
EƎŨƪƋȼƖɆķļėįɆƎļǁëĉLjɆ{įǘĉėƎɆļƖɆƢëƖŏėĐɆ
ǂļƢķɆëŒļİŝļŝİɆƢķėɆEƎŨƪƋȼƖɆĐëƢëɆƋƎļǁëĉLjɆ
ƖƢƎëƢėİLjɆëŝĐɆİŨǁėƎŝëŝĉėɆƖƢƎƪĉƢƪƎėȚɆ
ƋƎŨǁļĐļŝİɆƎėİƪŒëƎɆƪƋĐëƢėƖɆƢŨɆƢķėɆEƎŨƪƋȼƖɆ
,©EɆŨśśļƢƢėėșɆ
Strategic relevance
ƎLjƖƢ댌ļƖëƢļŨŝɆĉŨƪŒĐɆŒėëĐɆƢŨɆƖļİŝļǘĉëŝƢɆ
ƎėƋƪƢëƢļŨŝëŒɆëŝĐɆŨƋėƎëƢļŨŝëŒɆļƖƖƪėƖɆ
ƢķëƢɆŒļśļƢɆƢķėɆEƎŨƪƋƖɆëĈļŒļƢLjɆƢŨɆĐƎļǁėɆ
{ŝŒļŝėɆİƎŨǂƢķș
Link to strategic objective: ŒŒɆŨĈŌėĉƢļǁėƖ
Principal Risk/Uncertainty
¡ėİƪŒëƢŨƎLjȚɆŒėİļƖŒëƢļǁėɆëŝĐɆǘƖĉëŒɆƎėİļśėƖɆ
įŨƎɆĈėƢƢļŝİɆëŝĐɆİëśļŝİɆļŝɆŏėLjɆśëƎŏėƢƖɆ
ëƎŨƪŝĐɆƢķėɆǂŨƎŒĐɆĉëŝɆĉķëŝİėȚɆƖŨśėƢļśėƖɆ
ëƢɆƖķŨƎƢɆŝŨƢļĉėșɆ
©ƪĉķɆĉķëŝİėƖɆĉŨƪŒĐɆĈėŝėǘƢɆŨƎɆķëǁėɆ
ëŝɆëĐǁėƎƖėɆėįįėĉƢɆŨŝɆƢķėɆEƎŨƪƋɆëŝĐɆ
ëĐĐļƢļŨŝëŒɆĉŨƖƢƖɆśļİķƢɆĈėɆļŝĉƪƎƎėĐɆļŝɆ
ŨƎĐėƎɆƢŨɆĉŨśƋŒLjɆǂļƢķɆëŝLjɆŝėǂɆŒëǂƖɆŨƎɆ
ƎėİƪŒëƢļŨŝƖɆļŝɆśƪŒƢļƋŒėɆŌƪƎļƖĐļĉƢļŨŝƖșɆ
How we manage and mitigate the risk
¶ķėɆEƎŨƪƋɆĉŒŨƖėŒLjɆśŨŝļƢŨƎƖɆƎėİƪŒëƢŨƎLjȚɆ
ŒėİļƖŒëƢļǁėɆëŝĐɆǘƖĉëŒɆĐėǁėŒŨƋśėŝƢƖɆļŝɆŏėLjɆ
śëƎŏėƢƖȚɆ댌ŨǂļŝİɆƢķėɆEƎŨƪƋɆƢŨɆëƖƖėƖƖȚɆ
ëĐëƋƢɆëŝĐɆƢëŏėƖɆƢķėɆŝėĉėƖƖëƎLjɆëĉƢļŨŝɆ
ǂķėƎėɆëƋƋƎŨƋƎļëƢėșɆ
nëŝëİėśėŝƢɆƢëŏėɆėLJƢėƎŝëŒɆëĐǁļĉėȚɆ
ǂķļĉķɆļŝĉŨƎƋŨƎëƢėƖɆƎļƖŏɆėǁëŒƪëƢļŨŝɆŨįɆ
ļŝĐļǁļĐƪëŒɆƢėƎƎļƢŨƎļėƖșɆQƢɆëŒƖŨɆėŝİëİėƖɆ
ǂļƢķɆƢķėɆƎėŒėǁëŝƢɆƎėİƪŒëƢŨƎLjɆĈŨĐļėƖɆļŝɆ
ƋƎŨśŨƢļŝİɆŒļĉėŝƖļŝİɆƖŨŒƪƢļŨŝƖɆƢķëƢɆƋƎŨǁļĐėɆ
ĉŨśśėƎĉļ댌LjɆǁļëĈŒėɆŨƋƋŨƎƢƪŝļƢļėƖɆįŨƎɆ
ƎėƖƋŨŝƖļĈŒėɆŨŝŒļŝėɆİëśļŝİɆŨƋėƎëƢŨƎƖșɆ
¡ėİƪŒëƢŨƎLjɆƪƋĐëƢėƖɆëƎėɆƋƎŨǁļĐėĐɆŨŝɆ
ëɆǂėėŏŒLjɆĈëƖļƖɆƢŨɆƖėŝļŨƎɆśëŝëİėśėŝƢɆ
ǂļƢķɆƪƋĐëƢėƖɆƋƎŨǁļĐėĐɆƢŨɆƢķėɆŨëƎĐɆ
ėëĉķɆśŨŝƢķɆëŝĐɆĐļƖĉƪƖƖėĐɆëƢɆėǁėƎLjɆ
ŨëƎĐɆśėėƢļŝİșɆ
Strategic relevance
ÕķļŒƖƢɆĉķëŝİļŝİɆƎėİƪŒëƢŨƎLjɆëŝĐɆƢëLJɆ
ƎėİļśėƖɆŨįįėƎɆŨƋƋŨƎƢƪŝļƢļėƖɆƢŨɆƢķėɆEƎŨƪƋɆ
ëƖɆǂėŒŒɆëƖɆƋŨƖļŝİɆƎļƖŏƖȚɆëɆƖļİŝļǘĉëŝƢɆ
ëĐǁėƎƖėɆĉķëŝİėɆļŝɆŌƪƎļƖĐļĉƢļŨŝƖɆļŝɆ
ǂķļĉķɆƢķėɆEƎŨƪƋɆŨƋėƎëƢėƖɆĉŨƪŒĐɆķëǁėɆëɆ
ƖļİŝļǘĉëŝƢɆļśƋëĉƢɆŨŝɆƢķėɆEƎŨƪƋȼƖɆįƪƢƪƎėɆ
ƋƎŨǘƢëĈļŒļƢLjɆëŝĐɆĉëƖķɆİėŝėƎëƢļŨŝș
QŝɆëĐĐļƢļŨŝȚɆĉķëŝİėƖɆļŝɆƎėİƪŒëƢļŨŝɆśëLjɆ
ƎėƍƪļƎėɆƢķėɆEƎŨƪƋɆƢŨɆĉķëŝİėɆƋƎŨĉėĐƪƎėƖɆ
ëŝĐɆƋŨŒļĉļėƖɆļŝɆŨƎĐėƎɆƢŨɆëĐķėƎėɆƢŨɆ
ļƢƖɆĉŨśśļƢśėŝƢɆŨįɆƎėƖƋŨŝƖļĈļŒļƢLjɆ
ëŝĐɆƖƪƖƢëļŝëĈļŒļƢLjș
Link to strategic objective: ǤȚǥȚǦɆʁɆǨ
Data Breach
and Cyber Security
ķļėįɆ{ƋėƎëƢļŝİɆ{įǘĉėƎɆëŝĐɆ
ķļėįɆ¶ėĉķŝŨŒŨİLjɆ{įǘĉėƎ
Risk category
¶ėĉķŝŨŒŨİLj
dėİëŒɆëŝĐɆƎėİƪŒëƢŨƎLj
¡ėƋƪƢëƢļŨŝëŒ
DļŝëŝĉļëŒ
Impact: Lļİķ
Likelihood: Lļİķ
Oversight:ɆƪĐļƢɆŨśśļƢƢėė
Laws, Regulations,
Licensing and
Regulatory Compliance
ķļėįɆEŨǁėƎŝëŝĉėɆ{įǘĉėƎ
Risk category
ŨśśėƎĉļëŒ
dėİëŒɆëŝĐɆƎėİƪŒëƢŨƎLj
¡ėƋƪƢëƢļŨŝëŒ
DļŝëŝĉļëŒ
Impact: Lļİķ
Likelihood: nėĐļƪś
Oversight: ŨëƎĐ
81
Overview
|
Strategic report
|
Governance
|
Financial statements
Entain plc
|
Annual Report 2021
Key: ¡ļƖŏɆļŝĉƎėëƖėĐ ¡ļƖŏɆĐėĉƎėëƖėĐ ¡ļƖŏɆƖƢëƢļĉ pėǂɆƎļƖŏ
Technology Failure
ķļėįɆ{ƋėƎëƢļŝİɆ{įǘĉėƎɆëŝĐɆ
ķļėįɆ¶ėĉķŝŨŒŨİLjɆ{įǘĉėƎ
Risk category
¶ėĉķŝŨŒŨİLj
dėİëŒɆëŝĐɆƎėİƪŒëƢŨƎLj
¡ėƋƪƢëƢļŨŝëŒ
DļŝëŝĉļëŒ
Impact: Lļİķ
Likelihood: dŨǂ
Oversight:ɆƪĐļƢɆŨśśļƢƢėė
Principal Risk/Uncertainty
¶ķėɆEƎŨƪƋȼƖɆŨƋėƎëƢļŨŝƖɆëƎėɆķļİķŒLjɆ
ĐėƋėŝĐėŝƢɆŨŝɆƢėĉķŝŨŒŨİLjɆëŝĐɆëĐǁëŝĉėĐɆ
ļŝįŨƎśëƢļŨŝɆƖLjƖƢėśƖɆëŝĐɆƢķėƎėɆļƖɆëɆ
ƎļƖŏɆƢķëƢɆƖƪĉķɆƢėĉķŝŨŒŨİLjɆŨƎɆƖLjƖƢėśƖɆ
ĉŨƪŒĐɆįëļŒș
QŝɆƋëƎƢļĉƪŒëƎȚɆëŝLjɆĐëśëİėɆƢŨȚɆŨƎɆ
įëļŒƪƎėɆŨįɆŨŝŒļŝėɆƖLjƖƢėśƖɆëŝĐɆƖėƎǁėƎƖȚɆ
ėŒėĉƢƎŨŝļĉɆƋŨļŝƢɆŨįɆƖëŒėɆƖLjƖƢėśƖɆëŝĐɆ
ėŒėĉƢƎŨŝļĉɆĐļƖƋŒëLjɆƖLjƖƢėśƖɆĉŨƪŒĐɆƎėƖƪŒƢɆ
ļŝɆļŝƢėƎƎƪƋƢļŨŝƖɆƢŨɆƢƎëĐļŝİɆëŝĐɆĉƪƖƢŨśėƎɆ
ƖėƎǁļĉėɆƖLjƖƢėśƖș
How we manage and mitigate the risk
¶ķėɆEƎŨƪƋȼƖɆƢėĉķŝŨŒŨİLjɆƎėƖļŒļėŝĉėɆŒėǁėŒƖɆ
ëƎėɆśëƢƪƎėȚɆėƖƢëĈŒļƖķėĐɆëŝĐɆƖƪƋƋŨƎƢėĐɆ
ĈLjɆƎŨĈƪƖƢɆŨƋėƎëƢļŨŝëŒɆƋƎŨĉėĐƪƎėƖɆëŝĐɆ
ĈƪƖļŝėƖƖɆĉŨŝƢļŝƪļƢLjɆƋŒëŝƖșɆ
ŒŒɆĉƎļƢļĉëŒɆƎėǁėŝƪėɆİėŝėƎëƢļŝİɆƖLjƖƢėśƖɆ
ëƎėɆĈƪļŒƢɆƢŨɆśļƖƖļŨŝɆĉƎļƢļĉëŒɆëŝĐɆķļİķɆ
ëǁëļŒëĈļŒļƢLjɆƖƢëŝĐëƎĐƖɆǂļƢķɆ댌ɆŨƋėƎëƢļŨŝëŒɆ
ĐëƢëɆëĉƎŨƖƖɆƢķėɆėĉŨƖLjƖƢėśɆƋƎŨƢėĉƢėĐȚɆ
ƎėƋŒļĉëƢėĐȚɆëŝĐɆƖëįėİƪëƎĐėĐșɆ
ƖɆƋëƎƢɆŨįɆƢķėɆEƎŨƪƋȼƖɆƢėĉķŝŨŒŨİLjɆ
ƖƢƎëƢėİLjɆëŝĐɆŨĈŌėĉƢļǁėƖɆǂėɆëƎėɆ
ĉŨŝƢļŝƪŨƪƖŒLjɆėŝķëŝĉļŝİɆŨƪƎɆƋƎŨĉėƖƖėƖɆ
ëŝĐɆśëŏļŝİɆįƪƎƢķėƎɆļśƋƎŨǁėśėŝƢƖɆ
ëŝĐȚɆǂķėƎėɆŝėĉėƖƖëƎLjȚɆƢŨɆëƪƢŨśëƢėɆ
ƢķėɆEƎŨƪƋȼƖɆįƪŒŒɆİėŨİƎëƋķļĉëŒɆĐļƖëƖƢėƎɆ
ƎėĉŨǁėƎLjɆĉëƋëĈļŒļƢLjș
Strategic relevance
©ļİŝļǘĉëŝƢɆƢėĉķŝŨŒŨİLjɆįëļŒļŝİƖɆŨƎɆ
ƋƎŨĐƪĉƢɆŨƪƢëİėɆļƖɆŒļŏėŒLjɆƢŨɆļśƋëĉƢɆƢķėɆ
EƎŨƪƋȼƖɆëĈļŒļƢLjɆƢŨɆëƢƢƎëĉƢɆëŝĐɆƎėƢëļŝɆƢķėɆ
ĉƪƖƢŨśėƎƖɆƎėƍƪļƎėĐɆƢŨɆĐėŒļǁėƎɆƢķėɆEƎŨƪƋȼƖɆ
İƎŨǂƢķɆƖƢƎëƢėİLjșɆ
Link to strategic objective: ŒŒɆŨĈŌėĉƢļǁėƖ
Principal Risk/Uncertainty
¶ķėɆEƎŨƪƋɆļƖɆƖƪĈŌėĉƢɆƢŨɆëɆƎëŝİėɆŨįɆ
ƢëLJėƖȚɆĐƪƢļėƖɆëŝĐɆŒėǁļėƖɆļŝɆśëŝLjɆŨįɆƢķėɆ
ĉŨƪŝƢƎļėƖɆǂķėƎėɆǂėɆķëǁėɆŨƋėƎëƢļŨŝƖɆ
ŨƎɆļŝɆǂķļĉķɆŨƪƎɆĉƪƖƢŨśėƎƖɆëƎėɆŒŨĉëƢėĐșɆ
¶ķėɆƢëLJėƖɆļśƋŨƖėĐɆƪƋŨŝɆĈėƢƢļŝİɆëŝĐɆ
İëśļŝİɆĉŨśƋëŝļėƖɆķëǁėɆĉķëŝİėĐɆŨǁėƎɆ
ƢļśėɆëŝĐɆĉŨŝƢļŝƪėɆƢŨɆĉķëŝİėșɆQŝɆëĐĐļƢļŨŝɆ
ƢŨɆĉķëŝİļŝİɆƢëLJėƖȚɆİļǁėŝɆƢķėɆEƎŨƪƋȼƖɆ
İėŨİƎëƋķļĉëŒɆĐļǁėƎƖļƢLjȚɆƢķėɆŝëƢƪƎėɆŨįɆ
ƢëLJɆëįįëļƎƖɆĉëŝɆĈėɆĉŨśƋŒļĉëƢėĐɆǂļƢķɆ
ĐļįįėƎļŝİɆŒėİëŒɆļŝƢėƎƋƎėƢëƢļŨŝɆƎėİëƎĐļŝİɆ
ƢķėɆƖĉŨƋėɆëŝĐɆƖĉëŒėɆŨįɆƢëLJëƢļŨŝșɆŨƢķɆŨįɆ
ƢķėƖėɆįëĉƢŨƎƖɆśėëŝɆƢķėɆŒėǁėŒƖɆŨįɆƢëLJëƢļŨŝɆ
ƢŨɆǂķļĉķɆƢķėɆEƎŨƪƋɆļƖɆėLJƋŨƖėĐɆƢŨɆśëLjɆ
ĉķëŝİėɆļŝɆƢķėɆįƪƢƪƎėș
How we manage and mitigate the risk
¶ķėɆEƎŨƪƋȼƖɆƢëLJɆƖƢƎëƢėİLjɆļƖɆëƋƋƎŨǁėĐɆ
ëŝŝƪ댌LjɆĈLjɆƢķėɆŨëƎĐɆŨįɆ$ļƎėĉƢŨƎƖșɆ
¡ėƖƋŨŝƖļĈļŒļƢLjɆįŨƎɆƢķėɆėLJėĉƪƢļŨŝɆŨįɆƢķėɆ
EƎŨƪƋȼƖɆƢëLJɆƖƢƎëƢėİLjɆļƖɆĐėŒėİëƢėĐɆƢŨɆƢķėɆ
ķļėįɆDļŝëŝĉļëŒɆ{įǘĉėƎɆǂķŨɆƎėƋŨƎƢƖɆƢķėɆ
EƎŨƪƋȼƖɆƢëLJɆƋŨƖļƢļŨŝɆƢŨɆƢķėɆŨëƎĐɆŨŝɆëɆ
ƎėİƪŒëƎɆĈëƖļƖș
QŝɆŨƎĐėƎɆƢŨɆśļƢļİëƢėɆƢëLJɆƎļƖŏƖɆƢķëƢɆëƎļƖėȚɆ
ƢķėɆEƎŨƪƋɆëĉƢļǁėŒLjɆļĐėŝƢļǘėƖȚɆėǁëŒƪëƢėƖȚɆ
śëŝëİėƖɆëŝĐɆśŨŝļƢŨƎƖɆļƢƖɆƢëLJɆƎļƖŏƖɆëŝĐɆ
ƢķėɆİėŨİƎëƋķļėƖɆļŝɆǂķļĉķɆļƢɆŨƋėƎëƢėƖșɆ
¶ķėɆEƎŨƪƋɆķëƖɆëŝɆëƋƋƎŨƋƎļëƢėŒLjɆƍƪëŒļǘėĐɆ
ëŝĐɆƎėƖŨƪƎĉėĐɆƢëLJɆƢėëśɆƢŨɆśëŝëİėɆļƢƖɆ
ƢëLJɆëįįëļƎƖș
QŝɆëĐĐļƢļŨŝȚɆǂķėƎėɆƢķėƎėɆļƖɆƖļİŝļǘĉëŝƢɆ
ƪŝĉėƎƢëļŝƢLjɆŨƎɆĉŨśƋŒėLJļƢLjɆļŝɆƎėŒëƢļŨŝɆƢŨɆëɆ
ƢëLJɆƎļƖŏȚɆƢķėɆEƎŨƪƋɆśëLjɆƪƖėɆƢķėɆƖėƎǁļĉėƖɆ
ŨįɆėLJƢėƎŝëŒȚɆėLJƋėƎƢɆƢëLJɆëĐǁļƖŨƎƖș
Strategic relevance
ĐǁėƎƖėɆĉķëŝİėƖɆļŝɆƢķėɆƢëLJɆƎėİļśėƖɆļŝɆƢķėɆ
ŌƪƎļƖĐļĉƢļŨŝƖɆļŝɆǂķļĉķɆƢķėɆEƎŨƪƋɆŨƋėƎëƢėƖȚɆ
ŨƎɆëɆƖļİŝļǘĉëŝƢɆƢëLJɆëƖƖėƖƖśėŝƢȚɆśëLjɆ
ļśƋëĉƢɆŨƪƎɆƋƎŨǘƢëĈļŒļƢLjɆëŝĐɆĉëƖķɆƋŨƖļƢļŨŝș
Link to strategic objective: ǤȚǥɆʁɆǦ
Taxes
ķļėįɆDļŝëŝĉļëŒɆ{įǘĉėƎɆëŝĐɆ$ļƎėĉƢŨƎɆ
ŨįɆ¶ëLJȚɆ¶ƎėëƖƪƎLjɆëŝĐɆQŝƖƪƎëŝĉė
Risk category
ŨśśėƎĉļëŒ
dėİëŒɆëŝĐɆƎėİƪŒëƢŨƎLj
DļŝëŝĉļëŒ
Impact: nėĐļƪś
Likelihood: Lļİķ
Oversight:ɆƪĐļƢɆŨśśļƢƢėė
Principal Risks ĉŨŝƢļŝƪėĐ
Principal Risk/Uncertainty
,įįėĉƢļǁėɆėLJėĉƪƢļŨŝɆŨįɆėƢnEnȼƖɆ
ƖƢƎëƢėİLjɆļŝɆƢķėɆ½©ɆļƖɆŏėLjɆƢŨɆƢķėɆEƎŨƪƋȼƖɆ
İƎŨǂƢķɆįŨƎėĉëƖƢƖșɆQŝėįįėĉƢļǁėɆėLJėĉƪƢļŨŝɆ
ŨįɆƢķėɆƖƢƎëƢėİLjɆśëLjɆļśƋëĉƢɆƢķėɆEƎŨƪƋȼƖɆ
ëśĈļƢļŨŝɆŨįɆŒėëĐėƎƖķļƋɆļŝɆƢķėɆ½©ɆëŝĐɆ
ŨƋƋŨƎƢƪŝļƢļėƖɆįŨƎɆpE¡ɆİƎŨǂƢķɆļŝɆëŒƎėëĐLjɆ
ƎėİƪŒëƢėĐɆƖƢëƢėƖɆëŝĐɆŝėǂɆƖƢëƢėƖɆëƖɆ
ƢķėLjɆƎėİƪŒëƢėș
How we manage and mitigate the risk
ŝɆėLJƋėƎļėŝĉėĐɆśëŝëİėśėŝƢɆƢėëśɆķëƖɆ
ĈėėŝɆėƖƢëĈŒļƖķėĐɆǂļƢķļŝɆėƢnEnɆǂķļĉķɆ
ķëƖɆėLJƢėŝƖļǁėɆėLJƋėƎļėŝĉėɆŨįɆĈŨƢķɆƢķėɆ½©Ɇ
ëŝĐɆƢķėɆĈėƢƢļŝİɆëŝĐɆİëśļŝİɆļŝĐƪƖƢƎLjșɆ
¶ķļƖɆŒŨĉëŒɆśëŝëİėśėŝƢɆƢėëśɆķëƖɆĈėėŝɆ
ƖƪƋƋŒėśėŝƢėĐɆĈLjɆëŝɆėLJƋėƎļėŝĉėĐɆŨëƎĐɆ
ŨįɆļŝĐƪƖƢƎLjɆëŝĐɆ½©ɆƖƋėĉļëŒļƖƢƖɆįƎŨśɆĈŨƢķɆ
,ŝƢëļŝɆëŝĐɆnEnɆ¡ėƖŨƎƢƖșɆ
QŝɆëĐĐļƢļŨŝȚɆƢķėɆėƢnEnɆĈƪƖļŝėƖƖɆķëƖɆ
ëĉĉėƖƖɆƢŨɆƢķėɆƖƋėĉļëŒļƖƢɆƎėƖŨƪƎĉėƖɆļŝɆ
ļƢƖɆƋëƎėŝƢɆėŝƢļƢļėƖɆëƖɆǂėŒŒɆëƖɆŒėëĐļŝİɆ
ƋƎŨįėƖƖļŨŝëŒɆëĐǁļƖėƎƖșɆ¶ķļƖɆƖƢƎƪĉƢƪƎėɆ
ļƖɆļŝƢėŝĐėĐɆƢŨɆėŝƖƪƎėɆƢķëƢɆėƢnEnɆ
ķëƖɆėǁėƎLjɆĉķëŝĉėɆŨįɆƖƪĉĉėƖƖɆļŝɆƢķėɆ
½©ȚɆëɆśëƎŏėƢɆļŝɆǂķļĉķɆļƢɆķëƖɆëŒƎėëĐLjɆ
ėƖƢëĈŒļƖķėĐɆļƢƖėŒįɆëƖɆŨŝėɆŨįɆƢķėɆśëƎŏėƢɆ
ŒėëĐėƎƖɆëŝĐɆįëƖƢėƖƢɆİƎŨǂļŝİɆŨƋėƎëƢŨƎƖș
Strategic relevance
QŝėįįėĉƢļǁėɆėLJėĉƪƢļŨŝɆŨįɆƢķėɆ½©ɆƖƢƎëƢėİLjɆ
ĉŨƪŒĐɆļśƋëĉƢɆƢķėɆEƎŨƪƋȼƖɆİƎŨǂƢķɆ
ëśĈļƢļŨŝƖɆëŝĐɆƢķėɆėįǘĉļėŝĉLjɆŨįɆƢķėɆ
ĐėƋŒŨLjśėŝƢɆŨįɆĉëƋļƢëŒș
Link to strategic objective: Ǥ
ėƢnEnɆëŝĐɆ½©ɇ©ƢƎëƢėİLjɇ
ķļėįɆDļŝëŝĉļëŒɆ{įǘĉėƎɆëŝĐɆ
ķļėįɇ{ƋėƎëƢļŝİɇ{įǘĉėƎ
Risk category
©ƢƎëƢėİļĉ
ŨśśėƎĉļëŒ
DļŝëŝĉļëŒ
Impact: Lļİķ
Likelihood: dŨǂ
Oversight:ɆŨëƎĐ
Entain plc
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Annual Report 2021
82
Strategic report
Principal Risk/Uncertainty
¶ķėɆEƎŨƪƋɆļƖɆƖƪĈŌėĉƢɆƢŨɆĉėƎƢëļŝɆ
ëƎƎëŝİėśėŝƢƖɆļŝƢėŝĐėĐɆƢŨɆƖƪƋƋŨƎƢɆƢķėɆ
ĉƪƖƢŨśėƎɆŨįįėƎļŝİșɆ,LJëśƋŒėƖɆëƎėɆƢķėɆ
ķŨƎƖėƎëĉļŝİɆëŝĐɆƢķėɆǁŨŒƪŝƢëƎLjɆİƎėLjķŨƪŝĐɆ
ƎëĉļŝİɆŒėǁļėƖȚɆĐëƢëɆëŝĐɆĉŨŝƢėŝƢɆƖƪƋƋŒLjȚɆ
ëŝĐɆƢķėɆƋƎŨǁļƖļŨŝɆŨįɆśëƎŏėƢļŝİɆƖėƎǁļĉėƖșɆ
¶ķėɆĉŨśĈļŝėĐɆĉŨƖƢɆŨįɆƢķėƖėɆƢķļƎĐȯƋëƎƢLjɆ
ƖėƎǁļĉėƖɆļƖɆśëƢėƎļëŒɆëŝĐɆƢķėLjɆĉŨŒŒėĉƢļǁėŒLjɆ
ķëǁėɆëɆƖļİŝļǘĉëŝƢɆļśƋëĉƢɆŨŝɆƢķėɆ
ƋƎŨǘƢëĈļŒļƢLjɆįŨƎɆƢķėɆĈƪƖļŝėƖƖɆİŒŨĈ댌Ljș
ɆŝƪśĈėƎɆŨįɆƢķėɆĉŨŝƢƎëĉƢƖɆƢķëƢɆƪŝĐėƎƋļŝɆ
ƢķėɆƋƎŨǁļƖļŨŝɆŨįɆƢķļƎĐȯƋëƎƢLjɆƖėƎǁļĉėƖɆ
ëƎėɆƪŝĐėƎɆŝėİŨƢļëƢļŨŝɆëƢɆëŝLjɆŨŝėɆƢļśėșɆ
¶ķėɆƋƎļĉļŝİɆŨįɆƢķėƖėɆƖėƎǁļĉėƖɆļƖɆëŒƖŨɆ
ƖƪĈŌėĉƢɆƢŨɆļŝǙëƢļŨŝëƎLjɆĉŨƖƢɆļŝĉƎėëƖėƖɆ
ëŝĐɆĉëŝɆëŒƖŨɆĈėɆǁŨŒëƢļŒėɆĈëƖėĐɆŨŝɆƢķėɆ
ĉķëŝİėëĈŒėɆĈƪƖļŝėƖƖɆėŝǁļƎŨŝśėŝƢɆƢķëƢɆ
śëŝLjɆŨįɆŨƪƎɆƖƪƋƋŒļėƎƖɆŨƋėƎëƢėș
How we manage and mitigate the risk
©ėŝļŨƎɆśëŝëİėśėŝƢɆėŝİëİėƖɆƎėİƪŒëƎŒLjɆ
ǂļƢķɆƢķėɆƎėŒėǁëŝƢɆƢƎëĐėɆëƖƖŨĉļëƢļŨŝƖɆ
ëŝĐɆƢķėɆƋƎļŝĉļƋëŒɆĈŨĐļėƖɆŨįɆƖƋŨƎƢɆëŝĐɆ
ėǁėŝƢɆļŝĐƪƖƢƎļėƖɆǂļƢķɆƎėİëƎĐɆƢŨɆƖƋŨƎƢƖɆ
ƎļİķƢƖɆƋëLjśėŝƢƖȚɆļŝĉŒƪĐļŝİɆƢķėɆƖƢëƢƪƢŨƎLjɆ
ķŨƎƖėɆƎëĉļŝİɆŒėǁLjȚɆëŝļśëŒɆǂėŒįëƎėɆëŝĐɆ
ŨƢķėƎɆļƖƖƪėƖș
ĉƎŨƖƖɆƢķėɆǂļĐėƎɆƖƪƋƋŒļėƎɆĈëƖėȚɆëɆĉėŝƢƎëŒɆ
ƋƎŨĉƪƎėśėŝƢɆįƪŝĉƢļŨŝɆëŝĐɆĉŨƖƢɆŨǁėƎƖļİķƢɆ
ƋƎŨĉėƖƖėƖɆėLJļƖƢɆƢŨɆėŝƖƪƎėɆƢķëƢɆƋƎļĉļŝİɆļƖɆ
ėįįėĉƢļǁėŒLjɆĉŨŝƢƎŨŒŒėĐɆĈŨƢķɆëƢɆĉŨŝƢƎëĉƢɆ
ƖƢëİėɆëŝĐɆŨŝɆëŝɆŨŝİŨļŝİɆĈëƖļƖș
Strategic relevance
nëƢėƎļëŒɆļŝĉƎėëƖėƖɆļŝɆƢķėɆĉŨƖƢɆŨįɆ
ĉŨŝƢėŝƢɆśëLjɆļŝĉƎėëƖėɆƢķėɆŨƋėƎëƢļŝİɆ
ĉŨƖƢƖɆëƢɆķļİķėƎɆƢķëŝɆëŝƢļĉļƋëƢėĐɆŒėǁėŒƖɆ
ļśƋëĉƢļŝİɆƋƎŨǘƢƖș
Link to strategic objective: ǥ
Increased
Cost Of Product
ķļėįɆ{ƋėƎëƢļŝİɆ{įǘĉėƎ
Risk category
ŨśśėƎĉļëŒ
DļŝëŝĉļëŒ
Impact: nėĐļƪś
Likelihood: nėĐļƪś
Oversight: ŨëƎĐ
Principal Risk/Uncertainty
©ëįėƎɆĈėƢƢļŝİɆëŝĐɆİëśļŝİɆļƖɆëƢɆƢķėɆĉėŝƢƎėɆ
ŨįɆėǁėƎLjƢķļŝİɆƢķëƢɆ,ŝƢëļŝɆĐŨėƖșɆQƢɆļƖɆƢķėɆ
ĉŨƎŝėƎƖƢŨŝėɆŨįɆŨƪƎɆ©ƪƖƢëļŝëĈļŒļƢLjɆķëƎƢėƎȚɆ
ëŝĐɆŨƪƎɆśŨƖƢɆśëƢėƎļëŒɆ,©EɆļƖƖƪėɆļƖɆƢŨɆ
ėŝƖƪƎėɆƢķėɆķļİķėƖƢɆƋŨƖƖļĈŒėɆŒėǁėŒƖɆŨįɆ
ƋŒëLjėƎɆƖëįėƢLjɆëŝĐɆƋƎŨƢėĉƢļŨŝșɆDëļŒƪƎėɆƢŨɆ
ëĐėƍƪëƢėŒLjɆƋƎŨƢėĉƢɆŨƪƎɆĉƪƖƢŨśėƎƖɆĉŨƪŒĐɆ
ļśƋëĉƢɆŨƪƎɆëĈļŒļƢLjɆƢŨɆŨįįėƎɆƋƎŨĐƪĉƢƖɆëŝĐɆ
ĈƪļŒĐɆëɆƖƪƖƢëļŝëĈŒėɆĈƪƖļŝėƖƖșɆ
How we manage and mitigate the risk
ÕėɆŏŝŨǂɆƢķëƢɆŨŝŒLjɆëɆƎėƖƋŨŝƖļĈŒėɆ
ĈƪƖļŝėƖƖɆĉëŝɆĈėɆëɆƖƪƖƢëļŝëĈŒėɆŨŝėɆ
ǂķļĉķɆļƖɆǂķLjɆǂėɆĉŨŝƢļŝƪėɆƢŨɆļŝǁėƖƢɆļŝɆ
ŨƪƎɆ©ƪƖƢëļŝëĈļŒļƢLjɆķëƎƢėƎɆëƖɆĐėƢëļŒėĐɆŨŝɆ
ƋëİėɆǧǣɆŨįɆƢķėɆ¡ėƋŨƎƢșɆ
{ŝėɆŨįɆƢķėɆŏėLjɆƋļŒŒëƎƖɆŨįɆƢķļƖɆĉķëƎƢėƎɆļƖɆ
ŨƪƎɆĐǁëŝĉėĐɆ¡ėƖƋŨŝƖļĈļŒļƢLjɆëŝĐɆëƎėʆɆ
ȩȹ¡ʆ
Ⱥ
ȪɆƋƎŨİƎëśśėșɆ¡ʆɆļƖɆëŝɆ
ļŝƢėŒŒļİėŝƢɆëŝĐɆļŝŝŨǁëƢļǁėɆƋŒëƢįŨƎśɆƢķëƢɆ
ƪƖėƖɆĈėķëǁļŨƪƎëŒɆļŝƖļİķƢɆëŝĐɆƎėƖėëƎĉķȚɆ
ĐëƢëɆƖĉļėŝĉėɆëŝĐɆëŝëŒLjƢļĉƖɆƢŨɆëƖƖėƖƖɆƎļƖŏɆ
ļŝɆƋŒëLjȚɆėŝëĈŒļŝİɆƪƖɆƢŨɆļĐėŝƢļįLjȚɆļŝƢėƎëĉƢɆ
ëŝĐɆļŝƢėƎǁėŝėɆėëƎŒLjɆǂļƢķɆĉƪƖƢŨśėƎƖȚɆ
ǂķŨɆƖķŨǂɆƖļİŝƖɆŨįɆİëśĈŒļŝİȯƎėŒëƢėĐɆ
ķëƎśșɆ¶ķļƖɆļƖɆĉŨƪƋŒėĐɆǂļƢķɆëɆƎëŝİėɆŨįɆ
ļŝļƢļëƢļǁėƖɆļŝɆƢķėɆëƎėëɆŨįɆƋŒëLjėƎɆƋƎŨƢėĉƢļŨŝȚɆ
ļŝĉŒƪĐļŝİɆëɆɏǨśɆëĉëĐėśļĉɆƎėƖėëƎĉķɆ
ƋëƎƢŝėƎƖķļƋɆǂļƢķɆƢķėɆLëƎǁëƎĐɆnėĐļĉëŒɆ
©ĉķŨŨŒȚɆƢŨɆƪŝĐėƎƖƢëŝĐɆƢķėɆĉëƪƖėƖɆëŝĐɆ
ĉŨŝƖėƍƪėŝĉėƖɆŨįɆƋƎŨĈŒėśɆİëśĈŒļŝİȚɆ
ëŝĐɆĐŨŝëƢļŝİɆƪƋɆƢŨɆǤɼɆŨįɆŨƪƎɆEEÛɆƢŨɆƢķėɆ
ƢƎėëƢśėŝƢɆŨįɆİëśĈŒļŝİɆƎėŒëƢėĐɆļƖƖƪėƖșɆ
Strategic relevance
¶ķėɆ,ŝƢëļŝɆƖƢƎëƢėİLjɆļƖɆįŨƪŝĐėĐɆŨŝɆķëǁļŝİɆ
ëɆƖƪƖƢëļŝëĈŒėɆĈƪƖļŝėƖƖɆǂķļĉķɆƋƎŨǁļĐėƖɆ
ëŝɆėŝƢėƎƢëļŝļŝİɆëŝĐɆƖëįėɆėŝǁļƎŨŝśėŝƢɆ
įŨƎɆĉƪƖƢŨśėƎƖɆƢŨɆėŝŌŨLjɆŨƪƎɆƋƎŨĐƪĉƢƖșɆ
ŝɆļŝëĈļŒļƢLjɆƢŨɆëĐėƍƪëƢėŒLjɆƋƎŨƢėĉƢɆŨƪƎɆ
ĉƪƖƢŨśėƎƖɆǂŨƪŒĐɆįƪŝĐëśėŝƢ댌LjɆļśƋëĉƢɆ
ŨƪƎɆëĈļŒļƢLjɆƢŨɆëĉķļėǁėɆŨƪƎɆƖƢƎëƢėİļĉɆİŨëŒƖșɆ
¶ķėƖėɆļŝĉŒƪĐėɆĈėļŝİɆƢķėɆśŨƖƢɆƎėƖƋŨŝƖļĈŒėɆ
ŨƋėƎëƢŨƎȚɆƢëŏļŝİɆëɆƖĉļėŝƢļǘĉɆŒėĐɆëƋƋƎŨëĉķɆ
ƢŨɆƋŒëLjėƎɆƋƎŨƢėĉƢļŨŝɆëŝĐɆŨŝŒLjɆŨƋėƎëƢļŝİɆļŝɆ
ƎėİƪŒëƢėĐɆśëƎŏėƢƖɆĈLjɆƢķėɆėŝĐɆŨįɆǥǣǥǦșɆ
Link to strategic objective: 6
Safer Betting and Gaming
ķļėįɆ,LJėĉƪƢļǁėɆ{įǘĉėƎ
Risk category
{ƋėƎëƢļŨŝëŒ
¡ėƋƪƢëƢļŨŝëŒ
ŨśśėƎĉļëŒ
DļŝëŝĉļëŒ
Impact: Lļİķ
Likelihood: nėĐļƪś
Oversight: ,©EɆŨśśļƢƢėė
83 Overview
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Strategic report
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Governance
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Financial statements
Entain plc
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Annual Report 2021
Key: ¡ļƖŏɆļŝĉƎėëƖėĐ ¡ļƖŏɆĐėĉƎėëƖėĐ ¡ļƖŏɆƖƢëƢļĉ pėǂɆƎļƖŏ
Principal Risks ĉŨŝƢļŝƪėĐ
Principal Risk/Uncertainty
DëļŒƪƎėɆƢŨɆśėėƢɆƢķėɆƎėƍƪļƎėśėŝƢƖɆŨįɆ
ƢķėɆǁëƎļŨƪƖɆĐŨśėƖƢļĉɆëŝĐɆļŝƢėƎŝëƢļŨŝëŒɆ
ƎƪŒėƖɆëŝĐɆƎėİƪŒëƢļŨŝƖɆƎėŒëƢļŝİɆƢŨɆƢķėɆ
ķėëŒƢķɆëŝĐɆƖëįėƢLjɆŨįɆŨƪƎɆėśƋŒŨLjėėƖɆëŝĐɆ
ŨƪƎɆƎėƖƋŨŝƖļĈļŒļƢļėƖɆëŝĐɆĉŨśśļƢśėŝƢƖɆ
ƢŨǂëƎĐƖɆĉƪƖƢŨśėƎƖɆëŝĐɆĉŨśśƪŝļƢļėƖɆ
ĉŨƪŒĐɆėLJƋŨƖėɆƢķėɆŨśƋëŝLjɆƢŨɆśëƢėƎļëŒɆ
ĉļǁļŒȚɆĉƎļśļŝëŒɆëŝĐȦɆŨƎɆƎėİƪŒëƢŨƎLjɆëĉƢļŨŝɆ
ǂļƢķɆƢķėɆëƖƖŨĉļëƢėĐɆǘŝëŝĉļëŒɆëŝĐɆ
ƎėƋƪƢëƢļŨŝëŒɆĉŨŝƖėƍƪėŝĉėƖșɆ
How we manage and mitigate the risk
,ŝƢëļŝȼƖɆ¡ėƢëļŒɆëŝĐɆĐļİļƢëŒɆĈƪƖļŝėƖƖėƖɆķëǁėɆ
ŝƪśėƎŨƪƖɆƋŨŒļĉļėƖɆëŝĐɆƋƎŨĉėĐƪƎėƖɆļŝɆƋŒëĉėșɆ
ŝŝƪëŒɆƢƎëļŝļŝİɆëŝĐɆĉŨśśƪŝļĉëƢļŨŝɆƋŒëŝƖɆ
ƢŨɆ댌ɆƖƢëįįɆǂļƢķļŝɆƢķėƖėɆƖėİśėŝƢƖȚɆëƖɆǂėŒŒɆ
ëƖɆƖƋėĉļǘĉɆĉŨśśƪŝļĉëƢļŨŝƖɆƢŨɆƖƢëįįɆëĉƎŨƖƖɆ
ƢķėɆǂļĐėƎɆEƎŨƪƋɆĉŨŝƢļŝƪėɆƢŨɆƢëŏėɆƋŒëĉėșɆ
¶ķėɆEƎŨƪƋȼƖɆ,©EɆŨśśļƢƢėėɆëŒƖŨɆŨǁėƎƖėėɆ
댌ɆëƖƋėĉƢƖɆŨįɆLėëŒƢķȚɆ©ëįėƢLjȚɆ©ėĉƪƎļƢLjɆëŝĐɆ
,ŝǁļƎŨŝśėŝƢëŒɆȩȹL©©,ȺȪɆƋƎëĉƢļĉėƖșɆ
ÕėɆƋƎŨǁļĐėɆëɆĉëƎļŝİɆëŝĐɆƖƪƋƋŨƎƢļǁėɆ
ėŝǁļƎŨŝśėŝƢɆįŨƎɆŨƪƎɆĉŨŒŒėëİƪėƖɆëŝĐɆƢëŏėɆ
ƢķėļƎɆǂėŒįëƎėɆƖėƎļŨƪƖŒLjșɆ
QŝɆëĐĐļƢļŨŝɆƢŨɆƎļǁëƢėɆnėĐļĉëŒɆƖƪƋƋŨƎƢɆ
ëǁëļŒëĈŒėɆįŨƎɆśëŝLjɆĉŨŒŒėëİƪėƖȚɆǂėɆƋƎŨǁļĐėɆ
śėŝƢëŒɆķėëŒƢķɆƖƪƋƋŨƎƢɆįŨƎɆŨƪƎɆƋėŨƋŒėɆ
ǁļëɆŨƪƎɆİŒŨĈëŒɆėśƋŒŨLjėėɆëƖƖļƖƢëŝĉėɆ
ƋƎŨİƎëśśėȚɆǂėŒŒĈėļŝİɆëƋƋɆëŝĐɆǁëƎļŨƪƖɆ
ǂėŒŒĈėļŝİɆļŝļƢļëƢļǁėƖɆƎƪŝɆƢķƎŨƪİķŨƪƢɆ
ƢķėɆLjėëƎș
ƖɆëɆŒëƎİėɆĉŨƎƋŨƎëƢėɆǂėɆëŒƖŨɆƎėĉŨİŝļƖėɆŨƪƎɆ
ļśƋëĉƢɆŨŝɆƖŨĉļėƢLjɆëŝĐɆŒŨĉëŒɆĉŨśśƪŝļƢļėƖɆ
ëŝĐɆëƖɆƋëƎƢɆŨįɆƢķėɆ,ŝƢëļŝɆDŨƪŝĐëƢļŨŝɆǂėɆ
ķëǁėɆĉŨśśļƢƢėĐɆƢŨɆĐŨŝëƢļŝİɆɞǤǣǣśɆŨǁėƎɆ
ǘǁėɇLjėëƎƖɆƢŨɆǥǣǥǨșɆ
Strategic relevance
ƎėëĉķėƖɆļŝɆƢķėɆEƎŨƪƋȼƖɆL©©,ɆëŝĐɆƖëįėƎɆ
İëśĈŒļŝİɆƋŨŒļĉļėƖɆĉŨƪŒĐɆŒėëĐɆƢŨɆĉƎļśļŝëŒȚɆ
ĉļǁļŒɆëŝĐɆŨƎɆƎėİƪŒëƢŨƎLjɆƖëŝĉƢļŨŝƖȚɆëŒŨŝİɆ
ǂļƢķɆƖļİŝļǘĉëŝƢɆƎėƋƪƢëƢļŨŝëŒɆĐëśëİėɆëŝĐɆ
ŝėİëƢļǁėɆļśƋŒļĉëƢļŨŝƖɆŨŝɆėśƋŒŨLjėėɆśŨƎëŒėɆ
ëŝĐɆĉƪƖƢŨśėƎɆİŨŨĐǂļŒŒș
DëļŒƪƎėɆƢŨɆƋƎŨƢėĉƢɆŨƪƎɆĉƪƖƢŨśėƎƖɆëŝĐɆ
ėśƋŒŨLjėėƖɆśëLjɆƎėƖƪŒƢɆļŝɆ,ŝƢëļŝɆŝŨƢɆ
ëĉķļėǁļŝİɆŨƪƎɆƖƢƎëƢėİļĉɆëļśɆŨįɆĈėļŝİɆëɆ
ƎėƖƋŨŝƖļĈŒėɆŨƋėƎëƢŨƎɆŨƎɆƢķėɆĈėƖƢɆƋŒëĉėɆƢŨɆ
ǂŨƎŏșɆpŨƢɆŨŝŒLjɆǂļŒŒɆƢķļƖɆŒėëĐɆƢŨɆëɆƎėĐƪĉƢļŨŝɆ
ļŝɆƢķėɆƍƪëŒļƢLjɆŨįɆĉŨŒŒėëİƪėƖɆĈƪƢɆëŒƖŨɆŨƪƎɆ
ëĈļŒļƢļėƖɆƢŨɆƎėĉƎƪļƢɆëŝĐɆƎėƢëļŝɆƢķėɆƢëŒėŝƢɆŨįɆ
ƢķėɆįƪƢƪƎėșɆ
Link to strategic objective: ǩɆʁɆǫ
Health, Safety & Wellbeing of Customers,
Communities and Employees
¡ėƢëļŒɆnëŝëİļŝİɆ$ļƎėĉƢŨƎȚɆķļėįɆėŨƋŒėɆ{įǘĉėƎɆëŝĐɆķļėįɆEŨǁėƎŝëŝĉėɆ{įǘĉėƎ
Risk category
{ƋėƎëƢļŨŝëŒ
¡ėƋƪƢëƢļŨŝëŒ
©ƢƎëƢėİļĉ
Impact: nėĐļƪś
Likelihood: dŨǂ
Oversight: ,©EɆŨśśļƢƢėė
Principal Risk/Uncertainty
¶ķėɆEƎŨƪƋɆśëLjɆėLJƋėƎļėŝĉėɆƖļİŝļǘĉëŝƢɆ
ŒŨƖƖėƖɆëƖɆëɆƎėƖƪŒƢɆŨįɆëɆįëļŒƪƎėɆƢŨɆĐėƢėƎśļŝėɆ
ëĉĉƪƎëƢėŒLjɆƢķėɆŨĐĐƖɆļŝɆƎėŒëƢļŨŝɆƢŨɆëŝLjɆ
ƋëƎƢļĉƪŒëƎɆėǁėŝƢɆëŝĐȦŨƎɆëŝLjɆįëļŒƪƎėɆŨįɆļƢƖɆ
ƋƎļĉėɆƎļƖŏɆśëŝëİėśėŝƢɆƋƎŨĉėƖƖėƖș
How we manage and mitigate the risk
¶ķėɆEƎŨƪƋɆķëƖɆƖŨśėɆŨįɆƢķėɆŒėëĐļŝİɆ
ėLJƋėƎƢļƖėɆļŝɆƢƎëĐļŝİɆŒļëĈļŒļƢLjɆśëŝëİėśėŝƢɆ
ëŝĐɆƢķėɆEƎŨƪƋȼƖɆƢƎëĐļŝİɆƢėëśɆķëƖɆ
ĐėǁėŒŨƋėĐɆƢķėɆƖŏļŒŒƖɆëŝĐɆƖLjƖƢėśƖɆ
ƢŨɆĈėɆëĈŒėɆƢŨɆŨįįėƎɆëɆǂļĐėɆƎëŝİėɆŨįɆ
ĈėƢƢļŝİɆŨƋƋŨƎƢƪŝļƢļėƖș
,ǁėŝƢƖɆëƎėɆƋƎļĉėĐɆļŝɆŨƎĐėƎɆƢŨɆëĉķļėǁėɆëŝɆ
ëǁėƎëİėɆƎėƢƪƎŝɆƢŨɆƢķėɆĈŨŨŏśëŏėƎɆŨǁėƎɆ
ëɆŒëƎİėɆŝƪśĈėƎɆŨįɆėǁėŝƢƖɆëŝĐɆƢķėƎėįŨƎėȚɆ
ŨǁėƎɆƢķėɆŒŨŝİɆƢėƎśș
¶ķėɆEƎŨƪƋȼƖɆİƎŨƖƖɆǂļŝɆƋėƎĉėŝƢëİėɆķëƖɆ
ƎėśëļŝėĐɆįëļƎŒLjɆĉŨŝƖƢëŝƢɆļŝɆƎėĉėŝƢɆLjėëƎƖșɆ
,LJėĉƪƢļǁėɆśëŝëİėśėŝƢɆśŨŝļƢŨƎɆƢķėɆ
İƎŨƖƖɆǂļŝɆśëƎİļŝɆŨŝɆëɆĐëļŒLjɆĈëƖļƖɆļŝɆ
ŨƎĐėƎɆƢŨɆėŝƖƪƎėɆƢķėɆŒŨŝİȯƢėƎśɆƢëƎİėƢƖɆ
ëƎėɆëĉķļėǁėĐș
Strategic relevance
ɆƎƪŝɆŨįɆĉƪƖƢŨśėƎɆįëǁŨƪƎëĈŒėɆƎėƖƪŒƢƖɆ
ŨƎɆëɆśļƖśëŝëİėśėŝƢɆŨįɆƢķėɆƢƎëĐļŝİɆ
ĈŨŨŏɆĉŨƪŒĐɆƖļİŝļǘĉëŝƢŒLjɆļśƋëĉƢɆƢķėɆ
EƎŨƪƋȼƖɆƋƎŨǘƢëĈļŒļƢLjș
Link to strategic objective: ǥ
Trading, Liability and
Pricing Management
ķļėįɆ{ƋėƎëƢļŝİɆ{įǘĉėƎ
Risk category
ŨśśėƎĉļëŒ
{ƋėƎëƢļŨŝëŒ
©ƢƎëƢėİļĉ
Impact: nėĐļƪś
Likelihood: nėĐļƪś
Oversight:ɆƪĐļƢɆŨśśļƢƢėė
Entain plc
|
Annual Report 2021
84
Strategic report
Principal Risk/Uncertainty
ÕķļŒƖƢɆƢķėɆEƎŨƪƋɆŨƋėƎëƢėƖɆŨƪƢɆŨįɆëɆ
ŝƪśĈėƎɆŨįɆİėŨİƎëƋķļĉëŒɆŒŨĉëƢļŨŝƖȚɆƢķėƎėɆ
ëƎėɆëɆŝƪśĈėƎɆŨįɆŏėLjɆƖļƢėƖɆǂķļĉķɆëƎėɆ
ĉƎļƢļĉëŒɆƢŨɆƢķėɆĐëLjȯƢŨȯĐëLjɆŨƋėƎëƢļŨŝƖɆŨįɆ
ƢķėɆEƎŨƪƋȚɆļŝĉŒƪĐļŝİɆŨƪƎɆŨįǘĉėƖɆļŝɆėŝƢƎëŒɆ
dŨŝĐŨŝȚɆEļĈƎëŒƢëƎȚɆÔļėŝŝëȚɆLLjĐėƎëĈëĐȚɆ
ƪƖƢƎëŒļëȚɆQƢëŒLjȚɆQƎėŒëŝĐɆëŝĐɆnëŝļŒëșɆ
$ļƖƎƪƋƢļŨŝɆļŝɆëŝLjɆŨįɆƢķėƖėɆŒŨĉëƢļŨŝƖɆĉŨƪŒĐɆ
ķëǁėɆëŝɆļśƋëĉƢɆŨŝɆŨƋėƎëƢļŨŝƖș
How we manage and mitigate the risk
ƪƖļŝėƖƖɆĉŨŝƢļŝƪļƢLjɆƋŒëŝƖɆëŝĐɆ
ëƎƎëŝİėśėŝƢƖɆįŨƎɆŨįįȯƖļƢėɆĐëƢëɆƖƢŨƎëİėȚɆ
ëŒƢėƎŝëƢļǁėɆƖLjƖƢėśɆëǁëļŒëĈļŒļƢLjɆëŝĐɆ
ƎėśŨƢėɆǂŨƎŏļŝİɆįŨƎɆŏėLjɆŨƋėƎëƢļŨŝëŒɆ
ĉŨŒŒėëİƪėƖɆëŝĐɆƖėŝļŨƎɆśëŝëİėśėŝƢɆķëǁėɆ
ĈėėŝɆƢėƖƢėĐɆƢŨɆĉėƎƢëļŝɆėLJƢėŝƢƖɆƢķƎŨƪİķŨƪƢɆ
ƢķėɆŨǁļĐȯǤǬɆƋëŝĐėśļĉɆëŝĐɆĉŨŝƢļŝƪėɆƢŨɆ
ĈėɆƖƪĈŌėĉƢɆƢŨɆŨŝİŨļŝİɆƎėǁļėǂș
Strategic relevance
dŨƖƖɆŨįɆëɆŏėLjɆŒŨĉëƢļŨŝɆĉŨƪŒĐɆļśƋëĉƢɆ
ƢķėɆEƎŨƪƋȼƖɆëĈļŒļƢLjɆƢŨɆŨįįėƎɆƋƎŨĐƪĉƢɆƢŨɆ
ļƢƖɆĉƪƖƢŨśėƎƖɆļśƋëĉƢļŝİɆļƢƖɆëĈļŒļƢLjɆƢŨɆ
İėŝėƎëƢėɆƎėǁėŝƪėƖș
Link to strategic objective: ǥ
Loss Of Key Locations
ķļėįɆ{ƋėƎëƢļŝİɆ{įǘĉėƎ
Risk category
{ƋėƎëƢļŨŝëŒ
Impact: nėĐļƪś
Likelihood: dŨǂ
Oversight: ,©EɆŨśśļƢƢėė
Principal Risk/Uncertainty
DƪƎƢķėƎɆǂëǁėƖɆŨįɆƋëŝĐėśļĉɆëįįėĉƢļŝİɆ
ļŝĐļǁļĐƪëŒɆĉŨƪŝƢƎļėƖɆŨƎɆĉŨŝƢļŝėŝƢƖɆ
ƎėƖƪŒƢļŝİɆļŝɆƢķėɆĉŒŨƖƪƎėɆŨįɆ댌ɆŨƎɆƋëƎƢɆŨįɆ
ŨƪƎɆ¡ėƢëļŒɆėƖƢëƢėɆŨƎɆƢķėɆĉëŝĉėŒŒëƢļŨŝȦ
ƋŨƖƢƋŨŝėśėŝƢɆŨįɆśëŌŨƎɆƖƋŨƎƢļŝİɆėǁėŝƢƖȚɆ
ėİɆįŨŨƢĈ댌ȚɆķŨƎƖėɆƎëĉļŝİɆǂķļĉķɆśëLjɆƎėƖƪŒƢɆ
ļŝɆǘŝëŝĉļëŒɆŒŨƖƖėƖȚɆƖėƎǁļĉėɆŨƪƢëİėɆŨƎɆëŝɆ
ļŝëĈļŒļƢLjɆƢŨɆƋƎŨƢėĉƢɆŨƪƎɆĉŨŒŒėëİƪėȼƖɆǂėŒŒȯ
ĈėļŝİșɆ
How we manage and mitigate the risk
ƢɆǁëƎļŨƪƖɆƋŨļŝƢƖɆƢķƎŨƪİķɆǥǣǥǤɆëŝĐɆ
ļŝƢŨɆǥǣǥǥȚɆƢķėɆEƎŨƪƋɆķëƖɆĈėėŝɆëĈŒėɆƢŨɆ
ėŝëĉƢɆļƢƖɆƋŒëŝƖɆƢŨɆśŨǁėɆƢķėɆśëŌŨƎļƢLjɆŨįɆ
ļƢƖɆĉŨŒŒėëİƪėƖɆƢŨɆķŨśėɆǂŨƎŏļŝİɆǂļƢķŨƪƢɆ
ëŝLjɆŒŨƖƖɆŨįɆƖėƎǁļĉėɆȩėLJĉŒƪĐļŝİɆ¡ėƢëļŒɆ
ĉŒŨƖƪƎėƖȪɆĐėƖƋļƢėɆƢķėɆëŝŝŨƪŝĉėśėŝƢɆŨįɆ
ǂŨƎŒĐǂļĐėɆŒŨĉŏĐŨǂŝƖș
¶ķƎŨƪİķɆļƢƖɆĐļǁėƎƖėɆƋƎŨĐƪĉƢɆëŝĐɆ
İėŨİƎëƋķļĉɆŨįįėƎļŝİȚɆƢķėɆĈƪƖļŝėƖƖɆķëƖɆ
ĈėėŝɆëĈŒėɆƢŨɆŒėǁėƎëİėɆļƢƖɆĈƪƖļŝėƖƖɆśŨĐėŒɆ
ƢŨɆƍƪļĉŏŒLjɆƎėƖƋŨŝĐɆƢŨɆĉķëŝİļŝİɆĉƪƖƢŨśėƎɆ
ŝėėĐƖɆëŝĐɆƢķėƎėįŨƎėɆśëļŝƢëļŝɆƖƢƎŨŝİɆ
ƢƎëĐļŝİɆƢķƎŨƪİķŨƪƢșɆ¶ķėɆEƎŨƪƋɆĉŨŝƢļŝƪėƖɆ
ƢŨɆśŨŝļƢŨƎɆƢķėɆƎļƖŏƖɆļŝɆėëĉķɆŨįɆļƢƖɆŒŨĉëŒɆ
ŨƋėƎëƢļŨŝƖɆĈŨƢķɆŨŝɆƢƎëĐļŝİɆëŝĐɆƢķėɆķėëŒƢķɆ
ʁɆƖëįėƢLjɆŨįɆļƢƖɆĉŨŒŒėëİƪėƖȚɆƢķėɆŒëƢƢėƎɆŨįɆ
ǂķļĉķɆļƖɆŨƪƎɆŝƪśĈėƎɆŨŝėɆƋƎļŨƎļƢLjș
Strategic relevance
ŒŨƖƪƎėɆŨįɆŨƪƎɆƎėƢëļŒɆƖķŨƋƖɆŨƎɆƢķėɆ
ĉëŝĉėŒŒëƢļŨŝɆŨįɆƖƋŨƎƢļŝİɆėǁėŝƢƖɆśëLjɆƎėƖƪŒƢɆ
ļŝɆǘŝëŝĉļëŒɆŒŨƖƖėƖȚɆŨƪƎɆëĈļŒļƢLjɆƢŨɆİėŝėƎëƢėɆ
ƎėǁėŝƪėƖɆëŝĐɆëįįėĉƢɆŨǁėƎ댌ɆƋƎŨǘƢëĈļŒļƢLjș
Link to strategic objective: ŒŒɆŨĈŌėĉƢļǁėƖ
Pandemic
ķļėįɆ,LJėĉƪƢļǁėɆ{įǘĉėƎȚɆķļėįɆ{ƋėƎëƢļŝİɆ
{įǘĉėƎɆëŝĐɆķļėįɆDļŝëŝĉļëŒɆ{įǘĉėƎ
Risk category
{ƋėƎëƢļŨŝëŒ
DļŝëŝĉļëŒ
ŨśśėƎĉļëŒ
Impact: nėĐļƪś
Likelihood: Lļİķ
Oversight: ŨëƎĐ
Principal Risk/Uncertainty
¶ķėɆƋėŨƋŒėɆǂķŨɆǂŨƎŏɆǂļƢķļŝɆ,ŝƢëļŝɆëƎėɆ
ƋļǁŨƢëŒɆƢŨɆƢķėɆƖƪĉĉėƖƖɆŨįɆƢķėɆŨśƋëŝLjɆ
ëŝĐɆŨƪƎɆįëļŒƪƎėɆƢŨɆëƢƢƎëĉƢɆŨƎɆƎėƢëļŝɆŏėLjɆ
ļŝĐļǁļĐƪëŒƖɆśëLjɆļśƋëĉƢɆŨƪƎɆëĈļŒļƢLjɆƢŨɆ
ĐėŒļǁėƎɆŨŝɆŨƪƎɆƖƢƎëƢėİļĉɆİŨëŒƖș
How we manage and mitigate the risk
ƪļŒĐļŝİɆŨŝɆƢķėɆƖƪĉĉėƖƖįƪŒɆŒëƪŝĉķɆŨįɆ
ŨƪƎɆëǂëƎĐȯǂļŝŝļŝİɆėśƋŒŨLjėƎɆĈƎëŝĐȚɆ
ŨƪƎɆėŨƋŒėɆ©ƢƎëƢėİLjɆįŨĉƪƖƖėƖɆŨƪƎɆ
ėįįŨƎƢƖɆŨŝɆƖėĉƪƎļŝİɆëŝĐɆƎėƢëļŝļŝİɆƢķėɆ
ĈėƖƢɆƢëŒėŝƢȚɆƋƎŨǁļĐļŝİɆëɆśëƎŏėƢɆŒėëĐļŝİɆ
ǂŨƎŏļŝİɆėŝǁļƎŨŝśėŝƢɆëŝĐɆƢķėɆĈėƖƢɆ
ėśƋŒŨLjėėɆėLJƋėƎļėŝĉėșɆ
{ƪƎɆƢëŒėŝƢɆśëŝëİėśėŝƢɆëŝĐɆƎėǂëƎĐɆëŝĐɆ
ƎėĉŨİŝļƢļŨŝɆƋƎŨİƎëśśėƖɆëƎėɆĉŨŝƢļŝƪ댌LjɆ
ëƖƖėƖƖėĐɆƢķƎŨƪİķɆëɆŝƪśĈėƎɆŨįɆƎėİƪŒëƎɆ
ĉŨŒŒėëİƪėɆįėėĐĈëĉŏɆśėĉķëŝļƖśƖɆëŝĐɆ
ėLJƢėƎŝëŒɆĈėŝĉķśëƎŏļŝİș
Strategic relevance
ɆƋƎėȯƎėƍƪļƖļƢėɆƢŨɆëĉķļėǁļŝİɆ댌ɆŨįɆƢķėɆ
ƖƢƎëƢėİļĉɆƋƎļŨƎļƢļėƖɆļƖɆėŝƖƪƎļŝİɆǂėɆ
ķëǁėɆƢķėɆƎļİķƢɆƋėŨƋŒėɆǂļƢķɆƢķėɆƎļİķƢɆ
ƖŏļŒŒƖȚɆĐėƋŒŨLjėĐɆǂļƢķļŝɆƢķėɆƎļİķƢɆëƎėëɆŨįɆ
ƢķėɆĈƪƖļŝėƖƖșɆDëļŒļŝİɆƢŨɆƎėĉƎƪļƢȦƎėƢëļŝɆ
ƢķėɆĈėƖƢɆƋėŨƋŒėɆĉŨƪŒĐɆƖļİŝļǘĉëŝƢŒLjɆ
ļśƋëĉƢɆƢķėɆEƎŨƪƋɆëĉķļėǁļŝİɆ댌ɆŨįɆļƢƖɆ
ƖƢƎëƢėİļĉɆŨĈŌėĉƢļǁėƖș
Link to strategic objective: ǫ
Recruitment and Retention
of Key Employees
ķļėįɆėŨƋŒėɆ{įǘĉėƎ
Risk category
{ƋėƎëƢļŨŝëŒ
Impact: nėĐļƪś
Likelihood: dŨǂ
Oversight: ŨëƎĐ
85 Overview
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Strategic report
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Governance
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Financial statements
Entain plc
|
Annual Report 2021
QŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆƋƎŨǁļƖļŨŝɆǦǤɆŨįɆƢķėɆǥǣǤǫɆŨƎƋŨƎëƢėɆEŨǁėƎŝëŝĉėɆ
ŨĐėȚɆƢķėɆŨëƎĐɆëŝĐɆ$ļƎėĉƢŨƎƖɆķëǁėɆĉŨśƋŒėƢėĐɆëŝɆëƖƖėƖƖśėŝƢɆ
ŨįɆƢķėɆƋƎŨƖƋėĉƢƖɆëŝĐɆǁļëĈļŒļƢLjɆŨįɆƢķėɆ,ŝƢëļŝɆLŨŒĐļŝİƖɆdɆEƎŨƪƋɆ
ŨǁėƎɆëɇŒŨŝİėƎɆƋėƎļŨĐɆƢķëŝɆƢķėɆǤǥɆśŨŝƢķƖɆƎėƍƪļƎėĐɆĈLjɆƢķėɆȹEŨļŝİɆ
ŨŝĉėƎŝȺɆƋƎŨǁļƖļŨŝș
¶ķėɆ$ļƎėĉƢŨƎƖɆķëǁėɆĉŨŝĉŒƪĐėĐɆƢķëƢɆƢķƎėėɆLjėëƎƖɆǂëƖɆëŝɆëƋƋƎŨƋƎļëƢėɆ
ƋėƎļŨĐɆįŨƎɆëƖƖėƖƖśėŝƢȚɆëƖɆƢķļƖɆļƖɆëŒļİŝėĐɆƢŨɆƢķėɆEƎŨƪƋȼƖɆƖƢƎëƢėİļĉɆ
ƋŒëŝŝļŝİɆƋƎŨĉėƖƖɆëŝĐɆļƖɆĉŨŝƖļĐėƎėĐɆƢŨɆĈėɆƢķėɆƋėƎļŨĐɆįŨƎɆǂķļĉķɆ
ƎėŒļëĈŒėɆėƖƢļśëƢėƖɆĉëŝɆĈėɆśëĐėɆįŨƎɆǁëƎļëƢļŨŝƖɆļŝɆĈŨƢķɆļŝĐƪƖƢƎLjɆ
ëŝĐɆĉƪƖƢŨśėƎɆĐLjŝëśļĉƖȚɆƎėİƪŒëƢŨƎLjɆĉķëŝİėȚɆƢėĉķŝŨŒŨİļĉëŒɆ
ëĐǁëŝĉėśėŝƢƖɆëŝĐɆƢķėɆėĉŨŝŨśļĉɆĈëĉŏĐƎŨƋɆļŝɆƢķėɆĈėƢƢļŝİɆëŝĐɆ
İëśļŝİɆļŝĐƪƖƢƎLjɆƢëŏļŝİɆļŝƢŨɆëĉĉŨƪŝƢɆƢķėɆĉķëŝİļŝİɆŒëŝĐƖĉëƋėɆëƖɆ
ëɇƎėƖƪŒƢɆŨįɆƢķėɆŨǁļĐȯǤǬɆƋëŝĐėśļĉș
¶ķėɆŨĈŌėĉƢļǁėƖɆŨįɆƢķėɆƖƢƎëƢėİļĉɆƋŒëŝŝļŝİɆƋƎŨĉėƖƖɆëƎėɆƢŨɆįƪƎƢķėƎɆ
ĐėǁėŒŨƋɆƢķėɆĈƪƖļŝėƖƖėƖɆƪŝĐėƎƖƢëŝĐļŝİɆŨįɆƢķėɆśëƎŏėƢƖɆļŝɆǂķļĉķɆ
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ǘŝëŝĉļëŒɆįŨƎėĉëƖƢƖș
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ƖķŨƪŒĐɆĈëƖėŒļŝėɆëƖƖƪśƋƢļŨŝƖɆĉķëŝİėș
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ëŝĐȦŨƎɆƎėƢëļŝɆŏėLjɆƖƢëįį
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įŨƎśļŝİɆƢķėļƎɆǁļėǂɆŨŝɆǁļëĈļŒļƢLjș
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ëǁëļŒëĈŒėɆƢŨɆƢķėɆĈƪƖļŝėƖƖȚɆƢķėɆ$ļƎėĉƢŨƎƖɆĉŨŝǘƎśɆƢķëƢɆƢķėLjɆķëǁėɆëɆ
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$ėĉėśĈėƎɆǥǣǥǧș
ÔļëĈļŒļƢLjɆ©ƢëƢėśėŝƢɆ
Entain plc
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Annual Report 2021
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Strategic report
87 Overview
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Strategic report
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Governance
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Financial statements
Entain plc
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Annual Report 2021
87 Overview
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Strategic report
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Governance
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Financial statements
Entain plc
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Annual Report 2021
Governance
Governance
89 Board of Directors
ǬǤɆ ķļėįɆEŨǁėƎŝëŝĉėɆ{įǘĉėƎȼƖɆ¡ėƋŨƎƢ
103 Audit Committee Report
109 ESG Committee Report
112 Nomination Committee Report
ǤǤǨɆ $ļƎėĉƢŨƎƖȼɆ¡ėśƪŝėƎëƢļŨŝɆ¡ėƋŨƎƢ
ǤǧǤɆ $ļƎėĉƢŨƎƖȼɆ¡ėƋŨƎƢ
Governance
Entain plc
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Annual Report 2021
88
Board of Directors
(as at 3 March 2022)
Attendance
Age
Diversity Gender
4:7
Meetings attended:
No. of Directors
No. of
Directors
7211
Experience / Skills:
No. of Directors
Years:
Barry Gibson
Jette Nygaard-Andersen
Rob Wood
Robert Hoskin
Pierre Bouchut
Stella David
Mark Gregory
Peter Isola
Vicky Jarman
Virginia McDowell
David Satz
All Board
members
maximum
40-44
0
60-64
50-54
32
45-49
Tenure
1
65-69
55-59
54
100%
70+
1132211
6
Gaming
Sector
Legal /
Regulatory
Technology /
eCommerce
LeadershipEntertainmentMarketingFinancial
British American
5432515
French Danish
89Overview
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Entain plc
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Annual Report 2021
J M Barry Gibson
Chairman
Tenure: Appointed to the Board November 2019 and
became Chairman in February 2020.
Age: 70 Nationality: British
Committee / attendance:
N
3/3
Biography: Barry was previously a non-executive director
of William Hill plc and bwin.party digital entertainment plc,
where he was the senior independent director. He was the
group retailing director at BAA plc, group chief executive
of Littlewoods plc, non-executive chairman of Harding
Brothers Holdings Ltd, non-executive director of both
©ŨśėƎǘėŒĐƋŒĉëŝĐpëƢļŨŝëŒ,LJƋƎėƖƖƋŒĉëŝĐĉķëļƎśëŝŨį
HomeServe plc.
Key strengths and experience:
Barry is an experienced chairman, chief executive, senior
independent director and non-executive director, with
extensive experience of the gaming, leisure, retail and
marketing sectors. He has deep business experience and
a track record in improving company performance and
customer service.
Robert Hoskin
ķļėįɆEŨǁėƎŝëŝĉėɆ{įǘĉėƎ
Tenure: Appointed January 2021
Age: 50 Nationality: British
Biography: Robert joined Entain in 2005 and served
as Group Director of Legal, Regulatory and Secretariat,
overseeing its corporate governance, legal and regulatory
ƎėƍƪļƎėśėŝƢƖ ëĉƎŨƖƖ śŨƎė Ƣķëŝ ǥǣ ĉŨƪŝƢƎļėƖ ļŝ ǘǁė
continents and supported various M&A transactions.
Prior to Entain, he headed up the Investment Company
Secretariat at Aberdeen Asset Management.
Key strengths and experience:
¡ŨĈėƎƢļƖëƍƪëŒļǘėĐëŝĐėLJƋėƎļėŝĉėĐĉķëƎƢėƎėĐƖėĉƎėƢëƎLj
ǂļƢķ ƖļİŝļǘĉëŝƢ ļŝƖļİķƢ ļŝƢŨ ,ŝƢëļŝ ëŝĐ Ƣķė śëƎŏėƢƖ ļŝ
which it operates following his 16 years at the Group, over
which time he has overseen the Group evolve from holding
two gambling licences to more than 100. His experience
ëŝĐ ŏŝŨǂŒėĐİė ķëƖ Ĉėėŝ ļŝƖƢƎƪśėŝƢëŒ ƢŨ Ƣķė EƎŨƪƋȼƖ
growth and development, and his appointment as Chief
EŨǁėƎŝëŝĉė {įǘĉėƎ ƎėǙėĉƢƖ Ƣķė ļśƋŨƎƢëŝĉė Ƣķė ŨëƎĐ
places on regulatory, legal and governance matters, all of
which are central to our long-term growth plans to build a
responsible and sustainable business of global scale and
world class standards.
Rob Wood
ķļėįɆDļŝëŝĉļëŒɆ{įǘĉėƎɆëŝĐɆ$ėƋƪƢLjɆ,{
Tenure: ƋƋŨļŝƢėĐ ƢŨ Ƣķė ŨëƎĐ ëƖ ķļėį DļŝëŝĉļëŒ {įǘĉėƎ
in March 2019; the role of Deputy CEO was added to his
portfolio in January 2021.
Age: 42 Nationality: British
Biography: Rob joined Entain in 2012 and worked in senior
ƎŨŒėƖǂļƢķļŝǘŝëŝĉėȚļŝĉŒƪĐļŝİëƖD{ŨįƢķėEƎŨƪƋȼƖƎėƢëļŒ
business. Prior to Entain, he was senior vice president
ëƢ ėƎĈėƎƪƖ ëƋļƢëŒȚ ŨǁėƎƖėėļŝİ Ƣķė ƋƎļǁëƢė ėƍƪļƢLj ǘƎśȼƖ
European portfolio companies and worked in restructuring
advisory at Rothschild. Rob started his career at KPMG
ǂķėƎėķėƍƪëŒļǘėĐëƖëĉķëƎƢėƎėĐëĉĉŨƪŝƢëŝƢëŝĐķŨŒĐƖë
degree in Mathematics and Management Studies from the
University of Nottingham.
Key strengths and experience:
¡ŨĈĈƎļŝİƖėLJƢėŝƖļǁėǘŝëŝĉļëŒėLJƋėƎļėŝĉėƢŨƢķė
Board from private equity, banking and accountancy.
LļƖɇŏŝŨǂŒėĐİė Ũį ,ŝƢëļŝȼƖ ĈƪƖļŝėƖƖ ëŝĐ ėLJƋėƎļėŝĉė ļŝ
creating value through mergers and acquisitions enables
him to effectively carry out his broad portfolio as CFO and
$ėƋƪƢLjɇ,{ș
Jette Nygaard-Andersen
ķļėįɆ,LJėĉƪƢļǁėɆ{įǘĉėƎ
Tenure: Appointed to the Board as Non-Executive
Director in December 2019. Appointed as Chief
,LJėĉƪƢļǁė{įǘĉėƎëŝĐ,LJėĉƪƢļǁė$ļƎėĉƢŨƎļŝ`ëŝƪëƎLj
2021.
Outside interests: Non-executive director of Coloplast
AS (a medical technology company listed on the
Copenhagen Stock Exchange) and a member of their
remuneration and nomination committees.
Age: 53 Nationality: Danish
Biography: Jette held a number of senior leadership
roles at Modern Times Group AB, a listed international
entertainment group with a strong presence in
Scandinavia and Central Europe. These included being
chief executive of Pay TV, Broadcasting and, latterly,
CEO of Digital Video Content, which had ownership in
next generation digital entertainment businesses such
as video gaming companies, esports and social content
platforms. She also chaired the board of Astralis Group
A/S, an international esports organisation.
Key strengths and experience:
Jette joined as Chief Executive on 21 January 2021,
having previously spent one year on the Entain
Board as a Non-Executive Director. She has over
two decades of leadership experience in the media,
sports and entertainment sectors, including working
with companies to disrupt industries through global
technology in international markets. Jette has a proven
track record in digital transformation, optimisation of
customer experience and engagement and working with
digital growth start-ups globally.
Pierre Bouchut
Independent Non-Executive Director
Tenure: Appointed September 2018
Outside interests: Non-executive director, board member
of Tom & Co and chairman of the audit committees at
Pepco Group, Firmenich SA, Albioma SA and GeoPost SA.
Age: 66 Nationality: French
Committee / attendance:
A
7/7
N
3/3
Biography: ļėƎƎė ǂëƖ Ƣķė ĉķļėį ǘŝëŝĉļëŒ ŨįǘĉėƎ įŨƎ
©ĉķŝėļĐėƎ EƎŨƪƋ ȩǥǣǣǨȯǥǣǣǬȪȚ Ƣķė ĉķļėį ŨƋėƎëƢļŝİ ŨįǘĉėƎ
for Europe at Koninklijke Aholddelhaize N.V. (2016-2018),
ĉķļėį ǘŝëŝĉļëŒ ŨįǘĉėƎ ëƢ $ėŒķëļǒė EƎŨƪƋ ©Ț DƎėŝĉķ
multi-national grocery group (2012-2016), Carrefour SA
(2009-2012), Schneider Electric SA (2005-2009) and
Casino (1995-2003). He was also a non-executive director
of Hammerson plc (2015-2021). Prior to this, Pierre worked
for Citibank, Bankers Trust and as a consultant with
McKinsey.
Key strengths and experience:
Pierre has lengthy experience in senior executive and
ŝŨŝȯėLJėĉƪƢļǁėƎŨŒėƖëĉƎŨƖƖǘŝëŝĉėȚƎėƢëļŒȚƋƎŨƋėƎƢLj
ëŝĐļŝĐƪƖƢƎLjëƖǂėŒŒëƖĐėėƋŏŝŨǂŒėĐİėŨįǘŝëŝĉļëŒ
and audit committee practice. His familiarity with the
management of large, internationally listed companies
gives him extensive understanding of regulation,
accounting standards and management practice. This
ĈƎŨëĐėLJƋėƎļėŝĉėśëŏėƖķļśƖƪļƢėĐƢŨĉķëļƎ,ŝƢëļŝȼƖƪĐļƢ
ŨśśļƢƢėė ëŝĐ ƢŨ ëĉƢ ëƖ ļƢƖ ǘŝëŝĉļëŒ ėLJƋėƎƢș
Key:
A
Audit Committee Member
R
Remuneration Committee Member
N
Nomination Committee Member
E
ESG Committee Member
A
Audit Committee Chair
R
Remuneration Committee Chair
N
Nomination Committee Chair
E
ESG Committee Chair
Stella David
Senior Independent Director
Tenure: Appointed March 2021
Outside interests: pŨŝȯėLJėĉƪƢļǁė ĐļƎėĉƢŨƎ Ũį $ŨśļŝŨȼƖ
Pizza Group plc (where she chairs the remuneration
committee), HomeServe plc, Norwegian Cruise Line
Holdings and privately owned Bacardi Ltd.
Age: 59 Nationality: British
Committee / attendance:
R
7/7
N
1/1
E
7/7
Biography: Stella David was previously CEO of William
Grant & Sons, following more than 15 years with Bacardi
Ltd where she undertook a number of roles culminating
ļŝǘǁėLjėëƎƖëƖİŒŨĈëŒĉķļėįśëƎŏėƢļŝİŨįǘĉėƎȚëŝĐƪŝĐėƎ
ķėƎ ŒėëĐėƎƖķļƋ ëĉëƎĐļ ǘŝļƖķėĐ ļŝ Ƣķė ½bȼƖ ƢŨƋ Ǥǣ Ũį Ƣķė
©ƪŝĐëLj¶ļśėƖȻǤǣǣėƖƢŨśƋëŝļėƖƢŨÕŨƎŏDŨƎȼȚǘǁė
years in a row, earning her a life-time achievement award.
She was chair of C&J Clark Ltd and spent seven years as a
non-executive director at the Nationwide Building Society,
where she chaired the remuneration committee.
Key strengths and experience:
Stella brings extensive management and marketing
experience to the Board through previous roles in high-
ƋƎŨǘŒė ĉŨŝƖƪśėƎ ĈƎëŝĐėĐ ĉŨśƋëŝļėƖș LėƎ ŝŨŝȯėLJėĉƪƢļǁė
roles have given her an insight into corporate governance
best practice and investor expectations which will be
ĈėŝėǘĉļëŒ ƢŨ Ƣķė ŨëƎĐ ǂķėŝ ļƢ ĉŨŝƖļĐėƎƖ ļƢƖ ėŝİëİėśėŝƢ
with shareholders.
Key:
A
Audit Committee Member
R
Remuneration Committee Member
N
Nomination Committee Member
E
ESG Committee Member
A
Audit Committee Chair
R
Remuneration Committee Chair
N
Nomination Committee Chair
E
ESG Committee Chair
Entain plc
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Annual Report 2021
90
Governance
Virginia McDowell
Independent Non-Executive Director
Designated Workforce Director
Tenure: Appointed June 2018
Outside interests: Vice-president of Global Gaming
ÕŨśėŝȚëŝŨŝȯƋƎŨǘƢŨƎİëŝļƖëƢļŨŝǂļƢķëśļƖƖļŨŝƢŨ
ƖƪƋƋŨƎƢȚ ļŝƖƋļƎė ëŝĐ ļŝǙƪėŝĉė Ƣķė ĐėǁėŒŨƋśėŝƢ Ũį ǂŨśėŝ
in the gaming industry through education and mentoring
and trustee of St Louis University.
Age: 64 Nationality: American
Committee / attendance:
E
6/6
N
3/3
R
8/8
Biography: Virginia was the president and CEO of Isle of
Capri Casinos, Inc. in the United States from 2011 until
her retirement in 2016, and the president and COO of
Isle of Capri (2007- 2011). Prior to this she was the chief
ļŝįŨƎśëƢļŨŝŨįǘĉėƎëƢ¶ƎƪśƋ,ŝƢėƎƢëļŝśėŝƢ¡ėƖŨƎƢƖȩǥǣǣǨȯ
2007) and senior vice president of operations. Virginia is
ëŒƖŨ Ƣķė ǘƎƖƢ ǂŨśëŝ ƢŨ Ĉė ļŝĐƪĉƢėĐ ļŝƢŨ Ƣķė nļƖƖļƖƖļƋƋļ
Gaming Hall of Fame.
Key strengths and experience:
Virginia has spent her entire career in the gaming
sector, with 40 years of experience in top US publicly
traded gaming corporations. She possesses a deep
understanding of the diversity and regulatory challenges
of the gaming business which has assisted the Board
and the ESG Committee and has engaged with our
stakeholders in her role as designated Workforce Director.
Her hard work has been recognised over the years with
several prestigious awards.
David Satz
Independent Non-Executive Director
Tenure: Appointed October 2020
Outside interests: Member of the board of a commercial
gaming and hospitality entity established by the Eastern
Band of Cherokee Indians (EBCI).
Age: 62 Nationality: American
Committee / attendance:
E
6/6
A
3/3
Biography: David was senior vice president of
Government Relations and Development for Caesars
Entertainment Corporation in Las Vegas, where he worked
from 2002 to 2019 and had responsibility for overseeing
ëėƖëƎƖȼ İŨǁėƎŝśėŝƢ ëĉƢļǁļƢļėƖ įŨƎ śŨƎė Ƣķëŝ Ǩǥ ƋƎŨƋėƎƢļėƖ
in 15 states in the US and several other countries around
the world. Prior to this he spent 16 years at the US law
ǘƎś ©ëļĈėƎ ©ĉķŒėƖļŝİėƎ ©ëƢǒ EŨŒĐƖƢėļŝ ddȚ ǂķėƎė ķė ķëĐ
a particular focus on the gaming industry and played a
key role in numerous regulatory and legislative initiatives
throughout the US.
Key strengths and experience:
David has unrivalled regulatory and legislative expertise
in the all-important US gaming market. His knowledge
and insight has been invaluable to the Board as it seeks
to achieve its strategy of being the leading operator in the
US through BetMGM, our fast-growing joint venture with
MGM Resorts.
Vicky Jarman
Independent Non-Executive Director
Tenure: Appointed March 2021
Outside interests: Non-executive director of Great
Portland Estates Plc and Melrose Industries Plc.
Age: 49 Nationality: British
Committee / attendance:
A
6/6
R
7/7
Biography: Vicky spent over a decade working with
dëǒëƎĐ ëŝĐ Ũ dƢĐ ļŝ ļƢƖ ĉŨƎƋŨƎëƢė ǘŝëŝĉė Ƣėëś ǂķėƎė Ɩķė
ķėŒĐ ǁëƎļŨƪƖ ƖėŝļŨƎ ƎŨŒėƖ ļŝĉŒƪĐļŝİ ĉķļėį ŨƋėƎëƢļŝİ ŨįǘĉėƎ
for the London and Middle East operations until 2009. Prior
ƢŨƢķļƖƖķėƍƪëŒļǘėĐëƖëĉķëƎƢėƎėĐëĉĉŨƪŝƢëŝƢëƢbnEș
She was previously a non-executive director and chair of
the audit committees of each of Equiniti Group plc, Hays
plc and De La Rue plc, the senior independent director at
Equiniti Group plc and non-executive director of Knight
Frank LLP and Signature Aviation plc.
Key strengths and experience:
ÔļĉŏLj ķëƖ ĐėėƋ ĉŨƎƋŨƎëƢė ǘŝëŝĉė ëŝĐ ëĉĉŨƪŝƢļŝİ
knowledge. Her extensive non-executive directorship
career at international and FTSE companies, including
membership of audit and remuneration committees has
ĈƎŨƪİķƢįƪƎƢķėƎĐėƋƢķëŝĐƖƢƎëƢėİļĉļŝƖļİķƢƢŨ,ŝƢëļŝȼƖ
Board.
Peter Isola
Independent Non-Executive Director
Tenure: Appointed February 2016
Outside interests: Commissioner to the Gibraltar Financial
Services Commission. Non-executive director of Gibraltar
International Bank.
Age: 63 Nationality: British
Committee / attendance:
E
6/6
Biography: Peter is the Senior Partner of ISOLAS LLP,
EļĈƎëŒƢëƎȼƖ ŒŨŝİėƖƢ ėƖƢëĈŒļƖķėĐ Œëǂ ǘƎśș Lė ļƖ ë įŨƎśėƎ
President of the Gibraltar Chamber of Commerce and
advises the Government of Gibraltar on a number of
ĉŨśśļƢƢėėƖ ļŝ ĈŨƢķ ǘŝëŝĉļëŒ ƖėƎǁļĉėƖ ëŝĐ İëśļŝİș
Key strengths and experience:
ėƢėƎķëƖǂŨƎŏėĐļŝƢķėİëśļŝİëŝĐǘŝëŝĉļëŒƖėƎǁļĉėƖ
sector all of his professional life and is widely recognised
and respected as a leading expert in gaming law and
regulation.
LļƖǂėëŒƢķŨįėLJƋėƎļėŝĉėǂļƢķļŝƢķėǘŝëŝĉļëŒƖėƎǁļĉėƖȚ
insurance and gaming sectors, and in-depth knowledge
enables him to contribute important insight and
perspective to the Board and ESG Committee discussions
as well as provide constructive challenge on strategy.
Mark Gregory
Independent Non-Executive Director
Tenure: Appointed March 2021
Outside interests: Non-executive director of Direct Line
Insurance plc where he chairs the board risk committee
and is a member of the audit, remuneration and investment
committees.
Age: 58 Nationality: British
Committee / attendance:
R
6/6
N
1/1
A
6/6
Biography: Mark was the CEO of Merian Global Investors
from 2019 to 2020. Prior to this, he held the role of group
CFO and executive director at Legal & General Group plc
until 2017. During his 19-year career at Legal & General,
he held a variety of other senior roles including CEO of the
©ëǁļŝİƖ ĈƪƖļŝėƖƖȚ śëŝëİļŝİ ĐļƎėĉƢŨƎ Ũį Ƣķė ÕļƢķȯƎŨǘƢȼƖ
business, director of service operations, group HR director
and international director. Before joining Legal & General,
nëƎŏ ķėŒĐ ƖėŝļŨƎ ǘŝëŝĉļëŒ ëŝĐ ĈƪƖļŝėƖƖ ĐėǁėŒŨƋśėŝƢ ƎŨŒėƖ
ëƢ ƖĐë ëŝĐ bļŝİǘƖķėƎș
Key strengths and experience:
nëƎŏ ķëƖ ėLJƢėŝƖļǁė ŏŝŨǂŒėĐİė Ũį ǘŝëŝĉļëŒ ƖėƎǁļĉėƖ
and a focus on customers through his lengthy career in
the insurance and retail sectors. He is an experienced
ƎėśƪŝėƎëƢļŨŝĉŨśśļƢƢėėĉķëļƎǂķŨĈƎļŝİƖĐėėƋǘŝëŝĉļëŒȚ
commercial and corporate governance expertise to
ƢķėɇŨëƎĐș
Board of Directors continued
91Overview | Strategic report | Governance | Financial statements
Entain plc | Annual Report 2021
ķļėįEŨǁėƎŝëŝĉė{įǘĉėƎȼƖ¡ėƋŨƎƢ
The Board
Since my last annual report the Board appointed Mark Gregory
as an independent Non-Executive Director as the Chair of
the Remuneration Committee. The Board now consists of the
Chairman, three Executive Directors and seven independent Non-
Executive Directors, with female Directors making up 36% of the
ŨëƎĐȼƖ śėśĈėƎƖķļƋș
Qŝ ŒëƖƢ LjėëƎȼƖ ¡ėƋŨƎƢ ǂė ŨƪƢŒļŝėĐ ƢķëƢ ©ëŝĐėėƋ ¶ļŏƪȚ ,ŝƢëļŝȼƖ {{
was due to become a Director once he relocated from India to
Gibraltar. This move was frustrated in 2021 by the ongoing global
pandemic travel restrictions and Sandeep being hospitalised by
ƢķėǁļƎƪƖȩķėśëĐėëįƪŒŒƎėĉŨǁėƎLjȪș©ëŝĐėėƋķëƖŝŨƢļǘėĐƢķėEƎŨƪƋ
that he no longer intends to relocate to Gibraltar and will therefore
not be appointed to the Board. As a result, the Board will not
meet the recommendations of the Parker Review on an ethnically
diverse composition. The Board believes an inclusive and diverse
membership results in optimal decision-making. Our Nomination
Committee is undertaking an active search to appoint a Director
from an ethnically diverse background.
Entain’s Governance Team
We have continued to strengthen the governance team at Entain.
As mentioned in my 2020 report, our new General Counsel,
Simon Zinger joined the Group in February 2021. Simon comes
from outside the industry and with a fresh pair of eyes he has
been instrumental to making enhancements to our governance
and compliance practises and overseeing further changes and
recruitment into the legal and regulatory compliance teams, with a
ŏėLjƋļŒŒëƎŨį,ŝƢëļŝȼƖ
ESG strategy is to adopt
a gold standard corporate
İŨǁėƎŝëŝĉėɇįƎëśėǂŨƎŏșȺ
Robert Hoskin
ķļėį EŨǁėƎŝëŝĉė {įǘĉėƎ
particular focus on succession planning and improving the bench
strength of the teams. Martin Lycka moved from being the Director
of Regulatory Affairs to a new role based in the USA, Senior
Vice President of American Regulatory Affairs and Responsible
EëśĈŒļŝİȚŨǁėƎƖėėļŝİ,ŝƢëļŝȼƖļŝļƢļëƢļǁėƖļŝƢķėƖėëƎėëƖļŝpŨƎƢķ
and Latin America. This move has already paid dividends as Entain
ǂŨŝ©ǂëƎĐȼƖpŨƎƢķśėƎļĉë©Ũĉļ댌Lj¡ėƖƋŨŝƖļĈŒė{ƋėƎëƢŨƎŨį
the Year at the end of 2021.
In conjunction with this change, Grainne Hurst expanded her
UK regulatory affairs remit and took over regulatory affairs
oversight for the rest of the world (excluding the Americas), whilst
also retaining her management of our safer gambling strategy.
Grainne and her team, were key to planning and the success of our
industry leading Entain Sustain event held in November, which is
reported on separately. Grainne works closely with Peter Marcus
who was appointed to the new role of Director of Regulatory
Operations at the beginning of 2021 and in this position Peter
has been managing the development and roll-out of our sector
leading Advanced Responsibility & Care™ (ARC™) programme.
ARC™ is a critical element of our commitment to responsibility and
sustainability and commentary on this project can be found on
pages 46 to 47.
All four roles mentioned above attend ESG Committee meetings
and have direct access to Virginia McDowell who chairs
the Committee.
Entain plc
|
Annual Report 2021
92
Governance
Governance & Compliance Review
$ƪƎļŝİɆǥǣǥǤɆŒǁëƎėǒɆʁɆnëƎƖëŒȚɆëŝɆļŝĐėƋėŝĐėŝƢɆƋƎŨįėƖƖļŨŝëŒɆǘƎśȚɆ
ĉŨśƋŒėƢėĐɆƢķėļƎɆƎėǁļėǂɆŨįɆƢķėɆEƎŨƪƋȼƖɆİŨǁėƎŝëŝĉėɆëŝĐɆĉŨśƋŒļëŝĉėɆ
ƋƎëĉƢļĉėƖșɆɆŏėLjɆƋļŒŒëƎɆŨįɆ,ŝƢëļŝȼƖɆƖƪƖƢëļŝëĈļŒļƢLjɆƖƢƎëƢėİLjɆļƖɆƢŨɆëĐŨƋƢɆ
a gold standard corporate governance framework and it was
logical to bring in a third party to review our arrangements to get
an objective analysis and avoid Entain being accused of marking its
own homework.
This thorough review process, which took several months and
with which all colleagues cooperated concluded well, with
ŒǁëƎėǒɆʁɆnëƎƖëŒɆśëŏļŝİɆƢķėɆįŨŒŒŨǂļŝİɆĉŨśśėŝƢƖɆļŝɆƢķėļƎɆǘŝëŒɆ
summary report:
“In our view, Entain has put in place all the key components of
a compliance framework to enable it to identify and manage its
İėŝėƎëŒɆĉŨśƋŒļëŝĉėɆëŝĐɆƎėİƪŒëƢŨƎLjɆƎļƖŏƖșȺ
ȹQƢɆļƖɆĉŒėëƎɆƢķëƢɆƢķėƎėɆķëƖɆĈėėŝɆëɆƖļİŝļǘĉëŝƢɆļŝǁėƖƢśėŝƢɆļŝɆ
both resources and technology to develop and implement the
compliance framework over recent years. The arrangements
provide for clear Board and senior level oversight of compliance
risk and how it is being mitigated, including through a governance
structure of committees that enables oversight, discussion,
and escalation of issues. We observed a good ‘tone from the
ƢŨƋȼɆƢķëƢɆļƖɆĐƎļǁļŝİɆƢķėɆĐėǁėŒŨƋśėŝƢɆŨįɆƖƢƎŨŝİɆİŨǁėƎŝëŝĉėɆŨǁėƎɆ
ĉŨśƋŒļëŝĉėɆļƖƖƪėƖșȺ
“We noted a strong culture during our interviews with key staff
and executives of driving improvement and enhancement.
The committee and escalation framework provides a mechanism
for issues to be escalated to the appropriate level. We noted that
management responds appropriately to Internal Audit issues and
ĉķ댌ėŝİėɆįƎŨśɆƢķėɆŨëƎĐɆëŝĐɆļƢƖɆŨśśļƢƢėėƖșȺ
ɆķļėįɆEŨǁėƎŝëŝĉėɆ{įǘĉėƎȼƖɆ¡ėƋŨƎƢɆcontinued
Entain’s governance reporting structure:
Chief
Governance
{įǘĉėƎ
Covers plc and
subsidiary
corporate
governance
Covers legal, data privacy
& security, regulatory
compliance and Group
anti-money laundering
Covers regulatory
affairs and responsible
gambling in the US,
Canada & Latin America
Covers global
(excluding
the Americas)
ƎėİƪŒëƢŨƎLjɇëŝĐɆ
government
affairs and global
safer gambling
strategy
Covers design &
implementation of
ARC™ and regulatory
ŨƋėƎëƢļŨŝëŒɇĉķëŝİėƖ
Key areas of focus for 2022
Address the recommendations in the
ŒǁëƎėǒɇʁɇnëƎƖëŒɆƎėƋŨƎƢș
Enhance colleague governance and compliance
training with further recruitment overseen by a newly
recruited Group Head of Ethics & Compliance.
Continue to enter new domestically licensed
markets with a focus on the Americas, Africa and
Eastern Europe.
Develop and roll-out ARC™ in selected
international markets.
Continue to progress resolution of the
HMRC investigation.
Hold a follow-up Entain:Sustain conference to ensure
ongoing transparency and accountability around our
ESG practises.
General
Counsel
Senior VP
for American
Regulatory
Affairs &
Responsible
Gaming
Director of
Corporate
Affairs
Director –
Regulatory
Operations
Company
Secretary
93 Overview
|
Strategic report
|
Governance
|
Financial statements
Entain plc
|
Annual Report 2021
Whilst the Board is pleased with the overall conclusion, it recognises Entain is on a journey and so there were some recommendations
ĉŨśļŝİɆŨƪƢɆŨįɆƢķėɆƎėƋŨƎƢȜɆƢķėɆŨŝėȼƖɆĈėļŝİɆśŨƖƢɆƋėƎƢļŝėŝƢɆƢŨɆƢķėɆŨëƎĐɆëŝĐɆļƢƖɆŨśśļƢƢėėƖɆëƎėɆƖėƢɆŨƪƢɆļŝɆƢķėɆƢëĈŒėɆĈėŒŨǂț
Alvarez & Marsal Recommendation Entain Response
ESG Committee: responsibilities
The ESG Committee yearly agenda is substantial,
encompassing a broad range of topics: risk, compliance,
environmental and social issues. The Group recognise this
and as a result, the number of meetings per year has been
increased to six to accommodate the increased agenda.
ÕėɆƎėĉŨśśėŝĐɆƢķëƢɆƢķėɆŨëƎĐɆƖƋėĉļǘĉ댌LjɆĉŨŝƖļĐėƎɆļŝɆ
its annual evaluation if the current structure has enabled
ƖƪįǘĉļėŝƢɆįŨĉƪƖɆŨŝɆĉŨśƋŒļëŝĉėɆļƖƖƪėƖɆëŝĐɆƖƪįǘĉļėŝƢɆƢļśėɆįŨƎɆ
the appropriate depth and challenge in meetings.
Management has considered (including the UK and
QŝƢėƎŝëƢļŨŝëŒɆŨśƋŒļëŝĉėɆ$ļƎėĉƢŨƎƖȪɆëŝĐɆĉŨŝǘƎśėĐɆƢķëƢɆ
the current reporting and meeting structure enables a
ƖƪįǘĉļėŝƢɆŒėǁėŒɆŨįɆŨǁėƎƖļİķƢɆŨįɆĉŨśƋŒļëŝĉėɆļƖƖƪėƖɆįŨƎɆƢķėɆ
ESG Committee. The ESG Committee has also reviewed
this as part of the annual performance evaluation and
ĉŨŝǘƎśƖɆƖƪįǘĉļėŝƢɆƢļśėɆļƖɆ댌ŨĉëƢėĐɆƢŨɆĉŨśƋŒļëŝĉėɆļƖƖƪėƖșɆ
As the Group acquires licences in more jurisdictions and
regulation generally evolves and matures, this matter will be
reviewed annually.
Board Risk Committee
In order to maintain adequate oversight of key risks as
the risk framework matures and to demonstrate effective
corporate governance, establishing a Board Risk Committee
ǂŨƪŒĐɆĈėȚɆļŝɆŨƪƎɆǁļėǂȚɆĈŨƢķɆĈėŝėǘĉļëŒɆëŝĐɆŝėĉėƖƖëƎLjș
Having considered the responses to the Board performance
annual evaluation the Board does not consider it the right
śŨśėŝƢɆƢŨɆƖėƢɆƪƋɆëɆǘįƢķɆŨëƎĐɆŨśśļƢƢėėɆƢŨɆƖŨŒėŒLjɆŨǁėƎƖėėɆ
risk. The Board believes that for the time-being risk is
adequately overseen by the Board, Audit Committee and the
ESG Committee. As risk governance is expected to evolve
further in the Group (see below), the Board will revisit this
point in 2023.
Board Committee responsibilities
The control oversight at Board level is split between the Audit
Committee and the ESG Committee. Until recently second
and third line inputs on controls were segmented across the
Audit Committee and the ESG Committee. Internal Audit
and Risk submitted to the Audit Committee, and Compliance
to the ESG Committee. Internal Audit reports are now also
submitted to the ESG Committee. We recommend that both
Committees review the scope of the materials received to
ĉŨŝǘƎśɆƢķëƢɆļƢɆƖƪƋƋŨƎƢƖɆƢķėɆƖĉŨƋėɆŨįɆƎėƖƋŨŝƖļĈļŒļƢļėƖɆƖėƢɆŨƪƢɆļŝɆ
their respective terms of reference.
nëŝëİėśėŝƢɆķëƖɆƎėǁļėǂėĐɆëŝĐɆĉŨŝǘƎśėĐɆƢķëƢɆƢķėɆƪĐļƢɆ
ŨśśļƢƢėėɆëŝĐɆ,©EɆŨśśļƢƢėėɆƎėĉėļǁėɆƖƪįǘĉļėŝƢɆļŝįŨƎśëƢļŨŝɆ
and materials from Internal Audit and Compliance teams
in order to meet their duties under the terms of reference.
¶ķėɆƪĐļƢɆëŝĐɆ,©EɆŨśśļƢƢėėƖɆķëǁėɆĉŨŝǘƎśėĐɆëƖɆƋëƎƢɆ
of the annual performance evaluation that the Directors
ëƎėɆĉŨśįŨƎƢëĈŒėɆƢķëƢɆėëĉķɆŨśśļƢƢėėɆƎėĉėļǁėƖɆƖƪįǘĉļėŝƢɆ
information to allow them to perform their duties.
Second line compliance testing
Additional staff resources are currently being added to
Compliance to enable Compliance to perform second
line testing. We recommend that this Compliance testing
ëĉƢļǁļƢLjɆļƖɆƢķŨƪİķƢįƪŒŒLjɆĉŨŨƎĐļŝëƢėĐɆǂļƢķɆĈŨƢķɆƢķėɆǘƎƖƢɆŒļŝėɆ
and Internal Audit so that there is an effective three lines of
defence approach. Compliance testing should be focused
ŨŝɆśŨŝļƢŨƎļŝİɆƢķėɆėįįėĉƢļǁėŝėƖƖɆŨįɆƢķėɆǘƎƖƢɆŒļŝėɆĉŨŝƢƎŨŒƖɆŨǁėƎɆ
business/operational activity.
Compliance management in consultation with Internal Audit
had already decided prior to the review to move the second
line of defence from under the Director of Internal Audit to
under the Compliance Directors to make the second line
ƎėǁļėǂɆƋƎŨĉėƖƖɆśŨƎėɆĐLjŝëśļĉɆļŝɆėŝİëİļŝİɆǂļƢķɆƢķėɆǘƎƖƢɆ
line. Compliance, AML and Internal Audit leads have been
liaising to establish this function and consider resourcing.
This function has now been set up and resources recruited
in both the UK and International Compliance teams. A 2022
risk-based compliance monitoring plan has been actioned.
Risk Function
We recommend that the Risk function is given more weight
in the organisation. It should be a better resourced, free-
standing second line function with a more complete set of risk
tools and capabilities and should be led by a senior person.
Whilst progress on the evolution of our Group-wide Risk
Management Framework has been hampered during 2021
following the loss of our Head of Risk for personal reasons,
we have continued to develop and extend the capabilities of
the Group Risk function during the year as discussed in the
Risk section of the Annual Report.
Whilst the evolution of the Risk function continues,
śëŝëİėśėŝƢɆëĉŏŝŨǂŒėĐİėɆëŝĐɆëĉĉėƋƢɆƢķėɆǘŝĐļŝİɆŨįɆƢķėɆ
Alvarez and Marsal review. As such, management have
committed to presenting all options available to the Board
for accelerating the evolution of the Risk function and the
creation of a stand-alone second line of defence. The Board
will then decide on the direction of the Risk function and its
objectives for 2022 and beyond.
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94
Governance
Compliance Committees
During the year the management team has moved from a monthly
Executive Compliance Committee reviewing developments across
all jurisdictions to establishing a number of sub-committees
focused on particular jurisdictions such as the UK, US, Germany
and Australia. This was done in recognition of the fact that
gambling regulation continues to develop and become more
complex and the Group is obtaining more licences. The sub-
committees allow more time for a deeper dive into the issues
associated with a particular territory.
Regulatory Strategy Status
In November 2020 Entain announced as part of its sustainability
strategy that it would only take revenues from countries where
the Group held a domestic licence, or could partner with a
locally licensed operator or the jurisdiction was in the process of
introducing a regulatory regime under which the Group could apply
for a licence.
In 2021 Entain acquired the Bet.pt and Enlabs businesses, bringing
into our licence portfolio licences in Portugal, Latvia, Estonia and
Lithuania. Entain was also successful in May in getting re-licensed
in the state of Nevada. The Group is now licensed in 31 territories
and its US JV partnership, BetMGM is licensed and operational now
in 21 US markets. As part of our regulated market commitment,
we also closed our gambling offerings in a further seven countries
where we concluded there was little or no realistic licensing
opportunity. The largest of these markets was Russia, where the
Group has concluded that there are no prospects of obtaining a
legitimate licence for any of its sports betting or gaming offerings
on commercially attractive terms.
For 2022 we are planning on entering at least two African markets
with our bwin brand, the Polish sports betting market, the Dutch
sports betting and gaming market, the Mexican gambling market
and securing a licence in the Canadian state of Ontario. We also
expect to gain further licences in 2022 as we complete various
M&A projects.
HMRC Update
We have previously disclosed that the Group is cooperating with a
ŒŨŝİȯƎƪŝŝļŝİɆļŝǁėƖƢļİëƢļŨŝɆĈLjɆƢķėɆ½bȼƖɆƢëLJɆëƪƢķŨƎļƢLjȚɆLnɆ¡ėǁėŝƪėɆ
ʁɆƪƖƢŨśƖɆȩȹLn¡ȺȪɆļŝƢŨɆëɆŝƪśĈėƎɆŨįɆįŨƎśėƎɆƢķļƎĐɆƋëƎƢLjɆƖƪƋƋŒļėƎƖɆ
ǂķŨɆƋƎŨǁļĐėĐɆƋëLjśėŝƢɆƋƎŨĉėƖƖļŝİɆƖėƎǁļĉėƖɆƢŨɆƢķėɆEƎŨƪƋȼƖɆŒėİëĉLjɆ
Turkish-facing online gambling business. That business was sold in
ǥǣǤǪșɆLn¡ȼƖɆļŝǁėƖƢļİëƢļŨŝɆļƖɆŨŝİŨļŝİɆļŝƢŨɆƢķėɆëĉƢļǁļƢļėƖɆŨįɆŨŝėɆŨƎɆ
more members of the Group and the offences under investigation
include, but are not limited to, offences under sections 1 and 7 of
the Bribery Act 2010. The Group continues to cooperate fully with
Ln¡ȼƖɆėŝƍƪļƎļėƖșɆ
Robert Hoskin
ķļėįɆEŨǁėƎŝëŝĉėɆ{įǘĉėƎ
3 March 2022
ɆķļėįɆEŨǁėƎŝëŝĉėɆ{įǘĉėƎȼƖɆ¡ėƋŨƎƢɆcontinued
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Governance framework
Regional
Compliance Committees
Divisional Risk
Forum
Functional Risk
Forum
Net Zero
Group
Group Compliance
Committee
Group Payment
Processing Committee
Group Risk
Committee
ESG Steering
Group
Global Leadership Team
Direct reports to ExCo
Approx. 20 people
Senior Leadership Team
Approx. 80 people
Executive Committee (ExCo)
Responsibilities
Advisory Committee to support the CEO on
ƢķėɆśëŝëİėśėŝƢɆŨįɆƢķėɆEƎŨƪƋȼƖɆŨƋėƎëƢļŨŝëŒɆ
ëŝĐɆǘŝëŝĉļëŒɆƋėƎįŨƎśëŝĉė
CEO
Audit Committee
Responsibilities
ɆɆ{ǁėƎƖļİķƢɆŨįɆǘŝëŝĉļëŒɆ
reporting processes
Integrity of
ǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖ
Reviews audit effectiveness
including internal controls
Supports the Board on
risk management
Advice on external auditor
Nomination Committee
Responsibilities
Reviews composition of the
Board and its Committees
Leads Board
appointments process
Maintains strong NED pipeline
Reviews independence and
outside commitments of NEDs
Reviews Board
diversity policy
Remuneration Committee
Responsibilities
Recommends the Remuneration Policy
Determines remuneration packages of
Executive Directors and ExCo members
Monitors alignment of pay and
incentives for the wider workforce
Maintains dialogue with shareholders
and workforce on remuneration
Reports on implementation of the
Remuneration Policy
Chairman’s Committee
Responsibilities
Reviews structure and
effectiveness of the
EƎŨƪƋȼƖɆŨƎİëŝļƖëƢļŨŝɆ
and management
Reviews executive succession
and performance
ESG Committee
Responsibilities
Reviews ESG policies and
controls for managing
ƢķėɆEƎŨƪƋȼƖɆƎėŒëƢļŨŝƖķļƋƖɆ
with stakeholders
ɆɆnŨŝļƢŨƎƖɆƢķėɆEƎŨƪƋȼƖɆ,©EɆ
performance, including
against KPIs and ensures
ƢķėɆ,©EɆƖƢƎëƢėİLjɆƎėśëļŝƖɆǘƢɆ
for purpose
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Board
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96
Governance
Board attendance and composition
Director meeting attendance for 2021
¶ķėɆŨëƎĐɆķëĐɆƖļLJɆƖĉķėĐƪŒėĐɆśėėƢļŝİƖɆļŝɆǥǣǥǤɆëŝĐɆëɆįƪƎƢķėƎɆǘǁėɆ
ad-hoc meetings.
Meetings
attended/
eligible to
attend Independent
Chairman
Barry Gibson 11/11
Independent
upon appointment
Executive Directors
Shay Segev
(resigned 21 January 2021) 2/2
Jette Nygaard-Andersen
(appointed 21 January 2021) 8/8
Robert Hoskin 11/11
Rob Wood 11/11
Non-Executive Directors
Pierre Bouchut 11/11
9
Stella David
(appointed 4 March 2021) 6/6 9
Mark Gregory
(appointed 17 March 2021) 6/6 9
Peter Isola 11/11 9
Vicky Jarman
(appointed 4 March 2021) 6/6 9
Virginia McDowell 11/11 9
Stephen Morana
(resigned 4 March 2021) 5/5 9
Jette Nygaard-Andersen
(Non-Executive Director until
21 January 2021 when she was
appointed CEO) 2/2 9
David Satz 11/11 9
Board Commitment, Balance and Independence
,ëĉķɆpŨŝȯ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎɆȩȹp,$ȺȪɆśƪƖƢɆĈėɆëĈŒėɆƢŨɆĐėǁŨƢėɆ
ƖƪįǘĉļėŝƢɆƢļśėɆƢŨɆƢķėɆƎŨŒėɆļŝɆŨƎĐėƎɆƢŨɆĐļƖĉķëƎİėɆķļƖɆŨƎɆķėƎɆ
ƎėƖƋŨŝƖļĈļŒļƢļėƖɆėįįėĉƢļǁėŒLjɆëŝĐɆƢķėɆŨëƎĐɆļƖɆƖëƢļƖǘėĐɆƢķëƢɆƢķėɆ
ķëļƎśëŝɆëŝĐɆėëĉķɆŨįɆƢķėɆp,$ƖɆĐėǁŨƢėƖɆƖƪįǘĉļėŝƢɆƢļśėɆƢŨɆ
their duties.
Excluding the Chairman, of the remaining ten Directors, seven are
independent NEDs. The Nomination Committee, having considered
the matter carefully, is of the opinion that all the current NEDs
remain independent. The composition of all Board Committees
complies with the 2018 Code recommendations.
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Roles and responsibilities of the Entain Board
Accountability
Responsible for the long-term success
ŨįɇƢķėɆEƎŨƪƋ
Establishes strategy and monitors
its implementation
Has regard to the interests of stakeholders
ļŝɇļƢƖɇĐėĉļƖļŨŝɆśëŏļŝİ
Leads and directs the Group’s values,
ĉƪŒƢƪƎėɇëŝĐɆƋƪƎƋŨƖė
Responsible for risk oversight
Sets the standards of integrity, ethics and
conduct within the Group
Ɇ¡ėƖƋŨŝƖļĈŒėɆįŨƎɆƢķėɆŨǁėƎ댌ɆǘŝëŝĉļëŒɆ
ƋėƎįŨƎśëŝĉėɇŨįɆƢķėɆEƎŨƪƋ
Responsible for the Group’s
corporate governance
Entain plc Board
Non-Executive
Senior Independent
Director
Supports the Chairman in
his role
Leads the Non-Executive
Directors in evaluating the
performance of the Chairman
Acts as intermediary for other
Non-Executive Directors
when required
Be available to shareholders
if they have concerns which
have failed to be resolved by
the Chairman, CEO or CFO
Leads an orderly succession
process for the Chairman
Chairs the Board in the
absence of the Chairman
Chairman
Leads the Board and
is responsible for its
overall effectiveness
Ensures the Board as a whole
develops and determines
ƢķėɆEƎŨƪƋȼƖɆƖƢƎëƢėİLjɆ
and objectives
Acts as guardian of the
ŨëƎĐȼƖɆĐėĉļƖļŨŝɆśëŏļŝİ
Oversees the
effective engagement
with stakeholders
Responsible for succession
planning, director
development and evaluation
Non-Executive
Director
Constructively challenges
and contributes to the
development of the strategy
Monitors the
EƎŨƪƋȼƖɆƋėƎįŨƎśëŝĉėɆ
,ŝƖƪƎėƖɆƢķëƢɆǘŝëŝĉļëŒɆ
information is accurate and
that both controls and the
system of risk management
are effective and robust
Responsible for determining
Executive Director
remuneration and overseeing
succession planning of
Executive management
Executive
CFO and
Deputy CEO
{ǁėƎƖėėƖɆŨƪƎɆǘŝëŝĉļëŒɆ
operations, including
ëĉĉŨƪŝƢļŝİȚɆǘŝëŝĉļëŒɆ
reporting, tax, control
and treasury
$ļƎėĉƢƖɆƢķėɆEƎŨƪƋȼƖɆǘŝëŝĉļëŒɆ
objectives and budget
Funds, enables and executes
ƢķėɆEƎŨƪƋȼƖɆƖƢƎëƢėİLj
Provides insight and analysis
to support the CEO and ExCo
Responsible for M&A activity
Responsible for
Retail operations
CEO
Leads the Group
Articulates and acts as a role
model for our values, culture
and purpose
Proposes and
implements strategy
Manages the Executive
ŨśśļƢƢėėɆȩȹ,LJŨȺȪ
Responsible, with the
ExCo, for implementing the
decisions of the Board and
its Committees
Promotes and conducts the
highest standards of integrity
within the Group
Engages with stakeholders
Responsible for the
EƎŨƪƋȼƖɆƋėƎįŨƎśëŝĉė
Chief Governance
{įǘĉėƎ
ɆɆ{ǁėƎƖėėƖɆƢķėɆEƎŨƪƋȼƖɆ
governance framework
Oversees the Legal and
Compliance function
Oversees government and
regulatory affairs
Chairs the Executive
Environmental, Social and
Governance Steering Group
Chairs the Group
Risk Committee
Chairs the Group Compliance
and Group Payments
Processing Committees
Oversight
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98
Governance
Employee Forum
Virginia McDowell, Chair of the ESG Committee, appointed
ëƖɆ$ėƖļİŝëƢėĐɆÕŨƎŏįŨƎĉėɆ$ļƎėĉƢŨƎɆļŝɆǥǣǤǬȚɆëƢƢėŝĐėĐɆ,ŝƢëļŝȼƖɆ
Global Conference (representing colleagues across the Group)
in December 2021. Throughout her attendance, Virginia
actively engaged in conversations around the ongoing
employee impact of the pandemic; mental health and well-
being; women in leadership initiatives; the future of hybrid
working models; and the cultural embedding of responsible
betting and gaming practices within the Group.
Other Board members, including Mark Gregory (Chair of the
¡ėśƪŝėƎëƢļŨŝɆŨśśļƢƢėėȪȚɆëŒƖŨɆëƢƢėŝĐėĐɆ,ŝƢëļŝȼƖɆEŒŨĈëŒɆ
Conference, answering questions from colleagues on a range
of topics, including talent acquisition and retention initiatives;
employee onboarding and training programmes; as well as the
cultural embedding of company values, and the importance of
the 2035 drive to reach net-zero.
Board attendance to such events facilitates effective oversight
of everyday life within the company for our employees; and
enables the Board to:
Understand how the strategy has been translated and
implemented into everyday working practices.
EëƪİėɆƢķėɆĐėİƎėėɆļŝɆǂķļĉķɆƢķėɆEƎŨƪƋȼƖɆǁëŒƪėƖɆķëǁėɆĈėėŝɆ
culturally embedded.
Understand what really matters to our colleagues.
Engage with our colleagues in open, honest and
candid conversations.
The Board and stakeholder considerations
,ŝƢëļŝȼƖɆƋƪƎƋŨƖėɆļƖɆƢŨɆƎėǁŨŒƪƢļŨŝļƖėɆİëśĈŒļŝİɆƢŨɆĉƎėëƢėɆƢķėɆśŨƖƢɆ
exciting and trusted entertainment for every customer; this puts
ƖƢëŏėķŨŒĐėƎƖɆëƢɆƢķėɆĉėŝƢƎėɆŨįɆƢķėɆŨëƎĐȼƖɆĐėĉļƖļŨŝȯśëŏļŝİșɆ{ǁėƎɆƢķėɆ
year the Board sought to promote our purpose and strategy and
made decisions having considered the matters set out in s172 of
the Companies Act 2006 (UK).
Stakeholders
¶ķėɆŨëƎĐɆķëƖɆƎėƖƋŨŝƖļĈļŒļƢLjɆįŨƎɆŒėëĐļŝİɆƢķėɆEƎŨƪƋȼƖɆƖƢëŏėķŨŒĐėƎɆ
engagement and considering the implications of key decisions
on the Company and its stakeholders. The Board recognises that
effective engagement with our stakeholders will drive long-term
value creation, making Entain a company that people want to
invest in, buy from, partner with and work for.
,ŝƢëļŝɆķëƖɆļĐėŝƢļǘėĐɆƖļLJɆƖƢëŏėķŨŒĐėƎɆĉëƢėİŨƎļėƖɆëŝĐɆŨƪƎɆƎėƋŨƎƢɆ
ŨŝɆŨëƎĐɆĉƢļǁļƢļėƖɆƋƎŨǁļĐėƖɆëŝɆŨǁėƎǁļėǂɆŨįɆķŨǂɆƢķėɆEƎŨƪƋȼƖɆŏėLjɆ
stakeholders are considered in Board discussions and deliberations
on strategy.
1. Shareholders
2. Employees
3. Suppliers
4. Customers
5. Communities
6. Regulators
During the year, the Board gave regard to the differing needs of
its stakeholders in its decision making, recognising that the global
pandemic had impacted their interests and views – for example,
balancing the need to preserve cash to support our people,
suppliers, customers and communities during a time of uncertainty
ǁėƎƖƪƖɆŨƪƎɆƖķëƎėķŨŒĐėƎƖȼɆǂļƖķɆƢŨɆƎėĉėļǁėɆĐļǁļĐėŝĐɆļŝĉŨśėș
Our people
We have a number of colleague forums within Entain. These play
an important role in providing our people with a voice and allow
them to provide the business with valuable insight and feedback on
a range of topics, including remuneration.
Virginia McDowell, in her capacity as Designated Workforce
Director, remains a regular attendee to Employee Forums, enabling
her to provide the Board (and its Committees) with informed
feedback and insight into the realities of everyday working life
at Entain.
,ŝƢëļŝȼƖɆEŒŨĈëŒɆŨŝįėƎėŝĉėɆǂëƖɆķėŒĐɆļŝɆ$ėĉėśĈėƎɆǥǣǥǤșɆ
The Conference considered a range of people-related topics from
śėŝƢëŒɆķėëŒƢķɆƢŨɆėśƋŒŨLjėėɆŨŝĈŨëƎĐļŝİɆƋƎŨĉėƖƖėƖȚɆĈƪƢɆƖƋėĉļǘĉ댌LjɆ
focused on the ongoing impact of the Covid-19 pandemic,
both holistically across the Group, and the varied experience of
individual business units. It was at this event that Mark Gregory
(Chair of the Remuneration Committee) announced the increase to
the minimum rate of pay in excess of the Real Living Wage for UK
retail colleagues. The Conference supported the proposed increase,
ëİƎėėļŝİɆƢķëƢɆëɆśŨƎėɆĉŨśƋėƢļƢļǁėɆƖëŒëƎLjɆƎėǙėĉƢėĐɆƢķėɆƖƢƎėŝİƢķɆëŝĐɆ
resilience shown by UK retail colleagues throughout the pandemic;
and would also enable the Company to attract and retain talent.
DƎŨśɆëɆƎėśƪŝėƎëƢļŨŝɆƋėƎƖƋėĉƢļǁėȚɆnëƎŏɆEƎėİŨƎLjȼƖɆëƢƢėŝĐëŝĉėɆ
at the Global Conference offered colleagues from across the
Company the opportunity to openly share their experiences,
ǁļėǂƖȚɆëŝĐɆƢķŨƪİķƢƖɆŨŝɆǂŨƎŏļŝİɆŒļįėɆëƢɆ,ŝƢëļŝȚɆëŝĐɆƖƋėĉļǘĉ댌LjɆ
on remuneration. Valuable insights gained from this and future
employee events enable Mark and the Remuneration Committee
to better understand the individual roles our colleagues play in
delivering our strategic objectives.
Further information on Section 172
of the Companies Act 2006 can be
found in the Strategic Report
on:
page 36
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Entain:Sustain event
In November 2021, we held an inaugural sustainability
ƖķŨǂĉëƖėɆȱɆ,ŝƢëļŝț©ƪƖƢëļŝɆȱɆǂķļĉķɆķļİķŒļİķƢėĐɆ,ŝƢëļŝȼƖɆ
commitment to and progress in the areas of safer gambling,
diversity and inclusion as well as wider societal and
environmental initiatives. The event included a series of
keynote speeches from prominent Entain colleagues, including
Chief Executive Jette Nygaard-Andersen, ESG Committee
ķëļƎɆÔļƎİļŝļëɆnĉ$ŨǂėŒŒȚɆķļėįɆEŨǁėƎŝëŝĉėɆ{įǘĉėƎɆ¡ŨĈėƎƢɆ
Hoskin and Entain Foundation Chair, Ed Davis.
The event was held physically in London with over 100
people attending in person, and nearly 200 delegates
joining a specially developed platform online from across the
UK, Europe and US. The audience included shareholders,
regulators, legislators, media, as well as industry stakeholders
and partners.
Topics discussed included:
ARC™: an update on the progress of our Advanced
Responsibility and Care™ programme.
Harvard Medical School Faculty giving an overview of studies
they have conducted in the safer gambling space through
their collaboration with Entain.
Publication of a new Social Impact Report, measuring the
human impact of our support and initiatives globally.
Launch of the new EnTrain initiative – an Entain programme to
support diversity within and access to technology.
An update on the work of the Entain Foundation.
Reducing our environmental impact.
For further details see page 43
Shareholders
The Board receives feedback on shareholder views in different
ways, including through the Chairman and executive management
who meet regularly with shareholders throughout the year, as
well as an investor study compiled by an independent third party.
Board members listen in to results and trading updates held by the
Group for analysts and institutional investors and can hear directly
the questions and comments on Company performance.
The Chairman held one-to-one meetings with major institutional
investors during the year, including during the two potential offers
for the Group, collecting their views and sharing these with the rest
of the Board. In addition, the Chair of the Remuneration Committee
held calls with large institutional investors to discuss and receive
feedback on potential developments for our Remuneration Policy.
All resolutions put to the 2021 Annual General Meeting received
overwhelming support of those investors who voted, being
approximately 78% of our shareholder base (a moderate decrease
over the 2020 vote of 82%). The results of the voting at all general
meetings are published on our website: www.entaingroup.com.
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100
Governance
Key to stakeholder groups:
S
Shareholders
E
Employees
Su
Suppliers
C
Customers
Co
Communities
R
Regulators
Strategy
Response to potential offers
S
E
Su
C
Co
R
Reviewed and discussed two potential
offers for the Group.
Formed a Defence Committee to
consider a response and work with the
EƎŨƪƋȼƖɆėLJƢėƎŝëŒɆëĐǁļƖŨƎƖș
Held regular updates with the Board
and advisors to discuss developments.
Covid-19
S
E
Su
C
Co
R
Ɇ ŨŝƢļŝƪėĐɆƢŨɆśŨŝļƢŨƎɆëŝĐɆƎėǙėĉƢɆŨŝɆ
ƢķėɆļśƋëĉƢɆŨįɆŨǁļĐȯǤǬɆŨŝɆƢķėɆEƎŨƪƋȼƖɆ
employees, business and stakeholders.
Ɇ ŨŝƖļĐėƎėĐɆķŨǂɆĈėƖƢɆƢŨɆƎėǙėĉƢɆƢķėɆ
uncertainties associated with Covid-19
ļŝɆƢķėɆEƎŨƪƋȼƖɆƋŒëŝŝļŝİɆƋƎŨĉėƖƖėƖɆ
and strategy.
Evolving the Group’s strategy
S
E
Su
C
R
Held a session for Non-Executive
Directors to hear from the new CEO on
her observations and perspectives on
ƢķėɆEƎŨƪƋȼƖɆƖƢƎëƢėİLjș
Considered regulatory and competitor
developments in key markets and its
ļśƋëĉƢɆŨŝɆƢķėɆEƎŨƪƋȼƖɆƖƢƎëƢėİLjș
Held strategic deep dives on esports,
developments in the US and digital
markets, interactive entertainment and
product development.
Ɇ ¡ėǙėĉƢėĐɆŨŝɆƢķėɆļśƋŨƎƢëŝĉėɆŨįɆ
customer focus in our strategy
and growth.
Held a two-day strategy session,
looking at growth in core and new
markets, product development and
technology opportunities.
Reviewed updates to the market
S
E
C
Co
R
Strategy investor event.
Inaugural ESG sustainability showcase
Entain:Sustain.
M&A activity
S
E
Su
C
R
Received regular updates on potential
M&A opportunities.
Reviewed and approved M&A projects
recommended by management.
Financial Plan
S
E
Su
C
Discussed and approved the Three-
Year plan.
Board activities
The Board has responsibility for establishing
ƢķėɆEƎŨƪƋȼƖɆƋƪƎƋŨƖėȚɆǁëŒƪėƖɆëŝĐɆƖƢƎëƢėİLjȚɆëƖɆ
well as overseeing the conduct of its business
and promoting the long-term sustainable
ƖƪĉĉėƖƖɆŨįɆƢķėɆEƎŨƪƋȚɆİėŝėƎëƢļŝİɇǁëŒƪėɆ
įŨƎɇƖķëƎėķŨŒĐėƎƖɆëŝĐɆĉŨŝƢƎļĈƪƢļŝİɆƢŨɆ
ǂļĐėƎɇƖŨĉļėƢLjș
The Board had six scheduled meetings in 2021. In addition there
ǂėƎėɆëɆįƪƎƢķėƎɆǘǁėɆśėėƢļŝİƖɆëƎƎëŝİėĐɆĐƪƎļŝİɆƢķėɆLjėëƎɆĉŨŝĉėƎŝļŝİɆ
urgent matters such as the succession of the CEO, the appointment
of Non-Executive Directors (including the Senior Independent
Director and Chair of the Remuneration Committee) and potential
M&A activity. Entain received two potential offers in the course of
the year and regular update calls were held for the Board and the
Defence Committee during these events.
Board meetings are a key mechanism for Directors to discharge
their duties, notably under Section 172 of the Companies Act
ǥǣǣǩɆȩ½bȪșɆŝɆŨǁėƎǁļėǂɆŨįɆƢķėɆŨëƎĐȼƖɆĐļƖĉƪƖƖļŨŝƖɆëŝĐɆķŨǂɆƢķėƖėɆ
ĉŨŝƖļĐėƎėĐɆƢķėɆEƎŨƪƋȼƖɆŏėLjɆƖƢëŏėķŨŒĐėƎƖɆļƖɆƖėƢɆŨƪƢɆĈėŒŨǂș
As an Isle of Man incorporated company, Entain is not subject to
the reporting obligations under Section 172 of the Companies Act
2006 (UK). Nevertheless, the Board recognises the importance of
effective governance and intends to operate in line with the UK
reporting regulations.
During 2021 the Group complied with the principles and provisions
of the 2018 UK Corporate Governance Code.
101 Overview
|
Strategic report
|
Governance
|
Financial statements
Entain plc
|
Annual Report 2021
Governance
Investor feedback
S
Received written and verbal feedback
on investor meetings from the
Chairman, Remuneration Committee
Chair, Executive Directors and Director
of Investor Relations during the year.
Considered an external report on
the feedback of the launch of Entain
and our new strategy from over 30
institutional investors.
Board succession
S
E
R
Discussed and approved Executive
and Non-Executive appointments,
including the CEO, the Senior
Independent Director and three Non-
Executive Directors.
Regulatory disclosures
S
E
R
Approved the Notice of Meeting for
the AGM.
Ɇ DŨŒŒŨǂļŝİɆƢķėɆƪĐļƢɆŨśśļƢƢėėȼƖɆ
recommendation, reviewed and
approved the Annual Report and
Accounts and the Interim and Full
Year results.
Ɇ ƖƖėƖƖėĐɆëŝĐɆƎėƋŨƎƢėĐɆŨŝɆƢķėɆEƎŨƪƋȼƖɆ
viability and going concern.
ŨŝǙļĉƢƖɆŨįɆQŝƢėƎėƖƢɆƋŨŒļĉLjɆ
S
E
Su
C
R
Ɇ ¡ėǁļėǂėĐɆëŝĐɆëƋƋƎŨǁėĐɆƢķėɆŨëƎĐȼƖɆ
ŨŝǙļĉƢƖɆŨįɆQŝƢėƎėƖƢɆ¡ėİļƖƢėƎș
Risk reviews
S
E
Su
C
R
Bribery and corruption risk review.
Criminal Finance Act risk review.
Board governance
S
E
R
Reviewed and updated the Schedule of
Matters Reserved for the Board.
Held an externally facilitated Board
evaluation covering the effectiveness
of the Board, its Committees and the
performance of the Chairman and
individual Directors.
Performance
Business updates
S
E
C
Received updates on the Retail and
Digital businesses.
Monitored the performance of the
BetMGM joint venture in the US.
Financial updates
S
E
Su
Monitored net gaming revenue,
ĉëƖķǙŨǂȚɆĐļǁļĐėŝĐɆĉŨǁėƎɆëŝĐɆĉƎėĐļƢɆ
facilities in response to the impact of
Covid-19 on the business and agreed
that no dividend would be paid.
Debated the repayment of furlough
monies and the impact of the pandemic
ŨŝɆƢķėɆEƎŨƪƋȼƖɆ¡ėƢëļŒɆĈƪƖļŝėƖƖș
Reviewed and approved the 2022
Group budget.
Regulatory updates
S
E
Su
C
R
Received regular regulatory updates
įƎŨśɆƢķėɆķļėįɆEŨǁėƎŝëŝĉėɆ{įǘĉėƎș
Held deep dives on regulatory
ĉķëŝİėƖɆļŝɆƢķėɆEƎŨƪƋȼƖɆŏėLjɆśëƎŏėƢƖɆ
ŨįɆƢķėɆ½bɆëŝĐɆEėƎśëŝLjɆëŝĐɆƎėǙėĉƢėĐɆ
on their potential impact on the
EƎŨƪƋȼƖɆƖƢƎëƢėİLjș
Risk
S
E
Su
C
Co
R
Ɇ ½ŝĐėƎƢŨŨŏɆëɆƎėǁļėǂɆŨįɆƢķėɆEƎŨƪƋȼƖɆƎļƖŏɆ
management programme.
Reviewed and agreed the Principal
Risks for 2022 and their allocation for
monitoring between the Board, Audit
and ESG Committees.
Ɇ ¡ėǁļėǂėĐɆëŝĐɆëİƎėėĐɆƢķėɆEƎŨƪƋȼƖɆ
annual long-term viability statement.
Responsible Betting and Gaming
E
C
Co
R
Received regular updates on the
EƎŨƪƋȼƖɆƖëįėƎɆİëśĈŒļŝİɆëĉƢļǁļƢļėƖȚɆ
including our Advanced Responsibility
& Care™ (ARC™) programme.
Received updates from the ESG
Committee monitoring the performance
of the safer betting and gaming
remuneration metric.
Reviewed the structure and work of
Ƣķėɇ,ŝƢëļŝɆDŨƪŝĐëƢļŨŝș
People
S
E
Su
Reviewed the status of shop,
ƖƢëĐļëɆëŝĐɆŨįǘĉėɆĉŒŨƖƪƎėƖɆįŨŒŒŨǂļŝİɆ
Covid-19 restrictions.
Ɇ nŨŝļƢŨƎėĐɆƢķėɆŨśƋëŝLjȼƖɆļŝļƢļëƢļǁėƖɆ
to support colleagues impacted by
the pandemic.
Devoted a Board meeting to People
issues, including senior management
succession, organisational strategy,
diversity, talent development
and a review of our Principal Risk
of recruitment and retention of
key employees.
Ɇ ¡ėǙėĉƢėĐɆŨŝɆƢķėɆEƎŨƪƋȼƖɆǂŨƎŏļŝİɆ
policies, workspaces and needs of our
people in a Covid-19 environment.
Entain plc
|
Annual Report 2021
102
Governance
ŨŝǙļĉƢƖɆŨįɆQŝƢėƎėƖƢɆƋŨŒļĉLj
¶ķėɆŨëƎĐɆķëƖɆëɆŨŝǙļĉƢƖɆŨįɆQŝƢėƎėƖƢɆƋŨŒļĉLjɆëŝĐɆëŝɆëŝŝƪëŒɆĉŨŝǙļĉƢƖɆ
ëƪƢķŨƎļƖëƢļŨŝɆƋƎŨĉėƖƖȚɆǂķėƎėĈLjɆƢķėɆŨëƎĐɆƎėǁļėǂƖɆ,ŝƢëļŝȼƖɆ
ŨŝǙļĉƢƖɆŨįɆQŝƢėƎėƖƢɆ¡ėİļƖƢėƎɆëŝĐɆƖėėŏƖɆĉŨŝǘƎśëƢļŨŝɆįƎŨśɆėëĉķɆ
Director of any changes or updates to their position.
¶ķļƖɆëƪƢķŨƎļƖëƢļŨŝɆƋƎŨĉėƖƖɆļŝįŨƎśƖɆƢķėɆpŨśļŝëƢļŨŝɆŨśśļƢƢėėȼƖɆ
ëƖƖėƖƖśėŝƢɆŨįɆëɆpŨŝȯ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎȼƖɆļŝĐėƋėŝĐėŝĉėɆǂķėŝɆ
proposing that Director for re-election at the AGM.
Director Induction, Training and Development
The Chairman is assisted by the Company Secretary in providing
all new Directors with a comprehensive induction programme
on joining the Board. The induction programme provides new
Directors with an understanding of their duties as Directors, the
Group, its businesses and the markets and regulatory environments
in which it operates. This includes meeting with senior executives
and their direct reports. The process also provides an overview of
ƢķėɆEƎŨƪƋȼƖɆİŨǁėƎŝëŝĉėɆƋƎëĉƢļĉėƖșɆpŨŝȯ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆǂļŒŒɆ
have further content tailored to the Board Committees that they
will join.
Stella David, Vicky Jarman and Mark Gregory received
tailored inductions following their appointment to the Board.
These included one to one meetings with our Executive
Committee, senior management and External Auditors.
Their feedback on their induction programmes was reviewed by
the Nomination Committee to improve the effectiveness of future
Director inductions.
The Chairman has overall responsibility for ensuring that Directors
receive suitable training to enable them to carry out their duties.
Training is also provided by way of reports and presentations
prepared for each Board meeting, as well as meetings with Group
employees and external advisers. During the year the Board
received training on the Criminal Finance Act and Anti-Bribery and
Corruption legislation, developments in HSSE requirements and
GDPR and the duties of directors.
The Directors have access to independent professional advice
ëƢɆƢķėɆEƎŨƪƋȼƖɆėLJƋėŝƖėȚɆëƖɆǂėŒŒɆëƖɆƢķėɆëĐǁļĉėɆëŝĐɆƖėƎǁļĉėƖɆŨįɆƢķėɆ
Company Secretary, who advises the Board on regulatory and
corporate governance matters.
Board Evaluation and Effectiveness
I
n 2022, Entain engaged Lintstock to facilitate an external review
ŨįɆŨëƎĐɆƋėƎįŨƎśëŝĉėșɆdļŝƢƖƢŨĉŏɆļƖɆëŝɆëĐǁļƖŨƎLjɆǘƎśɆƢķëƢɆƖƋėĉļëŒļƖėƖɆ
in Board performance reviews, and has no other connection with
the Company.
¶ķėɆǘƎƖƢɆƖƢëİėɆŨįɆƢķėɆƎėǁļėǂɆļŝǁŨŒǁėĐɆdļŝƢƖƢŨĉŏɆėŝİëİļŝİɆǂļƢķɆ
the Chairman and Company Secretary to set the context for
ƢķėɆėǁëŒƪëƢļŨŝȚɆëŝĐɆƢŨɆƢëļŒŨƎɆƖƪƎǁėLjɆĉŨŝƢėŝƢɆƢŨɆƢķėɆƖƋėĉļǘĉɆ
circumstances of Entain. All Board members were requested
to complete an online survey on the performance of the Board,
each of the Committees and the Chair. Lintstock subsequently
interviewed each of the Directors, enabling them to expand on their
responses to the survey, and to raise any further issues they wished
to discuss.
As well as addressing core aspects of Board and Committee
performance, the exercise had a particular focus on the
following areas:
The response to takeover approaches received by Entain,
ļŝĉŒƪĐļŝİɆƢķėɆƎŨŒėɆƋŒëLjėĐɆĈLjɆƢķėɆŨëƎĐɆëŝĐɆƢķėɆǙŨǂɆŨįɆ
information during this period.
The quality of debates and processes around decision making
at Board level, particularly in the context of remote meetings
necessitated by the pandemic.
Ɇ ¶ķėɆƋƎŨİƎėƖƖɆĈėļŝİɆśëĐėɆƢŨǂëƎĐƖɆ,ŝƢëļŝȼƖɆƖƢƎëƢėİļĉɆļśƋėƎëƢļǁėƖȚɆ
and the main challenges facing the business in executing on
its objectives.
Ɇ ¶ķėɆİŨǁėƎŝëŝĉėɆëƎŨƪŝĐɆƎļƖŏɆśëŝëİėśėŝƢȚɆëŝĐɆƢķėɆŨëƎĐȼƖɆ
oversight of key risks facing Entain.
Ɇ ¶ķėɆŨëƎĐȼƖɆŨǁėƎƖļİķƢɆŨįɆŨƋƋŨƎƢƪŝļƢļėƖɆëŝĐɆƢķƎėëƢƖɆįëĉļŝİɆƢķėɆ
business, including in terms of competition, technology and data,
regulation and ESG / sustainability.
The oversight of organisational capacity and succession
planning for key leaders.
The interaction with key stakeholders, including major investors,
customers and employees, and the processes in place to
facilitate Board engagement with these groups.
The performance of the Audit, ESG, Remuneration and Nomination
ŨśśļƢƢėėƖɆǂëƖɆëŒƖŨɆƖƋėĉļǘĉ댌LjɆëĐĐƎėƖƖėĐɆļŝɆƢķėɆėLJėƎĉļƖėȚɆëƖɆǂëƖɆ
the performance of the Chair and that of individual Directors.
Following the sequence of Director interviews taking place in
February / March 2022, Lintstock will prepare a report on the
ǘŝĐļŝİƖȚɆëŒŨŝİƖļĐėɆëɆĉŨśƋëƎļƖŨŝɆǂļƢķɆƢķėɆdļŝƢƖƢŨĉŏɆEŨǁėƎŝëŝĉėɆ
Index, which helps to place performance into context. It is
envisaged that the outcomes will be discussed at a meeting of the
Board in April 2022.
The 2020 evaluation action plan was addressed in the
following way:
Theme How it was addressed
Focus on technology Several deep dives were held
during the year – including
on product development,
a technology tour and a
presentation following an
external assessment of our
technology stack
Online entertainment Regular strategic discussions on
online entertainment, including
an overview of market trends in
interactive entertainment
Technology risk Discussion on Principal Risks
which included different
ëƖƋėĉƢƖɆŨįɆ,ŝƢëļŝȼƖɆƢėĉķŝŨŒŨİLjɆ
programme – including
technology failure and cyber
security held as well as a review
ŨįɆƢķėɆEƎŨƪƋȼƖɆQ¶ɆļŝįƎëƖƢƎƪĉƢƪƎė
Skillset for future Board
appointments
Included as part of Nomination
Committee review and discussed
at the Board at its People
focused meeting
Board Activities continued
103Overview | Strategic report | Governance | Financial statements
Entain plc | Annual Report 2021
Report of the Audit Committee
Introduction
As Chair of the Audit Committee, I am pleased to present our
report for the year ended 31 December 2021, setting out how the
responsibilities delegated to the Audit Committee by the Board
were discharged over the course of the year and the key topics
we considered.
2021 has been another year of disruption for Entain. With the
ŨǁļĐȯǤǬƋëŝĐėśļĉƖƢļŒŒǂļƢķƪƖȚƢķėļŝƢėİƎļƢLjŨįŨƪƎǘŝëŝĉļëŒ
reporting and risk management processes continues to be of the
upmost importance in assisting the Group in its navigation of
these uncertain times. As a result, and similar to 2020, the Audit
Committee has continued to focus on risk management and
ǘŝëŝĉļëŒĉŨŝƢƎŨŒƢķƎŨƪİķŨƪƢǥǣǥǤșÕķļŒƖƢƢķėŨëƎĐķëƖśëŝëİėĐ
ƢķėEƎŨƪƋȼƖŨǁėƎ댌ƎėƖƋŨŝƖėƢŨƢķėƎļƖŏƖƋƎėƖėŝƢėĐĈLjŨǁļĐȯǤǬȚ
the Audit Committee has maintained its oversight of the controls in
place over forecasting and performance reporting, the judgements
ƢëŏėŝļŝƖƪƋƋŨƎƢŨįǘŝëŝĉļëŒėƖƢļśëƢėƖëŝĐƢķėëƖƖėƖƖśėŝƢŨį
viability in light of the changing landscape, all of which have been
ƖƪƋƋŒėśėŝƢėĐĈLjƎėİƪŒëƎĐļëŒŨİƪėǂļƢķƢķėķļėįDļŝëŝĉļëŒ{įǘĉėƎ
& Deputy CEO and our internal and external auditors. Whilst the
ŨǁļĐȯǤǬ ƋëŝĐėśļĉ ļƖ ŝŨƢ ŨǁėƎȚ Ƣķė EƎŨƪƋȼƖ ƋėƎįŨƎśëŝĉė ķëƖ
ƎėśëļŝėĐ ƖƢƎŨŝİ ëŝĐȚ ëƖ ƖƪĉķȚ Q ëś ëƖ ĉŨŝǘĐėŝƢ ëƖ ėǁėƎ ļŝ ,ŝƢëļŝȼƖ
long-term prospects.
As we discussed last year, the Board and its Committees have
continued to focus on the enhancement of our Enterprise Risk
Management Framework. During the course of 2021 the Board has
ƪŝĐėƎƢëŏėŝëĐėƢëļŒėĐƎėǁļėǂŨįƢķėEƎŨƪƋȼƖƎļŝĉļƋ댡ļƖŏƖȚǂļƢķ
the Audit Committee taking responsibility for Data Breach and
Cyber Security, Technology Failure, Taxes and Trading, Liability and
Pricing Management. We intend to undertake a review process of
this nature every year.
The Audit Committee undertakes a pivotal role in providing
ļŝĐėƋėŝĐėŝƢ ĉķ댌ėŝİė ëŝĐ ŨǁėƎƖļİķƢ ëĉƎŨƖƖ ǘŝëŝĉļëŒ ƎėƋŨƎƢļŝİ ëŝĐ
ĉŨŝƢƎŨŒƖįŨƎƢķėEƎŨƪƋș¶ķėƪĐļƢŨśśļƢƢėėȼƖŝėǂėƖƢśėśĈėƎƖȚ
ÔļĉŏLj`ëƎśëŝȚnëƎŏEƎėİŨƎLjëŝĐ$ëǁļĐ©ëƢǒȚĈƎļŝİƖļİŝļǘĉëŝƢ
ǘŝëŝĉļëŒȚ ëĉĉŨƪŝƢļŝİȚ ƎļƖŏ ëŝĐ ƖėĉƢŨƎ ėLJƋėƎļėŝĉė ǂķļĉķ ǂļŒŒ įƪƎƢķėƎ
strengthen our oversight. My thanks go to Stephen Morana for his
valuable service to the Committee, having stepped down from the
Board and Audit Committee in March 2021.
I believe the skills and experience of our members remain strong,
enabling the Audit Committee to continue to perform effectively.
Pierre Bouchut
Chair of the Audit Committee
3 March 2022
[3 March
The Audit Committee has
maintained its oversight of the
controls in place over forecasting
and performance reporting, the
judgements taken in support
Ũį ǘŝëŝĉļëŒ ėƖƢļśëƢėƖ ëŝĐ Ƣķė
assessment of viability in light of
Ƣķė ĉķëŝİļŝİ ŒëŝĐƖĉëƋėșȺ
Pierre Bouchut
Chair of the Audit Committee
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104 G
overnance
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The role of the Audit Committee
The Audit Committee oversees the effectiveness of the
EƎŨƪƋȼƖɆǘŝëŝĉļëŒɆƎėƋŨƎƢļŝİȚɆƖLjƖƢėśƖɆŨįɆļŝƢėƎŝëŒɆĉŨŝƢƎŨŒɆëŝĐɆ
risk management and the integrity of external and internal
audit processes.
Key responsibilities of the Audit Committee
Ɇ nŨŝļƢŨƎɆƢķėɆļŝƢėİƎļƢLjɆŨįɆ,ŝƢëļŝɆƋŒĉȼƖɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëŝĐɆ
ëŝLjɆįŨƎśëŒɆëŝŝŨƪŝĉėśėŝƢƖɆƎėŒëƢļŝİɆƢŨɆƢķėɆŨśƋëŝLjȼƖɆǘŝëŝĉļëŒɆ
performance and reviews, and challenge, where necessary, the
ƖļİŝļǘĉëŝƢɆǘŝëŝĉļëŒɆƎėƋŨƎƢļŝİɆļƖƖƪėƖɆëŝĐɆŌƪĐİėśėŝƢƖɆļŝɆƎėŒëƢļŨŝɆ
ƢŨɆƢķėɆķëŒįȯLjėëƎɆëŝĐɆëŝŝƪëŒɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆĈėįŨƎėɆƢķėƖėɆëƎėɆ
ƖƪĈśļƢƢėĐɆƢŨɆƢķėɆŨëƎĐɆįŨƎɆǘŝëŒɆëƋƋƎŨǁëŒș
Make recommendations to the Board concerning any proposed,
new or amended accounting policies.
Ɇ ƖƖėƖƖɆƢķėɆėįįėĉƢļǁėŝėƖƖɆŨįɆƢķėɆEƎŨƪƋȼƖɆėLJƢėƎŝëŒɆëƪĐļƢŨƎɆ
including reviewing the annual external audit plan and
ëƪĐļƢɆǘŝĐļŝİƖș
Ɇ ¡ėĉŨśśėŝĐɆƢķėɆëƪĐļƢɆįėėɆƢŨɆƢķėɆŨëƎĐɆëŝĐɆƖėƢɆƢķėɆEƎŨƪƋȼƖɆƋŨŒļĉLjɆ
on the provision of non-audit services by the external auditor.
Ɇ ¡ėǁļėǂɆëŝĐɆśŨŝļƢŨƎɆƢķėɆėLJƢėƎŝëŒɆëƪĐļƢŨƎȼƖɆļŝĐėƋėŝĐėŝĉėɆëŝĐɆ
objectivity, and the effectiveness of the audit process.
Monitor and review the internal audit programme and
its effectiveness.
Ɇ nŨŝļƢŨƎɆëŝĐɆƎėǁļėǂɆ,ŝƢëļŝȼƖɆƖLjƖƢėśƖɆŨįɆļŝƢėƎŝëŒɆĉŨŝƢƎŨŒȚɆǘŝëŝĉļëŒɆ
reporting and risk management.
Review internal audit reports covering the various areas and
activities of the business and ensure the business responds to
the recommendations made.
Ɇ ƖƖėƖƖɆëŝĐɆƎėƋŨƎƢɆŨŝɆƢķėɆEƎŨƪƋȼƖɆǁļëĈļŒļƢLjɆƋƎļŨƎɆƢŨɆĈėļŝİɆ
submitted to the Board for approval.
¶ķėɆƪĐļƢɆŨśśļƢƢėėȼƖɆƢėƎśƖɆŨįɆƎėįėƎėŝĉėɆĉëŝɆĈėɆįŨƪŝĐɆŨŝɆƢķėɆŨśƋëŝLjȼƖɆ
ǂėĈƖļƢėɇëƢɆwww.entaingroup.com
Audit Committee membership and attendance
As at 31 December 2021 the Audit Committee comprised three
members, all of whom are independent Non-Executive Directors.
ļėƎƎėɆŨƪĉķƪƢɆļƖɆķëļƎɆŨįɆƢķėɆŨśśļƢƢėėșɆLėɆķëƖɆëɆƖƢƎŨŝİɆǘŝëŝĉļëŒɆ
ĈëĉŏİƎŨƪŝĐȚɆķëǁļŝİɆĈėėŝɆĉķļėįɆǘŝëŝĉļëŒɆŨįǘĉėƎɆëƢɆ©ĉķŝėļĐėƎɆ
Electric, Carrefour and Delhaize and extensive experience as an
audit committee chair, currently serving at Pepco Group, Albioma
S.A., Geopost S.A. and Firmenich S.A. in this role. The Board is
ƖëƢļƖǘėĐɆƢķëƢɆķėɆļƖɆƢķėɆƪĐļƢɆŨśśļƢƢėėɆśėśĈėƎɆǂļƢķɆƎėĉėŝƢɆëŝĐɆ
ƎėŒėǁëŝƢɆǘŝëŝĉļëŒɆėLJƋėƎļėŝĉėȚɆëƖɆŨƪƢŒļŝėĐɆļŝɆƢķėɆ½bɆŨƎƋŨƎëƢėɆ
Governance Code, and competence in accounting and auditing
ëƖɆƎėƍƪļƎėĐɆĈLjɆƢķėɆDȼƖɆŨƎƋŨƎëƢėɆEŨǁėƎŝëŝĉėɆ¡ƪŒėƖɆļŝɆ$¶¡ǪșɆ
It considers that the Audit Committee as a whole has an
ëƋƋƎŨƋƎļëƢėɆëŝĐɆėLJƋėƎļėŝĉėĐɆĈŒėŝĐɆŨįɆĉŨśśėƎĉļëŒȚɆǘŝëŝĉļëŒɆëŝĐɆ
audit expertise to assess the issues it is required to consider, as
well as competence in the gaming sector.
ŒŒɆ$ļƎėĉƢŨƎƖɆŨŝɆŌŨļŝļŝİɆƢķėɆŨëƎĐɆëƎėɆİļǁėŝɆƖƋėĉļǘĉɆƖėĉƢŨƎɆƢƎëļŝļŝİɆ
to ensure competence relevant to the business, in addition to the
other skills they bring to the Board and Committees. Vicky Jarman,
Mark Gregory and David Satz each received a tailored Committee
induction programme upon joining the Audit Committee during
the year.
Regular attendees at the meetings include the Chief Financial
{įǘĉėƎȚɆ$ļƎėĉƢŨƎɆŨįɆDļŝëŝĉļëŒɆŨŝƢƎŨŒȚɆķļėįɆEŨǁėƎŝëŝĉėɆ{įǘĉėƎȚɆ
Director of Internal Audit, the external auditor and the Chair of
the ESG Committee. During the year the Audit Committee met for
private discussions with the external auditor and the Director of
Internal Audit.
The Audit Committee had six scheduled meetings and one ad-hoc
meeting during the year.
Member
Meetings
attended/
eligible to
attend
Pierre Bouchut (Chair) 7/7
Stephen Morana
1
1/1
Mark Gregory
2
6/6
Vicky Jarman
3
6/6
David Satz
4
3/3
1. Resigned from the Audit Committee on 4 March 2021.
2. Joined the Audit Committee on 17 March 2021.
3. Joined the Audit Committee on 4 March 2021.
4. Joined the Audit Committee on 17 August 2021.
Report of the Audit Committee continued
105 Overview
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Financial statements
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¡ėƖƋŨŝƖļĈļŒļƢLjɆįŨƎɆ,ŝƢëļŝȼƖɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖț Fair, Balanced and Understandable
¶ķėɆŨëƎĐɆļƖɆƪŒƢļśëƢėŒLjɆƎėƖƋŨŝƖļĈŒėɆįŨƎɆƋƎėƖėŝƢļŝİɆëɆįëļƎȚɆĈëŒëŝĉėĐɆëŝĐɆƪŝĐėƎƖƢëŝĐëĈŒėɆëƖƖėƖƖśėŝƢɆŨįɆ,ŝƢëļŝȼƖɆƋŨƖļƢļŨŝɆëŝĐɆ
ƋƎŨƖƋėĉƢƖȚɆǂķļĉķɆėLJƢėŝĐƖɆƢŨɆƢķėɆķëŒįȯLjėëƎɆëŝĐɆëŝŝƪëŒɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëŝĐɆŝŝƪëŒɆ¡ėƋŨƎƢșɆ
Delegation
,ŝƢëļŝȼƖɆǘŝëŝĉėɆĐėƋëƎƢśėŝƢȚɆŒėĐɆĈLjɆ
the CFO & Deputy CEO, prepares and
ƎėǁļėǂƖɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖșɆ
Management coordinates with the CEO,
CFO & Deputy CEO and Chairman on the
preparation of any business model and
strategy.
The Company Secretary with the Chairman
of the Board, the CGO and the Chair person
of the various Board Committees, prepares
the corporate governance statements and
all Board Committee reports.
External Review
,ŝƢëļŝȼƖɆėLJƢėƎŝëŒɆëƪĐļƢŨƎƖɆëƪĐļƢɆƢķėɆŝŝƪëŒɆ¡ėƋŨƎƢɆëŝĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëŝĐɆƎėǁļėǂɆƢķėɆķëŒįȯLjėëƎɆëĉĉŨƪŝƢƖșɆɆƎėƋŨƎƢɆƢŨɆƢķėɆ
Audit Committee is prepared.
Committees’ Review
The Audit Committee reviews the Annual Report, draft
ǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëŝĐɆëĉĉŨśƋëŝLjļŝİɆƖƢëƢėśėŝƢƖɆëŝĐɆ
meets with the external auditors to review their report.
The Audit Committee proposes amendments and makes
recommendations to the Board and also approves the Audit
ŨśśļƢƢėėȼƖɆ¡ėƋŨƎƢșɆ
For the annual report the Remuneration Committee, Nomination
Committee and ESG Committee respectively review the
$ļƎėĉƢŨƎƖȼɆ¡ėśƪŝėƎëƢļŨŝɆ¡ėƋŨƎƢȚɆpŨśļŝëƢļŨŝɆŨśśļƢƢėėɆ¡ėƋŨƎƢɆ
and ESG Report, propose changes and make recommendations
to the Board.
Board Review
¶ķėɆŨëƎĐɆƎėǁļėǂƖɆƢķėɆŝŝƪëŒɆ¡ėƋŨƎƢɆëŝĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖȚɆëĉĉŨśƋëŝLjļŝİɆƎėƋŨƎƢƖɆëŝĐɆƎėĉŨśśėŝĐëƢļŨŝƖɆįƎŨśɆļƢƖɆ
Committees and makes changes to the disclosure where appropriate.
Auditor Reporting To The Board
¶ķėɆ,LJƢėƎŝëŒɆëƪĐļƢŨƎƖɆƋƎėƋëƎėɆƢķėļƎɆǘŝëŒɆƎėƋŨƎƢɆȩŝŝƪëŒɆ¡ėƋŨƎƢȪɆŨƎɆƎėǁļėǂɆƎėƋŨƎƢɆȩķëŒįȯLjėëƎɆƎėƖƪŒƢƖȪș
Audit/Board Approval And Publish
¶ķėɆŨëƎĐɆëŝĐɆëƪĐļƢŨƎƖɆëƋƋƎŨǁėƖɆƢķėɆŝŝƪëŒɆ¡ėƋŨƎƢȚɆLjėëƎȯėŝĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëŝĐɆĐļƖĉŒŨƖƪƎėƖɆëŝĐɆƢķėɆķëŒįȯLjėëƎɆƎėƋŨƎƢɆëŝĐɆ
ƢķėƖėɆëƎėɆƢķėŝɆƎėŒėëƖėĐɆƢŨɆƢķėɆƖƢŨĉŏɆėLJĉķëŝİėɆëŝĐɆƋƪĈŒļƖķėĐɆŨŝɆ,ŝƢëļŝȼƖɆǂėĈƖļƢėɆŨŝɆƎėĉėļƋƢɆŨįɆƢķėɆǘŝëŒɆëƪĐļƢɆƎėƋŨƎƢșɆ
QŝɆƎėƖƋėĉƢɆŨįɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëŝĐɆëĉĉŨśƋëŝLjļŝİɆƎėƋŨƎƢƖɆįŨƎɆƢķėɆLjėëƎɆėŝĐėĐɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤȚɆƢķėɆŨśƋëŝLjɆķëƖɆ
įŨŒŒŨǂėĐɆƢķėɆƋƎŨĉėƖƖɆĐėƢëļŒėĐɆëĈŨǁėșɆQŝɆĐŨļŝİɆƖŨɆƢķėɆ$ļƎėĉƢŨƎƖɆĉŨŝǘƎśɆƢķëƢɆƢķėLjɆķëǁėɆƎėǁļėǂėĐɆƢķėɆĉŨśƋŒėƢėɆǥǣǥǤɆŝŝƪëŒɆ¡ėƋŨƎƢɆ
and consider that taken as a whole, the report is fair, balanced and understandable and provides the information necessary for
,ŝƢëļŝȼƖɇƖķëƎėķŨŒĐėƎƖɆƢŨɆëƖƖėƖƖɆƢķėɆEƎŨƪƋȼƖɆƋėƎįŨƎśëŝĉėȚɆĈƪƖļŝėƖƖɆśŨĐėŒɆëŝĐɆƖƢƎëƢėİLjș
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106
Governance
Effectiveness of the external audit
The Audit Committee evaluated the effectiveness of the external
audit process during the year in consultation with the Chief
DļŝëŝĉļëŒɆ{įǘĉėƎɆëŝĐɆƖėŝļŨƎɆǘŝëŝĉėɆƢėëśșɆ¶ķėɆëƖƖėƖƖśėŝƢɆŨįɆƢķėɆ
ëƪĐļƢŨƎȼƖɆëƋƋƎŨëĉķɆƢŨɆƋƎŨǁļĐļŝİɆëƪĐļƢɆƖėƎǁļĉėƖɆįŨĉƪƖėĐɆŨŝț
Ɇ ©ëįėİƪëƎĐƖɆëİëļŝƖƢɆļŝĐėƋėŝĐėŝĉėɆƢķƎėëƢƖɆĈėļŝİɆƖƪįǘĉļėŝƢɆ
and comprehensive.
Quality and transparency of communications being timely, clear,
concise and relevant and that any suggestions for improvements
or changes are constructive.
The exercise of professional scepticism and the willingness of the
ëƪĐļƢŨƎɆƢŨɆĉķ댌ėŝİėɆśëŝëİėśėŝƢȼƖɆëƖƖƪśƋƢļŨŝƖș
The quality of the audit engagement team – including the
continuity of appropriate industry, sector and technical expertise
or where there have been new areas of activity and changes in
regulation or professional standards.
The Audit Committee concluded that the external audit team had
provided the required quality in relation to the provision of audit
services. Feedback is provided to the external auditor by the Audit
Committee and through one-to-one discussions between the Audit
Committee Chair and the lead audit partner.
FRC Audit Quality Review
¶ķėɆƪĐļƢɆŨśśļƢƢėėɆƖƋėĉļǘĉ댌LjɆĉŨŝƖļĐėƎėĐɆƢķėɆǘŝĐļŝİƖɆŨįɆƢķėɆ
D¡ȼƖɆƪĐļƢɆƪëŒļƢLjɆ¡ėǁļėǂɆƢėëśȼƖɆëƖƖėƖƖśėŝƢɆŨįɆbnEȼƖɆǥǣǥǣɆ
audit of the Group. The Audit Committee discussed these with the
auditor and separately with management, noting the observations
ƎëļƖėĐɆëŝĐɆbnEȼƖɆƋƎŨƋŨƖėĐɆƎėƖƋŨŝƖėƖșɆ¶ķėɆƪĐļƢɆŨśśļƢƢėėɆǂļŒŒɆ
śŨŝļƢŨƎɆƋƎŨİƎėƖƖɆŨįɆƢķėɆëƪĐļƢŨƎȼƖɆƋƎŨƋŨƖëŒƖɆŨǁėƎɆƢķėɆįŨƎƢķĉŨśļŝİɆ
year and consider these as part of its annual review of the
effectiveness of external audit.
Non-audit services
¶ķėɆƪĐļƢɆŨśśļƢƢėėɆļƖɆƎėƖƋŨŝƖļĈŒėɆįŨƎɆƢķėɆEƎŨƪƋȼƖɆƋŨŒļĉLjɆŨŝɆŝŨŝȯ
audit services and the approval of non-audit services. The policy
ƖƢëƢėƖɆƢķëƢɆļŝɆƢķėɆŨśƋëŝLjȼƖɆǘŝëŝĉļëŒɆLjėëƎȚɆƢķėɆƢŨƢëŒɆįėėƖɆįŨƎɆ
non-audit services provided by the external auditors, excluding
ŝŨŝȯëƪĐļƢɆįėėƖɆįŨƎɆĐƪėɆĐļŒļİėŝĉėɆįŨƎɆëĉƍƪļƖļƢļŨŝƖɆëŝĐɆŨƢķėƎɆƖƋėĉļǘĉɆ
matters noted below, should not exceed 70% of the average of the
total fees for audit services they provided in the preceding three-
LjėëƎɆƋėƎļŨĐșɆ$ƪƎļŝİɆƢķėɆLjėëƎȚɆƢķėɆƋŨŒļĉLjɆǂëƖɆƪƋĐëƢėĐɆƢŨɆƎėǙėĉƢɆ
ƢķėɆƎėƍƪļƎėśėŝƢƖɆŨįɆƢķėɆD¡ȼƖɆ¡ėǁļƖėĐɆ,ƢķļĉëŒɆ©ƢëŝĐëƎĐɆǥǣǤǬșɆ
The policy is kept under annual review and the Audit Committee
receives regular reports on non-audit services provided by KPMG
ëŝĐɆŨƢķėƎɆëƪĐļƢɆǘƎśƖș
In the year ended 31 December 2021, the total non-audit fees as a
ƋėƎĉėŝƢëİėɆŨįɆƢķėɆëƪĐļƢɆįėėƖɆƋëļĐɆƢŨɆƢķėɆėLJƢėƎŝëŒɆëƪĐļƢŨƎƖɆǂëƖɇǥǣɼș
In addition to their statutory duties, KPMG LLP is also employed
ǂķėƎėȚɆëƖɆëɆƎėƖƪŒƢɆŨįɆƢķėļƎɆƋŨƖļƢļŨŝɆëƖɆëƪĐļƢŨƎƖɆŨƎɆįŨƎɆƢķėļƎɆƖƋėĉļǘĉɆ
expertise, they either must, or the Audit Committee accepts they
are best placed to, perform the work in question. This is primarily
work in relation to matters such as shareholder circulars, Group
ĈŨƎƎŨǂļŝİƖȚɆƎėİƪŒëƢŨƎLjɆǘŒļŝİƖɆëŝĐɆĉėƎƢëļŝɆĈƪƖļŝėƖƖɆëĉƍƪļƖļƢļŨŝƖɆ
and disposals. In such circumstances the Audit Committee will
ƖėƋëƎëƢėŒLjɆƎėǁļėǂɆƢķėɆƖƋėĉļǘĉɆƖėƎǁļĉėɆƎėƍƪļƎėśėŝƢƖɆëŝĐɆĉŨŝƖļĐėƎɆ
any impact on objectivity and independence of the auditors and
any appropriate safeguards to this. As such the Audit Committee
believes it appropriate for these non-audit services to be excluded
from the 70% cap set out above. In the year ended 31 December
2021 the fees paid in respect of due diligence for acquisitions to the
external auditors was £nil.
Activities
Financial statements and disclosure
¶ķėɆƪĐļƢɆŨśśļƢƢėėɆƎėǁļėǂėĐɆƢķėɆįƪŒŒɆëŝĐɆķëŒįȯLjėëƎɆǘŝëŝĉļëŒɆ
statements with management before proposing them to
the Board for approval. In undertaking its review, the Audit
Committee received reports from management and the
ėLJƢėƎŝëŒɆëƪĐļƢŨƎɆŨƪƢŒļŝļŝİɆƖļİŝļǘĉëŝƢɆǘŝëŝĉļëŒɆŌƪĐİėśėŝƢƖɆ
and estimates.
The Audit Committee reviewed the assessment and reporting
of longer-term viability, systems of risk management and
ļŝƢėƎŝëŒɆĉŨŝƢƎŨŒȚɆļŝĉŒƪĐļŝİɆƢķėɆƎėƋŨƎƢļŝİɆëŝĐɆĉŒëƖƖļǘĉëƢļŨŝɆŨįɆ
risk across the Group and the examination of what might
ĉŨŝƖƢļƢƪƢėɆëɆƖļİŝļǘĉëŝƢɆįëļŒļŝİɆŨƎɆǂėëŏŝėƖƖɆļŝɆƢķėɆƖLjƖƢėśɆ
ŨįɆļŝƢėƎŝëŒɆĉŨŝƢƎŨŒșɆQƢɆėLJëśļŝėĐɆƢķėɆEƎŨƪƋȼƖɆśŨĐėŒŒļŝİɆįŨƎɆ
ƖƢƎėƖƖɆƢėƖƢļŝİɆĐļįįėƎėŝƢɆǘŝëŝĉļëŒɆëŝĐɆŨƋėƎëƢļŨŝëŒɆėǁėŝƢƖɆëŝĐɆ
ĉŨŝƖļĐėƎėĐɆǂķėƢķėƎɆƢķėɆƋėƎļŨĐɆĉŨǁėƎėĐɆĈLjɆƢķėɆEƎŨƪƋȼƖɆǁļëĈļŒļƢLjɆ
statement was appropriate.
With the impact of Covid-19 continuing to impact businesses,
the Audit Committee gave consideration and challenge to the
appropriateness of adopting the going concern assumption in
ƋƎėƋëƎļŝİɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖșɆ¶ķėɆŨśśļƢƢėėɆëİƎėėɆǂļƢķɆ
the conclusions reached and the going concern statement for
the year ended 31 December 2021 is set out on page 76.
Risk
As noted in the introduction, the Audit Committee are
responsible for the oversight of Cyber Security, Technology
Failure, Taxes and Trading, Liability and Pricing Management
Principal Risks. Throughout the course of 2021, the Audit
Committee has performed detailed reviews over all these
risks seeking assurances from management that they have
suitable measures in place to monitor, manage and mitigate
the relevant risks. In addition, the Audit Committee has also
ƎėĉėļǁėĐɆƍƪëƎƢėƎŒLjɆƪƋĐëƢėƖɆŨŝɆƢķėɆEƎŨƪƋȼƖɆ¡ļƖŏɆnëŝëİėśėŝƢɆ
programme and the progress being made with the ongoing
maturity of our Enterprise Risk Management Framework.
This approach will continue in 2022.
FRC letter on Entain Annual Report
During the year, the Group received a letter from the
DļŝëŝĉļëŒɆ¡ėƋŨƎƢļŝİɆŨƪŝĉļŒɆȩD¡ȪɆƎėƍƪėƖƢļŝİɆĉŒëƎļǘĉëƢļŨŝɆ
and explanation of certain points within the 2020 Annual
Report. A number of items were resolved without the need for
further explanation and the remaining FRC queries have been
covered by additional disclosures included in the 2021 Report
in order to provide greater clarity over certain items within the
ǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖșɆ
External audit
¶ķėɆǥǣǥǤɆǘŝëŝĉļëŒɆLjėëƎȯėŝĐɆļƖɆbnEɆddȼƖɆįŨƪƎƢķɆǘŝëŝĉļëŒɆ
ƎėƋŨƎƢļŝİɆƋėƎļŨĐɆëƖɆƢķėɆEƎŨƪƋȼƖɆėLJƢėƎŝëŒɆëƪĐļƢŨƎȚɆįŨŒŒŨǂļŝİɆƢķėɆ
external audit tender process in 2018, with Mark Flanagan
ƪŝĐėƎƢëŏļŝİɆķļƖɆǘƎƖƢɆLjėëƎɆëƖɆŒėëĐɆëƪĐļƢɆƋëƎƢŝėƎșɆ¶ķėɆƪĐļƢɆ
Committee reviews the fee structure, resourcing and terms
of engagement for the external auditor annually; it further
considers the reappointment of the external auditor each year
before making a recommendation to the Board.
Report of the Audit Committee continued
107 Overview
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Strategic report
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Governance
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Financial statements
Entain plc
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Annual Report 2021
Internal audit and its effectiveness
Internal Audit provides assurance to the Board, through the Audit
ŨśśļƢƢėėȚɆƢķëƢɆėįįėĉƢļǁėɆëŝĐɆėįǘĉļėŝƢɆĉŨŝƢƎŨŒɆƋƎŨĉėƖƖėƖɆëƎėɆļŝɆ
place to identify and manage business risks that may prevent the
business from achieving its objectives and strategy. The Audit
ŨśśļƢƢėėɆƎėĉėļǁėĐɆƎėİƪŒëƎɆƎėƋŨƎƢƖɆŨŝɆQŝƢėƎŝëŒɆƪĐļƢȼƖɆǘŝĐļŝİƖȚɆ
including their assessment of issues raised in previous reports.
The work completed by Internal Audit during the year focused on
key areas of the Group (disclosed on pages 78 to 85 under Principal
Risks), which included:
Reviews of Anti-money Laundering and Safer Gambling
processes across various business units.
Review of the processes for developing and implementing new
ƖŨįƢǂëƎėɆĉëƋëĈļŒļƢļėƖɆƢŨɆƢķėɆEƎŨƪƋȼƖɆĉŨƎėɆ¶ƎëĐļŝİɆŒëƢįŨƎśș
Operating review of processes for payroll as a major expense to
the Group in several key locations, including compliance with UK
furlough regulations.
Ɇ ¡ėǁļėǂɆŨįɆƢķėɆļŝƢėİƎļƢLjɆëŝĐɆƖėĉƪƎļƢLjɆŨįɆƢķėɆEƎŨƪƋȼƖɆǘŝëŝĉļëŒɆ
systems platform, Oracle.
Operating review of the processes and technology used to
ensure compliance with licence jurisdictions.
Operating review of the new Colombian market for
regulatory compliance.
Ɇ ¡ėǁļėǂɆŨįɆƢķėɆEƎŨƪƋȼƖɆĉŨśƋŒļëŝĉėɆǂļƢķɆƢķėɆ½bɆnŨĐėƎŝɆ©ŒëǁėƎLjɆ
Act and adequacy of provisions to mitigate risks of slavery.
Review of the accuracy and integrity of processes to report to
regulatory bodies.
Ɇ {ŝİŨļŝİɆƎėǁļėǂƖɆŨįɆŏėLjɆǘŝëŝĉļëŒɆĉŨŝƢƎŨŒƖȼɆ
operating effectiveness.
The Board, with the support of the Audit Committee, completed its
annual review of the effectiveness of the system of internal control,
including the effectiveness of internal audit and consideration
of whether it had the appropriate level of independence and
ļƢƖɆļśƋŨƎƢëŝĉėɆļŝɆëƖƖėƖƖļŝİɆƢķėɆŨśƋëŝLjȼƖɆĉƪŒƢƪƎėșɆ¶ķėɆŨëƎĐɆ
ĉŨŝĉŒƪĐėĐɆƢķëƢɆļƢɆǂëƖɆƖëƢļƖǘėĐɆƢķëƢɆƢķėɆƖLjƖƢėśɆŨįɆļŝƢėƎŝëŒɆĉŨŝƢƎŨŒɆ
remains robust and have selected areas on a risk basis for inclusion
in the 2022 Internal Audit Plan.
The areas which will have their control environment reviewed
in 2022 are:
Technology disaster recovery capability.
Corporate social responsibility activities including environmental
procedures and charitable giving.
New acquisitions and mergers to ensure that appropriate,
commercially effective and highly compliant business practices
are in place.
Ongoing compliance assurance over key regulations including
gambling and responsibility requirements, anti-money
laundering, marketing and GDPR.
Whistleblowing policy
The Group has a formal whistleblowing procedure by which
ėśƋŒŨLjėėƖɆĉëŝȚɆļŝɆĉŨŝǘĐėŝĉėȚɆƎëļƖėɆĉŨŝĉėƎŝƖɆëĈŨƪƢɆƋŨƖƖļĈŒėɆ
ļśƋƎŨƋƎļėƢļėƖɆļŝɆǘŝëŝĉļëŒɆŨƎɆŨƢķėƎɆśëƢƢėƎƖșɆ¶ķļƖɆļƖɆƖėƢɆŨƪƢɆļŝɆƢķėɆ
EƎŨƪƋȼƖɆŨĐėɆŨįɆŨŝĐƪĉƢɆëŝĐɆļƖɆëƋƋƎŨǁėĐɆĈLjɆƢķėɆƪĐļƢɆŨśśļƢƢėėșɆ
The policy sets out the type of disclosure which is protected and
ëŒƖŨɆƖƋėĉļǘėƖɆƢŨɆǂķŨśɆĐļƖĉŒŨƖƪƎėƖɆƖķŨƪŒĐɆĈėɆśëĐėɆëŝĐɆƢķėɆƋƎŨĉėƖƖɆ
that will be followed. The Group actively encourages individuals,
where they believe that malpractice has taken place, to make
protected disclosures either internally to the Audit Committee or
externally through an outsourced service provider.
¶ķėɆƪĐļƢɆŨśśļƢƢėėɆļƖɆƖëƢļƖǘėĐɆƢķëƢɆƎŨĈƪƖƢɆëŝĐɆëƋƋƎŨƋƎļëƢėɆ
arrangements are in place for the proportionate and independent
investigation of such matters and for appropriate follow-up action.
Committee evaluation
The performance of the Audit Committee was assessed as a part
of the Board Review, which this year was externally facilitated
by Lintstock. All Audit Committee members completed a tailored
survey, prior to being interviewed by Lintstock representatives, to
expand on their survey responses and to raise any further issues
they wished to discuss.
As well as addressing core aspects of Audit Committee
ƋėƎįŨƎśëŝĉėȚɆƢķėɇėLJėƎĉļƖėɆķëĐɆëɆƋëƎƢļĉƪŒëƎɆįŨĉƪƖɆŨŝɆƢķėɆ
following areas:
The assessment of work performed by the Internal and external
auditors, the integrity of the control environment, and the quality
ŨįɆǘŝëŝĉļëŒɆƎėƋŨƎƢļŝİș
Ɇ ¶ķėɆŨǁėƎƖļİķƢɆŨįɆ,ŝƢëļŝȼƖɆǘŝëŝĉļëŒɆķėëŒƢķȚɆëĉĉŨƪŝƢļŝİɆƢƎėëƢśėŝƢɆ
and exposure to risk.
The relationship and communication with key counterparties,
including the Head of Internal Audit and the external
audit partner.
Following the interviews in February / March 2022, Lintstock will
ƋƎėƋëƎėɆëɆƎėƋŨƎƢɆŨŝɆƢķėɆǘŝĐļŝİƖșɆQƢɆļƖɆėŝǁļƖëİėĐɆƢķëƢɆƢķėɆŨƪƢĉŨśėƖɆ
will be discussed at a meeting of the Board in April 2022.
Entain plc
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Annual Report 2021
108
Governance
Accounting and key areas of judgement
¶ķƎŨƪİķŨƪƢɆƢķėɆĉŨƪƎƖėɆŨįɆƢķėɆLjėëƎȚɆƢķėɆƪĐļƢɆŨśśļƢƢėėɆĐėƢėƎśļŝėĐɆƢķėɆįŨŒŒŨǂļŝİɆëƎėëƖɆŨįɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆǂėƎėɆŨįɆ
ƖļİŝļǘĉëŝƢɆļŝƢėƎėƖƢșɆ¶ķėƖėɆļƖƖƪėƖɆǂėƎėɆĐļƖĉƪƖƖėĐɆǂļƢķɆśëŝëİėśėŝƢɆëŝĐɆƢķėɆėLJƢėƎŝëŒɆëƪĐļƢŨƎƖɆƢŨɆėŝƖƪƎėɆƢķëƢɆƢķėɆƎėƍƪļƎėĐɆ
ŒėǁėŒɆŨįɇĐļƖĉŒŨƖƪƎėɆķëƖɆĈėėŝɆƋƎŨǁļĐėĐɆëŝĐɆƢķëƢɆëƋƋƎŨƋƎļëƢėɆƎļİŨƪƎɆķëƖɆĈėėŝɆëƋƋŒļėĐɆǂķėƎėɆëŝLjɆŌƪĐİėśėŝƢɆśëLjɆĈėɆėLJėƎĉļƖėĐșɆ
For completeness, the Audit Committee report should be read in conjunction with the Risk Report on pages 78-85.
Matter considered Action
Separately disclosed items
The Group separately discloses certain items in order to
allow a clearer understanding of the underlying trading
performance of the business. In 2021, the Group has
recorded a net charge in respect of items which have been
separately disclosed of £134.1m in the Income Statement.
As part of their assessment that the treatment of separately
ĐļƖĉŒŨƖėĐɆļƢėśƖɆļŝɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆļƖɆëƋƋƎŨƋƎļëƢėȚɆƢķėɆ
Audit Committee has considered each of the items disclosed
and challenged, where necessary, the treatment adopted by
management. The Audit Committee has also considered the
conclusions reached by KPMG as part of its audit in this area
ëŝĐɆëƎėɆƖëƢļƖǘėĐɆǂļƢķɆƢķėɆƢƎėëƢśėŝƢɆëŝĐɆĐļƖĉŒŨƖƪƎėɆëĐŨƋƢėĐș
In addition, non-GAAP measures have been provided within
the Annual Report and Accounts to assist in the articulation
of the underlying business. Non-GAAP measures relate to
industry standard KPIs which are commonly used by the
EƎŨƪƋȼƖɆƋėėƎƖɆëŝĐɆśëƎŏėƢɆëŝëŒLjƖƢƖș
nëŝëİėśėŝƢȼƖɆƪƖėɆŨįɆŝŨŝȯEɆśėëƖƪƎėƖɆļŝɆėLJƋŒëļŝļŝİɆƢķėɆ
underlying business performance has been considered by
the Audit Committee, along with the views of KPMG on their
use and prominence. Whilst the Committee understands the
challenges associated with the use of non-GAAP measures,
ƢķėLjɆëƎėɆƖëƢļƖǘėĐɆǂļƢķɆƢķėɆĈëŒëŝĉėɆŨįɆƢķėɆĐļƖĉŒŨƖƪƎėɆƋƎŨǁļĐėĐșɆ
IFRS 3 fair value of acquired businesses
During the year, the Group completed a number of
ëĉƍƪļƖļƢļŨŝƖɆëƖɆĐėƢëļŒėĐɆļŝɆpŨƢėɆǦǥɆƢŨɆƢķėɆǘŝëŝĉļëŒɆ
statements. Included within the IFRS 3 fair value exercise
undertaken are a number of judgements including the value
of acquired intangibles (£218.5m) and goodwill (£273.1m).
The Audit Committee has reviewed the judgements
made in connection with the accounting treatment, to
determine whether the assets and liabilities recognised in
ƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëƎėɆĉëƎƎļėĐɆëƢɆëŝɆëƋƋƎŨƋƎļëƢėɆįëļƎɆ
value. In assessing the valuations, the Audit Committee has
reviewed the working papers provided by management
and its advisers in relation to the fair value exercise and has
assessed the assumptions used and conclusions reached.
The Committee has also considered the conclusions reached
by KPMG on their work in this area and has concluded that
ƢķėɆƢƎėëƢśėŝƢɆǂļƢķļŝɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆļƖɆëƋƋƎŨƋƎļëƢėș
Uncertain tax positions
Following a ruling by the Athens Administrative Court of
Appeal in favour of the Group on the 2010/11 Greek Tax
Assessment, the Group has recorded a receivable for the
full amount due under the ruling plus interest. This has
resulted in the Group recognising a receivable of €227.5m
and an associated credit in the Income Statement of €82.5m
ȩįŨƎɇëśŨƪŝƢƖɆƋƎėǁļŨƪƖŒLjɆƎėĉŨİŝļƖėĐɆëƖɆëɆĉķëƎİėȪș
In assessing the treatment adopted, the Audit Committee
has assessed the basis for the judgement taken, advice
ƎėĉėļǁėĐɆĈLjɆƢķėɆEƎŨƪƋȼƖɆėLJƢėƎŝëŒɆŒėİëŒɆëĐǁļƖŨƎƖɆëŝĐɆƢķėɆ
ëŝëŒLjƖļƖɆƋƎŨǁļĐėĐɆĈLjɆbnEșɆÕķļŒƖƢɆƢķėɆǘŝëŒɆŨƪƢĉŨśėɆƎėśëļŝƖɆ
uncertain as the Greeks Authorities have appealed the
ruling to the Greek Supreme Administrative Court, the Audit
ŨśśļƢƢėėɆļƖɆƖëƢļƖǘėĐɆƢķëƢɆƢķėɆëƋƋƎŨƋƎļëƢėɆŌƪĐİėśėŝƢɆëŝĐɆ
disclosure has been provided in the Annual Report.
Contingent consideration
Included within the Group Balance Sheet as at 31 December
2021 is contingent consideration of £70.8m, which has been
ĉëŒĉƪŒëƢėĐɆĈëƖėĐɆŨŝɆƋŨƢėŝƢļëŒɆįƪƢƪƎėɆƋƎŨǘƢëĈļŒļƢLjɆëŝĐɆƢķėɆ
likely cost of settlement.
The Committee has reviewed the process and judgements
taken by management in determining the likely pay-out
under the contingent consideration agreements as well as
ƢķėɆǘŝĐļŝİƖɆŨįɆƢķėɆbnEɆëƪĐļƢɆëŝĐɆëƎėɆƖëƢļƖǘėĐɆƢķëƢɆƢķėɆ
liabilities recognised are appropriate given the circumstances.
Report of the Audit Committee continued
109Overview | Strategic report | Governance | Financial statements
Entain plc | Annual Report 2021
Report of the Environmental, Social
ëŝĐɇEŨǁėƎŝëŝĉė ȩȹ,©EȺȪ ŨśśļƢƢėė
Introduction
Following the decision in 2020 to rename the Committee in
recognition of the expanded scope and breadth of our remit, the
ESG Committee has had an active period of work during 2021.
We increased our meeting schedule from four to six meetings per
ëŝŝƪśƢŨėŝƖƪƎėƢķëƢŨƪƎëİėŝĐëƖėŝëĈŒėĐƪƖƢŨĉŨǁėƎƢķėEƎŨƪƋȼƖ
,©EëĉƢļǁļƢļėƖëŝĐķŨǂƢķėƖėƪŝĐėƎƋļŝƢķėEƎŨƪƋȼƖƖƢƎëƢėİLjș
pėǂįŨƎǥǣǥǤǂëƖƢķė,©EŨśśļƢƢėėȼƖśŨŝļƢŨƎļŝİŨįƢķŨƖė
Principal Risks allocated to it by the Board for review. The ESG
Committee held deep dive risk reviews on health, safety and
wellbeing of customers and employees and the loss of key
locations. In its reviews, the ESG Committee considered the nature
and component of the Principal Risks, their proposed mitigations
and risk management programmes.
¶ķė EƎŨƪƋȼƖ ėŝǁļƎŨŝśėŝƢëŒ ƋƎŨİƎëśśė ƎėĉėļǁėĐ ƋëƎƢļĉƪŒëƎ įŨĉƪƖ
ĐƪƎļŝİƢķėLjėëƎȚǂļƢķƢķė,©EŨśśļƢƢėėƎėǁļėǂļŝİƢķėŨśƋëŝLjȼƖ
commitment to be carbon net zero by 2035 and preparations to
meet the Task Force on Climate-Related Financial Disclosures
(TCFD) recommendations. The ESG Committee will continue its
įŨĉƪƖ Ũŝɇ¶D$ ĐƪƎļŝİ ǥǣǥǥș
We increased our meeting
schedule to ensure that our
agendas enabled us to cover
ƢķėEƎŨƪƋȼƖ,©EëĉƢļǁļƢļėƖ
and how these underpin the
EƎŨƪƋȼƖɇƖƢƎëƢėİLjșȺ
Virginia McDowell
Chair of the ESG Committee
QŝpŨǁėśĈėƎQǂëƖĐėŒļİķƢėĐƢŨƋëƎƢļĉļƋëƢėļŝ,ŝƢëļŝȼƖǘƎƖƢ
sustainability event – Entain:Sustain which demonstrated the
EƎŨƪƋȼƖƋƎŨİƎėƖƖļŝŏėLjëƎėëƖƖƪĉķëƖƖëįėƎİëśĈŒļŝİȚĐļǁėƎƖļƢLj
and inclusion and environmental initiatives. I was pleased at
the attendance at the event and the strength of the questions
and discussion held, enabling important issues to be debated
and explained.
During the year we were joined by Stella David, our Senior
Independent Director. Stella has brought deep insight from her
executive career in consumer markets and non-executive roles.
She has been a welcome addition to the ESG Committee.
Virginia McDowell
Chair of the ESG Committee
3 March 2022
Entain plc
|
Annual Report 2021
110
Governance
The role of the ESG Committee
¶ķėɆŨśśļƢƢėėɆƋƎŨǁļĐėƖɆŨǁėƎƖļİķƢɆŨįɆƢķėɆŨśƋëŝLjȼƖɆ
Environmental, Social and Governance (ESG) programme,
ŨǁėƎƖėėļŝİɆƢķėɆėįįėĉƢļǁėɆśëŝëİėśėŝƢɆŨįɆƢķėɆŨśƋëŝLjȼƖɆ
ongoing relationship and engagement with a wide spectrum of
stakeholders. It monitors progress against internal key performance
indicators and external ESG index results.
Key responsibilities of the ESG Committee
Review the framework of ESG policies and controls for managing
ƢķėɆEƎŨƪƋȼƖɆƎėŒëƢļŨŝƖķļƋƖɆǂļƢķɆƖƢëŏėķŨŒĐėƎƖș
Ɇ ,ŝƖƪƎėɆƢķëƢɆƖƪįǘĉļėŝƢɆįŨĉƪƖɆëŝĐɆƎėƖŨƪƎĉėɆļƖɆİļǁėŝɆƢŨɆ
ļśƋŒėśėŝƢļŝİȚɆśŨŝļƢŨƎļŝİɆëŝĐɆśëŝëİļŝİɆƢķėɆEƎŨƪƋȼƖɆ,©EɆ
policies and processes and that these remain effective.
Consider the appointment of third parties to advise on ESG
ƋŨŒļĉļėƖɆëŝĐɆƋƎëĉƢļĉėƖɆëŝĐȦŨƎɆëƪĐļƢɆƢķėɆEƎŨƪƋȼƖɆ,©EɆƋŨŒļĉļėƖș
Ɇ dļëļƖėɆëŝĐɆǂŨƎŏɆǂļƢķɆƢķėɆŨëƎĐȼƖɆŨƢķėƎɆŨśśļƢƢėėƖɆƢŨɆėŝƖƪƎėɆƢķėɆ
ŨëƎĐȼƖɆĐƪƢļėƖɆëŝĐɆƎėƖƋŨŝƖļĈļŒļƢļėƖɆëƎėɆĉëƎƎļėĐɆŨƪƢɆėįįėĉƢļǁėŒLjș
Prepare an ESG report for inclusion in the Annual Report and
Accounts and oversee that any public disclosures on ESG
ļƖƖƪėƖɆśëĐėɆĈLjɆƢķėɆEƎŨƪƋɆëĉĉƪƎëƢėŒLjɆƎėǙėĉƢɆƢķėɆEƎŨƪƋȼƖɆƋŨŒļĉļėƖɆ
and processes.
¶ķėɆ,©EɆŨśśļƢƢėėȼƖɆƢėƎśƖɆŨįɆƎėįėƎėŝĉėɆǂėƎėɆƎėǁļėǂėĐɆëŝĐɆƪƋĐëƢėĐɆ
and approved by the Board during the year. These can be found on the
ŨśƋëŝLjȼƖɆǂėĈƖļƢėɆëƢɆwww.entaingroup.com
ESG Committee membership and attendance
During the year, the ESG Committee had four members.
Jette Nygaard-Andersen stepped down from the Committee
on 21 January 2021 upon becoming an Executive Director.
Stella David joined the Committee on 4 March 2021 upon her
appointment to the Board.
Regular attendees at the meetings include the Chief Governance
{įǘĉėƎȚɆ$ļƎėĉƢŨƎɆŨįɆQŝƢėƎŝëŒɆƪĐļƢȚɆEƎŨƪƋɆEėŝėƎëŒɆŨƪŝƖėŒɆëŝĐɆ
ķļėįɆėŨƋŒėɆ{įǘĉėƎșɆ{ƢķėƎɆśëŝëİėśėŝƢɆļŝĉŒƪĐļŝİɆƢķėɆķėëĐƖɆ
of the compliance teams, Director of Corporate Affairs, Director
of Regulatory Operations and the HSSE Director attended
periodically throughout the year.
The Committee had six meetings during the year.
Member
Meetings
attended/
eligible to
attend
Virginia McDowell (Chair) 6/6
Stella David
1
5/5
Peter Isola 6/6
David Satz 6/6
1. Joined the Committee on 4 March 2021.
Activities
Safer betting and gaming
¶ķėɆ,©EɆŨśśļƢƢėėɆƎėĉėļǁėĐɆƎėİƪŒëƎɆƪƋĐëƢėƖɆŨŝɆƢķėɆEƎŨƪƋȼƖɆƖëįėƎɆ
betting and gaming programme, including the ARC™ programme
ëŝĐɆƢķėɆŨśƋëŝLjȼƖɆƎėƖėëƎĉķɆƋƎŨİƎëśśėɆǂļƢķɆLëƎǁëƎĐɆnėĐļĉëŒɆ
School focusing on patterns of internet betting and gaming
ĈėķëǁļŨƪƎɆëŝĐɆëƖƖėƖƖļŝİɆƢķėɆļśƋëĉƢɆŨįɆ,ŝƢëļŝȼƖɆƖëįėƎɆĈėƢƢļŝİɆëŝĐɆ
gaming tools.
The ESG Committee undertook a half-year and full-year review of
the delivery of safer betting and gaming project metrics as part
of the new safer betting and gaming element of the Group-wide
annual bonus structure which has a 15% weighting. This review
included an external assessment by EPIC Risk Management on
ƢķėɆŨśƋëŝLjȼƖɆƋėƎįŨƎśëŝĉėɆëİëļŝƖƢɆƢëƎİėƢƖșɆƢɆļƢƖɆLjėëƎȯėŝĐɆ
ëƖƖėƖƖśėŝƢɆƢķėɆ,©EɆŨśśļƢƢėėɆĐėƢėƎśļŝėĐɆļƢɆǂëƖɆƖëƢļƖǘėĐɆ
that these metrics had been fully met and made a positive
recommendation to the Remuneration Committee as part of
its assessment.
Further information on the development of the safer betting
and gaming remuneration metric is outlined on page 126 of the
$ļƎėĉƢŨƎƖȼɆ¡ėśƪŝėƎëƢļŨŝɆ¡ėƋŨƎƢș
Gaming licence compliance
¶ķėɆ,©EɆŨśśļƢƢėėɆĉŨŝƖļĐėƎėĐɆŏėLjɆėŒėśėŝƢƖɆŨįɆƢķėɆEƎŨƪƋȼƖɆ
gaming licence compliance programme, including sports betting
integrity and the work of the Gambling Ombudsman Director.
Compliance governance
The ESG Committee received quarterly reports on international,
UK, retail and digital compliance developments and monitoring
ŨįɆƢķėɆEƎŨƪƋȼƖɆĉŨśƋŒļëŝĉėɆśëŝëİėśėŝƢșɆQƢɆįƪƎƢķėƎɆƎėǁļėǂėĐɆƢķėɆ
ƪƋĐëƢėɆŨįɆƢķėɆEƎŨƪƋɆŨśƋŒļëŝĉėɆŨśśļƢƢėėȼƖɆƢėƎśƖɆŨįɆƎėįėƎėŝĉėɆ
and refreshed structure.
Code of Conduct
¶ķėɆ,©EɆŨśśļƢƢėėɆƎėǁļėǂėĐɆëŝĐɆëƋƋƎŨǁėĐɆƢķėɆEƎŨƪƋȼƖɆ
updated Code of Conduct and its associated roll-out and training
ƋƎŨİƎëśśėșɆ$ėėƋɆĐļǁėƖɆŨŝɆƢķėɆEƎŨƪƋȼƖɆëŝƢļȯśŨŝėLjɆŒëƪŝĐėƎļŝİɆëŝĐɆ
anti-bribery and corruption programmes were held during the year.
Report of the ESG Committee continued
111 Overview
|
Strategic report
|
Governance
|
Financial statements
Entain plc
|
Annual Report 2021
Privacy and data protection
Regular updates on data privacy and protection were given
to the ESG Committee, including issues arising from requests
to share safer betting and gaming data with regulators
ëŝĐɆŒėİëŒɆëŝĐɆƎėİƪŒëƢŨƎLjɆĐėǁėŒŨƋśėŝƢƖɆëĉƎŨƖƖɆƢķėɆEƎŨƪƋȼƖɆ
different jurisdictions.
The ESG Committee held its annual review of the Group Data
Retention Policy and Group Data Protection Policy. It further
ĉŨŝƖļĐėƎėĐɆƢķėɆEƎŨƪƋȼƖɆƎƢļǘĉļëŒɆQŝƢėŒŒļİėŝĉėɆķëƎƢėƎș
Health, Safety, Security and the Environment (“HSSE”)
¶ķėɆ,©EɆŨśśļƢƢėėɆĐļƖĉƪƖƖėĐɆƢķėɆEƎŨƪƋȼƖɆėŝǁļƎŨŝśėŝƢëŒɆ
strategy and our commitment to being carbon net zero by 2035.
HSSE performance was monitored by the ESG Committee
ƢķƎŨƪİķɆƎėİƪŒëƎɆƪƋĐëƢėƖɆŨŝɆƢķėɆEƎŨƪƋȼƖɆL©©,ɆƋėƎįŨƎśëŝĉėɆ
indicators and initiatives. The ESG Committee reviewed and
approved the proposed HSSE strategy for 2022 as well as
ëİƎėėļŝİɆƢķėɆEƎŨƪƋȼƖɆL©©,ɆbQƖɆįŨƎɆƢķėɆįŨƎƢķĉŨśļŝİɆLjėëƎș
The ESG Committee undertook deep dive reviews on two
Principal Risks allocate to it for monitoring: Health, safety
and the wellbeing of customers and employees and loss of
key locations.
Diversity and inclusion
¶ķėɆ,©EɆŨśśļƢƢėėɆƎėĉėļǁėĐɆƍƪëƎƢėƎŒLjɆƎėƋŨƎƢƖɆŨŝɆƢķėɆEƎŨƪƋȼƖɆ
ĐļǁėƎƖļƢLjɆëŝĐɆļŝĉŒƪƖļŨŝɆƋėƎįŨƎśëŝĉėȚɆǂļƢķɆĐėėƋėƎɆĈƎļėǘŝİƖɆŨŝɆ
initiatives within the Company, including Employee Forums,
technology access and apprenticeship programmes.
Other reviews
The ESG Committee oversaw the annual ESG report,
ƎėǁļėǂļŝİɇƢķėɆƋƎėƋëƎėĐɆƢėLJƢɆëŝĐɆİļǁļŝİɆįėėĐĈëĉŏɆƢŨɆ
śëŝëİėśėŝƢɇŨŝɆļƢƖɆĉŨŝƢėŝƢș
ESG Committee evaluation
The performance of the ESG Committee was assessed as
ëɆƋëƎƢɇŨįɆƢķėɆŨëƎĐɆ¡ėǁļėǂȚɆǂķļĉķɆƢķļƖɆLjėëƎɆǂëƖɆėLJƢėƎŝ댌LjɆ
facilitated by Lintstock. All ESG Committee members
ĉŨśƋŒėƢėĐɇëɆƢëļŒŨƎėĐɆƖƪƎǁėLjȚɆƋƎļŨƎɆƢŨɆĈėļŝİɆļŝƢėƎǁļėǂėĐɆĈLjɆ
Lintstock representatives, to expand on their survey responses
ëŝĐɆƢŨɇƎëļƖėɆëŝLjɆįƪƎƢķėƎɆļƖƖƪėƖɆƢķėLjɆǂļƖķėĐɆƢŨɆĐļƖĉƪƖƖș
As well as addressing core aspects of ESG Committee
performance, the exercise had a particular focus on the
following areas:
The top priorities for Entain from an ESG perspective over
the coming year, and the coverage of key issues at ESG
Committee meetings.
The policies and controls in key areas, including responsible
gambling, anti-money laundering, anti-bribery and
ĉŨƎƎƪƋƢļŨŝȚɇƋƎļǁëĉLjɆëŝĐɆĐëƢëɆƋƎŨƢėĉƢļŨŝȚɆëŝĐɆĐļǁėƎƖļƢLjɆ
and inclusion.
Ɇ ¶ķėɆëĐķėƎėŝĉėɆƢŨɆƋŨŒļĉļėƖɆëŝĐɆĉŨŝƢƎŨŒƖȚɆëŝĐɆ,ŝƢëļŝȼƖɆ
engagement with key stakeholders in relation to ESG matters.
Following the interviews in February / March 2022, Lintstock
ǂļŒŒɆƋƎėƋëƎėɆëɆƎėƋŨƎƢɆŨŝɆƢķėɆǘŝĐļŝİƖșɆQƢɆļƖɆėŝǁļƖëİėĐɆƢķëƢɆ
the outcomes will be discussed at a meeting of the Board in
April 2022.
Modern Slavery Act Statement review
and internal Working Group
¶ķėɆǥǣǥǤɆnŨĐėƎŝɆ©ŒëǁėƎLjɆëŝĐɆLƪśëŝɆ¶ƎëįǘĉŏļŝİɆ
Transparency Statement was written and published in
accordance with Section 54(1) of the Modern Slavery Act
2015. The statement sets out the measures taken between 1st
January 2020 – 31st December 2020.
At the end of 2020, our Modern Slavery Working Group,
which includes colleagues from Group Procurement, Human
Resources, Internal Audit and Company Secretariat, was
formed. The Working Group is responsible for producing the
annual Modern Slavery Statement and aims to better the
visibility of human rights issues, impacts and risks, and identify
ways to eradicate adverse effects on human rights within the
Entain plc group and extended supply chains.
In 2021, the Working Group partnered with Unseen, one of the
½bȼƖɆŒėëĐļŝİɆëŝƢļȯƖŒëǁėƎLjɆĉķëƎļƢļėƖɆǂŨƎŏļŝİɆƢŨǂëƎĐƖɆėŝĐļŝİɆ
modern slavery by empowering survivors, providing advice,
ëŝĐɆļŝǙƪėŝĉļŝİɆƖŨĉļėƢLjșɆ½ŝƖėėŝɆëƖƖļƖƢėĐɆǂļƢķɆƎėǁļėǂļŝİɆ
our policies and procedures, provided a comprehensive gap
analysis of our current and future supply chain, and evaluated
different areas of our operations such as HR, supply chains
(including supply chain transparency) and procurement.
In September 2021, we introduced mandatory training on
the Modern Slavery Act 2015 to all colleagues across our
ĈƪƖļŝėƖƖȚɆëŝĐɆǂėɆǂļŒŒɆƋƎŨǁļĐėɆƢëļŒŨƎėĐɆƢƎëļŝļŝİɆƢŨɆƖƋėĉļǘĉɆ
functions within the Company, such as Procurement, Internal
Audit and recruitment. The training aims to enhance our
knowledge and understanding of the issues surrounding
modern slavery and will help us identify and prevent modern
slavery in our workplace and supply chains. The training will
be refreshed annually.
The Modern Slavery Statement was reviewed and approved
by the Board of Entain plc and can be viewed on our Company
website at
www.entaingroup.com/sustainability/modern-
slavery-statement
Entain plc | Annual Report 2021
112 Governance
The Nomination Committee
also continued to monitor
the composition and skills
of the Board, succession
planning for Non-Executive
$ļƎėĉƢŨƎƖɇëŝĐɇĐļǁėƎƖļƢLjșȺ
J M Barry Gibson
Chair of the Nomination Committee
Introduction
I am pleased to introduce the Nomination Committee report for
the year.
During the early part of last year, the Nomination Committee
focused on key Board appointments, a number of which I
ĐļƖĉƪƖƖėĐļŝŒëƖƢLjėëƎȼƖƎėƋŨƎƢș¶ķėƖėļŝĉŒƪĐėĐƢķėëƋƋŨļŝƢśėŝƢ
of Jette Nygaard-Andersen as Chief Executive, Stella David
as Senior Independent Director and Vicky Jarman as a Non-
Executive Director.
In March, we appointed Mark Gregory as a Non-Executive Director
ëŝĐķëļƎŨįƢķė¡ėśƪŝėƎëƢļŨŝŨśśļƢƢėėșnëƎŏĈƎļŝİƖǘŝëŝĉļëŒ
and retail knowledge from his executive career as well as a deep
understanding of UK corporate governance practice and investor
sentiment. An experienced remuneration committee chair, he has
proven to be a valuable addition to the Board.
Stella, Vicky and Mark completed their induction programmes
during 2021 and the Nomination Committee sought their feedback
on the process in order to further build on the effectiveness of the
programme for future new joiners.
In our last report we announced that Sandeep Tiku, our Group
ķļėį{ƋėƎëƢļŝİ{įǘĉėƎǂŨƪŒĐĈėŌŨļŝļŝİƢķėŨëƎĐĐƪƎļŝİǥǣǥǤ
ƖƪĈŌėĉƢƢŨķļƖƎėŒŨĉëƢļŨŝƢŨEļĈƎëŒƢëƎș©ëŝĐėėƋȼƖƎėŒŨĉëƢļŨŝǂëƖ
ĐėŒëLjėĐ ĈLj Ƣķė ƋëŝĐėśļĉ ëŝĐ ķė ķëƖ ŝŨƢļǘėĐ Ƣķė ŨśƋëŝLj ƢķëƢ ķė
no longer wishes to relocate and will therefore not be appointed to
the Board. The Board will not meet shareholder expectations for
an ethnically diverse composition and the Committee is currently
undertaking an active search to appoint a Director from an ethnic
minority background.
The Nomination Committee also continued to monitor the
composition and skills of the Board, succession planning for Non-
Executive Directors and diversity. As outlined last year, we moved
the regular succession planning for Executive Directors to the newly
ėƖƢëĈŒļƖķėĐķëļƎśëŝȼƖŨśśļƢƢėėļŝŨƎĐėƎƢķëƢ댌pŨŝȯ,LJėĉƪƢļǁė
Directors can engage and input into this process. This worked well
during 2021 and it is intended to continue this practice in 2022.
J M Barry Gibson
Chair of the Nomination Committee
3 March 2022
Nomination Committee Report
113 Overview
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Strategic report
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Governance
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Financial statements
Entain plc
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Annual Report 2021
The role of the Nomination Committee
The Nomination Committee actively reviews the composition
and diversity of the Board and senior management and leads
its succession process. It monitors the independence and time
ĉŨśśļƢśėŝƢɆŨįɆƢķėɆEƎŨƪƋȼƖɆpŨŝȯ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆëŝĐɆėŝƖƪƎėƖɆ
ƢķëƢɆëɆƎļİŨƎŨƪƖɆėǁëŒƪëƢļŨŝɆŨįɆƢķėɆŨëƎĐȼƖɆėįįėĉƢļǁėŝėƖƖɆëŝĐɆ
performance is undertaken at least annually.
Key responsibilities of the Nomination Committee
Ensuring that there is a formal, rigorous and transparent
procedure for appointments to the Board.
Leading the process for appointments and make
recommendations to the Board.
Assisting the Board in ensuring its composition is regularly
reviewed and refreshed, taking into account the length of service
of the Board as a whole, so that it is effective and able to operate
in the best interests of shareholders.
Ensuring plans are in place for orderly succession to positions
on the Board, the Executive Committee and where appropriate,
senior management, including the Company Secretary.
Overseeing the development of a diverse pipeline for succession.
Working and liaising with other Board Committees,
ëƖɇëƋƋƎŨƋƎļëƢėȚɆļŝĉŒƪĐļŝİɆƢķėɆ¡ėśƪŝėƎëƢļŨŝɆŨśśļƢƢėėɆļŝɆ
respect of any remuneration package to be offered to any new
ëƋƋŨļŝƢėėɆŨįɇƢķėɆŨëƎĐșɆ
¶ķėɆpŨśļŝëƢļŨŝɆŨśśļƢƢėėȼƖɆƢėƎśƖɆŨįɆƎėįėƎėŝĉėɆǂėƎėɆƎėǁļėǂėĐɆëŝĐɆƪƋĐëƢėĐɆ
and approved by the Board during the year. These can be found on the
ŨśƋëŝLjȼƖɆǂėĈƖļƢėɆëƢɆwww.entaingroup.com
Nomination Committee membership and attendance
¶ķėɆpŨśļŝëƢļŨŝɆŨśśļƢƢėėȼƖɆśėśĈėƎƖķļƋɆĉŨŝƖļƖƢƖɆŨįɆ
the Senior Independent Director and the chairs of each
ŨįɇƢķėɇŨëƎĐɆŨśśļƢƢėėƖș
The Nomination Committee had three meetings during the year.
Member
Meetings
attended/
eligible to
attend
Barry Gibson (Chair) 3/3
Pierre Bouchut 3/3
Stella David
1
1/1
Mark Gregory
2
1/1
Virginia McDowell 3/3
Stephen Morana
3
2/2
1. Joined the Nomination Committee on 4 March 2021.
2. Joined the Nomination Committee on 17 March 2021.
3. Resigned from the Nomination Committee on 4 March 2021.
Entain plc
|
Annual Report 2021
114
Governance
Activities
Board appointments
ƖɆŨƪƢŒļŝėĐɆļŝɆŒëƖƢɆLjėëƎȼƖɆƎėƋŨƎƢȚɆļŝɆėëƎŒLjɆǥǣǥǤɆƢķėɆpŨśļŝëƢļŨŝɆ
Committee led the process for the appointment of the new CEO
Jette Nygaard-Andersen, the Senior Independent Director Stella
David and Vicky Jarman as a Non-Executive Director. For these
searches we engaged external search consultant Russell Reynolds.
In addition, the Committee engaged Russell Reynolds for the
search for a new Remuneration Committee Chair. A short list
of candidates was put forward by Russell Reynolds and these
candidates met members of the Committee, the Chief Executive
ëŝĐɆķļėįɆEŨǁėƎŝëŝĉėɆ{įǘĉėƎșɆ¶ķėɆŨśśļƢƢėėɆĉŨŝĉŒƪĐėĐɆƢķëƢɆ
Mark Gregory would be an excellent addition to the Board and an
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ëŝĐɆĉƪƖƢŨśėƎɆƖėƎǁļĉėɆļŝƖļİķƢȚɆëŝĐɆƢķėƎėįŨƎėɆƎėĉŨśśėŝĐėĐɆnëƎŏȼƖɆ
appointment to the Board. Mark Gregory was appointed to the
Board in March 2021.
Russell Reynolds Associates have no other connection with
the Group or individual Directors and are accredited under the
ėŝķëŝĉėĐɆǁŨŒƪŝƢëƎLjɆĉŨĐėɆŨįɆĉŨŝĐƪĉƢɆįŨƎɆėLJėĉƪƢļǁėɆƖėëƎĉķɆǘƎśƖș
External search consultants
Following the intensive period of Director searches in early 2021,
ƢķėɆpŨśļŝëƢļŨŝɆŨśśļƢƢėėɆƎėǙėĉƢėĐɆŨŝɆƢķėɆƖėëƎĉķɆƋƎŨĉėƖƖɆëŝĐɆ
agreed to implement a policy whereby there would be a rotation of
external search consultants used for each new potential Director
appointment going forward.
Board composition and Board Committees
To assist in succession planning for Non-Executive Director
appointments and Committee membership, the Nomination
Committee considered the skills, experience and tenure of current
pŨŝȯ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆëŝĐɆƎėǙėĉƢėĐɆŨŝɆķŨǂɆƢķļƖɆƖŏļŒŒƖėƢɆėŝëĈŒėĐɆ
ƢķėɆŨëƎĐɆƢŨɆėLJėĉƪƢėɆƢķėɆEƎŨƪƋȼƖɆƖƢƎëƢėİLjȚɆįƪŒǘŒɆƢķėɆƢëƖŏƖɆëŝĐɆ
activities of its Committees and meet future challenges.
The Nomination Committee assessed the new Non-Executive
Director appointments in 2021 and recommended that Stella David
join the Remuneration, ESG and Nomination Committees, Vicky
Jarman join the Audit and Remuneration Committees and Mark
Gregory join the Audit and Nomination Committees (as well as
chairing the Remuneration Committee).
During the year the Nomination Committee considered membership
of each Board Committee in light of Board changes and focused
on succession planning for the chairs and membership of each
Committee as this had been an action arising from the 2020 Board
and Committee evaluation. The Nomination Committee agreed an
immediate successor for each Committee chair from the current
Non-Executive Directors and discussed longer term succession
planning. In addition, it was recommended that David Satz join the
Audit Committee in light of his deep knowledge of the betting and
gaming industry. David joined the Audit Committee in August 2021.
Independence
The Nomination Committee considered the independence of each
Non-Executive Director as part of its recommendation to the
Board for Director re-election. In making this recommendation, the
Nomination Committee also considered the time commitment and
performance evaluation of each Director standing for appointment.
Diversity
The Nomination Committee continued to appraise appointments
to the Board from the perspective of its commitment to diversity,
particularly with respect to gender and ethnicity, in its composition
and succession plans. With the appointment of Stella David and
Vicky Jarman in March 2021, the proportion of women on the
Board at 31 December 2021 increased to 36%. During the year the
ŨëƎĐɆƎėǁļėǂėĐɆƢķėɆİėŝĐėƎɆĈëŒëŝĉėɆëśŨŝİƖƢɆƢķėɆEƎŨƪƋȼƖɆƖėŝļŨƎɆ
management and further information can be found on page 58 of
the Strategic Report.
In January 2021 we announced that Sandeep Tiku, our Chief
{ƋėƎëƢļŝİɆ{įǘĉėƎȚɆǂŨƪŒĐɆĈėɆŌŨļŝļŝİɆƢķėɆŨëƎĐɆëƖɆëŝɆ,LJėĉƪƢļǁėɆ
Director, with Sandeep relocating from India to Gibraltar. In 2021
ƢķļƖɆëƋƋŨļŝƢśėŝƢɆǂëƖɆĐėŒëLjėĐɆĐƪėɆƢŨɆ©ëŝĐėėƋȼƖɆļŒŒɆķėëŒƢķɆĐƪƎļŝİɆ
ƢķėɆƋëŝĐėśļĉșɆ©ëŝĐėėƋɆķëƖɆŝŨǂɆŝŨƢļǘėĐɆƢķėɆEƎŨƪƋɆƢķëƢɆķėɆŝŨɆ
longer intends to relocate to Gibraltar and he will therefore not be
appointed to the Board. The Board recognises the value of having
ëɆĐļǁėƎƖėɆśėśĈėƎƖķļƋɆëŝĐɆļƖɆśļŝĐįƪŒɆƢķëƢȚɆįŨŒŒŨǂļŝİɆ©ëŝĐėėƋȼƖɆ
decision not to relocate, it will not meet shareholder expectations
on the number of Directors from an ethnic minority background.
Consequently, as part of its ongoing review of Board composition
and diversity, the Nomination Committee is taking active steps to
appoint a Director from an ethnic minority background.
The Nomination Committee reviewed and recommended the
Board Diversity Policy which was subsequently approved by
ƢķėɆŨëƎĐșɆ¶ķļƖɆĉëŝɆĈėɆįŨƪŝĐɆŨŝɆƢķėɆŨśƋëŝLjȼƖɆǂėĈƖļƢėɆëƢɆ
www.entaingroup.com
Committee evaluation
The performance of the Nomination Committee was assessed
as a part of the Board Review, which this year was externally
facilitated by Lintstock. All Nomination Committee members
completed a tailored survey, prior to being interviewed by Lintstock
representatives, to expand on their survey responses and to raise
any further issues they wished to discuss.
As well as addressing core aspects of Nomination Committee
performance, the exercise had a particular focus on the
following areas:
The review of succession plans for key Board and management
ƋŨƖļƢļŨŝƖȚɆļŝĉŒƪĐļŝİɆƢķėɆļĐėŝƢļǘĉëƢļŨŝɆŨįɆƢëŒėŝƢɆǂļƢķļŝɆ
the business.
The promotion of a diverse pipeline of talent within the
organisation, and the level of attention devoted to diversity and
inclusion in talent management.
The level of exposure that the Board members gain to developing
talent within the organisation.
Following the interviews in February/March 2022, Lintstock will
ƋƎėƋëƎėɆëɆƎėƋŨƎƢɆŨŝɆƢķėɆǘŝĐļŝİƖșɆQƢɆļƖɆėŝǁļƖëİėĐɆƢķëƢɆƢķėɆŨƪƢĉŨśėƖɆ
will be discussed at a meeting of the Board in April 2022.
¶ķėɆpŨśļŝëƢļŨŝɆŨśśļƢƢėėɆǂëƖɆƖëƢļƖǘėĐɆƢķëƢɆëɆśëļŝɆëĉƢļŨŝɆ
from the 2020 Board and Committee evaluation to ensure that
succession planning remained a key area of focus had been met
during the year through detailed discussion at the Board (on senior
ėLJėĉƪƢļǁėɆśëŝëİėśėŝƢȪȚɆƢķėɆķëļƎśëŝȼƖɆŨśśļƢƢėėɆȩŨŝɆ,LJėĉƪƢļǁėɆ
Directors), the Nomination Committee (for Non-Executive Directors
ëŝĐɆƢķėɆŨśśļƢƢėėƖȪɆëŝĐɆëƢɆƢķėɆƪĐļƢɆŨśśļƢƢėėɆȩįŨƎɆƢķėɆǘŝëŝĉėɆ
leadership of the Group).
Nomination Committee Report continued
Directors’ Remuneration Report
Directors’ Remuneration Report
Annual Statement from the
Remuneration Committee Chair Page 116
The Remuneration Committee Page 120
Executive remuneration at Entain Page 122
Remuneration in context Page 128
Annual Report on Remuneration Page 134
Directors’
Remuneration
Report
115 Overview
|
Strategic report
|
Governance
|
Financial statements
Entain plc
| Annual Report 2021
2021 Group performance
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and operational performance, demonstrating sustainable,
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programme, reinforcing the Group’s commitment to
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The launch of our commitment to net zero carbon emissions
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The Report summarises remuneration outcomes for 2021 and
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www.entaingroup.com.
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ŨįɆĉŨƪŝƢƎļėƖɆëŝĐɆŌŨĈɆƎŨŒėƖɆŨŝɆëɆǂļĐėɆƎëŝİėɆŨįɆƢŨƋļĉƖȚɆļŝĉŒƪĐļŝİɆ
ƎėśƪŝėƎëƢļŨŝșɆnŨƎėɆļŝįŨƎśëƢļŨŝɆĉëŝɆĈėɆįŨƪŝĐɆŨŝɆƋëİėƖɆǬǫɆ
ëŝĐɆǤǦǣș
ǥǣǥǤɆƖëǂɆƢķėɆëƋƋŨļŝƢśėŝƢɆŨįɆ`ėƢƢėɆpLjİëëƎĐȯŝĐėƎƖėŝɆëƖɇŨƪƎɆ,{Ɇ
ǂķŨȚɆƢŨİėƢķėƎɆǂļƢķɆķėƎɆśëŝëİėśėŝƢɆƢėëśȚɆķëĐɆëɆƖƪĉĉėƖƖįƪŒɆLjėëƎɆ
ļŝɆĐėǁėŒŨƋļŝİɆëŝĐɆļśƋŒėśėŝƢļŝİɆŨƪƎɆƖƢƎëƢėİLjɆëŒŨŝİƖļĐėɆśëŝëİļŝİɆ
ƢķėɆëƋƋƎŨëĉķėƖɆįŨƎɆƢķėɆEƎŨƪƋɆĈLjɆnEnɆ¡ėƖŨƎƢƖɆQŝƢėƎŝëƢļŨŝëŒɆëŝĐɆ
$ƎëįƢbļŝİƖșɆ½ŝĐėƎɆ`ėƢƢėȼƖɆŒėëĐėƎƖķļƋɆǂėɆėŝƢėƎɆǥǣǥǥɆļŝɆëɆƖƢƎŨŝİɆ
ƋŨƖļƢļŨŝɆëŝĐɆĉŨŝƢļŝƪėɆƢŨɆśëŏėɆƋƎŨİƎėƖƖɆŨŝɆŨƪƎɆëśĈļƢļŨŝɆƢŨɆĈėɆƢķėɆ
global leader in betting, gaming and interactive entertainment,
ǂķļĉķɆļƖɆĉŨŝǘƎśėĐɆǂķėŝɆQɆƎėǙėĉƢɆŨŝɆƢķėɆǥǣǥǤɆEƎŨƪƋɆƋėƎįŨƎśëŝĉėɆ
ķļİķŒļİķƢƖɆƖƪśśëƎļƖėĐɆƢŨɆƢķėɆŒėįƢșɆŒŒɆƢķėƖėɆëĉķļėǁėśėŝƢƖɆƋƪƢɆ
ƪƖɆļŝɆëɆİƎėëƢɆƋŨƖļƢļŨŝɆëƖɆǂėɆŒŨŨŏɆįŨƎǂëƎĐɆƢŨɆėLJėĉƪƢļŝİɆŨŝɆŨƪƎɆ
ƖƢƎëƢėİLjȚɆİƎŨǂļŝİɆŨƪƎɆįŨŨƢƋƎļŝƢɆëŝĐɆĉƪƖƢŨśėƎɆĈëƖėɆëŝĐɆĐėŒļǁėƎļŝİɆ
ëŝɆėǁėŝɆĈėƢƢėƎɆėLJƋėƎļėŝĉėɆįŨƎɆŨƪƎɆĉƪƖƢŨśėƎƖɆėëĉķɆëŝĐɆėǁėƎLjɆĐëLjșɆ
nŨƎėɆĐėƢëļŒɆļƖɆƖėƢɆŨƪƢɆļŝɆƢķėɆķļėįɆ,LJėĉƪƢļǁėȼƖɆ¡ėǁļėǂɆŨŝɆƋëİėɆǤǣș
ǥǣǥǤɆǂëƖɆëŝŨƢķėƎɆƖƪĉĉėƖƖįƪŒɆLjėëƎɆ
įŨƎɆ,ŝƢëļŝșɆQɆëśɆƋŒėëƖėĐɆƢķëƢɆŨƪƎɆ
ƎėśƪŝėƎëƢļŨŝɆįƎëśėǂŨƎŏɆļƖɆķļİķŒLjɆëŒļİŝėĐɆ
ƢŨɆƎėǂëƎĐɆŨƪƎɆėLJėĉƪƢļǁėƖɆįŨƎɆĐėŒļǁėƎļŝİɆ
ƢķļƖɆŒėǁėŒɆŨįɆƋėƎįŨƎśëŝĉėɆëŝĐɆǂėɆķëǁėɆ
ëŒƖŨɆĈėėŝɆëĈŒėɆƢŨɆƎėǙėĉƢɆƢķļƖɆļŝɆƢķėɆ
ƖƢƎėŝİƢķėŝļŝİɆŨįɆŨƪƎɆƎėǂëƎĐɆƋƎŨƋŨƖļƢļŨŝɆ
įŨƎɆ댌Ɇ,ŝƢëļŝɆĉŨŒŒėëİƪėƖșȺ
Mark Gregory
Chair of the Remuneration Committee
Directors’ Remuneration Report continued
Entain plc
|
Annual Report 2021
116 Governance
Entain plc
|
Annual Report 2021
Remuneration in 2021
QɆǂëŝƢėĐɆƢŨɆƢëŏėɆƢķļƖɆŨƋƋŨƎƢƪŝļƢLjɆƢŨɆŨƪƢŒļŝėɆëĉƢļŨŝƖɆƢëŏėŝɆĈLjɆƢķėɆ
ŨśśļƢƢėėɆĐƪƎļŝİɆƢķėɆĉŨƪƎƖėɆŨįɆƢķėɆLjėëƎɆëŝĐɆƢŨɆƖėƢɆƢķėƖėɆļŝɆƢķėɆ
ĉŨŝƢėLJƢɆŨįɆƢķėɆǂļĐėƎɆǂŨƎŏįŨƎĉėș
Salaries
ɆŝƪśĈėƎɆŨįɆ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎɆĉķëŝİėƖɆǂėƎėɆëŝŝŨƪŝĉėĐɆļŝɆǥǣǥǤȚɆ
ëŝĐɆįƪŒŒɆĐėƢëļŒƖɆŨįɆëƖƖŨĉļëƢėĐɆƎėśƪŝėƎëƢļŨŝɆǂėƎėɆƖėƢɆŨƪƢɆļŝɆƢķėɆǥǣǥǣɆ
$ļƎėĉƢŨƎƖȼɆ¡ėśƪŝėƎëƢļŨŝɆ¡ėƋŨƎƢɆëŒŨŝİɆǂļƢķɆƢķėɆƖëŒëƎLjɆļŝĉƎėëƖėɆ
ëǂëƎĐėĐɆƢŨɆŨƪƎɆD{ȚɆ¡ŨĈɆÕŨŨĐȚɆƪƋŨŝɆƢëŏļŝİɆŨŝɆëĐĐļƢļŨŝëŒɆ
ƎėƖƋŨŝƖļĈļŒļƢLjɆëƖɆ$ėƋƪƢLjɆ,{șɆQŝɆƋëƎ댌ėŒȚɆİļǁėŝɆƢķėɆĉŨŝƢļŝƪėĐɆ
ƪŝĉėƎƢëļŝƢLjɆƎėŒëƢļŝİɆƢŨɆŨǁļĐȯǤǬɆļƢɆǂëƖɆëİƎėėĐɆƢķëƢɆŝŨɆİėŝėƎëŒɆ
ƖëŒëƎLjɆļŝĉƎėëƖėƖɆǂŨƪŒĐɆĈėɆļśƋŒėśėŝƢėĐɆëƢɆƢķėɆƢLjƋļĉëŒɆëŝŝƪëŒɆ
ƎėǁļėǂɆĐëƢėɆŨįɆǤɆ`ëŝƪëƎLjɆǥǣǥǤșɆLŨǂėǁėƎȚɆƢķėɆEƎŨƪƋɆĉŨŝƢļŝƪėĐɆƢŨɆ
ensure, throughout this period, that the salaries of those colleagues
ƋŒëĉėĐɆŨŝɆįƪƎŒŨƪİķɆǂėƎėɆƢŨƋƋėĐɆƪƋɆƢŨɆǤǣǣɼșɆdëƢėƎɆļŝɆƢķėɆLjėëƎȚɆƢķėɆ
ŨśśļƢƢėėɆǂëƖɆƋŒėëƖėĐɆƢķëƢȚɆİļǁėŝɆƢķėɆƖƢƎėŝİƢķɆŨįɆƢķėɆEƎŨƪƋȼƖɆ
ƋėƎįŨƎśëŝĉėȚɆƢķėɆĐėĉļƖļŨŝɆǂëƖɆśëĐėɆƢŨɆĈƎļŝİɆįŨƎǂëƎĐɆƢķėɆǥǣǥǥɆ
ëŝŝƪëŒɆƖëŒëƎLjɆƎėǁļėǂȚɆįŨƎɆƢķėɆİėŝėƎëŒɆėśƋŒŨLjėėɆƋŨƋƪŒëƢļŨŝɆ
ȩėLJĉŒƪĐļŝİɆ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆëŝĐɆ,LJėĉƪƢļǁėɆŨśśļƢƢėėɆśėśĈėƎƖȪȚɆ
ƢŨɆǤɆ{ĉƢŨĈėƎɆǥǣǥǤșɆ¶ķļƖɆėŝëĈŒėĐɆėŒļİļĈŒėɆĉŨŒŒėëİƪėƖɆƢŨɆƎėĉėļǁėɆëŝɆ
ļŝĉƎėëƖėɆƢķƎėėɆśŨŝƢķƖɆĈėįŨƎėɆƢķėɆƢLjƋļĉëŒɆǤɆ`ëŝƪëƎLjɆƎėǁļėǂɆĐëƢėș
2021 incentive outturns
2021 annual bonus outturn
ÕķļŒƖƢɆƢķėɆŨǁėƎ댌ɆƖƢƎƪĉƢƪƎėɆŨįɆƢķėɆëŝŝƪëŒɆĈŨŝƪƖɆƎėśëļŝėĐɆ
ƪŝĉķëŝİėĐȚɆǥǣǥǤɆƖëǂɆƢķėɆļŝƢƎŨĐƪĉƢļŨŝɆŨįɆëɆŝėǂɆŝŨŝȯǘŝëŝĉļëŒɆ
metric, safer betting and gaming, representing 15% of the overall
śëLJļśƪśɆĈŨŝƪƖɆŨƋƋŨƎƢƪŝļƢLjșɆ,ŝƢëļŝɆļƖɆįƪŒŒLjɆëŒļİŝėĐɆǂļƢķɆƢķėɆ
UK Gambling Commission’s principal objectives to ensure that
ĉķļŒĐƎėŝɆëŝĐɆǁƪŒŝėƎëĈŒėɆƋėŨƋŒėɆëƎėɆƋƎŨƢėĉƢėĐșɆ{ƪƎɆëƋƋƎŨëĉķɆƢŨɆ
safer betting and gaming aims to maintain best practice standards
ëĉƎŨƖƖɆŨƪƎɆĈƪƖļŝėƖƖɆǂķėƎėǁėƎɆǂėɆŨƋėƎëƢėɆëŝĐɆƢŨɆƎėļŝįŨƎĉėɆƢķļƖɆ
ĉŨśśļƢśėŝƢɆǂėɆļŝĉŨƎƋŨƎëƢėĐɆëŝɆëƖƖŨĉļëƢėĐɆśėƢƎļĉɆļŝƢŨɆŨƪƎɆ
ëŝŝƪëŒɆĈŨŝƪƖȚɆëŒŨŝİƖļĐėɆƢķėɆǘŝëŝĉļëŒɆśėƢƎļĉƖɆȩƪŝĐėƎŒLjļŝİɆEƎŨƪƋɆ
ŨƋėƎëƢļŝİɆƋƎŨǘƢ
1
ɆëŝĐɆİƎŨǂƢķɆļŝɆŨŝŒļŝėɆŝėƢɆİëśļŝİɆƎėǁėŝƪėɆȩȹpE¡ȺȪȪșɆ
LëǁļŝİɆƢķŨƎŨƪİķŒLjɆƎėǁļėǂėĐɆƢķėɆƋėƎįŨƎśëŝĉėɆįŨƎɆėëĉķɆśėƢƎļĉȚɆ
and noting that furlough monies received during 2021 are being
repaid, the Committee approved a bonus outturn for the Executive
$ļƎėĉƢŨƎƖɆŨįɆǤǣǣɼɆŨįɆśëLJļśƪśɆŨƋƋŨƎƢƪŝļƢLjșɆ
QŝɆëƖƖėƖƖļŝİɆƢķėɆƪŝĐėƎŒLjļŝİɆEƎŨƪƋɆŨƋėƎëƢļŝİɆƋƎŨǘƢɆŨƪƢĉŨśėȚɆ
ƢķėɆŨśśļƢƢėėɆĉŨŝƖļĐėƎėĐɆƖėǁėƎëŒɆļƢėśƖȚɆǂķļĉķɆļśƋëĉƢėĐɆĈŨƢķɆ
ƋŨƖļƢļǁėŒLjɆëŝĐɆŝėİëƢļǁėŒLjɆĐƪƎļŝİɆǥǣǥǤșɆQŝɆƎėëĉķļŝİɆƢķėļƎɆĉŨŝĉŒƪƖļŨŝȚɆ
ëƖɆǂŨƪŒĐɆĈėɆėLJƋėĉƢėĐȚɆƢķėɆŨśśļƢƢėėɆķëǁėɆėLJĉŒƪĐėĐɆƢķėɆĈėŝėǘƢɆŨįɆ
įƪƎŒŨƪİķɆƋëLjśėŝƢƖɆƎėĉėļǁėĐɆĐƪƎļŝİɆǥǣǥǤșɆÕėɆķëǁėɆëŒƖŨɆėLJĉŒƪĐėĐɆ
ƢķėɆŝėƢɆĈėŝėǘƢɆŨįɆëĉƍƪļƖļƢļŨŝƖȚɆëŝĐɆƢķėɆļśƋëĉƢɆŨįɆƢķėɆƢėśƋŨƎëƎLjɆ
ǂļƢķĐƎëǂëŒɆįƎŨśɆƢķėɆpėƢķėƎŒëŝĐƖɆśëƎŏėƢɆļŝɆƢķėɆįŨƪƎƢķɆƍƪëƎƢėƎɆŨįɆ
ǥǣǥǤșɆƢɆƢķėɆƢļśėɆƢķėɆǥǣǥǤɆƢëƎİėƢƖɆǂėƎėɆƖėƢȚɆƢķėƖėɆļƢėśƖɆǂėƎėɆ
ƪŝįŨƎėƖėėŝɆëŝĐɆƢķėƎėįŨƎėɆŝŨƢɆƎėǙėĉƢėĐɆļŝɆƢķėśș
ÕķėŝɆƎėǁļėǂļŝİɆŨŝŒļŝėɆpE¡ɆƋėƎįŨƎśëŝĉėȚɆƢķėɆŨśśļƢƢėėɆ
ĉŨŝƖļĐėƎėĐɆǂķėƢķėƎɆśëLJļśƪśɆƋëLjȯŨƪƢɆǂëƖɆëƋƋƎŨƋƎļëƢėșɆ
ÕķļŒƖƢɆśļŝĐįƪŒɆŨįɆƢķėɆļśƋëĉƢɆŨŝɆƢķļƖɆśėƢƎļĉɆŨįɆƢķėɆŨǁļĐȯǤǬɆ
pandemic and its effect on customer behaviour, the Committee
ǂëƖɆƖëƢļƖǘėĐɆƢķëƢɆƢķėɆŨƪƢƋėƎįŨƎśëŝĉėɆëĉķļėǁėĐɆǂëƖɆŝŨƢɆƖŨŒėŒLjɆëɆ
ƢėśƋŨƎëƎLjɆėįįėĉƢșɆ¶ķėɆŨśśļƢƢėėɆĉŨŝĉŒƪĐėĐɆƢķëƢɆƢķėɆëĉķļėǁėśėŝƢɆ
ƎėƋƎėƖėŝƢėĐɆȹƎėëŒȺɆİƎŨǂƢķɆëŝĐɆƢķėɆśëLJļśƪśɆƢëƎİėƢɆǂŨƪŒĐɆ
ķëǁėɆĈėėŝɆėLJĉėėĐėĐɆǂļƢķŨƪƢɆƢķėɆƋŨƖļƢļǁėɆļśƋëĉƢɆŨįɆŨǁļĐȯǤǬɆ
ƎėŒëƢėĐɆƎėƖƢƎļĉƢļŨŝƖș
ÕķėŝɆĉŨŝƖļĐėƎļŝİɆƢķėɆŨƪƢĉŨśėɆŨįɆƢķėɆƖëįėƎɆĈėƢƢļŝİɆëŝĐɆİëśļŝİɆ
śėƢƎļĉȚɆƢķėɆŨśśļƢƢėėɆǂëƖɆƋŒėëƖėĐɆƢŨɆƎėëĐɆƢķėɆļŝĐėƋėŝĐėŝƢɆ
ëƖƖėƖƖśėŝƢɆƋƎėƋëƎėĐɆĈLjɆ,QɆ¡ļƖŏɆnëŝëİėśėŝƢȚɆƢķėɆŒėëĐļŝİɆ
İëśĈŒļŝİɆķëƎśɆśļŝļśļƖëƢļŨŝɆĉŨŝƖƪŒƢëŝĉLjȚɆëŝĐɆëĉĉėƋƢėĐɆƢķėɆ
ƎėĉŨśśėŝĐëƢļŨŝɆƋƎŨǁļĐėĐɆŨŝɆƢķėɆŨƪƢƢƪƎŝɆĈLjɆƢķėɆ,©EɆŨśśļƢƢėėș
¶ķėɆŨśśļƢƢėėɆļƖɆƋŒėëƖėĐɆƢķëƢɆƢķėɆĉŨśśļƢśėŝƢɆëŝĐɆķëƎĐɆǂŨƎŏɆ
of all eligible colleagues can be recognised and believes that
ƢķėɆŨƪƢƢƪƎŝɆŨįɆǤǣǣɼɆŨįɆśëLJļśƪśɆŨƋƋŨƎƢƪŝļƢLjɆįŨƎɆƢķėɆ,LJėĉƪƢļǁėɆ
$ļƎėĉƢŨƎƖɆƎėƋƎėƖėŝƢƖɆëɆĉŨśśėŝƖƪƎëƢėɆŒėǁėŒɆŨįɆƎėǂëƎĐɆįŨƎɆǥǣǥǤșɆ
nŨƎėɆĐėƢëļŒɆŨŝɆƢķėɆĈŨŝƪƖɆŨƪƢƢƪƎŝɆļƖɆİļǁėŝɆŨŝɆƋëİėɆǤǥǥș
2019 LTIP outturn
{ƪƎɆƋėƎįŨƎśëŝĉėɆļŝɆǥǣǥǤɆĉŨŝƢļŝƪėĐɆƢķėɆƖƢƎŨŝİɆƢƎëŌėĉƢŨƎLjɆǂķļĉķɆǂėɆ
ķëǁėɆƖķŨǂŝɆŨǁėƎɆƢķėɆŒëƖƢɆįėǂɆLjėëƎƖșɆ¡ŨĈƪƖƢɆ,©ɆİƎŨǂƢķɆŨǁėƎɆƢķėɆ
ƋėƎļŨĐɆǥǣǤǬȱǥǤȚɆĉŨƪƋŒėĐɆǂļƢķɆƖļİŝļǘĉëŝƢɆ¶©¡ɆŨƪƢȯƋėƎįŨƎśëŝĉėɆŨįɆ
ƢķėɆD¶©,ɆǨǤȯǤǨǣɆĉŨśƋëƎëƢŨƎɆİƎŨƪƋȚɆŒėĐɆƢŨɆƢķėɆǁėƖƢļŝİɆŨįɆƢķėɆǥǣǤǬɆ
d¶QɆëǂëƎĐɆëƢɆǤǣǣɼɆŨįɆśëLJļśƪśș
QŝɆĉŨŝƖļĐėƎļŝİɆƢķėɆŨƪƢĉŨśėɆŨįɆƢķėɆ,©ɆėŒėśėŝƢɆŨįɆƢķėɆǥǣǤǬɆd¶QȚɆ
the Committee noted that the reported result for EPS over the
ƢķƎėėȯLjėëƎɆƋėƎįŨƎśëŝĉėɆƋėƎļŨĐɆėLJĉėėĐėĐɆƢķėɆƪƋƋėƎɆėŝĐɆŨįɆƢķėɆ
ƢëƎİėƢɆƎëŝİėșɆQŝɆëƖƖėƖƖļŝİɆƢķėɆǘŝëŒɆŨƪƢĉŨśėȚɆƢķėɆŨśśļƢƢėėɆįƪƎƢķėƎɆ
ƎėǁļėǂėĐɆƖėǁėƎëŒɆļƢėśƖɆƢķëƢɆļśƋëĉƢėĐɆ,©ȚɆĈŨƢķɆƋŨƖļƢļǁėɆëŝĐɆ
ŝėİëƢļǁėȚɆĐƪƎļŝİɆƢķėɆƋėƎįŨƎśëŝĉėɆƋėƎļŨĐșɆ¶ķėɆĈėŝėǘƢɆŨįɆįƪƎŒŨƪİķɆ
ƋëLjśėŝƢƖɆƎėĉėļǁėĐɆĐƪƎļŝİɆǥǣǥǣɆëŝĐɆǥǣǥǤɆķëǁėɆĈėėŝɆėLJĉŒƪĐėĐȚɆ
ëƖɆķëƖɆƢķėɆļśƋëĉƢɆŨįɆƢķėɆļŝƢƎŨĐƪĉƢļŨŝɆŨįɆQD¡©ɆǤǩȚɆƢķėɆŝėƢɆĈėŝėǘƢɆŨįɆ
ëĉƍƪļƖļƢļŨŝƖȚɆƢķėɆėLJļƢɆįƎŨśɆŨƪƎɆĈƪƖļŝėƖƖėƖɆļŝɆ©ǂļƢǒėƎŒëŝĐɆëŝĐɆƢķėɆ
pėƢķėƎŒëŝĐƖɆëŝĐɆƢķėɆļśƋëĉƢɆŨįɆƎėİƪŒëƢŨƎLjɆĉķëŝİėƖɆļŝɆEėƎśëŝLjșɆ
pŨŝėɆŨįɆƢķėƖėɆļƢėśƖɆǂėƎėɆƎėǙėĉƢėĐɆļŝɆƢķėɆŨƎļİļŝëŒɆ,©ɆƢëƎİėƢƖșɆ
The resulting EPS outcome continues to exceed the upper end of
ƢķėɆƢëƎİėƢɆƎëŝİėș
¶ķėɆŨśśļƢƢėėɆƎėĉŨİŝļƖėƖɆƢķėɆŝėėĐɆƢŨɆėŝƖƪƎėɆƢķļƖɆƋëLjȯŨƪƢɆĉëŝɆ
ĈėɆŌƪƖƢļǘėĐɆĈëƖėĐɆŨŝɆƢķėɆǂļĐėƎɆėLJƋėƎļėŝĉėɆŨįɆŨƪƎɆƖķëƎėķŨŒĐėƎƖȚɆ
ĉŨŒŒėëİƪėƖȚɆëŝĐɆŨƢķėƎɆƖƢëŏėķŨŒĐėƎƖșɆQŝɆĐŨļŝİɆƖŨȚɆƢķėɆŨśśļƢƢėėɆ
ĉŨŝƖļĐėƎėĐɆ,ŝƢëļŝȼƖɆƖķëƎėɆƋƎļĉėɆƋėƎįŨƎśëŝĉėɆŨǁėƎɆƢķėɆƋėƎļŨĐɆȱɆ
ƪƋɆǤǨǣɼɆȱɆŨƪƎɆǘŝëŝĉļëŒɆëŝĐɆŨƋėƎëƢļŨŝëŒɆƋėƎįŨƎśëŝĉėȚɆëŝĐɆƢķėɆ
ėLJĉėŒŒėŝƢɆƋƎŨİƎėƖƖɆƢķëƢɆǂėɆķëǁėɆśëĐėɆŨŝɆŨƪƎɆƖƪƖƢëļŝëĈļŒļƢLjɆëŝĐɆ
ƖëįėƎɆĈėƢƢļŝİɆëŝĐɆİëśļŝİɆëİėŝĐëșɆnŨƎėɆĐėƢëļŒɆŨŝɆƢķėɆd¶QɆŨƪƢƢƪƎŝɆ
ļƖɆİļǁėŝɆŨŝɆƋëİėɆǤǥǥș
ǤșɆ Ɇ,LJĉŒƪĐļŝİɆƢķėɆĈėŝėǘƢɆŨįɆįƪƎŒŨƪİķɆƋëLjśėŝƢƖɆƎėĉėļǁėĐȚɆëĉƍƪļƖļƢļŨŝƖɆëŝĐɆƢķėɆƎėƖƪŒƢƖɆ
ŨįɇėƢnEnș
117 Overview
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Strategic report
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Governance
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Financial statements
Entain plc
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Annual Report 2021
Directors’ Remuneration Report continued
Conclusion
¶ëŏļŝİɆ댌ɆŨįɆƢķėɆëĈŨǁėɆļŝƢŨɆëĉĉŨƪŝƢȚɆëŝĐɆĉŨŝƖļĐėƎļŝİɆƢķėɆEƎŨƪƋȼƖɆ
ƖƪĈƖėƍƪėŝƢɆĐėĉļƖļŨŝɆƢŨɆƎėƋëLjɆįƪƎŒŨƪİķɆśŨŝļėƖɆƎėĉėļǁėĐɆļŝɆǥǣǥǤȚɆ
the Committee believes that the outcomes of the annual bonus
ëŝĐɆd¶QɆǂėƎėɆįëļƎɆëŝĐɆëƋƋƎŨƋƎļëƢėȚɆƎėǙėĉƢļŝİɆƪŝĐėƎŒLjļŝİɆĈƪƖļŝėƖƖɆ
ƋėƎįŨƎśëŝĉėɆëŝĐɆĈėļŝİɆëŒļİŝėĐɆǂļƢķɆƢķėɆėLJƋėƎļėŝĉėɆŨįɆŨƪƎɆ
ƖķëƎėķŨŒĐėƎƖɆëŝĐɆŨƢķėƎɆƖƢëŏėķŨŒĐėƎƖɆŨǁėƎɆƢķėɆŨŝėȯLjėëƎɆëŝĐɆƢķƎėėȯ
LjėëƎɆƎėƖƋėĉƢļǁėɆƋėƎįŨƎśëŝĉėɆƋėƎļŨĐƖșɆ
2021 LTIP awards
¶ķėɆǥǣǥǤɆd¶QɆëǂëƎĐƖɆǂėƎėɆİƎëŝƢėĐɆŨŝɆǥǧɆnëƎĉķɆǥǣǥǤșɆ
DŨŒŒŨǂļŝİɆĉķëŝİėƖɆśëĐėɆƢŨɆƢķėɆƋėƎįŨƎśëŝĉėɆśėƢƎļĉƖɆļŝɆǥǣǥǣȚɆƢķėɆ
ŨśśļƢƢėėɆǂëƖɆĉŨśįŨƎƢëĈŒėɆƢķëƢɆƢķėLjɆƎėśëļŝėĐɆëƋƋƎŨƋƎļëƢėɆįŨƎɆ
ƢķėɆǥǣǥǤɆëǂëƎĐƖȚɆǂļƢķɆŨŝŒLjɆëɆśļŝŨƎɆĉķëŝİėɆƢŨɆƢķėɆĈėƖƋŨŏėɆ¶©¡Ɇ
ĉŨśƋëƎëƢŨƎɆİƎŨƪƋșɆ$ƪėɆƢŨɆĉŨƎƋŨƎëƢėɆëĉƢļǁļƢLjȚɆ¶ķėɆ©ƢëƎƖɆEƎŨƪƋɆ
ëŝĐɆÕļŒŒļëśɆLļŒŒɆǂėƎėɆƎėśŨǁėĐɆįƎŨśɆƢķėɆİƎŨƪƋɆëŝĐɆëėƖëƎƖɆ
,ŝƢėƎƢëļŝśėŝƢɆǂëƖɆëĐĐėĐșɆ¶ķėɆśėƢƎļĉƖɆǂėƎėț
Ɇ {ŝėȯƢķļƎĐɆƪśƪŒëƢļǁėɆ,©
Ɇ {ŝėȯƢķļƎĐɆ¡ėŒëƢļǁėɆ¶ŨƢëŒɆ©ķëƎėķŨŒĐėƎɆ¡ėƢƪƎŝɆǁƖșɆƢķėɆD¶©,ɆǤǣǣɆ
Ɇ {ŝėȯƢķļƎĐɆ¡ėŒëƢļǁėɆ¶ŨƢëŒɆ©ķëƎėķŨŒĐėƎɆ¡ėƢƪƎŝɆǁƖșɆëɆĈėƖƋŨŏėɆİƎŨƪƋɆ
of sectoral peers
¶ķėɆŨśśļƢƢėėɆǂļŒŒɆëƖƖėƖƖɆƢķėɆǁëŒƪėɆŨįɆƢķėɆǥǣǥǤɆd¶QɆëǂëƎĐƖɆëƢɆ
ǁėƖƢļŝİɆëŝĐɆǂļŒŒɆėŝƖƪƎėɆƢķëƢɆƢķėɆǘŝëŒɆŨƪƢƢƪƎŝɆƎėǙėĉƢƖɆ댌ɆƎėŒėǁëŝƢɆ
įëĉƢŨƎƖȚɆļŝĉŒƪĐļŝİɆĉŨŝƖļĐėƎëƢļŨŝɆŨįɆƪŝĐėƎŒLjļŝİɆƋėƎįŨƎśëŝĉėșɆ
¶ķėɆƢėƎśƖɆŨįɆƢķėɆëǂëƎĐƖɆƋƎŨǁļĐėɆƢķėɆŨśśļƢƢėėɆǂļƢķɆƢķėɆëĈļŒļƢLjɆ
ƢŨɆƎėǁļėǂɆƢķėɆŨƪƢĉŨśėɆëƢɆǁėƖƢļŝİɆëŝĐɆƢŨɆśëŏėɆëƋƋƎŨƋƎļëƢėɆ
ëĐŌƪƖƢśėŝƢƖɆļįɆļƢɆĉŨŝĉŒƪĐėƖɆƢķëƢɆƋëƎƢļĉļƋëŝƢƖɆķëǁėɆĈėŝėǘƢėĐɆ
įƎŨśɆȹǂļŝĐį댌ɆİëļŝƖȺɆëƖɆǂėŒŒɆëƖɆƎėǁļėǂļŝİɆëŝLjɆśëŒƪƖɆëŝĐɆ
ĉŒëǂĈëĉŏɆĉŨŝƖļĐėƎëƢļŨŝƖș
Looking ahead to 2022
Directors’ salaries
¶ķėɆŨśśļƢƢėėɆƎėǁļėǂėĐɆƢķėɆ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖȼɆƖëŒëƎļėƖɆļŝɆ
$ėĉėśĈėƎɆǥǣǥǤɆëŝĐɆëƋƋƎŨǁėĐɆëɆƖëŒëƎLjɆįŨƎɆŨƪƎɆ,{ɆŨįɆɞǫǥǣȚǣǣǣɆ
įƎŨśɆǤɆ`ëŝƪëƎLjɆǥǣǥǥɆȩëŝɆļŝĉƎėëƖėɆŨįɆǬșǦɼȪșɆ¶ķļƖɆǂëƖɆëİƎėėĐɆĈLjɆ
ƢķėɆŨśśļƢƢėėȚɆëįƢėƎɆėLJƢėŝƖļǁėɆĐļƖĉƪƖƖļŨŝȚɆëŝĐɆƎėǙėĉƢƖɆƢķėɆİŒŨĈëŒɆ
ŒëŝĐƖĉëƋėɆįŨƎɆŏėLjɆƖėŝļŨƎɆƢëŒėŝƢɆļŝɆǂķļĉķɆǂėɆŨƋėƎëƢėɆëŝĐɆĉėśėŝƢƖɆ
ŨƪƎɆǂļƖķɆƢŨɆƎėƢëļŝɆ`ėƢƢėɆëƢɆ,ŝƢëļŝșɆ¶ķėɆĉŨśƋėƢļƢļǁėɆŝëƢƪƎėɆŨįɆƢķļƖɆ
śëƎŏėƢɆǂëƖɆļŒŒƪƖƢƎëƢėĐɆļŝɆǥǣǥǤɆǂļƢķɆƢķėɆĐėƋëƎƢƪƎėɆŨįɆ©ķëLjɆ©ėİėǁșɆ
½ŝĐėƎɆ`ėƢƢėȼƖɆĐļƎėĉƢļŨŝȚɆ,ŝƢëļŝȼƖɆƖƢƎëƢėİLjɆķëƖɆƖļİŝļǘĉëŝƢŒLjɆėǁŨŒǁėĐɆ
to provide a clear roadmap for a sustainable future business and
ƖķėɆķëƖɆƋƎėƖļĐėĐɆŨǁėƎɆëŝɆėLJĉėŒŒėŝƢɆLjėëƎɆŨįɆİƎŨǂƢķɆëŝĐɆƋėƎįŨƎśëŝĉėɆ
ǂķļŒƖƢɆėƖƢëĈŒļƖķļŝİɆķėƎƖėŒįɆëƖɆëŝɆŨƪƢƖƢëŝĐļŝİɆëŝĐɆķļİķŒLjɆƎėİëƎĐėĐɆ
ļŝĐƪƖƢƎLjɆŒėëĐėƎșɆ¶ķėɆŨśśļƢƢėėɆǂëƖɆĉŨśįŨƎƢëĈŒėɆƢķëƢɆƢķļƖɆŒėǁėŒɆ
ŨįɆļŝĉƎėëƖėɆǂëƖɆëƋƋƎŨƋƎļëƢėɆƢŨɆëĉŏŝŨǂŒėĐİėɆ`ėƢƢėȼƖɆƖļİŝļǘĉëŝƢɆ
ĉŨŝƢƎļĈƪƢļŨŝɆëŝĐɆŝŨƢėĐɆƢķėɆļŝĉƎėëƖėɆśŨǁėƖɆķėƎɆƖëŒëƎLjɆĈƎŨëĐŒLjɆļŝɆ
ŒļŝėɆǂļƢķɆƢķëƢɆŨįɆbėŝŝėƢķɆŒėLJëŝĐėƎȚɆƋƎļŨƎɆƢŨɆķļƖɆƎėƢļƎėśėŝƢɆëƖɆ,{șɆ
`ėƢƢėȼƖɆėLJļƖƢļŝİɆļŝĉėŝƢļǁėɆŒėǁėŒƖɆƎėśëļŝɆƪŝĉķëŝİėĐș
¶ķėɆķļėįɆDļŝëŝĉļëŒɆ{įǘĉėƎɆʁɆ$ėƋƪƢLjɆ,{ɆëŝĐɆķļėįɆEŨǁėƎŝëŝĉėɆ
{įǘĉėƎɆƎėĉėļǁėĐɆļŝĉƎėëƖėƖɆŨįɆǥșǨɼȚɆƢëŏļŝİɆƢķėļƎɆĈëƖėɆƖëŒëƎļėƖɆƢŨɆ
ɞǨǦǫȚǤǥǨɆëŝĐɆɞǧǤǣȚǣǣǣɆƎėƖƋėĉƢļǁėŒLjȚɆǂļƢķɆėįįėĉƢɆįƎŨśɆǤɆ`ëŝƪëƎLjɆ
ǥǣǥǥșɆ¶ķėƖėɆļŝĉƎėëƖėƖɆëƎėɆļŝɆŒļŝėɆǂļƢķɆƢķėɆƖëŒëƎLjɆƎėǁļėǂɆĈƪĐİėƢɆ
ëǁëļŒëĈŒėɆįŨƎɆƢķėɆǂļĐėƎɆǂŨƎŏįŨƎĉėɆļŝɆƢķėɆ½bɆëŝĐɆEļĈƎëŒƢëƎɆ
ǂķėƎėɆƢķėƖėɆ$ļƎėĉƢŨƎƖɆëƎėɆĈëƖėĐșɆ¶ķėļƎɆėLJļƖƢļŝİɆļŝĉėŝƢļǁėɆŒėǁėŒƖɆ
ƎėśëļŝɆƪŝĉķëŝİėĐș
Annual bonus – new performance metric
¶ķėɆŨǁėƎ댌ɆƖƢƎƪĉƢƪƎėɆŨįɆƢķėɆëŝŝƪëŒɆĈŨŝƪƖɆƎėśëļŝƖɆǘƢɆįŨƎɆƋƪƎƋŨƖėɆ
ëŝĐɆƢķėƎėįŨƎėɆǂėɆëƎėɆŝŨƢɆƋƎŨƋŨƖļŝİɆëŝLjɆśëŌŨƎɆĉķëŝİėƖɆįŨƎɆǥǣǥǥșɆ
LŨǂėǁėƎȚɆQɆëśɆƋŒėëƖėĐɆƢŨɆƖëLjɆƢķëƢɆǂėɆķëǁėɆļŝƢƎŨĐƪĉėĐɆëɆŝėǂɆŝŨŝȯɆ
ǘŝëŝĉļëŒɆśėƢƎļĉɆƢŨɆƎėǙėĉƢɆƢķėɆļśƋŨƎƢëŝĉėɆŨįɆƋŒëĉļŝİɆĉƪƖƢŨśėƎƖɆëƢɆ
ƢķėɆķėëƎƢɆŨįɆėǁėƎLjƢķļŝİɆǂėɆĐŨșɆ¶ķļƖɆĉƪƖƢŨśėƎɆśėƢƎļĉɆǂļŒŒɆƎėƋƎėƖėŝƢɆ
ǨɼɆŨįɆƢķėɆŨǁėƎ댌ɆĈŨŝƪƖɆŨƋƋŨƎƢƪŝļƢLjɆļŝɆǥǣǥǥɆëŝĐɆǂėɆǂļŒŒɆƪƖėɆ
pėƢɆƎŨśŨƢėƎɆ©ĉŨƎėɆȩȹp©ȺȪɆƢŨɆĐėƢėƎśļŝėɆļƢƖɆŨƪƢĉŨśėșɆp©ɆļƖɆ
ëɆǂļĐėŒLjɆƪƖėĐɆĉƪƖƢŨśėƎɆŒŨLjëŒƢLjɆëŝĐɆƖëƢļƖįëĉƢļŨŝɆśėëƖƪƎėɆƢķëƢɆ
댌ŨǂƖɆĉŨśƋëŝļėƖɆƢŨɆƢƎëĉŏɆƋƎŨśŨƢėƎƖɆëŝĐɆĐėƢƎëĉƢŨƎƖȚɆƋƎŨĐƪĉļŝİɆ
a clear measure of an organisation’s performance through its
ĉƪƖƢŨśėƎƖȼɇėLjėƖș
ÕėɆëƎėɆėŝķëŝĉļŝİɆƢķėɆƖëįėƎɆĈėƢƢļŝİɆëŝĐɆİëśļŝİɆśėƢƎļĉȚɆǘƎƖƢɆ
ļŝƢƎŨĐƪĉėĐɆļŝɆǥǣǥǤșɆ¶ķļƖɆśėƢƎļĉɆǂļŒŒɆĉŨŝƢļŝƪėɆƢŨɆƎėƋƎėƖėŝƢɆǤǨɼɆ
ŨįɆƢķėɆŨǁėƎ댌ɆĈŨŝƪƖɆŨƋƋŨƎƢƪŝļƢLjșɆQŝɆĐėƢėƎśļŝļŝİɆƢķėɆŨƪƢĉŨśėɆŨįɆ
ƢķļƖɆśėƢƎļĉȚɆƢķėɆŨśśļƢƢėėɆǂļŒŒɆëİëļŝɆƎėĉėļǁėɆļŝƋƪƢɆįƎŨśɆŨƪƎɆ,©EɆ
ŨśśļƢƢėėȚɆǂķŨɆǂļŒŒɆķëǁėɆŨǁėƎ댌ɆŨǁėƎƖļİķƢɆŨįɆŨƪƎɆƖëįėƎɆĈėƢƢļŝİɆëŝĐɆ
İëśļŝİɆëİėŝĐëɆëŝĐɆǂļŒŒɆëƖƖėƖƖɆƢķėɆEƎŨƪƋȼƖɆƋėƎįŨƎśëŝĉėɆëİëļŝƖƢɆ
ƢķļƖɆśėƢƎļĉșɆ
Entain plc
|
Annual Report 2021
118
Governance
¶ķļƖɆśėëŝƖɆƢķëƢɆƢķėɆƋėƎįŨƎśëŝĉėɆśėƢƎļĉƖɆŝŨǂɆƎėǙėĉƢɆëŝɆǫǣɼɆ
ǘŝëŝĉļëŒɆȦɆǥǣɼɆŝŨŝȯǘŝëŝĉļëŒɆǂėļİķƢļŝİșɆDƪƎƢķėƎɆļŝįŨƎśëƢļŨŝɆŨŝɆƢķėɆ
ŝėǂɆĉƪƖƢŨśėƎɆśėƢƎļĉɆëŝĐɆƢķėɆėǁŨŒƪƢļŨŝɆŨįɆƢķėɆƖëįėƎɆĈėƢƢļŝİɆëŝĐɆ
İëśļŝİɆśėƢƎļĉɆļƖɆƋƎŨǁļĐėĐɆŨŝɆƋëİėɆǤǥǩș
QŝɆƢėƎśƖɆŨįɆƢķėɆǘŝëŝĉļëŒɆśėëƖƪƎėƖȚɆǂėɆëƎėɆƎėƢëļŝļŝİɆƪŝĐėƎŒLjļŝİɆ
EƎŨƪƋɆŨƋėƎëƢļŝİɆƋƎŨǘƢɆëƖɆëɆśėƢƎļĉɆļŝɆƢķėɆƖëśėɆƋƎŨƋŨƎƢļŨŝɆƢŨɆ
ǥǣǥǤɆȩǩǣɼȪșɆ¶ķėɆƎėśëļŝļŝİɆǥǣɼɆŨįɆƢķėɆĈŨŝƪƖɆǂļŒŒɆĈėɆĐėƢėƎśļŝėĐɆ
ĈLjɆëɆİƎŨǂƢķɆļŝɆŨŝŒļŝėɆpE¡ɆśėƢƎļĉșɆpE¡ɆƎėśëļŝƖɆŨŝėɆŨįɆŨƪƎɆŏėLjɆ
ƋėƎįŨƎśëŝĉėɆļŝĐļĉëƢŨƎƖɆëŝĐɆİƎŨǂļŝİɆƢķļƖɆśėƢƎļĉȚɆļŝɆƋëƎƢļĉƪŒëƎɆ
in relation to our online business, is fundamental to driving
ƖķëƎėķŨŒĐėƎɆǁëŒƪėșɆ¶ķėɆƢëƎİėƢɆƎëŝİėɆįŨƎɆĈŨƢķɆǘŝëŝĉļëŒɆśėëƖƪƎėƖɆ
ķëƖɆĈėėŝɆƖėƢɆǂļƢķɆƎėįėƎėŝĉėɆƢŨɆļŝƢėƎŝëŒɆëŝĐɆėLJƢėƎŝëŒɆįŨƎėĉëƖƢƖȚɆ
ėLJĉŒƪĐļŝİɆŨƪƎɆ½©ɆŌŨļŝƢɆǁėŝƢƪƎėșɆ
Long-Term Incentive Plan
QŝɆĐėƢėƎśļŝļŝİɆƢķėɆd¶QɆƋėƎįŨƎśëŝĉėɆśėƢƎļĉƖɆįŨƎɆƢķėɆǥǣǥǥɆ
ëǂëƎĐȚɆƢķėɆŨśśļƢƢėėɆķëƖɆĉŨŝƖļĐėƎėĐɆƢķėɆĐļįǘĉƪŒƢLjɆļŝɆƖėƢƢļŝİɆ
ëƋƋƎŨƋƎļëƢėŒLjɆƖƢƎėƢĉķļŝİɆĈƪƢɆļŝĉėŝƢļǁļƖļŝİɆ,©ɆƢëƎİėƢƖȚɆİļǁėŝɆƢķėɆ
įëƖƢȯĉķëŝİļŝİɆėLJƢėƎŝëŒɆėŝǁļƎŨŝśėŝƢɆļŝɆǂķļĉķɆǂėɆĉƪƎƎėŝƢŒLjɆŨƋėƎëƢėșɆ
¶ķėɆŨśśļƢƢėėɆķëǁėɆĉŨŝĉŒƪĐėĐɆƢķëƢɆƢķļƖɆĉëŝɆĈėɆëĐĐƎėƖƖėĐɆĈLjɆ
ĈëƖļŝİɆŨƪƎɆǥǣǥǥɆd¶QɆëǂëƎĐɆėŝƢļƎėŒLjɆŨŝɆƎėŒëƢļǁėɆ¶©¡ɆśėƢƎļĉƖșɆ
¶ķļƖɆëŒļİŝƖɆśëŝëİėśėŝƢȼƖɆļŝƢėƎėƖƢƖɆĉŒŨƖėŒLjɆǂļƢķɆƢķėɆėLJƋėƎļėŝĉėɆ
ŨįɆļŝǁėƖƢŨƎƖɆëŝĐɆļŝĉėŝƢļǁļƖėƖɆëĉƢļŨŝƖɆǂķļĉķɆėŝķëŝĉėɆŒŨŝİȯƢėƎśɆ
ǁëŒƪėɆĉƎėëƢļŨŝș
ǂëƎĐƖɆëƎėɆėLJƋėĉƢėĐɆƢŨɆĈėɆśëĐėɆļŝɆƢķėɆǘƎƖƢɆƍƪëƎƢėƎɆŨįɆǥǣǥǥɆëŝĐɆ
ĐėƢëļŒƖɆŨįɆƢķėɆƖƋėĉļǘĉɆƢëƎİėƢƖɆëƎėɆƖėƢɆŨƪƢɆŨŝɆƋëİėɆǤǥǪș
ŨëƎĐɆķëŝİėƖ
ƖɆƎėƋŨƎƢėĐɆļŝɆĐėƢëļŒɆļŝɆŒëƖƢɆLjėëƎȼƖɆ$ļƎėĉƢŨƎƖȼɆ¡ėśƪŝėƎëƢļŨŝɆ¡ėƋŨƎƢȚɆ
`ėƢƢėɆpLjİëëƎĐȯŝĐėƎƖėŝɆǂëƖɆëƋƋŨļŝƢėĐɆëƖɆŨƪƎɆ,{ɆŨŝɆǥǤɆ`ëŝƪëƎLjɆ
ǥǣǥǤȚɆƖƪĉĉėėĐļŝİɆ©ķëLjɆ©ėİėǁɆǂķŨɆƖƢėƋƋėĐɆĐŨǂŝɆįƎŨśɆƢķėɆŨëƎĐɆ
ŨŝɆƢķėɆƖëśėɆĐëƢėșɆ¡ŨĈėƎƢɆLŨƖŏļŝɆǂëƖɆëŒƖŨɆëƋƋŨļŝƢėĐɆƢŨɆƢķėɆŨëƎĐɆ
ŨŝɆǤɆ`ëŝƪëƎLjɆǥǣǥǤɆļŝɆƢķėɆƎŨŒėɆŨįɆķļėįɆEŨǁėƎŝëŝĉėɆ{įǘĉėƎșɆ
Shareholder engagement
ÕėɆƎėśëļŝɆĉŨśśļƢƢėĐɆƢŨɆśëļŝƢëļŝļŝİɆëŝɆŨƋėŝɆëŝĐɆƢƎëŝƖƋëƎėŝƢɆ
ĐļëŒŨİƪėɆǂļƢķɆŨƪƎɆƖķëƎėķŨŒĐėƎƖɆëŝĐɆǂėɆėŝİëİėĐɆǂļƢķɆëɆŝƪśĈėƎɆ
ŨįɆŨƪƎɆƖļİŝļǘĉëŝƢɆƖķëƎėķŨŒĐėƎƖɆļŝɆƢķėɆǘƎƖƢɆķëŒįɆŨįɆǥǣǥǤȚɆķŨŒĐļŝİɆ
ėLJƋŒŨƎëƢŨƎLjɆĉŨŝǁėƎƖëƢļŨŝƖɆƎėİëƎĐļŝİɆƋŨƢėŝƢļëŒɆĐėǁėŒŨƋśėŝƢƖɆƢŨɆŨƪƎɆ
¡ėśƪŝėƎëƢļŨŝɆŨŒļĉLjșɆQɆǂŨƪŒĐɆŒļŏėɆƢŨɆƢķëŝŏɆ댌ɆĉŨŝƢƎļĈƪƢŨƎƖɆįŨƎɆƢķėļƎɆ
ĉŨŝƖƢƎƪĉƢļǁėɆļŝƋƪƢɆëŝĐɆįŨƎɆƢķėɆƖƪƋƋŨƎƢɆǂėɆƎėĉėļǁėĐɆëƢɆŨƪƎɆǥǣǥǤɆ
EnȚɆǂļƢķɆǬǫșǩɼɆŨįɆǁŨƢėƖɆĉëƖƢɆļŝɆįëǁŨƪƎɆįŨƎɆŨƪƎɆŝŝƪëŒɆ¡ėƋŨƎƢɆŨŝɆ
¡ėśƪŝėƎëƢļŨŝșɆ{ŝİŨļŝİɆĐļëŒŨİƪėɆǂļƢķɆƖķëƎėķŨŒĐėƎƖɆŨŝɆėLJėĉƪƢļǁėɆ
ƎėśƪŝėƎëƢļŨŝɆļƖɆİƎėëƢŒLjɆǁëŒƪėĐȚɆǂļƢķɆįėėĐĈëĉŏɆĐļƖĉƪƖƖėĐɆĈLjɆƢķėɆ
ŨśśļƢƢėėɆëŝĐɆƪƖėĐɆƢŨɆļŝįŨƎśɆįƪƢƪƎėɆĐėĉļƖļŨŝɆśëŏļŝİșɆ¶ķļƖɆǂļŒŒɆĈėɆ
ėƖƋėĉļ댌LjɆƎėŒėǁëŝƢɆǂķėŝɆǂėɆƎėǁļėǂɆƢķėɆ¡ėśƪŝėƎëƢļŨŝɆŨŒļĉLjɆļŝɆ
ǥǣǥǥȚɆëķėëĐɆŨįɆƢķėɆŝėLJƢɆǁŨƢėɆŨŝɆļƢɆëƢɆƢķėɆǥǣǥǦɆEnș
ŨŝĉŒƪƖļŨŝ
,ŝƢëļŝɆƎėƖƋŨŝĐėĐɆƖƢƎŨŝİŒLjɆƢŨɆƢķėɆŨŝİŨļŝİɆĉķ댌ėŝİļŝİɆėLJƢėƎŝëŒɆ
ĉļƎĉƪśƖƢëŝĉėƖɆļŝɆǥǣǥǤɆëŝĐɆĉŨŝƢļŝƪėĐɆƢŨɆƋėƎįŨƎśɆƖƢƎŨŝİŒLjȚɆ
ĐėŒļǁėƎļŝİɆƎŨĈƪƖƢɆëŝĐɆƖƪƖƢëļŝëĈŒėɆƋėƎįŨƎśëŝĉėșɆ¶ķėɆŨśśļƢƢėėȼƖɆ
ĐėĉļƖļŨŝȯśëŏļŝİɆƋƎŨĉėƖƖɆƋƪƢƖɆŨƪƎɆƋƎļŝĉļƋŒėƖɆŨįɆįëļƎŝėƖƖɆëŝĐɆ
ƢƎëŝƖƋëƎėŝĉLjɆëƢɆƢķėɆĉėŝƢƎėɆŨįɆŨƪƎɆĐļƖĉƪƖƖļŨŝƖȚɆǂķļŒƖƢɆƖƪƋƋŨƎƢļŝİɆƢķėɆ
EƎŨƪƋȼƖɆëśĈļƢļŨƪƖɆİƎŨǂƢķɆƖƢƎëƢėİLjɆëŝĐɆƎėǙėĉƢļŝİɆĈėƖƢɆƋƎëĉƢļĉėɆļŝɆ
½bɆƎėśƪŝėƎëƢļŨŝɆëŝĐɆİŨǁėƎŝëŝĉėɆƖƢëŝĐëƎĐƖșɆQɆķŨƋėɆƢķëƢɆLjŨƪɆǘŝĐɆ
ƢķėɆƎėƋŨƎƢɆĉŒėëƎɆëŝĐɆļŝįŨƎśëƢļǁėɆëŝĐɆŒŨŨŏɆįŨƎǂëƎĐɆƢŨɆLjŨƪƎɆƖƪƋƋŨƎƢɆ
ëƢɆƢķėɆįŨƎƢķĉŨśļŝİɆEnș
Mark Gregory
Chair of the Remuneration Committee
ǦɆnëƎĉķɆǥǣǥǥɆ
119
Overview
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Strategic report
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Governance
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Financial statements
Entain plc
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Annual Report 2021
Directors’ Remuneration Report continued
bėLjɆëƎėëƖɆŨįɆ¡ėśƪŝėƎëƢļŨŝɆŨśśļƢƢėėɆįŨĉƪƖɆļŝɆǥǣǥǤ
ɆƖƪśśëƎLjɆŨįɆƢķėɆśëƢƢėƎƖɆĉŨŝƖļĐėƎėĐɆĐƪƎļŝİɆƢķėɆLjėëƎɆļƖɆƖėƢɆ
ŨƪƢɆĈėŒŨǂș
Our workforce
Ɇ ¡ėśƪŝėƎëƢļŨŝɆĐļƖĉƪƖƖļŨŝɆǂļƢķɆ,śƋŒŨLjėėɆ
Forum representatives
Ɇ ¡ėĉėļǁļŝİɆƪƋĐëƢėƖɆŨŝɆ댌ȯĉŨŒŒėëİƪėɆƎėśƪŝėƎëƢļŨŝɆ
arrangements throughout the Group
Ɇ ¡ėǁļėǂɆëŝĐɆëƋƋƎŨǁëŒɆŨįɆƢķėɆǥǣǥǣɆ½bɆEėŝĐėƎɆëLjɆ
Gap Report
Approval of the launch of the 2021 ShareSave
Executive and senior management remuneration
Ɇ ƋƋƎŨǁëŒɆŨįɆƢķėɆëƋƋŨļŝƢśėŝƢɆƢėƎśƖɆįŨƎɆ`ėƢƢėɆpLjİëëƎĐȯ
Andersen as CEO
Ɇ $ėƢėƎśļŝëƢļŨŝɆŨįɆƢķėɆƋëLjȯŨƪƢƖɆįƎŨśɆƢķėɆǥǣǥǣɆëŝŝƪëŒɆĈŨŝƪƖɆ
ƋŒëŝɆëŝĐɆƢķėɆǥǣǤǫɆd¶QɆëǂëƎĐ
Approval of the 2021 annual bonus plan and 2021
d¶QɆëǂëƎĐɆëŝĐɆƢķėļƎɆëƖƖŨĉļëƢėĐɆƋėƎįŨƎśëŝĉėɆśėƢƎļĉƖɆ
and targets
Ɇ ¡ėǁļėǂɆŨįɆƖëŒëƎļėƖɆëŝĐɆƎėśƪŝėƎëƢļŨŝɆƋëĉŏëİėƖɆįŨƎɆƖėŝļŨƎɆ
executives and fees for the Chairman
Ɇ ¡ėǁļėǂɆŨįɆƋėƎįŨƎśëŝĉėɆśėƢƎļĉƖɆįŨƎɆƢķėɆǥǣǥǥɆëŝŝƪëŒɆĈŨŝƪƖɆ
ƋŒëŝɆëŝĐɆǥǣǥǥɆd¶Q
Committee governance
Approval of the 2020 Directors’ Remuneration Report
Ɇ ¡ėĉėļǁļŝİɆƪƋĐëƢėƖɆŨŝɆėLJƢėƎŝëŒɆśëƎŏėƢɆĐėǁėŒŨƋśėŝƢƖɆļŝɆ
remuneration and governance, including international
compensation practices
Evaluation of the Remuneration Committee, its advisers and
the Committee’s Terms of Reference
Ɇ ¡ėǁļėǂɆŨįɆƖķëƎėķŨŒĐėƎɆįėėĐĈëĉŏɆƎėĉėļǁėĐɆļŝɆƎėŒëƢļŨŝɆƢŨɆ
$ļƎėĉƢŨƎƖȼɆƎėśƪŝėƎëƢļŨŝɆįŨŒŒŨǂļŝİɆƢķėɆǥǣǥǤɆEn
¡ŨŒėɆŨįɆƢķėɆŨśśļƢƢėėɆ
¶ķėɆŨśśļƢƢėėɆëƖƖļƖƢƖɆƢķėɆŨëƎĐɆļŝɆįƪŒǘŒŒļŝİɆļƢƖɆƎėƖƋŨŝƖļĈļŒļƢLjɆ
ƢŨɆƖķëƎėķŨŒĐėƎƖɆƢŨɆėŝƖƪƎėɆƢķëƢɆƢķėɆ¡ėśƪŝėƎëƢļŨŝɆŨŒļĉLjɆ
and practices for Executive Directors and senior executive
śëŝëİėśėŝƢɆƎėǂëƎĐƖɆįëļƎŒLjɆëŝĐɆƎėƖƋŨŝƖļĈŒLjɆƢŨɆƖƪƋƋŨƎƢɆƢķėɆ
ƖƢƎëƢėİLjɆëŝĐɆƋƎŨśŨƢėɆƢķėɆŒŨŝİȯƢėƎśɆƖƪĉĉėƖƖɆŨįɆƢķėɆEƎŨƪƋșɆ
QƢɆįƪƎƢķėƎɆŨǁėƎƖėėƖɆƢķėɆEƎŨƪƋȼƖɆŨǁėƎ댌ɆƎėśƪŝėƎëƢļŨŝɆƖƢƎëƢėİLjɆ
ëŝĐɆėŝƖƪƎėƖɆļƢɆļƖɆëŒļİŝėĐɆƢŨɆƢķėɆƋƪƎƋŨƖėɆëŝĐɆǁëŒƪėƖɆëŝĐɆļƖɆĉŒėëƎŒLjɆ
ŒļŝŏėĐɆƢŨɆƢķėɆƖƪĉĉėƖƖįƪŒɆĐėŒļǁėƎLjɆŨįɆ,ŝƢëļŝȼƖɆŒŨŝİȯƢėƎśɆƖƢƎëƢėİLjș
ŨśśļƢƢėėɆśėśĈėƎƖķļƋɆëŝĐɆëƢƢėŝĐëŝĉė
nėśĈėƎ
pƪśĈėƎɆŨįɆ
meetings
attended
pƪśĈėƎɆŨįɆ
meetings
ėŒļİļĈŒėɆƢŨ
attend
nëƎŏɆEƎėİŨƎLjɆȩķëļƎȪ
1
ǪǪ
Stella David
2
ǪǪ
ÔļĉŏLjɆ`ëƎśëŝ
2
ǪǪ
ÔļƎİļŝļëɆnĉ$ŨǂėŒŒ 88
©ƢėƋķėŝɆnŨƎëŝë
3
11
ǤșɆ `ŨļŝėĐɆƢķėɆŨśśļƢƢėėɆŨŝɆǤǪɆnëƎĉķɆǥǣǥǤș
ǥșɆ `ŨļŝėĐɆƢķėɆŨśśļƢƢėėɆŨŝɆǧɆnëƎĉķɆǥǣǥǤș
ǦșɆ ¡ėƖļİŝėĐɆįƎŨśɆƢķėɆŨśśļƢƢėėɆŨŝɆǧɆnëƎĉķɆǥǣǥǤș
$ƪƎļŝİɆƢķėɆLjėëƎȚɆƢķėƎėɆǂėƎėɆƖļLJɆƖĉķėĐƪŒėĐɆŨśśļƢƢėėɆśėėƢļŝİƖɆëŝĐɆ
ƢǂŨɆëĐȯķŨĉɆśėėƢļŝİƖșɆ¶ķėƎėɆǂļŒŒɆĈėɆƖėǁėŝɆƖĉķėĐƪŒėĐɆśėėƢļŝİƖɆļŝɆ
ǥǣǥǥȚɆǂļƢķɆëĐȯķŨĉɆśėėƢļŝİƖɆëƖɆƎėƍƪļƎėĐș
pŨŝėɆŨįɆƢķėɆŨśśļƢƢėėɆśėśĈėƎƖɆŨƎɆëƢƢėŝĐėėƖɆļƖɆļŝǁŨŒǁėĐɆļŝɆëŝLjɆ
ŨśśļƢƢėėɆĐėĉļƖļŨŝƖɆįƎŨśɆǂķļĉķɆƢķėLjɆśëLjɆǘŝëŝĉļ댌LjɆĈėŝėǘƢɆ
ƋėƎƖŨŝ댌LjɆȩŨƢķėƎɆƢķëŝɆëƖɆƖķëƎėķŨŒĐėƎƖȪɆļŝɆƢķėɆĐėĉļƖļŨŝƖɆśëĐėɆ
ĈLjɆƢķėɆŨśśļƢƢėėșɆ¶ķėɆķëļƎśëŝȚɆķļėįɆ,LJėĉƪƢļǁėɆ{įǘĉėƎȚɆķļėįɆ
DļŝëŝĉļëŒɆ{įǘĉėƎɆʁɆ$ėƋƪƢLjɆ,{ȚɆķļėįɆėŨƋŒėɆ{įǘĉėƎɆëŝĐɆƢķėɆ
$ļƎėĉƢŨƎɆŨįɆ¡ėǂëƎĐɆśëLjɆëƢƢėŝĐɆśėėƢļŝİƖɆëƢɆƢķėɆļŝǁļƢëƢļŨŝɆŨįɆƢķėɆ
ŨśśļƢƢėėɆĈƪƢɆëƎėɆŝŨƢɆƋƎėƖėŝƢɆǂķėŝɆƢķėļƎɆŨǂŝɆƎėśƪŝėƎëƢļŨŝɆļƖɆ
ĈėļŝİɆĐļƖĉƪƖƖėĐșɆ¶ķėɆŨśƋëŝLjɆ©ėĉƎėƢëƎLjɆëĉƢƖɆëƖɆƢķėɆƖėĉƎėƢëƎLjɆƢŨɆ
ƢķėɆŨśśļƢƢėėș
bėLjɆƎėƖƋŨŝƖļĈļŒļƢļėƖ
Ɇ ¡ėĉŨśśėŝĐļŝİɆƢŨɆƢķėɆŨëƎĐɆƢķėɆ¡ėśƪŝėƎëƢļŨŝɆŨŒļĉLjɆįŨƎɆ
,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆëŝĐɆƖėŝļŨƎɆśëŝëİėśėŝƢșɆ
Ɇ ©ėƢƢļŝİɆƢķėɆƎėśƪŝėƎëƢļŨŝɆƋëĉŏëİėƖɆįŨƎɆėëĉķɆ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎɆ
ëŝĐɆŨƢķėƎɆśėśĈėƎƖɆŨįɆƢķėɆ,LJėĉƪƢļǁėɆŨśśļƢƢėėș
Ɇ ©ėƢƢļŝİɆƢķėɆƎėśƪŝėƎëƢļŨŝɆƋëĉŏëİėɆįŨƎɆƢķėɆķëļƎśëŝɆŨįɆƢķėɆŨëƎĐș
Ɇ {ǁėƎƖėėļŝİɆƢķėɆ¡ėśƪŝėƎëƢļŨŝɆŨŒļĉLjɆįŨƎɆ댌ɆĉŨŒŒėëİƪėƖș
The Committee’s terms of reference can be found on the
ŨśƋëŝLjȼƖɆǂėĈƖļƢėɆëƢɆ
www.entaingroup.com.
¶ķėɆ¡ėśƪŝėƎëƢļŨŝɆŨśśļƢƢėė
Entain plc
|
Annual Report 2021
120
Governance
Remuneration Committee evaluation
¶ķėɆƋėƎįŨƎśëŝĉėɆŨįɆƢķėɆ¡ėśƪŝėƎëƢļŨŝɆŨśśļƢƢėėɆǂëƖɆëƖƖėƖƖėĐɆëƖɆëɆƋëƎƢɆŨįɆƢķėɆŨëƎĐɆ¡ėǁļėǂȚɆǂķļĉķɆƢķļƖɆLjėëƎɆǂëƖɆėLJƢėƎŝ댌LjɆįëĉļŒļƢëƢėĐɆ
ĈLjɆdļŝƢƖƢŨĉŏșɆŒŒɆŨśśļƢƢėėɆśėśĈėƎƖɆĉŨśƋŒėƢėĐɆëɆƢëļŒŨƎėĐɆƖƪƎǁėLjȚɆƋƎļŨƎɆƢŨɆĈėļŝİɆļŝƢėƎǁļėǂėĐɆĈLjɆdļŝƢƖƢŨĉŏɆƎėƋƎėƖėŝƢëƢļǁėƖȚɆƢŨɆėLJƋëŝĐɆŨŝɆ
ƢķėļƎɆƖƪƎǁėLjɆƎėƖƋŨŝƖėƖɆëŝĐɆƢŨɆƎëļƖėɆëŝLjɆįƪƎƢķėƎɆļƖƖƪėƖɆƢķėLjɆǂļƖķėĐɆƢŨɆĐļƖĉƪƖƖș
ƖɆǂėŒŒɆëƖɆëĐĐƎėƖƖļŝİɆĉŨƎėɆëƖƋėĉƢƖɆŨįɆŨśśļƢƢėėɆƋėƎįŨƎśëŝĉėȚɆƢķėɆėLJėƎĉļƖėɆķëĐɆëɆƋëƎƢļĉƪŒëƎɆįŨĉƪƖɆŨŝɆƢķėɆįŨŒŒŨǂļŝİɆëƎėëƖț
Ɇ ¶ķėɆëŒļİŝśėŝƢɆŨįɆ¡ėśƪŝėƎëƢļŨŝɆŨŒļĉLjɆǂļƢķɆƢķėɆėLJƋėĉƢëƢļŨŝƖɆŨįɆƖķëƎėķŨŒĐėƎƖȚɆëŝĐɆǂļƢķɆ,ŝƢëļŝȼƖɆƖƢƎëƢėİļĉɆŨĈŌėĉƢļǁėƖȚɆļŝĉŒƪĐļŝİɆƢķėɆɆ Ɇ
ǘŝëŝĉļëŒɆëŝĐɆŝŨŝȯǘŝëŝĉļëŒɆśėëƖƪƎėƖɆƪƖėĐɆƢŨɆĐėƢėƎśļŝėɆǁëƎļëĈŒėɆƋëLjș
Ɇ ¶ķėɆƍƪëŒļƢLjɆŨįɆĐėĈëƢėƖɆŨŝɆ¡ėśƪŝėƎëƢļŨŝɆŨŒļĉLjȚɆļŝĉŒƪĐļŝİɆƢķėɆėŝİëİėśėŝƢɆǂļƢķɆśëŝëİėśėŝƢɆŨŝɆƢķļƖɆƢŨƋļĉș
Ɇ ¶ķėɆŒėǁėŒɆŨįɆįŨĉƪƖɆŨŝɆǂļĐėƎɆǂŨƎŏįŨƎĉėɆƋëLjɆƋŨŒļĉLjș
DŨŒŒŨǂļŝİɆƢķėɆļŝƢėƎǁļėǂƖɆļŝɆDėĈƎƪëƎLjɆȦɆnëƎĉķɆǥǣǥǥȚɆdļŝƢƖƢŨĉŏɆǂļŒŒɆƋƎėƋëƎėɆëɆƎėƋŨƎƢɆŨŝɆƢķėɆǘŝĐļŝİƖșɆQƢɆļƖɆėŝǁļƖëİėĐɆƢķëƢɆƢķėɆŨƪƢĉŨśėƖɆǂļŒŒɆĈėɆ
ĐļƖĉƪƖƖėĐɆëƢɆëɆśėėƢļŝİɆŨįɆƢķėɆŨëƎĐɆļŝɆƋƎļŒɆǥǣǥǥș
Advice to the Committee
ĐǁļƖėƎƖɆëƎėɆëƋƋŨļŝƢėĐɆļŝĐėƋėŝĐėŝƢŒLjɆĈLjɆƢķėɆ¡ėśƪŝėƎëƢļŨŝɆŨśśļƢƢėėȚɆǂķļĉķɆƎėǁļėǂƖɆļƢƖɆƖėŒėĉƢļŨŝɆƋėƎļŨĐļĉ댌LjɆëŝĐɆļƖɆƖëƢļƖǘėĐɆƢķëƢɆƢķėɆ
ëĐǁļĉėɆļƢɆƎėĉėļǁėƖɆļƖɆļŝĐėƋėŝĐėŝƢȚɆŨĈŌėĉƢļǁėɆëŝĐɆįƎėėɆįƎŨśɆĉŨŝǙļĉƢƖɆŨįɆļŝƢėƎėƖƢșɆ¶ķėɆƢŨƢëŒɆįėėƖɆƋëļĐɆƢŨɆƢķėɆŨśśļƢƢėėȼƖɆëĐǁļƖėƎȚɆ$ėŒŨļƢƢėȚɆļŝɆ
ƎėƖƋėĉƢɆŨįɆǥǣǥǤɆǂėƎėɆɞǤǧǤȚǨǣǣɆȩǥǣǥǣțɆɞǬǬȚǤǥǨȪșɆ¶ķėƖėɆǂėƎėɆĉķëƎİėĐɆŨŝɆëɆƢļśėɆëŝĐɆśëƢėƎļëŒƖɆĈëƖļƖșɆ$ėŒŨļƢƢėȼƖɆëĐǁļĉėɆļŝĉŒƪĐėĐɆƋƎŨǁļƖļŨŝɆ
ŨįɆśëƎŏėƢɆĐëƢëȚɆëĐǁļĉėɆŨŝɆƢķėɆƎėśƪŝėƎëƢļŨŝɆëƖƋėĉƢƖɆŨįɆŨëƎĐɆëƋƋŨļŝƢśėŝƢƖɆëŝĐɆİėŝėƎëŒɆİƪļĐëŝĉėɆŨŝɆśëƎŏėƢɆëŝĐɆĈėƖƢɆƋƎëĉƢļĉėș
$ėŒŨļƢƢėɆddɆëŒƖŨɆƋƎŨǁļĐėĐɆëɆƎëŝİėɆŨįɆƢëLJɆëŝĐɆëĐǁļƖŨƎLjɆƖėƎǁļĉėƖɆƢŨɆ,ŝƢëļŝɆĐƪƎļŝİɆƢķėɆLjėëƎȚɆƖƪƋƋŨƎƢɆļŝɆĉėƎƢëļŝɆƢėĉķŝŨŒŨİLjɆëƎėëƖɆëŝĐɆƖƪƋƋŨƎƢɆ
įŨƎɆƢķėɆEƎŨƪƋȼƖɆļŝƢėƎŝëŒɆëƪĐļƢɆįƪŝĉƢļŨŝș
$ėŒŨļƢƢėɆļƖɆëɆįŨƪŝĐļŝİɆśėśĈėƎɆŨįɆƢķėɆ¡ėśƪŝėƎëƢļŨŝɆŨŝƖƪŒƢëŝƢƖɆEƎŨƪƋɆëŝĐɆëƖɆƖƪĉķȚɆǁŨŒƪŝƢëƎļŒLjɆŨƋėƎëƢėƖɆƪŝĐėƎɆƢķėɆĉŨĐėɆŨįɆĉŨŝĐƪĉƢɆļŝɆ
ƎėŒëƢļŨŝɆƢŨɆėLJėĉƪƢļǁėɆƎėśƪŝėƎëƢļŨŝɆĉŨŝƖƪŒƢļŝİɆļŝɆƢķėɆ½bșɆDƪƎƢķėƎɆĐėƢëļŒƖɆĉëŝɆĈėɆįŨƪŝĐɆëƢɆǂǂǂșƎėśƪŝėƎëƢļŨŝĉŨŝƖƪŒƢëŝƢƖİƎŨƪƋșĉŨśș
nëŝëİėśėŝƢȼƖɆëĐǁļĉėɆƢŨɆƢķėɆŨśśļƢƢėėɆǂëƖɆëŒƖŨɆƖƪƋƋŨƎƢėĐɆĈLjɆƢķėɆƋƎŨǁļƖļŨŝɆŨįɆśëƎŏėƢɆĐëƢëɆįƎŨśɆÕļŒŒļƖɆ¶ŨǂėƎƖɆÕëƢƖŨŝɆëŝĐɆŒėİëŒɆëĐǁļĉėɆ
įƎŨśɆĈŨƢķɆĐĐŒėƖķëǂɆEŨĐĐëƎĐɆëŝĐɆDƎėƖķǘėŒĐƖș
Shareholder voting and consideration of shareholder views
¶ķėɆǥǣǥǣɆŝŝƪëŒɆ©ƢëƢėśėŝƢɆįƎŨśɆƢķėɆ¡ėśƪŝėƎëƢļŨŝɆŨśśļƢƢėėɆķëļƎɆëŝĐɆƢķėɆŝŝƪëŒɆ¡ėƋŨƎƢɆŨŝɆ¡ėśƪŝėƎëƢļŨŝɆǂėƎėɆƖƪĈŌėĉƢɆƢŨɆëŝɆ
ëĐǁļƖŨƎLjɆǁŨƢėɆëƢɆƢķėɆEnɆŨŝɆǥǨɆ`ƪŝėɆǥǣǥǤșɆ{ƪƎɆ¡ėśƪŝėƎëƢļŨŝɆŨŒļĉLjɆǂëƖɆŒëƖƢɆëƋƋƎŨǁėĐɆĈLjɆƖķëƎėķŨŒĐėƎƖɆŨŝɆǥǧɆ`ƪŝėɆǥǣǥǣș
Resolution Date Votes for
% of Votes
for Votes against
% of Votes
against Votes withheld
Annual Report on Remuneration ǥǨɆ`ƪŝėɆǥǣǥǤ 422,362,208 Ǭǫșǩɼ ǩȚǣǣǫȚǪǩǬ Ǥșǧɼ 40,400
¡ėśƪŝėƎëƢļŨŝɆŨŒļĉLj ǥǧɆ`ƪŝėɆǥǣǥǣ ǧǨǫȚǪǫǬȚǩǤǨ ǬǨșǣɼ 24,425,820 Ǩșǣɼ ǨǬǩȚǦǦǥ
121 Overview
|
Strategic report
|
Governance
|
Financial statements
Entain plc
|
Annual Report 2021
Directors’ Remuneration Report continued
Executive remuneration at Entain
¶ķėɆƎėśƪŝėƎëƢļŨŝɆįƎëśėǂŨƎŏɆįŨƎɆ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆëƢɆ,ŝƢëļŝɆļƖɆļŝƢėŝĐėĐɆƢŨɆļŝĉėŝƢļǁļƖėɆƢķėśɆƢŨɆėLJėĉƪƢėɆƢķėɆŨśƋëŝLjȼƖɆƖƢƎëƢėİLjɆëŝĐɆ
ĉƎėëƢėɆŒŨŝİȯƢėƎśɆƖƪƖƢëļŝëĈŒėɆǁëŒƪėɆįŨƎɆƖķëƎėķŨŒĐėƎƖșɆQƢɆļƖɆƖļśƋŒėȚɆįŨĉƪƖėĐɆëŝĐɆëŒļİŝėĐɆǂļƢķɆŏėLjɆǘŝëŝĉļëŒɆëŝĐɆƖƢƎëƢėİļĉɆĈƪƖļŝėƖƖɆİŨëŒƖș
Year 1 Year 2 Year 3 Year 4 Year 5
Total
pay
Fixed
Pay
ëƖėɆƖëŒëƎLj
ėŝėǘƢƖ
Pension
Annual
Bonus
{ŝėȯLjėëƎɆƋėƎįŨƎśëŝĉėɆƋėƎļŨĐ
bėLjɆƋėƎįŨƎśëŝĉėɆśėƢƎļĉƖ
nëŒƪƖɆƋƎŨǁļƖļŨŝƖɆëƋƋŒLj
¶ķƎėėȯLjėëƎɆĐėįėƎƎëŒɇƋėƎļŨĐ
No further performance conditions
ŒëǂĈëĉŏɆƋƎŨǁļƖļŨŝƖɆëƋƋŒLj
LTIP
¶ķƎėėȯLjėëƎɆƋėƎįŨƎśëŝĉėɆƋėƎļŨĐ
bėLjɆƋėƎįŨƎśëŝĉėɆśėƢƎļĉƖ
nëŒƪƖɆƋƎŨǁļƖļŨŝƖɆëƋƋŒLj
¶ǂŨȯLjėëƎɆķŨŒĐļŝİɆƋėƎļŨĐ
No further performance conditions
ŒëǂĈëĉŏɆƋƎŨǁļƖļŨŝƖɆëƋƋŒLj
Shareholding
Requirement
,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖȼɆśļŝļśƪśɆƖķëƎėķŨŒĐļŝİɆƎėƍƪļƎėśėŝƢɆëƋƋŒļėƖɆĈŨƢķɆļŝɆëŝĐɆįŨŒŒŨǂļŝİɆĉėƖƖëƢļŨŝɆŨįɆėśƋŒŨLjśėŝƢ
2021 – Executive Directors’ remuneration
¶ķėɆįƪŒŒɆėLJƋŒëŝëƢŨƎLjɆŝŨƢėƖɆįŨƎɆėëĉķɆėŒėśėŝƢɆŨįɆƎėśƪŝėƎëƢļŨŝɆëƎėɆĐėƢëļŒėĐɆŨŝɆƋëİėɆǤǦǧɆļŝɆƢķėɆŝŝƪëŒɆ¡ėƋŨƎƢɆŨŝɆ¡ėśƪŝėƎëƢļŨŝș
£000s Base Salary ėŝėǘƢƖ Pension
Annual
Bonus LTIP Total
`ėƢƢėɆpLjİëëƎĐȯŝĐėƎƖėŝɆȩ,{ɆëƋƋŨļŝƢėĐɆŨŝɆǥǤɆ`ëŝƪëƎLjɆǥǣǥǤȪ Ǫǣǫ 25 28 ǤȚǪǩǬ ȱ 2,530
¡ŨĈɆÕŨŨĐɆȩD{ɆʁɆ$ėƋƪƢLjɆ,{Ȫ 520 15 23 ǤȚǣǦǬ 3,844 5,441
¡ŨĈėƎƢɆLŨƖŏļŝɆȩķļėįɆEŨǁėƎŝëŝĉėɆ{įǘĉėƎȪ 400 5 ȱ 800 ǦȚǨǥǬ ǧȚǪǦǧ
©ķëLjɆ©ėİėǁɆȩ,{ɆƪŝƢļŒɆǥǤɆ`ëŝƪëƎLjɆǥǣǥǤȪǦǬȱȱȱȱǦǬ
2021 Incentive outcomes
¶ķėɆįƪŒŒɆėLJƋŒëŝëƢŨƎLjɆŝŨƢėƖɆįŨƎɆƢķėɆëŝŝƪëŒɆĈŨŝƪƖɆëŝĐɆd¶QɆŨƪƢĉŨśėƖɆëƎėɆĐėƢëļŒėĐɆŨŝɆƋëİėƖɆǤǦǨɆëŝĐɆǤǦǩɆļŝɆƢķėɆŝŝƪëŒɆ¡ėƋŨƎƢɆ
ŨŝɆ¡ėśƪŝėƎëƢļŨŝș
2021
Annual
Bonus
Underlying
Group Operating
ƎŨǘƢɆȩǩǣɼȪ
100% of
maximum
Growth in Online
pE¡ɆȩǥǨɼȪ
ǂ
100% of
maximum
Safer Betting
and Gaming
ȩǤǨɼȪ
100% of
maximum
2019-21
LTIP
ƪśƪŒëƢļǁėɆ
EPS
ȩǨǣɼȪ
100% of
maximum
Relative TSR
ȩǨǣɼȪ
ǂ
100% of
maximum
Outcome
227.8p
Threshold
184p
Stretch
214p
Outcome
13%
Threshold
ǤɼɆİƎŨǂƢķ
Target
ǦɼɆİƎŨǂƢķ
Stretch
ǨɼɆİƎŨǂƢķ
Outcome
161%
Threshold
nėĐļëŝțɆǧǬɼ
Stretch
½ƋƋėƎɆƍƪëƎƢļŒėțɆǫǫɼ
ESG Committee assessment of performance
Outcome
£587.5m
Threshold
ɞǨǦǪșǣś
Target
ɞǨǨǦșǩś
Stretch
ɞǨǫǤșǦś
Entain plc
|
Annual Report 2021
122
Governance
Implementation of the Remuneration Policy for Executive Directors in 2022
¶ķėɆƢëĈŒėƖɆĈėŒŨǂɆļŒŒƪƖƢƎëƢėɆƢķėɆĈëŒëŝĉėɆŨįɆƋëLjɆëŝĐɆƢļśėɆƋėƎļŨĐɆŨįɆėëĉķɆėŒėśėŝƢɆŨįɆƢķėɆŨŒļĉLjɆįŨƎɆ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆëŝĐɆƖƪśśëƎļƖėƖɆķŨǂɆ
ƢķėɆŨśśļƢƢėėɆëƋƋŒļėĐɆƢķėɆŨŒļĉLjɆļŝɆǥǣǥǤȚɆƢŨİėƢķėƎɆǂļƢķɆĐėƢëļŒƖɆŨįɆķŨǂɆƢķėɆŨśśļƢƢėėɆļŝƢėŝĐɆƢŨɆļśƋŒėśėŝƢɆƢķėɆŨŒļĉLjɆļŝɆǥǣǥǥș
Element Operation
How we implemented
the Policy in 2021
How we plan to implement
the Policy in 2022
Salary
To provide competitive
ǘLJėĐɆƎėśƪŝėƎëƢļŨŝɆƢķëƢɆ
will attract and retain
appropriate talent.
¡ėǙėĉƢƖɆëŝɆļŝĐļǁļĐƪëŒȼƖɆ
ƎėƖƋŨŝƖļĈļŒļƢļėƖȚɆėLJƋėƎļėŝĉėɆ
and role
Salaries for Executive
$ļƎėĉƢŨƎƖɆëƎėɆƎėǁļėǂėĐɆ
ëŝŝƪ댌LjɆĈLjɆƢķėɆŨśśļƢƢėėɆ
ëŝĐɆëŝLjɆļŝĉƎėëƖėƖɆŝŨƎśëŒŒLjɆ
ƢëŏėɆėįįėĉƢɆįƎŨśɆǤɆ`ëŝƪëƎLjșɆ
To the extent that increases
ëƎėɆëǂëƎĐėĐȚɆƢķėƖėɆǂļŒŒɆ
ŨƎĐļŝëƎļŒLjɆĈėɆļŝȯŒļŝėɆǂļƢķɆ
ƢķėɆƢLjƋļĉëŒɆŒėǁėŒɆŨįɆļŝĉƎėëƖėɆ
ëĉƎŨƖƖɆƢķėɆǂļĐėƎɆǂŨƎŏįŨƎĉėɆ
Executive Directors’ salaries
įƎŨśɆǤɆ`ëŝƪëƎLjɆǥǣǥǤț
ȱɆ ,{ɆȱɆɞǪǨǣȚǣǣǣɆȩ`ɆpLjİëëƎĐȯ
Andersen from appointment
ŨŝɆǥǤɆ`ëŝƪëƎLjȪ
ȱɆ D{ɆʁɆ$ėƋƪƢLjɆ,{ɆȱɆ
ɞǧǦǣȚǣǣǣɆƪŝƢļŒɆǥǣɆ`ëŝƪëƎLjȜɆ
increased to £525,000 from
ǥǤɆ`ëŝƪëƎLjɆǂķėŝɆëƋƋŨļŝƢėĐɆ
$ėƋƪƢLjɆ,{
ȱɆ E{ɆȱɆɞǧǣǣȚǣǣǣ
ȱɆ ,{ɆȱɆɞǩǪǨȚǣǣǣɆȩ©Ɇ©ėİėǁɆ
ƪŝƢļŒɆǥǤɆ`ëŝƪëƎLjȪ
Ɇ ©ëŒëƎLjɆļŝĉƎėëƖėƖɆŨįɆǬșǦɼɆįŨƎɆ
ƢķėɆ,{ɆëŝĐɆǥșǨɼɆįŨƎɆĈŨƢķɆƢķėɆ
D{ɆʁɆ$ėƋƪƢLjɆ,{ɆëŝĐɆE{
Ɇ DƎŨśɆǤɆ`ëŝƪëƎLjɆǥǣǥǥȚɆ
Executive Director
ƖëŒëƎļėƖɆǂļŒŒɆĈėț
ȱɆ ,{ɆȱɆɞǫǥǣȚǣǣǣ
ȱɆ D{ɆʁɆ$ėƋƪƢLjɆ,{ɆȱɆ
£538,125
ȱɆ E{ɆȱɆɞǧǤǣȚǣǣǣ
ėŝėǘƢƖ
To provide competitive
ĈėŝėǘƢƖɆëŝĐɆƢŨɆëƢƢƎëĉƢɆ
ëŝĐɆƎėƢëļŝɆķļİķɆĉëŒļĈƎėɆ
employees
Ɇ ¶ķėɆǁëŒƪėɆŨįɆĈėŝėǘƢƖɆļƖɆ
based on the cost to the
EƎŨƪƋɆëŝĐɆƢķėƎėɆļƖɆŝŨɆƋƎėȯ
determined maximum limit
Executive Directors receive
ƖƢëŝĐëƎĐɆĈėŝėǘƢƖɆƖƪĉķɆëƖɆ
medical and life insurance
ëŝĐɆĉëƎɆ댌Ũǂëŝĉė
Ɇ pŨƎśëŒɆĉŨśƋëŝLjɆ
ĈėŝėǘƢɆƋƎŨǁļƖļŨŝ
Ɇ pŨƎśëŒɆĉŨśƋëŝLjɆ
ĈėŝėǘƢɆƋƎŨǁļƖļŨŝ
Pension
To provide an opportunity
įŨƎɆƎėƢļƎėśėŝƢɆƋŒëŝŝļŝİ
Executive Directors have the
ŨƋƋŨƎƢƪŝļƢLjɆƢŨɆƋëƎƢļĉļƋëƢėɆļŝɆ
ëɆĉŨśƋëŝLjɆƋƎŨǁļĐėĐɆƋėŝƖļŨŝɆ
ǂķļĉķɆļƖɆļŝɆŒļŝėɆǂļƢķɆƢķëƢɆ
ëǁëļŒëĈŒėɆƢŨɆŨƢķėƎɆėśƋŒŨLjėėƖ
Ɇ ,{ɆȱɆǩɼɆŨįɆƖëŒëƎLjɆĉëƖķɆ
댌ŨǂëŝĉėɆȩ`ɆpLjİëëƎĐȯ
ŝĐėƎƖėŝȪ
Ɇ D{ɆʁɆ$ėƋƪƢLjɆ,{ɆȱɆǧșǨɼɆŨįɆ
ƖëŒëƎLjɆĉŨśƋëŝLjɆĉŨŝƢƎļĈƪƢļŨŝ
Ɇ E{ɆȱɆ{ƋƢėĐɆŨƪƢɆŨįɆƢķėɆƋŒëŝ
Ɇ ,{ɆȱɆ{ƋƢėĐɆŨƪƢɆŨįɆƢķėɆƋŒëŝɆ
ȩ©Ɇ©ėİėǁȪ
No change
Annual Bonus
¶ŨɆļŝĉėŝƢļǁļƖėɆƢķėɆ
ëĉķļėǁėśėŝƢɆŨįɆŏėLjɆ
ǘŝëŝĉļëŒɆëŝĐɆŝŨŝȯǘŝëŝĉļëŒɆ
ƋėƎįŨƎśëŝĉėɆƢëƎİėƢƖɆļŝɆŒļŝėɆ
ǂļƢķɆĉŨƎƋŨƎëƢėɆƖƢƎëƢėİLjɆ
ŨǁėƎɆëɆŨŝėȯLjėëƎɆƋėƎļŨĐ
Ɇ nëLJļśƪśɆëŝŝƪëŒɆļŝĉėŝƢļǁėɆ
ŨƋƋŨƎƢƪŝļƢLjɆŨįɆǥǨǣɼɆŨįɆ
ƖëŒëƎLjɆįŨƎɆƢķėɆ,{ɆëŝĐɆǥǣǣɼɆ
ŨįɆƖëŒëƎLjɆįŨƎɆŨƢķėƎɆ,LJėĉƪƢļǁėɆ
$ļƎėĉƢŨƎƖșɆpŨɆƋëLjśėŝƢɆ
ǂļŒŒɆĈėɆśëĐėɆįŨƎɆĈėŒŨǂɆ
ƢķƎėƖķŨŒĐɆƋėƎįŨƎśëŝĉėșɆ
50% of the maximum
ŨƋƋŨƎƢƪŝļƢLjɆļƖɆƋëLjëĈŒėɆįŨƎɆ
target performance
Ɇ ǨǣɼɆŨįɆëŝLjɆĈŨŝƪƖɆëǂëƎĐɆǂļŒŒɆ
be deferred into shares for
ƢķƎėėɆLjėëƎƖ
Dividend equivalents are
ƋëLjëĈŒėɆŨŝɆĐėįėƎƎėĐɆƖķëƎėƖ
Ɇ nëŒƪƖɆëŝĐɆĉŒëǂĈëĉŏɆ
ƋƎŨǁļƖļŨŝƖɆëƋƋŒLj
Ɇ nëLJļśƪśɆŨƋƋŨƎƢƪŝļƢļėƖț
ȱɆ ,{ɆȱɆǥǨǣɼ
ȱɆ {ƢķėƎɆ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆȱɆ
200%
Ɇ ėƎįŨƎśëŝĉėɆśėëƖƪƎėƖɆȩëƖɆëɆɼɆ
ŨįɆśëLJļśƪśȪț
ȱɆ ½ŝĐėƎŒLjļŝİɆEƎŨƪƋɆ{ƋėƎëƢļŝİɆ
ƎŨǘƢɆȩƋƎėɆ½©ɆŌŨļŝƢɆǁėŝƢƪƎėȪɆ
ȩǩǣɼȪ
ȱɆ EƎŨǂƢķɆļŝɆ{ŝŒļŝėɆpE¡ɆȩǥǨɼȪ
ȱɆ ©ëįėƎɆėƢƢļŝİɆëŝĐɆEëśļŝİɆ
ȩǤǨɼȪ
Ɇ ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆëǂëƎĐėĐɆ
bonuses of 100% of their
śëLJļśƪśɆŨƋƋŨƎƢƪŝļƢLj
No change to the maximum
ĈŨŝƪƖɆŨƋƋŨƎƢƪŝļƢLjɆŨƎɆƋëLjśėŝƢɆ
mechanisms of bonuses
Ɇ ėƎįŨƎśëŝĉėɆśėëƖƪƎėƖɆȩëƖɆëɆ
ɼɆŨįɆśëLJļśƪśȪț
ȱɆ ½ŝĐėƎŒLjļŝİɆEƎŨƪƋɆ{ƋėƎëƢļŝİɆ
ƎŨǘƢɆȩƋƎėɆ½©ɆŌŨļŝƢɆǁėŝƢƪƎėȪɆ
ȩǩǣɼȪ
ȱɆ EƎŨǂƢķɆļŝɆ{ŝŒļŝėɆpE¡ɆȩǥǣɼȪ
ȱɆ ©ëįėƎɆėƢƢļŝİɆëŝĐɆEëśļŝİɆ
ȩǤǨɼȪ
ȱɆ ƪƖƢŨśėƎɆȩǨɼȪ
Targets are considered
ĉŨśśėƎĉļ댌LjɆƖėŝƖļƢļǁėȚɆ
ĈƪƢɆǂļŒŒɆĈėɆĐļƖĉŒŨƖėĐɆ
in the 2022 Directors’
Remuneration Report
Y1
DļLJėĐɆƋëLj
Y2 Y3 Y4 Y5
Y1
DļLJėĐɆƋëLj
Y2 Y3 Y4 Y5
Y1
DļLJėĐɆƋëLj
Y2 Y3 Y4 Y5
Y1
ǨǣɼɆĉëƖķ
Y2 Y3 Y4 Y5
Y1
ǨǣɼɆƖķëƎėƖ
Y2 Y3 Y4 Y5
123 Overview
|
Strategic report
|
Governance
|
Financial statements
Entain plc
|
Annual Report 2021
Directors’ Remuneration Report continued
Element Operation
How we implemented the
Policy in 2021
How we plan to implement
the Policy in 2022
LTIP
¶ŨɆļŝĉėŝƢļǁļƖėɆƢķėɆėLJėĉƪƢļŨŝɆ
ŨįɆƢķėɆŒŨŝİȯƢėƎśɆĈƪƖļŝėƖƖɆ
ƋŒëŝɆëŝĐɆƢķėɆĐėŒļǁėƎLjɆŨįɆ
ŒŨŝİȯƢėƎśɆƖƪƖƢëļŝëĈŒėɆǁëŒƪėɆ
įŨƎɆƖķëƎėķŨŒĐėƎƖ
Ɇ nëLJļśƪśɆëǂëƎĐɆŨįɆǦǣǣɼɆ
ŨįɆĈëƖėɆƖëŒëƎLjɆįŨƎɆƢķėɆ,{Ɇ
ëŝĐɆǥǨǣɼɆŨįɆĈëƖėɆƖëŒëƎLjɆįŨƎɆ
other Executive Directors
Threshold performance
results in 25% of the
ëǂëƎĐɆǁėƖƢļŝİ
Ɇ ǂëƎĐƖɆëƎėɆİƎëŝƢėĐɆëŝŝƪ댌LjɆ
ëŝĐɆëƎėɆƖƪĈŌėĉƢɆƢŨɆëɆƢķƎėėȯ
LjėëƎɆƋėƎįŨƎśëŝĉėɆƋėƎļŨĐ
Ɇ ɆƢǂŨȯLjėëƎɆķŨŒĐļŝİɆƋėƎļŨĐɆ
ǂļŒŒɆëƋƋŒLjɆįŨŒŒŨǂļŝİɆƢķėɆ
vesting period
Dividend equivalents are
ƋëLjëĈŒėɆŨŝɆǁėƖƢėĐɆëǂëƎĐƖ
Ɇ nëŒƪƖɆëŝĐɆĉŒëǂĈëĉŏɆ
ƋƎŨǁļƖļŨŝƖɆëƋƋŒLj
Ɇ EƎëŝƢɆŒėǁėŒƖɆįŨƎɆǥǣǥǤɆëǂëƎĐƖț
ȱɆ ,{ɆȱɆǦǣǣɼ
ȱɆ {ƢķėƎɆ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆȱɆ
250%
The performance conditions
ǂėƎėɆĈëƖėĐɆŨŝț
ȱɆ ƪśƪŒëƢļǁėɆ,©ɆȩǤȦǦƎĐȪ
ȱɆ ¡ėŒëƢļǁėɆ¶©¡ɆǁƖșɆƢķėɆD¶©,Ɇ
ǤǣǣɆȩǤȦǦƎĐȪ
ȱɆ ¡ėŒëƢļǁėɆ¶©¡ɆǁƖșɆëɆĈėƖƋŨŏėɆ
group of sectoral peers
ȩǤȦǦƎĐȪɆ
The performance period for
ƢķėɆǥǣǤǬɆd¶QɆėŝĐėĐɆļŝɆƢķėɆ
LjėëƎɆëŝĐɆǤǣǣɼɆŨįɆƢķļƖɆëǂëƎĐɆ
ǂļŒŒɆǁėƖƢșɆ©ėėɆƋëİėɆǤǦǩɆįŨƎɆ
further information
No change to maximum
d¶QɆŨƋƋŨƎƢƪŝļƢļėƖ
Ɇ ¶ķėɆƋėƎįŨƎśëŝĉėɆĉŨŝĐļƢļŨŝƖɆǂļŒŒɆ
ĈėɆĈëƖėĐɆŨŝț
ȱɆ ¡ėŒëƢļǁėɆ¶©¡ɆǁƖșɆƢķėɆD¶©,Ɇ
ǤǣǣɆȩǨǣɼȪ
ȱɆ ¡ėŒëƢļǁėɆ¶©¡ɆǁƖșɆëɆĈėƖƋŨŏėɆ
İƎŨƪƋɆŨįɆƖėĉƢŨƎëŒɆƋėėƎƖɆȩǨǣɼȪ
Ɇ ©ėėɆƋëİėɆǤǥǪɆįŨƎɆĐėƢëļŒƖɆŨŝɆ
d¶QɆëǂëƎĐƖɆƢŨɆĈėɆİƎëŝƢėĐɆ
in 2022
Shareholding Guidelines
¶ŨɆėŝƖƪƎėɆƢķëƢɆ,LJėĉƪƢļǁėɆ
$ļƎėĉƢŨƎƖȼɆļŝƢėƎėƖƢƖɆëƎėɆ
ëŒļİŝėĐɆǂļƢķɆƢķŨƖėɆŨįɆ
ƖķëƎėķŨŒĐėƎƖɆŨǁėƎɆëɆŒŨŝİėƎɆ
ƢļśėɆķŨƎļǒŨŝ
The shareholding guideline
ļƖɆėƍƪëŒɆƢŨɆǧǣǣɼɆŨįɆƖëŒëƎLjɆįŨƎɆ
ƢķėɆ,{ɆëŝĐɆǥǣǣɼɆŨįɆƖëŒëƎLjɆ
for other Executive Directors
Executive Directors are
required to retain 50% of the
ƋŨƖƢȯƢëLJɆŝƪśĈėƎɆŨįɆǁėƖƢėĐɆ
ƖķëƎėƖɆįƎŨśɆƢķėɆŨśƋëŝLjɆ
incentive plans until the
minimum shareholding
requirement is met
and maintained
Executive Directors are
required to maintain 100%
ŨįɆƢķėļƎɆİƪļĐėŒļŝėɆȩŨƎɆƢķėļƎɆ
ëĉƢƪëŒɆķŨŒĐļŝİɆļįɆŒŨǂėƎȪɆ
įŨƎɆƢǂŨɆLjėëƎƖɆįŨŒŒŨǂļŝİɆ
ĉėƖƖëƢļŨŝɆŨįɆėśƋŒŨLjśėŝƢ
Ɇ ©ķëƎėķŨŒĐļŝİɆİƪļĐėŒļŝėƖț
ȱɆ ,{ɆȱɆǧǣǣɼ
ȱɆ {ƢķėƎɆ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆȱɆ
200%
The Executive Directors’ share
interests as at 31 December
2021 are detailed on page 138
No change
Y1
Up to 300% of salary
Y2 Y3 Y4 Y5
Y1
¶ǂŨȯLjėëƎɆķŨŒĐļŝİɆƋėƎļŨĐ
Y2 Y3 Y4 Y5
Y1
,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖȼɆ
ƖķëƎėɆŨǂŝėƎƖķļƋ
Y2 Y3 Y4 Y5
Entain plc
|
Annual Report 2021
124
Governance
Performance metrics and link to strategy
¶ķėɆƢëĈŒėɆĈėŒŨǂɆĐėśŨŝƖƢƎëƢėƖɆķŨǂɆėëĉķɆėŒėśėŝƢɆŨįɆŨƪƎɆƎėǂëƎĐɆƋëĉŏëİėɆŒļŝŏƖɆƢŨɆŨƪƎɆƢǂŨɆƖƢƎëƢėİļĉɆƋļŒŒëƎƖɆŨįɆEƎŨǂƢķɆëŝĐɆ©ƪƖƢëļŝëĈļŒļƢLjșɆ
nŨƎėɆļŝįŨƎśëƢļŨŝɆëĈŨƪƢɆŨƪƎɆƖƢƎëƢėİļĉɆƋļŒŒëƎƖɆļƖɆƖėƢɆŨƪƢɆļŝɆƢķėɆķļėįɆ,LJėĉƪƢļǁėȼƖɆ¡ėǁļėǂɆŨŝɆƋëİėƖɆǤǥɆƢŨɆǤǬș
Strategic pillars
Element of reward Link to reward Growth ©ƪƖƢëļŝëĈļŒļƢLj
Bonus ½ŝĐėƎŒLjļŝİɆEƎŨƪƋɆŨƋėƎëƢļŝİɆƋƎŨǘƢɆ
EƎŨǂƢķɆļŝɆŨŝŒļŝėɆpE¡
Safer betting and gaming
Customer
Deferral of bonus into shares
LTIP Total shareholder return
LŨŒĐļŝİɆƋėƎļŨĐƖɆįŨƎɆ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖ
Bonus and LTIP nëŒƪƖɆëŝĐɆĉŒëǂĈëĉŏɆƋƎŨǁļƖļŨŝƖɆëƋƋŒLj
Shareholding requirements for Executive Directors
ėŝėǘƢƖ ©ķëƎė©ëǁėɆįŨƎɆ댌ɆėśƋŒŨLjėėƖ
DƎėėȯƖķëƎėɆëǂëƎĐɆȩƖƪĈŌėĉƢɆƢŨɆƖķëƎėķŨŒĐėƎɆëƋƋƎŨǁëŒȪ
nëƎŏėƢɆƎėŒëƢėĐɆĈėŝėǘƢƖɆƋëĉŏëİė
,śƋŒŨLjėėɆƎėĉŨİŝļƢļŨŝ
dėëƎŝļŝİɆëŝĐɆĐėǁėŒŨƋśėŝƢɆŨƋƋŨƎƢƪŝļƢļėƖ
125 Overview
|
Strategic report
|
Governance
|
Financial statements
Entain plc
|
Annual Report 2021
Directors’ Remuneration Report continued
ǥǣǥǥɆŝŝƪëŒɆĈŨŝƪƖɆśėƢƎļĉƖ
The Committee is mindful of the continued focus on ESG performance and is pleased to
ļŝƢƎŨĐƪĉėɆŨƪƎɆŝėǂɆĉƪƖƢŨśėƎɆśėƢƎļĉɆëŝĐɆƢŨɆėLJƋŒëļŝɆķŨǂɆƢķėɆƖëįėƎɆĈėƢƢļŝİɆëŝĐɆİëśļŝİɆśėƢƎļĉɆ
ǂļŒŒɆŨƋėƎëƢėɆļŝɆǥǣǥǥșɆ¶ķėɆėǁŨŒƪƢļŨŝɆŨįɆŨƪƎɆëŝŝƪëŒɆĈŨŝƪƖɆśėƢƎļĉƖɆķļİķŒļİķƢƖɆķŨǂɆǂėɆëƎėɆ
ǂŨƎŏļŝİɆƢŨɆėśĈėĐɆƖƪƖƢëļŝëĈļŒļƢLjɆëĉƎŨƖƖɆ댌ɆëƖƋėĉƢƖɆŨįɆƢķėɆĈƪƖļŝėƖƖș
ÕķLjɆķëƖɆƢķėɆŨśśļƢƢėėɆƖƢƎėŝİƢķėŝėĐɆ
ƢķėɆëŒļİŝśėŝƢɆĈėƢǂėėŝɆƖƪƖƢëļŝëĈļŒļƢLjɆ
and remuneration?
ƪƖƢŨśėƎƖɆëƎėɆëɆŏėLjɆƋƎļŨƎļƢLjɆįŨƎɆ,ŝƢëļŝɆ
ëŝĐɆƢķėɆŝėǂɆśėƢƎļĉɆļƖɆĐėƖļİŝėĐɆƢŨɆëŒļİŝɆ
ëŝɆėŒėśėŝƢɆŨįɆƢķėɆëŝŝƪëŒɆĈŨŝƪƖɆǂļƢķɆƢķėɆ
ëĉķļėǁėśėŝƢɆŨįɆİƎėëƢɆĉƪƖƢŨśėƎɆŨƪƢĉŨśėƖș
ÕķLjɆĐŨėƖɆƢķėɆŨśśļƢƢėėɆƢķļŝŏɆļƢɆ
is important to include a customer
śėƢƎļĉɆļŝɆƢķėɆëŝŝƪëŒɆĈŨŝƪƖȠ
The customer measure complements
ėLJļƖƢļŝİɆĉŨśśļƢśėŝƢƖɆƢŨɆĉŨŝƢļŝƪŨƪƖŒLjɆ
enhance and personalise the protection
ŨįɆĉƪƖƢŨśėƎƖȚɆƢķėƎėĈLjɆƋŒëĉļŝİɆƢķėśɆëƢɆƢķėɆ
ķėëƎƢɆŨįɆėǁėƎLjƢķļŝİɆǂėɆĐŨșɆ
How will the new metric work?
ÕėɆǂļŒŒɆƪƖėɆpėƢɆƎŨśŨƢėƎɆ©ĉŨƎėɆȩȹp©ȺȪɆ
to measure performance across our
ĈƎëŝĐƖɆǂļƢķɆƢķėɆǘŝëŒɆŨƪƢĉŨśėɆëƖƖėƖƖėĐɆ
ëƢɆEƎŨƪƋɆŒėǁėŒșɆp©ɆļƖɆëɆĉƪƖƢŨśėƎɆ
ŒŨLjëŒƢLjɆëŝĐɆƖëƢļƖįëĉƢļŨŝɆśėëƖƪƎėɆƢķëƢɆ
ĉŨśƋëŝļėƖɆƪƖėɆƢŨɆƢƎëĉŏɆƋƎŨśŨƢėƎƖɆëŝĐɆ
detractors, producing a clear measure of
an organisation’s performance through its
ĉƪƖƢŨśėƎƖȼɆėLjėƖșɆ
ƖɆëɆśėëƖƪƎėɆļƢɆļƖɆėëƖļŒLjɆƪŝĐėƎƖƢŨŨĐɆ
ĈLjɆĈŨƢķɆėLJƢėƎŝëŒɆƖƢëŏėķŨŒĐėƎƖɆëŝĐɆ
ėśƋŒŨLjėėƖȚɆļƢɆëŒļİŝƖɆǂļƢķɆŨƪƎɆƖƢƎëƢėİļĉɆ
ĐļƎėĉƢļŨŝɆëŝĐɆƢķėɆƎėƖƪŒƢƖɆǂļŒŒɆėŝëĈŒėɆƪƖɆƢŨɆ
ƢëŏėɆëƋƋƎŨƋƎļëƢėɆëĉƢļŨŝƖɆƢŨɆļśƋƎŨǁėɆŨƪƎɆ
ĉƪƖƢŨśėƎƖȼɆėLJƋėƎļėŝĉėș
LŨǂɆǂļŒŒɆƢķėɆŝėǂɆśėƢƎļĉɆĈėɆļŝĉŒƪĐėĐɆļŝɆ
ƢķėɆëŝŝƪëŒɆĈŨŝƪƖȠ
ǨɼɆŨįɆƢķėɆǥǣǥǥɆëŝŝƪëŒɆĈŨŝƪƖɆƋŒëŝɆǂļŒŒɆ
ĈėɆĈëƖėĐɆŨŝɆŨƪƎɆŝėǂɆĉƪƖƢŨśėƎɆśėƢƎļĉɆ
ëŝĐɆǤǨɼɆǂļŒŒɆĉŨŝƢļŝƪėɆƢŨɆĈėɆĐėĐļĉëƢėĐɆ
ƢŨɆƖëįėƎɆĈėƢƢļŝİɆëŝĐɆİëśļŝİșɆ¶ķėɆǥǣǥǥɆ
ƋėƎįŨƎśëŝĉėɆśėƢƎļĉƖɆǂļŒŒɆƢķėƎėįŨƎėɆ
ĉŨśƋƎļƖėɆëŝɆǫǣɼɆǘŝëŝĉļëŒɆëŝĐɆǥǣɼɆŝŨŝȯ
ǘŝëŝĉļëŒɆǂėļİķƢļŝİș
LŨǂɆǂļŒŒɆƢķėɆƖëįėƎɆĈėƢƢļŝİɆëŝĐɆİëśļŝİɆ
metric evolve in 2022?
ÕėɆëƎėɆŏėėŝɆƢŨɆĉŨŝƢļŝƪėɆƢķėɆėǁŨŒƪƢļŨŝɆ
of the safer betting and gaming metric
ĈLjɆįƪƎƢķėƎɆėŝķëŝĉļŝİɆŨƪƎɆƖLjƖƢėśƖɆëŝĐɆ
processes, continuing to improve the
detection and prevention of problematic
ƋŒëLjșɆDŨƎɆǥǣǥǥț
Ɇ LëŒįɆŨįɆƢķėɆƢŨƢëŒɆǂļŒŒɆƎėŒëƢėɆƢŨɆƢķėɆ½bɆ
śëƎŏėƢȚɆǂķėƎėɆǂėɆǂļŒŒɆƢëƎİėƢɆƢķėɆƪƖëİėɆ
of our active account management tools
ëśŨŝİƖƢɆƎļƖŏɆëƖƖėƖƖėĐɆŨŝŒļŝėɆĉƪƖƢŨśėƎƖșɆ
¶ķƎŨƪİķɆŨƪƎɆĐǁëŝĉėĐɆ¡ėƖƋŨŝƖļĈļŒļƢLjɆ
ëŝĐɆëƎėʆɆȩȹ¡ʆȺȪɆƋŒëƢįŨƎśɆǂėɆ
are able to monitor and categorise
ƋŒëLjėƎɆĈėķëǁļŨƪƎɆëŝĐɆļŝƢėƎëĉƢɆǂļƢķɆ
ƢķėɆĉƪƖƢŨśėƎɆƢŨɆėįįėĉƢļǁėŒLjɆļŝǙƪėŝĉėɆ
ĈėķëǁļŨƪƎȚɆƢķėƎėĈLjɆƋƎŨǁļĐļŝİɆëɆśŨƎėɆ
ƋŨƖļƢļǁėɆëŝĐɆƖëįėƎɆėLJƋėƎļėŝĉėșɆ
Ɇ ¶ķėɆŨƢķėƎɆķëŒįɆǂļŒŒɆƎėŒëƢėɆƢŨɆśëƎŏėƢƖɆ
ŨƪƢƖļĐėɆƢķėɆ½bșɆ¶ķėɆĐėƋŒŨLjśėŝƢɆ
ŨįɆ¡ʆȼƖɆëĐǁëŝĉėĐɆśŨĐėŒƖɆëŝĐɆ
ƢėĉķŝŨŒŨİļėƖȚɆƢëļŒŨƎėĐɆƢŨɆėëĉķɆĉŨƪŝƢƎLjȼƖɆ
ƎėİƪŒëƢŨƎLjɆƎėƍƪļƎėśėŝƢƖȚɆĉƪŒƢƪƎėɆëŝĐɆ
śëƢƪƎļƢLjȚɆİļǁėƖɆƪƖɆëŝɆŨƋƋŨƎƢƪŝļƢLjɆƢŨɆ
offer the same targeted interactions and
overall experiences to a large number of
ŨƪƎɆƋŒëLjėƎƖɆëƎŨƪŝĐɆƢķėɆİŒŨĈėș
Ɇ QŝɆëĐĐļƢļŨŝȚɆƢŨɆƎėëĉķɆƢķėɆƢķƎėƖķŨŒĐɆŒėǁėŒɆ
įŨƎɆƋëLjȯŨƪƢɆƪŝĐėƎɆƢķļƖɆśėƢƎļĉȚɆëŝĐɆƖķŨǂɆ
our internal commitment, minimum
levels of completion of safer betting and
İëśļŝİɆëŝĐɆŨƢķėƎɆƎėŒėǁëŝƢɆĉŨśƋƪŒƖŨƎLjɆ
ƢƎëļŝļŝİɆśŨĐƪŒėƖɆśƪƖƢɆĈėɆëĉķļėǁėĐɆĈLjɆ
ŨƪƎɆĉŨŒŒėëİƪėƖɆİŒŨĈ댌LjșɆ
nŨƎėɆļŝįŨƎśëƢļŨŝɆŨŝɆƢķėɆǥǣǥǤɆƢëƎİėƢɆëŝĐɆ
outturn of the safer betting and gaming
metric can be found in this report on
ƋëİėɇǤǦǨɆëŝĐɆƢķėɆ,©EɆŨśśļƢƢėėɆƎėƋŨƎƢɆ
ŨŝɇƋëİėɇǤǤǣș
How will we ensure that the safer
ĈėƢƢļŝİɆëŝĐɆİëśļŝİɆśėƢƎļĉɆǂļŒŒɆĈėɆ
ƎŨĈƪƖƢŒLjɆśėëƖƪƎėĐȚɆƎėǁļėǂėĐɆëŝĐɆ
ƎėǙėĉƢɆƪŝĐėƎŒLjļŝİɆƋėƎįŨƎśëŝĉėȠ
To provide the Committee and
ƖķëƎėķŨŒĐėƎƖɆǂļƢķɆĉŨśįŨƎƢɆƢķëƢɆƢķėɆ
outcome for the safer betting and gaming
metric are robust and appropriate, the ESG
ŨśśļƢƢėėɆǂļŒŒɆëİëļŝɆķëǁėɆŨǁėƎƖļİķƢɆŨįɆƢķėɆ
ƖëįėƎɆĈėƢƢļŝİɆëŝĐɆİëśļŝİɆśėƢƎļĉȚɆëŝĐɆǂļŒŒɆ
ƎėĉėļǁėɆļŝƋƪƢɆįƎŨśɆ,QɆ¡ļƖŏɆnëŝëİėśėŝƢɆ
ȱɆƢķėɆŒėëĐļŝİɆļŝĐėƋėŝĐėŝƢɆİëśĈŒļŝİɆ
ķëƎśɆśļŝļśļƖëƢļŨŝɆĉŨŝƖƪŒƢëŝĉLjɆȱɆǂķėŝɆ
ƎėǁļėǂļŝİɆëŝĐɆėǁëŒƪëƢļŝİɆƢķėɆĐėŒļǁėƎLjɆ
against targets, prior to recommending the
ŨƪƢĉŨśėɆƢŨɆƢķėɆŨśśļƢƢėėș
How will the rest of the 2022 annual
ĈŨŝƪƖɆĈėɆĐėƢėƎśļŝėĐȠ
The 80% of the annual bonus based on
ǘŝëŝĉļëŒɆśėƢƎļĉƖɆǂļŒŒɆĈėɆƖƋŒļƢɆĈėƢǂėėŝɆ
ƪŝĐėƎŒLjļŝİɆEƎŨƪƋɆŨƋėƎëƢļŝİɆƋƎŨǘƢɆëŝĐɆ
İƎŨǂƢķɆļŝɆŨŝŒļŝėɆpE¡șɆ½ŝĐėƎŒLjļŝİɆEƎŨƪƋɆ
ŨƋėƎëƢļŝİɆƋƎŨǘƢɆƎėśëļŝƖɆëƢɆƢķėɆƖëśėɆ
ƋƎŨƋŨƎƢļŨŝɆƢŨɆǥǣǥǤɆȩǩǣɼȪɆëŝĐɆƢķėɆpE¡Ɇ
ǂėļİķƢļŝİɆķëƖɆƎėĐƪĉėĐɆįƎŨśɆǥǨɼɆƢŨɆǥǣɼɆ
to enable the inclusion of the customer
śėƢƎļĉșɆpE¡ɆĉŨŝƢļŝƪėƖɆƢŨɆĈėɆëɆŏėLjɆ
performance indicator and fundamental to
ĐƎļǁļŝİɆƖķëƎėķŨŒĐėƎɆǁëŒƪėșɆ¶ķėɆƢëƎİėƢƖɆëŝĐɆ
respective outcomes of the 2022 metrics
ǂļŒŒɆĈėɆƎėƋŨƎƢėĐɆļŝɆŝėLJƢɆLjėëƎȼƖɆ$ļƎėĉƢŨƎƖȼɆ
¡ėśƪŝėƎëƢļŨŝɆ¡ėƋŨƎƢș
Entain plc
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Annual Report 2021
126 Governance
2022 LTIP targets
QŝɆĐėƢėƎśļŝļŝİɆƢķėɆd¶QɆƋėƎįŨƎśëŝĉėɆśėƢƎļĉƖɆįŨƎɆƢķėɆǥǣǥǥɆ
ëǂëƎĐȚɆƢķėɆŨśśļƢƢėėɆķëƖɆĉŨŝƖļĐėƎėĐɆƢķėɆĐļįǘĉƪŒƢLjɆļŝɆƖėƢƢļŝİɆ
ëƋƋƎŨƋƎļëƢėŒLjɆƖƢƎėƢĉķļŝİɆĈƪƢɆļŝĉėŝƢļǁļƖļŝİɆ,©ɆƢëƎİėƢƖȚɆİļǁėŝɆƢķėɆ
įëƖƢȯĉķëŝİļŝİɆėLJƢėƎŝëŒɆėŝǁļƎŨŝśėŝƢɆļŝɆǂķļĉķɆǂėɆĉƪƎƎėŝƢŒLjɆŨƋėƎëƢėșɆ
¶ķėɆŨśśļƢƢėėɆķëǁėɆĉŨŝĉŒƪĐėĐɆƢķëƢɆƢķļƖɆĉëŝɆĈėɆëĐĐƎėƖƖėĐɆĈLjɆ
ĈëƖļŝİɆŨƪƎɆǥǣǥǥɆd¶QɆëǂëƎĐɆėŝƢļƎėŒLjɆŨŝɆƎėŒëƢļǁėɆ¶©¡ɆśėƢƎļĉƖșɆ
¶ķļƖɆëŒļİŝƖɆśëŝëİėśėŝƢȼƖɆļŝƢėƎėƖƢƖɆĉŒŨƖėŒLjɆǂļƢķɆƢķėɆėLJƋėƎļėŝĉėɆ
ŨįɆļŝǁėƖƢŨƎƖɆëŝĐɆļŝĉėŝƢļǁļƖėƖɆëĉƢļŨŝƖɆǂķļĉķɆėŝķëŝĉėɆŒŨŝİȯƢėƎśɆ
ǁëŒƪėɆĉƎėëƢļŨŝș
DŨƎɆǥǣǥǥȚɆǨǣɼɆŨįɆƢķėɆd¶QɆëǂëƎĐƖɆǂļŒŒɆĈėɆĈëƖėĐɆŨŝɆ¶©¡Ɇ
performance relative to the FTSE 100 and 50% on performance
ƎėŒëƢļǁėɆƢŨɆëŝɆļŝĐƪƖƢƎLjɆƋėėƎɆİƎŨƪƋɆŨįɆƢķėɆįŨŒŒŨǂļŝİɆĉŨśƋëŝļėƖțɆ
ǫǫǫɆLŨŒĐļŝİƖȚɆƎļƖƢŨĉƎëƢȚɆėƢƖƖŨŝȚɆëėƖëƎƖɆ,ŝƢėƎƢëļŝśėŝƢȚɆ
DraftKings, Evolution Gaming Group, Flutter Entertainment,
QŝƢėƎŝëƢļŨŝëŒɆEëśėɆ¶ėĉķȚɆbļŝĐƎėĐɆEƎŨƪƋȚɆnEnɆ¡ėƖŨƎƢƖȚɆŒëLjƢėĉķȚɆ
ŨļŝƢƖėƢȚɆ¡ëŝŏɆEƎŨƪƋȚɆ¡ƪƖķɆ©ƢƎėėƢɆQŝƢėƎëĉƢļǁėɆëŝĐɆ©ëŝĐƖɆdÔș
¶ķėɆƢëƎİėƢƖɆëŝĐɆǁėƖƢļŝİɆƖĉķėĐƪŒėɆįŨƎɆƢķėɆǥǣǥǥɆd¶QɆëǂëƎĐƖɆëƎėɆƖėƢɆ
ŨƪƢɆĈėŒŨǂș
Measure Weighting
Threshold
1
ȩǥǨɼɆǁėƖƢļŝİȪ
Maximum
1
ȩǤǣǣɼɆǁėƖƢļŝİȪ
TSR vs FTSE100 50% nėĐļëŝ Upper quartile
TSR vs peer
group 50% nėĐļëŝ Upper quartile
ǤșɆ ©ƢƎëļİķƢɆŒļŝėɆǁėƖƢļŝİɆĈėƢǂėėŝɆƢķƎėƖķŨŒĐɆëŝĐɆśëLJļśƪśș
¶ķėɆŨśśļƢƢėėɆƎėƢëļŝƖɆĐļƖĉƎėƢļŨŝɆǂķėƢķėƎɆëŝĐȚɆļįɆƖŨȚɆķŨǂɆƢŨɆ
ëĐŌƪƖƢɆƢëƎİėƢƖɆƋŨƖƢɆİƎëŝƢɆǂķėŝɆĐėƢėƎśļŝļŝİɆƢķėɆƋėƎįŨƎśëŝĉėɆ
ŨƪƢĉŨśėșɆĐĐļƢļŨŝ댌LjȚɆƢķėɆŨśśļƢƢėėɆǂļŒŒɆëƖƖėƖƖɆƢķėɆǁëŒƪėɆŨįɆ
ƢķėɆǥǣǥǥɆd¶QɆëǂëƎĐƖɆëƢɆǁėƖƢļŝİɆëŝĐɆǂļŒŒɆėŝƖƪƎėɆƢķëƢɆƢķėɆǘŝëŒɆ
ŨƪƢƢƪƎŝɆƎėǙėĉƢƖɆ댌ɆƎėŒėǁëŝƢɆįëĉƢŨƎƖȚɆļŝĉŒƪĐļŝİɆĉŨŝƖļĐėƎëƢļŨŝɆŨįɆ
ƪŝĐėƎŒLjļŝİɆƋėƎįŨƎśëŝĉėș
127
Overview
|
Strategic report
|
Governance
|
Financial statements
Entain plc
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Annual Report 2021
Directors’ Remuneration Report continued
Remuneration in context
Committed to good governance
ÕķėŝɆĉŨŝƖļĐėƎļŝİɆėLJėĉƪƢļǁėɆƎėśƪŝėƎëƢļŨŝȚɆƢķėɆŨśśļƢƢėėɆƢëŏėƖɆļŝƢŨɆëĉĉŨƪŝƢɆëɆǂļĐėɆƎëŝİėɆŨįɆįëĉƢŨƎƖɆļŝĉŒƪĐļŝİɆŒėİëŒɆëŝĐɆƎėİƪŒëƢŨƎLjɆ
ƎėƍƪļƎėśėŝƢƖȚɆëƖƖŨĉļëƢėĐɆİƪļĐëŝĉėȚɆëŝĐɆƢķėɆǁļėǂƖɆŨįɆƖķëƎėķŨŒĐėƎƖɆëŝĐɆƢķėļƎɆƎėƋƎėƖėŝƢëƢļǁėɆĈŨĐļėƖșɆLŨǂɆƢķėɆŨśśļƢƢėėɆëĐĐƎėƖƖėƖɆƢķėɆ
įŨŒŒŨǂļŝİɆƋƎļŝĉļƋŒėƖȚɆƢëŏėŝɆįƎŨśɆƢķėɆǥǣǤǫɆ½bɆŨƎƋŨƎëƢėɆEŨǁėƎŝëŝĉėɆŨĐėȚɆļƖɆƖėƢɆŨƪƢɆĈėŒŨǂș
ŒëƎļƢLj
Ɇ {ƪƎɆƎėśƪŝėƎëƢļŨŝɆįƎëśėǂŨƎŏɆļƖɆƖƢƎƪĉƢƪƎėĐɆƢŨɆƖƪƋƋŨƎƢɆƢķėɆǘŝëŝĉļëŒɆëŝĐɆƖƢƎëƢėİļĉɆŨĈŌėĉƢļǁėƖɆŨįɆƢķėɆEƎŨƪƋȚɆ
ëŒļİŝļŝİɆƢķėɆļŝƢėƎėƖƢƖɆŨįɆŨƪƎɆ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆǂļƢķɆƢķŨƖėɆŨįɆƖķëƎėķŨŒĐėƎƖ
Ɇ ÕėɆëƎėɆĉŨśśļƢƢėĐɆƢŨɆƢƎëŝƖƋëƎėŝƢɆĉŨśśƪŝļĉëƢļŨŝɆǂļƢķɆ댌ɆŨƪƎɆƖƢëŏėķŨŒĐėƎƖȚɆļŝĉŒƪĐļŝİɆƖķëƎėķŨŒĐėƎƖɆ
ȱɇƋëİėɇǦǪɆƖėƢƖɆŨƪƢɆśŨƎėɆĐėƢëļŒƖɆŨįɆķŨǂɆǂėɆėŝİëİėɆǂļƢķɆƖķëƎėķŨŒĐėƎƖ
Simplicity
Ɇ ÕėɆŨƋėƎëƢėɆëɆƖļśƋŒėȚɆĈƪƢɆėįįėĉƢļǁėɆƎėśƪŝėƎëƢļŨŝɆįƎëśėǂŨƎŏ
Ɇ ¶ķėɆëŝŝƪëŒɆĈŨŝƪƖɆëŝĐɆd¶QɆƎėǂëƎĐɆƋėƎįŨƎśëŝĉėɆëİëļŝƖƢɆŏėLjɆśėëƖƪƎėƖɆŨįɆƖƪĉĉėƖƖɆįŨƎɆƢķėɆĈƪƖļŝėƖƖ
There is clear line of sight for management and shareholders
Risk
Ɇ {ƪƎɆļŝĉėŝƢļǁėƖɆëƎėɆƖƢƎƪĉƢƪƎėĐɆƢŨɆëŒļİŝɆǂļƢķɆƢķėɆEƎŨƪƋȼƖɆƎļƖŏɆśëŝëİėśėŝƢɆįƎëśėǂŨƎŏ
Ɇ ¶ķƎėėȯLjėëƎɆĐėįėƎƎëŒɆƪŝĐėƎɆƢķėɆëŝŝƪëŒɆĈŨŝƪƖɆëŝĐɆƢķėɆƢǂŨȯLjėëƎɆķŨŒĐļŝİɆƋėƎļŨĐɆŨŝɆd¶QɆëǂëƎĐƖɆĉƎėëƢėɆŒŨŝİȯɆ
ƢėƎśɆëŒļİŝśėŝƢȚɆëƖɆĐŨɆŨƪƎɆǂļƢķļŝɆëŝĐɆƋŨƖƢȯėśƋŒŨLjśėŝƢɆƖķëƎėķŨŒĐļŝİɆİƪļĐėŒļŝėƖ
Ɇ ŨƢķɆļŝĉėŝƢļǁėƖɆëŒƖŨɆļŝĉŨƎƋŨƎëƢėɆƎŨĈƪƖƢɆƋėƎįŨƎśëŝĉėɆƢëƎİėƢƖȚɆśëŒƪƖɆëŝĐɆĉŒëǂĈëĉŏɆƋƎŨǁļƖļŨŝƖȚɆëŝĐɆ
overarching Committee discretion to adjust formulaic outcomes
ƎėĐļĉƢëĈļŒļƢLj
Ɇ ¶ķėɆ¡ėśƪŝėƎëƢļŨŝɆŨŒļĉLjɆĉŒėëƎŒLjɆƖėƢƖɆŨƪƢɆƢķėɆƋŨƖƖļĈŒėɆįƪƢƪƎėɆǁëŒƪėɆŨįɆƎėśƪŝėƎëƢļŨŝɆǂķļĉķɆ,LJėĉƪƢļǁėɆ
Directors could receive, including the impact of share price appreciation of 50%
Proportionality
Ɇ ¶ķėƎėɆļƖɆĉŒėëƎɆëŒļİŝśėŝƢɆĈėƢǂėėŝɆƢķėɆƋėƎįŨƎśëŝĉėɆŨįɆƢķėɆŨśƋëŝLjɆëŝĐɆƢķėɆƎėǂëƎĐƖɆëǁëļŒëĈŒėɆƢŨɆ
Executive Directors
Ɇ QŝĉėŝƢļǁėɆėŒėśėŝƢƖɆëƎėɆĉŒŨƖėŒLjɆëŒļİŝėĐɆƢŨɆŨƪƎɆƖƢƎëƢėİļĉɆİŨëŒƖȚɆƢƎëŝƖƋëƎėŝƢɆëŝĐɆƎŨĈƪƖƢŒLjɆëƖƖėƖƖėĐȚɆǂļƢķɆƢķėɆ
ŨśśļƢƢėėɆķëǁļŝİɆįƪŒŒɆĐļƖĉƎėƢļŨŝɆƢŨɆëĐŌƪƖƢɆŨƪƢĉŨśėƖɆƢŨɆėŝƖƪƎėɆƢķėLjɆëŒļİŝɆǂļƢķɆŨǁėƎ댌Ɇ,ŝƢëļŝɆƋėƎįŨƎśëŝĉė
Alignment
to culture
Ɇ ÕėɆëƎėɆĉŨśśļƢƢėĐɆƢŨɆėįįėĉƢļǁėɆƖƢëŏėķŨŒĐėƎɆëŝĐɆĉŨŒŒėëİƪėɆėŝİëİėśėŝƢȚɆƋëƎƢɆŨįɆǂķļĉķɆļƖɆėŝƖƪƎļŝİɆƢķëƢɆƢķėɆ
ŨśśļƢƢėėɆƖėėƖɆ댌ɆƎėŒėǁëŝƢɆĐëƢëɆƎėŒëƢļŝİɆƢŨɆƋëLjɆëŝĐɆĉŨŝĐļƢļŨŝƖɆļŝɆƢķėɆǂļĐėƎɆǂŨƎŏįŨƎĉė
Ɇ {ƋėƎëƢļŝİɆƎėƖƋŨŝƖļĈŒLjɆƢŨǂëƎĐƖɆŨƪƎɆĉƪƖƢŨśėƎƖɆļƖɆįƪŝĐëśėŝƢëŒɆƢŨɆƢķėɆǂëLjɆļŝɆǂķļĉķɆ,ŝƢëļŝɆŨƋėƎëƢėƖɆëŝĐɆ
ƎėśƪŝėƎëƢļŨŝɆŨƪƢĉŨśėƖɆëƎėɆƎėǁļėǂėĐɆļŝɆƢķėɆŒļİķƢɆŨįɆëĉƢļŨŝƖɆƢëŏėŝɆļŝɆƖƪƋƋŨƎƢɆŨįɆŨƪƎɆƖëįėƎɆĈėƢƢļŝİɆëŝĐɆ
gaming agenda
Ɇ ¶ķļƖɆLjėëƎɆǂėɆëƎėɆļŝƢƎŨĐƪĉļŝİɆëɆŝėǂɆĉƪƖƢŨśėƎɆśėëƖƪƎėɆļŝƢŨɆŨƪƎɆëŝŝƪëŒɆĈŨŝƪƖȚɆƢŨɆƎėǙėĉƢɆƢķėɆļśƋŨƎƢëŝĉėɆŨįɆ
ƋƪƢƢļŝİɆƢķėɆĉƪƖƢŨśėƎɆëƢɆƢķėɆķėëƎƢɆŨįɆėǁėƎLjƢķļŝİɆǂėɆĐŨȚɆëƖɆǂėŒŒɆëƖɆėǁŨŒǁļŝİɆƢķėɆƖëįėƎɆĈėƢƢļŝİɆëŝĐɆİëśļŝİɆ
śėƢƎļĉșɆŨƢķɆśėƢƎļĉƖɆĉŨŝƢƎļĈƪƢėɆƢŨɆŨƪƎɆƖƪƖƢëļŝëĈļŒļƢLjɆëŝĐɆĐėśŨŝƖƢƎëƢėɆëɆĉŒėëƎɆŒļŝŏɆĈėƢǂėėŝɆƎėśƪŝėƎëƢļŨŝɆ
ëŝĐɆŨƪƎɆĉƪŒƢƪƎėșɆ¶ķėɆŨśśļƢƢėėɆǂļŒŒɆëŒƖŨɆƢëŏėɆĈƎŨëĐėƎɆ,©EɆĉŨŝƖļĐėƎëƢļŨŝƖɆļŝƢŨɆëĉĉŨƪŝƢɆëŝĐɆśëLjɆëƋƋŒLjɆ
ĐļƖĉƎėƢļŨŝɆļįɆŝėĉėƖƖëƎLjɆǂķėŝɆëƖƖėƖƖļŝİɆƢķėɆëƋƋƎŨƋƎļëƢėŝėƖƖɆŨįɆļŝĉėŝƢļǁėɆŨƪƢĉŨśėƖ
Entain plc
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Annual Report 2021
128
Governance
¡ėëĐɆśŨƎėɆëĈŨƪƢɆƢķėɆŨśśļƢƢėėȼƖɆǂŨƎŏɆļŝɆǥǣǥǤț
page 120
Understanding our colleague reward framework
{ƪƎɆƋėŨƋŒėɆëƎėɆǁļƢëŒɆƢŨɆŨƪƎɆĈƪƖļŝėƖƖșɆƢɆ,ŝƢëļŝȚɆǂėɆĈėŒļėǁėɆļŝɆįëļƎŝėƖƖɆƢķƎŨƪİķŨƪƢɆƢķėɆŨśƋëŝLjșɆ¶ķėɆEƎŨƪƋɆŨƋėƎëƢėƖɆëɆŝƪśĈėƎɆŨįɆİėŝėƎëŒɆ
ƋƎļŝĉļƋŒėƖɆëƋƋŒļėĐɆƢŨɆ댌ɆŒėǁėŒƖș
Ɇ ÕėɆǂļŒŒɆƋƎŨǁļĐėɆëɆĉŨśƋėƢļƢļǁėɆƋëĉŏëİėɆĉŨśƋëƎėĐɆƢŨɆƢķėɆƎėŒėǁëŝƢɆśëƎŏėƢɆįŨƎɆėëĉķɆĉŨŒŒėëİƪėș
Ɇ ÕėɆǂļŒŒɆėŝƖƪƎėɆĉŨŒŒėëİƪėƖɆĉëŝɆƖķëƎėɆļŝɆƢķėɆƖƪĉĉėƖƖɆŨįɆƢķėɆĈƪƖļŝėƖƖȚɆǂķėƎėɆëƋƋƎŨƋƎļëƢėȚɆƢķƎŨƪİķɆƋėƎįŨƎśëŝĉėȯĈëƖėĐɆǁëƎļëĈŒėɆ
ƎėśƪŝėƎëƢļŨŝɆëŝĐɆŨƋƋŨƎƢƪŝļƢLjɆƢŨɆëĉƍƪļƎėɆ,ŝƢëļŝɆƖķëƎėƖșɆ
Ɇ ÕėɆëļśɆįŨƎɆƢƎëŝƖƋëƎėŝĉLjɆëŝĐɆëɆįëļƎɆĉëƖĉëĐėɆŨįɆƎėśƪŝėƎëƢļŨŝɆƢķƎŨƪİķŨƪƢɆƢķėɆEƎŨƪƋș
¶ķėɆ¡ėśƪŝėƎëƢļŨŝɆŨśśļƢƢėėɆĉŨŝƖļĐėƎƖɆëɆƎëŝİėɆŨįɆįëĉƢŨƎƖɆǂķėŝɆĐėĉļĐļŝİɆƪƋŨŝɆƢķėɆƎėśƪŝėƎëƢļŨŝɆįŨƎɆ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖȚɆŨŝėɆŨįɆǂķļĉķɆ
ļƖɆƢķėɆëŒļİŝśėŝƢɆǂļƢķɆƋëLjɆƋƎëĉƢļĉėƖɆëĉƎŨƖƖɆƢķėɆǂļĐėƎɆǂŨƎŏįŨƎĉėșɆ¶ķėɆƢëĈŒėɆĈėŒŨǂɆƖƪśśëƎļƖėƖɆƢķėɆƎėśƪŝėƎëƢļŨŝɆƖƢƎƪĉƢƪƎėɆįŨƎɆėśƋŒŨLjėėƖɆ
ĈėŒŨǂɆƢķėɆŨëƎĐș
Element Wider workforce Executive Directors and senior management
Base salary
Ɇ {ƪƎɆĈëƖėɆƖëŒëƎLjɆļƖɆƢķėɆĈëƖļƖɆįŨƎɆëɆĉŨśƋėƢļƢļǁėɆ
ƢŨƢëŒɆƎėǂëƎĐɆƋëĉŏëİėɆįŨƎɆ댌ɆėśƋŒŨLjėėƖȚɆëŝĐɆǂėɆ
ƎėǁļėǂɆƢķėƖėɆëŝŝƪ댌Lj
Ɇ ¶ķėɆƎėǁļėǂɆƢëŏėƖɆļŝƢŨɆëĉĉŨƪŝƢɆëɆŝƪśĈėƎɆŨįɆ
įëĉƢŨƎƖɆƖƪĉķɆëƖɆĉŨƪŝƢƎLjɆĈƪĐİėƢȚɆƎėŒėǁëŝƢɆ
śëƎŏėƢɆĉŨśƋëƎëƢŨƎƖȚɆƢķėɆƖŏļŒŒƖȚɆŏŝŨǂŒėĐİėɆ
ëŝĐɆėLJƋėƎļėŝĉėɆŨįɆėëĉķɆļŝĐļǁļĐƪëŒȚɆƎėŒëƢļǁļƢLjɆ
ƢŨɆƋėėƎƖɆǂļƢķļŝɆƢķėɆŨśƋëŝLjɆëŝĐɆŒŨĉëŒɆ
legislative requirements
Ɇ QŝɆƖėƢƢļŝİɆƢķėɆƖëŒëƎLjɆƎėǁļėǂɆĈƪĐİėƢɆėëĉķɆLjėëƎȚɆ
ǂėɆĉŨŝƖļĐėƎɆëįįŨƎĐëĈļŒļƢLjɆëƖɆǂėŒŒɆëƖƖėƖƖļŝİɆ
ķŨǂɆėśƋŒŨLjėėɆĈëƖėɆƖëŒëƎļėƖɆëƎėɆƋŨƖļƢļŨŝėĐɆ
ƎėŒëƢļǁėɆƢŨɆśëƎŏėƢɆƎëƢėƖȚɆįŨƎėĉëƖƢƖɆŨįɆëŝLjɆ
įƪƎƢķėƎɆśëƎŏėƢɆļŝĉƎėëƖėƖɆëŝĐɆëƢƢƎļƢļŨŝɆƎëƢėƖ
Ɇ ¶ķėɆĈëƖėɆƖëŒëƎLjɆŨįɆŨƪƎɆ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆ
and senior management forms the basis of
ƢķėļƎɆƢŨƢëŒɆƎėśƪŝėƎëƢļŨŝɆëŝĐɆǂėɆƎėǁļėǂɆƢķėļƎɆ
ƖëŒëƎļėƖɆëŝŝƪ댌Lj
ėŝėǘƢƖɆëŝĐɆƋėŝƖļŨŝ
Ɇ ÕėɆŨįįėƎɆśëƎŏėƢȯëŒļİŝėĐɆĈėŝėǘƢƖɆƋëĉŏëİėƖɆ
ƎėǙėĉƢļŝİɆśëƎŏėƢɆƋƎëĉƢļĉėɆļŝɆėëĉķɆĉŨƪŝƢƎLjɆļŝɆ
ǂķļĉķɆǂėɆŨƋėƎëƢė
Ɇ ÕķėƎėɆëƋƋƎŨƋƎļëƢėȚɆǂėɆŨįįėƎɆėŒėśėŝƢƖɆŨįɆ
ƋėƎƖŨŝëŒɆĈėŝėǘƢɆĉķŨļĉėɆƢŨɆŨƪƎɆėśƋŒŨLjėėƖ
Ɇ ¶ķėɆĈėŝėǘƢƖɆƋëĉŏëİėƖɆŨįɆŨƪƎɆ,LJėĉƪƢļǁėɆ
Directors and senior management are aligned
ǂļƢķɆƢķėɆǂļĐėƎɆǂŨƎŏįŨƎĉėɆŨįɆƢķėɆĉŨƪŝƢƎLjɆļŝɆ
ǂķļĉķɆƢķėLjɆëƎėɆėśƋŒŨLjėĐ
Executive Directors are eligible to participate
ļŝɆƢķėɆƋėŝƖļŨŝɆëƎƎëŝİėśėŝƢɆļŝɆƢķėɆĉŨƪŝƢƎLjɆļŝɆ
ǂķļĉķɆƢķėLjɆëƎėɆĈëƖėĐȚɆŨŝɆƢķėɆƖëśėɆĈëƖļƖɆëƖɆ
ŒŨĉëŒɆėśƋŒŨLjėėƖɆ
Short-term incentives
Ɇ nëŝLjɆŨįɆŨƪƎɆİŒŨĈëŒɆǂŨƎŏįŨƎĉėɆƋëƎƢļĉļƋëƢėɆļŝɆ
ƢķėɆEƎŨƪƋɆëŝŝƪëŒɆĈŨŝƪƖȚɆǂļƢķɆśėƢƎļĉƖɆëŒļİŝėĐɆ
to those of the Executive Directors and
senior management
Ɇ ÕėɆŨƋėƎëƢėɆŒŨĉëŒɆļŝĉėŝƢļǁėɆëƎƎëŝİėśėŝƢƖɆ
ǂķėƎėɆëƋƋƎŨƋƎļëƢėɆƢŨɆëŒļİŝɆǂļƢķɆ
śëƎŏėƢɆƋƎëĉƢļĉė
The Executive Directors and senior
management participate in the same Group
annual bonus plan as eligible members of the
İŒŨĈëŒɆǂŨƎŏįŨƎĉė
Ɇ LëŒįɆŨįɆëŝLjɆëǂëƎĐɆƢŨɆëŝɆ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎɆļƖɆ
ƖƪĈŌėĉƢɆƢŨɆĐėįėƎƎëŒɆļŝƢŨɆƖķëƎėƖɆįŨƎɆƢķƎėėɆLjėëƎƖ
Ɇ nëŒƪƖɆëŝĐɆĉŒëǂĈëĉŏɆƋƎŨǁļƖļŨŝƖɆëƋƋŒLj
Long-term incentives
A small proportion of this population is eligible
ƢŨɆĈėɆĉŨŝƖļĐėƎėĐɆįŨƎɆ¡ėƖƢƎļĉƢėĐɆ©ƢŨĉŏɆǂëƎĐƖȚɆ
ǂķļĉķɆǁėƖƢɆëįƢėƎɆƢķƎėėɆLjėëƎƖ
Ɇ nëŒƪƖɆëŝĐɆĉŒëǂĈëĉŏɆƋƎŨǁļƖļŨŝƖɆëƋƋŒLj
Ɇ ŒŒɆėśƋŒŨLjėėƖɆķëǁėɆƢķėɆĉķëŝĉėɆƢŨɆƋëƎƢļĉļƋëƢėɆļŝɆ
ƢķėɆEƎŨƪƋȼƖɆ댌ȯėśƋŒŨLjėėɆ©ķëƎė©ëǁėɆƋŒëŝ
Ɇ ©ƪĈŌėĉƢɆƢŨɆëƋƋƎŨǁëŒɆĈLjɆƖķëƎėķŨŒĐėƎƖɆëƢɆƢķėɆ
ǥǣǥǥɆEnȚɆëŝɆëǂëƎĐɆŨįɆȹįƎėėɆƖķëƎėƖȺɆǂļŒŒɆ
ĈėɆśëĐėɆƢŨɆ댌ɆėŒļİļĈŒėɆėśƋŒŨLjėėƖɆļŝɆǥǣǥǥȚɆļŝɆ
recognition of the Group’s strong performance
in 2021
Ɇ ÕėɆŨƋėƎëƢėɆëŝɆd¶QɆǂļƢķɆëɆƢķƎėėȯLjėëƎɆ
performance period for Executive Directors and
senior management, and vesting is subject to
Group performance outcomes
Ɇ ǂëƎĐƖɆśëĐėɆƢŨɆ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆ
ëƎėɆƖƪĈŌėĉƢɆƢŨɆëɆƢǂŨȯLjėëƎɆķŨŒĐļŝİɆƋėƎļŨĐɆ
įŨŒŒŨǂļŝİɆǁėƖƢļŝİ
Ɇ nëŒƪƖɆëŝĐɆĉŒëǂĈëĉŏɆƋƎŨǁļƖļŨŝƖɆëƋƋŒLj
129
Overview
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Strategic report
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Governance
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Financial statements
Entain plc
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Annual Report 2021
Directors’ Remuneration Report continued
ĉƢļŨŝƖɆëƖɆëɆƎėƖƪŒƢɆŨįɆƢķėɆŨǁļĐȯǤǬɆƋëŝĐėśļĉɆ
¶ķėɆŨǁļĐȯǤǬɆƋëŝĐėśļĉɆĉŨŝƢļŝƪėĐɆƢŨɆļśƋëĉƢɆŨƪƎɆĉŨŒŒėëİƪėƖȚɆëƖɆļƢɆĐļĐɆėǁėƎLjŨŝėɆļŝɆǥǣǥǤșɆ{ƪƎɆƋėŨƋŒėɆǂŨƎŏļŝİɆļŝɆƖķŨƋƖɆëŝĐɆƖƢëĐļëɆļŝɆ
ƢķėɆ½bɆǂėƎėɆƪŝëĈŒėɆƢŨɆǂŨƎŏɆĐƪėɆƢŨɆŒŨĉŏĐŨǂŝƖɆļŝɆƢķėɆǘƎƖƢɆƍƪëƎƢėƎɆŨįɆǥǣǥǤɆëŝĐɆƢķŨƖėɆĈëƖėĐɆļŝɆŨįǘĉėƖɆĉŨŝƢļŝƪėĐɆƢŨɆǂŨƎŏɆįƎŨśɆķŨśėɆļŝɆ
ŒļŝėɆǂļƢķɆƎėŒėǁëŝƢɆŒŨĉëŒɆİŨǁėƎŝśėŝƢɆİƪļĐëŝĉėșɆÕėɆķëǁėɆĈėėŝɆļŝĉƎėĐļĈŒLjɆƋƎŨƪĐɆŨįɆķŨǂɆŨƪƎɆƋėŨƋŒėɆķëǁėɆƎėëĉƢėĐɆƢŨɆƢķėƖėɆĉķ댌ėŝİėƖɆ
ŨǁėƎɆƢķėɆƋëƖƢɆƢǂŨɆLjėëƎƖșɆ¶ķėļƎɆķėëŒƢķȚɆƖëįėƢLjɆëŝĐɆǂėŒŒĈėļŝİɆǂėƎėɆŨƪƎɆƋƎļŨƎļƢLjɆƢķƎŨƪİķŨƪƢșɆŝɆėLJƢėŝƖļǁėɆĉŨśśƪŝļĉëƢļŨŝɆëŝĐɆǂėŒŒĈėļŝİɆ
ƋƎŨİƎëśśėɆǂëƖɆļŝɆƋŒëĉėɆƢŨɆƖƪƋƋŨƎƢɆĉŨŒŒėëİƪėƖɆƢķƎŨƪİķŨƪƢɆƢķėɆLjėëƎȚɆëŝĐɆǂļŒŒɆĉŨŝƢļŝƪėɆƢŨɆĈėɆëɆįŨĉƪƖɆļŝɆƢķėɆįƪƢƪƎėșɆDŨƎɆƢķŨƖėɆƋėŨƋŒėɆ
ƋŒëĉėĐɆŨŝɆįƪƎŒŨƪİķɆļŝɆƢķėɆ½bȚɆǂėɆėŝƖƪƎėĐɆƢķėļƎɆƖëŒëƎLjɆǂëƖɆƢŨƋƋėĐɆƪƋɆƢŨɆǤǣǣɼȚɆëŝĐɆƢķėɆEƎŨƪƋɆķëƖɆƖƪĈƖėƍƪėŝƢŒLjɆĉķŨƖėŝɆƢŨɆƎėƋëLjɆ
įƪƎŒŨƪİķɆśŨŝļėƖɆƎėĉėļǁėĐɆļŝɆǥǣǥǤș
ŨŝƖļĐėƎëƢļŨŝɆŨįɆĉŨŒŒėëİƪėɆëŝĐɆƖƢëŏėķŨŒĐėƎɆǁļėǂƖ
¶ķėɆŨśśļƢƢėėɆƖƪƋƋŨƎƢƖɆëŝĐɆëļśƖɆįŨƎɆįëļƎŝėƖƖɆëŝĐɆƢƎëŝƖƋëƎėŝĉLjɆ
ŨįɆƎėśƪŝėƎëƢļŨŝɆëƎƎëŝİėśėŝƢƖɆëĉƎŨƖƖɆƢķėɆEƎŨƪƋȚɆǂļƢķɆĉŨŝƖļƖƢėŝƢɆ
ƋƎļŝĉļƋŒėƖɆƪŝĐėƎŒLjļŝİɆĈŨƢķɆƋëLjɆįŨƎɆƢķėɆ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆëŝĐɆ
ƢķëƢɆįŨƎɆŨƪƎɆǂļĐėƎɆĉŨŒŒėëİƪėɆƋŨƋƪŒëƢļŨŝșɆ¶ŨɆƖƪƋƋŨƎƢɆƢķļƖȚɆƢķėɆ
Committee receives regular updates, for example, during the
LjėëƎȚɆëɆĐėƢëļŒėĐɆƋëƋėƎɆŨŝɆEƎŨƪƋȯǂļĐėɆ댌ɆĉŨŒŒėëİƪėɆƎėśƪŝėƎëƢļŨŝɆ
ëƎƎëŝİėśėŝƢƖɆǂëƖɆƋƎėƖėŝƢėĐɆƢŨɆƢķėɆŨśśļƢƢėėșɆ
ÕėɆķëǁėɆëɆŝƪśĈėƎɆŨįɆĉŨŒŒėëİƪėɆįŨƎƪśƖɆǂļƢķļŝɆ,ŝƢëļŝșɆ¶ķėƖėɆƋŒëLjɆ
ëŝɆļśƋŨƎƢëŝƢɆƎŨŒėɆļŝɆƋƎŨǁļĐļŝİɆŨƪƎɆƋėŨƋŒėɆǂļƢķɆëɆǁŨļĉėɆëŝĐɆ댌ŨǂɆ
ƢķėśɆƢŨɆƋƎŨǁļĐėɆƢķėɆĈƪƖļŝėƖƖɆǂļƢķɆǁëŒƪëĈŒėɆļŝƖļİķƢɆëŝĐɆįėėĐĈëĉŏɆ
ŨŝɆëɆƎëŝİėɆŨįɆƢŨƋļĉƖȚɆļŝĉŒƪĐļŝİɆƎėśƪŝėƎëƢļŨŝșɆ$ƪƎļŝİɆǥǣǥǤȚɆ
representatives from our Retail Forum and National Forum
ȩįŨƎɆŝŨŝȯƎėƢëļŒɆĉŨŒŒėëİƪėƖɆļŝɆƢķėɆ½bȪɆëƢƢėŝĐėĐɆëɆśėėƢļŝİɆŨįɆƢķėɆ
¡ėśƪŝėƎëƢļŨŝɆŨśśļƢƢėėɆƢŨɆƋƎŨǁļĐėɆĐļƎėĉƢɆįėėĐĈëĉŏɆǂķļĉķɆ
ļŝĉŒƪĐėĐɆĐļƖĉƪƖƖļŨŝɆŨŝɆƢŨƋļĉƖɆĉƪƎƎėŝƢŒLjɆĉŨŝĉėƎŝļŝİɆŨƪƎɆĉŨŒŒėëİƪėƖșɆ
¶ķļƖɆļŝĉŒƪĐėĐɆƢķėɆǁļėǂƖɆŨįɆŨƪƎɆ½bɆ¡ėƢëļŒɆĉŨŒŒėëİƪėƖɆŨŝɆķŨǂɆ
ƢķėɆEƎŨƪƋɆķëĐɆƎėëĉƢėĐɆƢķƎŨƪİķŨƪƢɆƢķėɆŨǁļĐȯǤǬɆƋëŝĐėśļĉșɆ
QŝɆëĐĐļƢļŨŝȚɆÔļƎİļŝļëɆnĉ$ŨǂėŒŒȚɆļŝɆķėƎɆƎŨŒėɆëƖɆ$ėƖļİŝëƢėĐɆ
ÕŨƎŏįŨƎĉėɆ$ļƎėĉƢŨƎȚɆƋƎŨǁļĐėƖɆƢķėɆŨśśļƢƢėėɆǂļƢķɆƪƋĐëƢėƖɆŨŝɆ
ĉŨŒŒėëİƪėɆǁļėǂƖɆŨŝɆƎėśƪŝėƎëƢļŨŝșɆ¶ķƎŨƪİķɆƢķėɆŨëƎĐɆǂėɆƎėĉėļǁėɆ
ǁëŒƪëĈŒėɆļŝƖļİķƢɆëƖɆƢŨɆİėŝėƎëŒɆĉŨŒŒėëİƪėɆǁļėǂƖɆŨŝɆƎėśƪŝėƎëƢļŨŝȜɆ
ƢķėɆƎėƖƪŒƢƖɆŨįɆŨƪƎɆEŒŨĈëŒɆȻÛŨƪƎɆǁŨļĉėȼɆ©ƪƎǁėLjȚɆļŝĉŒƪĐļŝİɆƢķŨƖėɆ
ƎėŒëƢėĐɆƢŨɆƋëLjɆëŝĐɆĈėŝėǘƢƖșɆ©ėėɆƋëİėɆǬǫɆįŨƎɆśŨƎėɆĐėƢëļŒɆŨŝɆŨƪƎɆ
ŨëƎĐɆ,ŝİëİėśėŝƢɆëĉƢļǁļƢļėƖș
QɆǂëƖɆĐėŒļİķƢėĐɆƢŨɆƋëƎƢļĉļƋëƢėɆļŝɆ,ŝƢëļŝȼƖɆEŒŨĈëŒɆŨŝįėƎėŝĉėȚɆ
ķėŒĐɆǁļƎƢƪ댌LjɆļŝɆ$ėĉėśĈėƎɆǥǣǥǤȚɆĈƎļŝİļŝİɆƢŨİėƢķėƎɆĉŨŒŒėëİƪėɆ
representatives from across the Group, and giving them the
ŨƋƋŨƎƢƪŝļƢLjɆƢŨɆėŝİëİėɆǂļƢķɆÔļƎİļŝļëɆnĉ$ŨǂėŒŒɆëŝĐɆśLjƖėŒįɆŨŝɆëɆ
ǂļĐėɆƎëŝİėɆŨįɆƢŨƋļĉƖșɆ¶ķėɆśėėƢļŝİɆǂëƖɆļŝƖļİķƢįƪŒɆëŝĐɆļŝįŨƎśëƢļǁėɆ
ǂļƢķɆĉŨŒŒėëİƪėƖɆŨƋėŝŒLjɆƖķëƎļŝİɆƢķėļƎɆėLJƋėƎļėŝĉėƖɆëŝĐɆƖƪİİėƖƢļŨŝƖɆ
įŨƎɆëƎėëƖɆŨįɆļśƋƎŨǁėśėŝƢȚɆëŝĐɆQɆĉŨśśėŝĐɆƢķėļƎɆƋëƖƖļŨŝɆįŨƎɆƢķėɆ
ĈƪƖļŝėƖƖɆëŝĐɆƢķėɆǁëŒƪėɆŨįɆƢķėļƎɆĉŨŝƢƎļĈƪƢļŨŝɆĐƪƎļŝİɆŨƪƎɆĐļƖĉƪƖƖļŨŝș
QɆǂëƖɆƋŒėëƖėĐɆƢķëƢɆǂėɆǂėƎėɆëĈŒėɆƢŨɆļśƋŒėśėŝƢɆëɆŝƪśĈėƎɆŨįɆ
댌ȯĉŨŒŒėëİƪėɆƎėśƪŝėƎëƢļŨŝɆļŝļƢļëƢļǁėƖɆĐƪƎļŝİɆǥǣǥǤȚɆƖŨśėɆŨįɆ
ǂķļĉķɆĐļƎėĉƢŒLjɆƎėŒëƢėɆƢŨɆįėėĐĈëĉŏɆƎėĉėļǁėĐɆĐƪƎļŝİɆŨƪƎɆDŨƎƪśɆ
ėŝİëİėśėŝƢɆëĉƢļǁļƢļėƖȚɆëƖɆǂėŒŒɆëƖɆëĉŏŝŨǂŒėĐİļŝİɆƢķėɆƢƎėśėŝĐŨƪƖɆ
ėįįŨƎƢɆƢķëƢɆėǁėƎLjŨŝėɆķëƖɆƋƪƢɆļŝɆŨǁėƎɆƢķėɆƋëƖƢɆƢǂŨɆLjėëƎƖɆĐƪƎļŝİɆëɆ
ƋƎŨŒŨŝİėĐɆƋėƎļŨĐɆŨįɆƪŝĉėƎƢëļŝƢLjț
¶ķėɆEƎŨƪƋȯǂļĐėɆëŝŝƪëŒɆƖëŒëƎLjɆƎėǁļėǂɆǂëƖɆĈƎŨƪİķƢɆįŨƎǂëƎĐɆ
įƎŨśɆǤɆ`ëŝƪëƎLjɆǥǣǥǥɆƢŨɆǤɆ{ĉƢŨĈėƎɆǥǣǥǤȚɆëĉŏŝŨǂŒėĐİļŝİɆƢķėɆ
ƖƢƎėŝİƢķɆŨįɆƢķėɆEƎŨƪƋȼƖɆƋėƎįŨƎśëŝĉėɆĐƪƎļŝİɆƢķėɆLjėëƎș
ÕėɆëĉŏŝŨǂŒėĐİėĐɆƢķėɆĉŨśśļƢśėŝƢɆŨįɆŨƪƎɆ½bɆ¡ėƢëļŒɆ
ĉŨŒŒėëİƪėƖȚɆǂķŨɆķëǁėɆĉŨŝƢļŝƪ댌LjɆƋƪƢɆĉƪƖƢŨśėƎƖɆǘƎƖƢɆėǁėƎLjɆ
ĐëLjɆëŝĐɆƖķŨǂŝɆİƎėëƢɆƎėƖļŒļėŝĉėɆƢķƎŨƪİķŨƪƢɆƢķėɆƋëŝĐėśļĉȚɆĈLjɆ
ëŝŝŨƪŝĉļŝİɆëŝɆļŝĉƎėëƖėɆļŝɆƢķėļƎɆķŨƪƎŒLjɆƎëƢėɆŨįɆƋëLjșɆÕļƢķɆėįįėĉƢɆ
įƎŨśɆǤɆƋƎļŒɆǥǣǥǥɆƢķļƖɆǂļŒŒɆĈėɆëɆśļŝļśƪśɆŨįɆɞǤǣɆƋėƎɆķŨƪƎȚɆƪƋɆ
įƎŨśɆɞǬșǤǦɆƋėƎɆķŨƪƎȚɆëŝĐɆƢëŏėƖɆŨƪƎɆśļŝļśƪśɆŒėǁėŒɆŨįɆƋëLjɆëĈŨǁėɆ
ƢķëƢɆƎėĉŨśśėŝĐėĐɆĈLjɆƢķėɆ¡ėëŒɆdļǁļŝİɆÕëİėɆDŨƪŝĐëƢļŨŝșɆ
ɆƎėǁļėǂɆŨįɆĈėŝėǘƢɆƖƢƎƪĉƢƪƎėƖɆļŝɆƢķėɆ½bɆëŝĐɆEļĈƎëŒƢëƎɆŒėĐɆƢŨɆëŝɆ
ļŝĉƎėëƖėɆļŝɆƢķėɆśëLJļśƪśɆėśƋŒŨLjėƎɆƋėŝƖļŨŝɆĉŨŝƢƎļĈƪƢļŨŝɆƢŨɆǩɼɆ
ŨįɆĈëƖėɆƖëŒëƎLjș
ŒŒɆŨįɆŨƪƎɆĉŨŒŒėëİƪėƖɆķëǁėɆƢķėɆŨƋƋŨƎƢƪŝļƢLjɆƢŨɆƖķëƎėɆļŝɆƢķėɆǁëŒƪėɆ
ƢķėLjɆĉƎėëƢėșɆ¶ķėɆƖƪĉĉėƖƖįƪŒɆŒëƪŝĉķɆŨįɆŨƪƎɆǘƎƖƢɆ댌ȯėśƋŒŨLjėėɆ
©ķëƎė©ëǁėɆƋŒëŝɆļŝɆƋƎļŒɆǥǣǥǤɆƖëǂɆŨǁėƎɆǥǣɼɆŨįɆŨƪƎɆĉŨŒŒėëİƪėƖɆ
ėŒėĉƢļŝİɆƢŨɆƋëƎƢļĉļƋëƢėȚɆİļǁļŝİɆƢķėśɆƢķėɆŨƋƋŨƎƢƪŝļƢLjɆƢŨɆ
ƋƪƎĉķëƖėɆ,ŝƢëļŝɆƖķëƎėƖɆëƢɆëŝɆŨƋƢļŨŝɆƋƎļĉėɆŨįɆɞǤǥșǩǧșɆɆƖėĉŨŝĐɆ
©ķëƎė©ëǁėɆǂļŒŒɆĈėɆŒëƪŝĉķėĐɆļŝɆǥǣǥǥș
©ƪĈŌėĉƢɆƢŨɆëƋƋƎŨǁëŒɆĈLjɆƖķëƎėķŨŒĐėƎƖɆëƢɆƢķėɆǥǣǥǥɆEnȚɆ
ëɇȹįƎėėɇƖķëƎėȺɆëǂëƎĐɆŨįɆɞǦǣǣɆŨįɆ,ŝƢëļŝɆƖķëƎėƖɆǂļŒŒɆĈėɆśëĐėɆ
ƢŨɇ댌ɆėŒļİļĈŒėɆėśƋŒŨLjėėƖɆŒëƢėƎɆļŝɆǥǣǥǥșɆ¶ķėɆëǂëƎĐɆļƖɆĐėƖļİŝėĐɆ
to include colleagues across the entire Group, including recent
ëĉƍƪļƖļƢļŨŝƖȚɆëŝĐɆƢŨɆĈƪļŒĐɆŨŝɆƢķėɆ©ķëƎė©ëǁėɆƋŒëŝɆĈLjɆįƪƎƢķėƎɆ
ëŒļİŝļŝİɆļŝƢėƎėƖƢƖɆǂļƢķɆƖķëƎėķŨŒĐėƎƖș
ŒŒɆŨįɆƢķėƖėɆļŝļƢļëƢļǁėƖɆëĉŏŝŨǂŒėĐİėɆƢķėɆļśƋŨƎƢëŝĉėɆŨįɆŨƪƎɆ
ĉŨŒŒėëİƪėƖɆļŝɆĐėŒļǁėƎļŝİɆƢķėɆEƎŨƪƋȼƖɆŨĈŌėĉƢļǁėƖɆëŝĐɆQɆŒŨŨŏɆ
įŨƎǂëƎĐɇƢŨɆĉŨŝƢļŝƪļŝİɆƢķėɆĐļëŒŨİƪėɆǂļƢķɆŨƪƎɆƋėŨƋŒėɆļŝɆǥǣǥǥș
Entain plc
|
Annual Report 2021
130
Governance
CEO Pay Ratio (Unaudited)
¶ķėɆǘƎƖƢɆƢëĈŒėɆĈėŒŨǂɆƖėƢƖɆŨƪƢɆƢķėɆƎëƢļŨɆëƢɆśėĐļëŝȚɆǥǨƢķɆëŝĐɆ
ǪǨƢķɆƋėƎĉėŝƢļŒėɆŨįɆƢķėɆƢŨƢëŒɆƎėśƪŝėƎëƢļŨŝɆƎėĉėļǁėĐɆĈLjɆŨƪƎɆ
,{ƖɆĉŨśƋëƎėĐɆƢŨɆƢķėɆƢŨƢëŒɆƎėśƪŝėƎëƢļŨŝɆƎėĉėļǁėĐɆĈLjɆŨƪƎɆ½bɆ
ĉŨŒŒėëİƪėƖȚɆǂķļŒėɆƢķėɆƖėĉŨŝĐɆƋƎŨǁļĐėƖɆįƪƎƢķėƎɆļŝįŨƎśëƢļŨŝɆŨŝɆ
ƢķėɆƢŨƢëŒɆĉŨŒŒėëİƪėɆƋëLjɆǘİƪƎėɆëƢɆėëĉķɆƍƪëƎƢļŒėȚɆëŝĐɆƢķėɆƖëŒëƎLjɆ
ĉŨśƋŨŝėŝƢɆǂļƢķļŝɆƢķļƖșɆ{ƪƎɆĉŨśĈļŝėĐɆ,{ƖȼɆǥǣǥǤɆƋëLjɆǂëƖɆǤǥǥɆ
ƢļśėƖɆƢķėɆśėĐļëŝɆȩǨǣƢķɆƋėƎĉėŝƢļŒėȪșɆ¶ķļƖɆƎėƋƎėƖėŝƢƖɆëŝɆļŝĉƎėëƖėɆ
įƎŨśɆŒëƖƢɆLjėëƎȚɆǂķļĉķɆļƖɆśëļŝŒLjɆëƢƢƎļĈƪƢëĈŒėɆƢŨɆëŝɆëŝŝƪëŒɆĈŨŝƪƖɆ
ƋëLjśėŝƢɆĈėļŝİɆśëĐėɆļŝɆǥǣǥǤȚɆǂļƢķɆƢķļƖɆķëǁļŝİɆĈėėŝɆǂëļǁėĐɆĈLjɆƢķėɆ
,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆëŝĐɆ,LJėĉƪƢļǁėɆŨśśļƢƢėėɆśėśĈėƎƖɆļŝɆǥǣǥǣșɆ
¶ķėɆŨśśļƢƢėėɆĉŨŝƖļĐėƎƖɆƢķëƢɆƢķļƖɆƎëƢļŨɆļƖɆŝŨƢɆŨƪƢɆŨįɆŒļŝėɆǂļƢķɆŨƢķėƎɆ
ƎėƢëļŒɆŨƎİëŝļƖëƢļŨŝƖș
Method
25th
percentile
50th
percentile
75th
percentile
ǥǣǥǤɆ,{ɆƋëLjɆƎëƢļŨ Option A ǤǦǬ 122 Ǭǫ
ǥǣǥǣɆ,{ɆƋëLjɆƎëƢļŨ Option A 106 ǬǨ ǪǨ
ǥǣǤǬɆ,{ɆƋëLjɆƎëƢļŨ Option A ǥǪǫ ǥǥǬ ǤǪǣ
UK colleagues – pay element
25th
percentile
50th
percentile
75th
percentile
©ëŒëƎLj ǤǨȚǧǫǪ ǤǪȚǥǤǤ 20,125
Total remuneration 18,503 21,028 26,330
ÕėɆǂŨƪŒĐɆķļİķŒļİķƢɆƢķėɆįŨŒŒŨǂļŝİɆļŝɆƢėƎśƖɆŨįɆƢķėɆëƋƋƎŨëĉķɆƢëŏėŝț
Ɇ {ƋƢļŨŝɆɆǂëƖɆĉķŨƖėŝɆëƖɆļƢɆļƖɆĉŨŝƖļĐėƎėĐɆƢŨɆĈėɆƢķėɆśŨƖƢɆëĉĉƪƎëƢėɆ
ǂëLjɆŨįɆļĐėŝƢļįLjļŝİɆĉŨŒŒėëİƪėƖɆëƢɆǥǨȚɆǨǣɆëŝĐɆǪǨȚɆëŝĐɆļƖɆ
ëŒļİŝėĐɆǂļƢķɆļŝǁėƖƢŨƎɆėLJƋėĉƢëƢļŨŝƖșɆ½ŝĐėƎɆƢķļƖɆëƋƋƎŨëĉķɆǂėɆ
calculate total remuneration for all of our UK colleagues and
ƎëŝŏɇƢķėśɆëĉĉŨƎĐļŝİŒLjɆŨŝɆƢķļƖɆĈëƖļƖș
Ɇ ¶ķėɆŒŨǂėƎɆƍƪëƎƢļŒėȚɆśėĐļëŝɆëŝĐɆƪƋƋėƎɆƍƪëƎƢļŒėɆĉŨŒŒėëİƪėƖɆ
ǂėƎėɆĉëŒĉƪŒëƢėĐɆĈëƖėĐɆŨŝɆįƪŒŒȯƢļśėɆėƍƪļǁëŒėŝƢɆĐëƢëɆëƖɆëƢɆ
ǦǤɆ$ėĉėśĈėƎɆǥǣǥǤș
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Relative Importance of the Spend on Pay
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in the investing in people and communities section on page
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131 Ov
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Strategic report
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Governance
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F
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Entain plc
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Annual Report 2021
Directors’ Remuneration Report continued
Summary of performance
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01/02/16
£100
£200
£300
£400
£500
31/12/2031/12/1931/12/1831/12/1731/12/16
Entain F TSE 100 FTSE 35 0 Travel & Leisure Index
Source: Datastream
31/12/21
Entain plc
|
Annual Report 2021
132
Governance
©ƪśśëƎLjɆŨįɆ,{ɆƎėśƪŝėƎëƢļŨŝɆŨƪƢĉŨśėƖțɆǥǣǤǨȱǥǣǥǤ
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2021
2020
2019
2018
2017
2016
2015
CEO
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S Segev
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4
£2.53m £0.04m ɞǣșǦś ɞǤșǩǫś ɞǨșǥǦś ɞǤǬșǤǣś ɞǤǫșǥǤś ɞǤǪșǫǦś ɞǦșǧǤś
ŝŝƪëŒɆĈŨŝƪƖɆƋëLjȯŨƪƢ
5
ȩɼɆŨįɆśëLJļśƪśȪ 100% – ȱȱ100% Ǭǥɼ 100% ȱɆ ȱɆ
d¶QɆǁėƖƢļŝİɆ
ȩɼɆŨįɆśëLJļśƪśȪ ––ȱǫǬșǫɼǬǤșǤɼȱȱȱȱ
dėİëĉLjɆëǂëƎĐɆǁėƖƢļŝİɆ
ȩɼɆŨįɆśëLJļśƪśȪ ––ȱȱȱ100% 100% 100% 100%
ǤșɆ `ėƢƢėɆpLjİëëƎĐȯŝĐėƎƖėŝɆǂëƖɆëƋƋŨļŝƢėĐɆ,{ɆŨŝɆǥǤɆ`ëŝƪëƎLjɆǥǣǥǤș
ǥșɆ ©ķëLjɆ©ėİėǁɆǂëƖɆëƋƋŨļŝƢėĐɆ,{ɆŨŝɆǤǪɆ`ƪŒLjɆǥǣǥǣɆëŝĐɆƖƢėƋƋėĐɆĐŨǂŝɆįƎŨśɆƢķėɆŨëƎĐɆŨŝɆǥǤɆ`ëŝƪëƎLjɆǥǣǥǤșɆ©ķëLjȼƖɆǥǣǤǫɆëŝĐɆǥǣǤǬɆd¶QɆëǂëƎĐƖɆŒëƋƖėĐɆǂķėŝɆķėɆŒėįƢɆėśƋŒŨLjśėŝƢɆ
ëŝĐɆķėɆǂëƖɆŝŨƢɆėŝƢļƢŒėĐɆƢŨɆëŝLjɆĈŨŝƪƖɆƋëLjśėŝƢɆļŝɆƎėƖƋėĉƢɆŨįɆǥǣǥǤș
ǦșɆ bėŝŝėƢķɆŒėLJëŝĐėƎɆƎėƢļƎėĐɆįƎŨśɆƢķėɆƎŨŒėɆŨįɆ,{ɆŨŝɆǤǪɆ`ƪŒLjɆǥǣǥǣș
ǧșɆ DļİƪƎėƖɆįŨƎɆǥǣǤǨȚɆǥǣǤǩɆëŝĐɆǥǣǤǪɆǂėƎėɆƋƎėǁļŨƪƖŒLjɆƎėƋŨƎƢėĐɆļŝɆ,ƪƎŨƖɆëŝĐɆķëǁėɆĈėėŝɆĉŨŝǁėƎƢėĐɆļŝƢŨɆEɆƪƖļŝİɆëŝɆëǁėƎëİėɆƎëƢėɆįŨƎɆƢķėɆƎėŒėǁëŝƢɆLjėëƎș
ǨșɆ ¶ķėɆ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆǂëļǁėĐɆëŝLjɆėŝƢļƢŒėśėŝƢɆƢŨɆĈŨŝƪƖɆįŨƎɆǥǣǥǣɆĐƪėɆƢŨɆƢķėɆŨǁļĐȯǤǬɆƋëŝĐėśļĉș
ķëŝİėɆļŝɆ$ļƎėĉƢŨƎƖȼɆƋëLjɆįŨƎɆƢķėɆLjėëƎɆļŝɆĉŨśƋëƎļƖŨŝɆƢŨɆ댌Ɇ,ŝƢëļŝɆĉŨŒŒėëİƪėƖ
¶ķėɆƢëĈŒėɆĈėŒŨǂɆƖķŨǂƖɆƢķėɆLjėëƎȯŨŝȯLjėëƎɆĉķëŝİėɆļŝɆƖëŒëƎLjȚɆĈėŝėǘƢƖɆëŝĐɆëŝŝƪëŒɆĈŨŝƪƖɆėëƎŝėĐɆįƎŨśɆǥǣǥǤɆƢŨɆǥǣǥǣȚɆĈƪļŒĐļŝİɆƢŨɆëɆ
ǘǁėȯLjėëƎɆķļƖƢŨƎLjȚɆįŨƎɆ댌Ɇ,LJėĉƪƢļǁėɆëŝĐɆpŨŝȯ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆëŝĐɆƢķėɆķëļƎśëŝɆŨįɆƢķėɆŨëƎĐȚɆĉŨśƋëƎėĐɆƢŨɆƢķëƢɆįŨƎɆ,ŝƢëļŝȼƖɆ½bɆ
ĉŨŒŒėëİƪėƖșɆ¶ķėɆĉŨśƋëƎļƖŨŝɆļƖɆŝŨƢɆëĈŒėɆƢŨɆĈėɆƖķŨǂŝɆįŨƎɆƢķŨƖėɆļŝĐļǁļĐƪëŒƖɆǂķŨɆǂėƎėɆŝŨƢɆļŝɆƎŨŒėɆįŨƎɆƢķėɆįƪŒŒɆǤǥɆśŨŝƢķƖɆŨįɆėļƢķėƎɆLjėëƎș
2021 2020
Base salary/fees ėŝėǘƢƖ ŝŝƪëŒɆĈŨŝƪƖ Base salary/fees ėŝėǘƢƖ ŝŝƪëŒɆĈŨŝƪƖ
Executive Directors
`ɆpLjİëëƎĐȯŝĐėƎƖėŝ
1
–––ȱȱȱ
¡ɆÕŨŨĐ
2
27.2% 2.2% n/a ȱȱȱ
¡ɆLŨƖŏļŝ
3
–––ȱȱȱ
Non-Executive Directors
4
ɆEļĈƖŨŝ
5,6
5.3% – – ȱȱȱ
ɆŨƪĉķƪƢ
6
1.9% – – ȩǦșǫȪɼ ȱ ȱ
S David
3
–––ȱȱȱ
nɆEƎėİŨƎLj
3
–––ȱȱȱ
ɆQƖŨŒë
6
5.4% – – ȩǫșǦȪɼ ȱ ȱ
ÔɆ`ëƎśëŝ
3
–––ȱȱȱ
ÔɆnĉ$ŨǂėŒŒ
6
5.4% – – ȩǫșǨȪɼ ȱ ȱ
D Satz
Ǫ
–––ȱȱȱ
All colleagues
8
0.1% 1.9% 132.4% ǦșǨɼ ȩǤșǧȪɼ ȩǨǦșǤȪɼ
ǤșɆ `ėƢƢėɆpLjİëëƎĐȯŝĐėƎƖėŝɆŌŨļŝėĐɆƢķėɆŨëƎĐɆļŝɆǥǣǤǬɆëŝĐɆǂëƖɆëƋƋŨļŝƢėĐɆ,{ɆļŝɆǥǣǥǤșɆƖɆƖķėɆǂëƖɆŝŨƢɆļŝɆėļƢķėƎɆƎŨŒėɆįŨƎɆëɆįƪŒŒɆǤǥɆśŨŝƢķƖɆŝŨɆĉŨśƋëƎļƖŨŝɆļƖɆƖķŨǂŝș
ǥșɆ ¡ŨĈɆÕŨŨĐɆŌŨļŝėĐɆƢķėɆŨëƎĐɆĐƪƎļŝİɆǥǣǤǬșɆƖɆķėɆǂëƖɆŝŨƢɆļŝɆƎŨŒėɆįŨƎɆƢķėɆįƪŒŒɆǤǥɆśŨŝƢķƖɆŨįɆǥǣǤǬȚɆŝŨɆĉŨśƋëƎļƖŨŝɆļƖɆƖķŨǂŝɆļŝɆƎėƖƋėĉƢɆŨįɆǥǣǥǣșɆQŝɆǥǣǥǣȚɆļŝɆķļƖɆƎŨŒėɆëƖɆD{ȚɆ¡ŨĈɆǂëƖɆ
ƖƪĈŌėĉƢɆƢŨɆëɆǥǣɼɆƎėĐƪĉƢļŨŝɆļŝɆƖëŒëƎLjɆįŨƎɆƢķƎėėɆśŨŝƢķƖȚɆëŝĐɆëĐĐļƢļŨŝ댌LjɆëƖɆëŝɆ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎɆķėɆǂëļǁėĐɆķļƖɆėŝƢļƢŒėśėŝƢɆƢŨɆƎėĉėļǁėɆëɆĈŨŝƪƖɆƪŝĐėƎɆƢķėɆǥǣǥǣɆEƎŨƪƋɆëŝŝƪëŒɆ
ĈŨŝƪƖɆƋŒëŝșɆQŝɆǥǣǥǤȚɆ¡ŨĈȼƖɆƖëŒëƎLjɆǂëƖɆļŝĉƎėëƖėĐɆįƎŨśɆɞǧǦǣȚǣǣǣɆƢŨɆɞǨǥǨȚǣǣǣȚɆėįįėĉƢļǁėɆǥǤɆ`ëŝƪëƎLjɆǥǣǥǤȚɆƪƋŨŝɆƢëŏļŝİɆŨŝɆëĐĐļƢļŨŝëŒɆƎėƖƋŨŝƖļĈļŒļƢLjɆëƖɆ$ėƋƪƢLjɆ,{ș
ǦșɆ ¡ŨĈėƎƢɆLŨƖŏļŝȚɆ©ƢėŒŒëɆ$ëǁļĐȚɆnëƎŏɆEƎėİŨƎLjɆëŝĐɆÔļĉŏLjɆ`ëƎśëŝɆŌŨļŝėĐɆƢķėɆŨëƎĐɆĐƪƎļŝİɆǥǣǥǤȚɆƢķėƎėįŨƎėɆŝŨɆĉŨśƋëƎļƖŨŝƖɆëƎėɆƖķŨǂŝș
ǧșɆ pŨŝȯ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆƎėĉėļǁėɆįėėƖɆŨŝŒLjɆëŝĐɆĐŨɆŝŨƢɆƎėĉėļǁėɆëŝLjɆëĐĐļƢļŨŝëŒɆĈėŝėǘƢƖɆŨƎɆĈŨŝƪƖɆƋëLjśėŝƢƖș
ǨșɆ ëƎƎLjɆEļĈƖŨŝɆŌŨļŝėĐɆƢķėɆŨëƎĐɆĐƪƎļŝİɆǥǣǤǬșɆƖɆķėɆǂëƖɆŝŨƢɆļŝɆƎŨŒėɆįŨƎɆƢķėɆįƪŒŒɆǤǥɆśŨŝƢķƖɆŨįɆǥǣǤǬȚɆŝŨɆĉŨśƋëƎļƖŨŝɆļƖɆƖķŨǂŝɆļŝɆƎėƖƋėĉƢɆŨįɆǥǣǥǣșɆ
ǩșɆ QŝɆǥǣǥǣȚɆëƎƎLjɆEļĈƖŨŝȚɆļėƎƎėɆŨƪĉķƪƢȚɆėƢėƎɆQƖŨŒëɆëŝĐɆÔļƎİļŝļëɆnĉ$ŨǂėŒŒɆǂėƎėɆ댌ɆƖƪĈŌėĉƢɆƢŨɆëɆǥǣɼɆƎėĐƪĉƢļŨŝɆļŝɆįėėƖɆįŨƎɆƢķƎėėɆśŨŝƢķƖșɆ¶ķėƎėɆǂėƎėɆŝŨɆļŝĉƎėëƖėƖɆƢŨɆƢķėɆpŨŝȯ
,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆįėėɆƖƢƎƪĉƢƪƎėɆļŝɆǥǣǥǤș
ǪșɆ $ëǁļĐɆ©ëƢǒɆǂëƖɆëƋƋŨļŝƢėĐɆƢŨɆƢķėɆŨëƎĐɆļŝɆǥǣǥǣȚɆƢķėƎėįŨƎėɆŝŨɆĉŨśƋëƎļƖŨŝƖɆëƎėɆƖķŨǂŝșɆ
ǫșɆ ¶ķėɆ댌ɆĉŨŒŒėëİƪėɆĐëƢëɆļƖɆĉŨśƋƎļƖėĐɆŨįɆƢķëƢɆƪƖėĐɆƢŨɆĉëŒĉƪŒëƢėɆƢķėɆ,{ɆƋëLjɆƎëƢļŨșɆ¶ŨɆėŒļśļŝëƢėɆƢķėɆļśƋëĉƢɆŨįɆĉķëŝİėƖɆļŝɆĉŨŒŒėëİƪėɆŝƪśĈėƎƖɆLjėëƎȯŨŝȯLjėëƎɆƢķļƖɆķëƖɆĈėėŝɆĈëƖėĐɆ
ŨŝɆëǁėƎëİėɆĈëƖėɆƖëŒëƎLjȚɆĈėŝėǘƢƖɆëŝĐɆëŝŝƪëŒɆĈŨŝƪƖɆĐëƢëɆįŨƎɆǥǣǤǬȦǥǣɆëŝĐɆǥǣǥǣȦǥǤșɆDŨƎɆǥǣǥǤȚɆƢķėɆĐļįǘĉƪŒƢɆĐėĉļƖļŨŝɆǂëƖɆƢëŏėŝȚɆĐƪėɆƢŨɆƢķėɆƪŝĉėƎƢëļŝƢļėƖɆŨįɆƢķėɆƋëŝĐėśļĉȚɆŝŨƢɆ
ƢŨɆƋƎŨĉėėĐɆǂļƢķɆƢķėɆǥǣǥǤɆ댌ȯėśƋŒŨLjėėɆƖëŒëƎLjɆƎėǁļėǂɆǂķļĉķɆķëƖɆƎėƖƪŒƢėĐɆļŝɆƢķėɆŒŨǂɆŒėǁėŒɆŨįɆLjėëƎȯŨŝȯLjėëƎɆĉķëŝİėɆƖķŨǂŝɆëĈŨǁėșɆ¶ķėɆƖļİŝļǘĉëŝƢɆƋėƎĉėŝƢëİėɆĉķëŝİėɆļŝɆëŝŝƪëŒɆ
ĈŨŝƪƖɆƎėǙėĉƢƖɆëŝɆŨƪƢƢƪƎŝɆŨįɆǤǣǣɼɆļŝɆǥǣǥǤɆĉŨśƋëƎėĐɆƢŨɆëɆĈŨŝƪƖɆƋëLjśėŝƢɆĉëƋƋėĐɆëƢɆƢëƎİėƢɆļŝɆǥǣǥǣɆȩǂķėŝɆƢķėɆ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆǂëļǁėĐɆƢķėļƎɆĈŨŝƪƖɆėŝƢļƢŒėśėŝƢȪș
133 Overview
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Strategic report
|
Governance
|
Financial statements
Entain plc
|
Annual Report 2021
¶ķėɆǥǣǥǤɆŝŝƪëŒɆ¡ėƋŨƎƢɆŨŝɆ¡ėśƪŝėƎëƢļŨŝɆĉŨŝƢëļŝƖɆĐėƢëļŒƖɆŨįɆƢķėɆƎėśƪŝėƎëƢļŨŝɆƋëļĐɆëŝĐɆëǂëƎĐėĐɆƢŨɆ$ļƎėĉƢŨƎƖɆĐƪƎļŝİɆƢķėɆǘŝëŝĉļëŒɆLjėëƎɆ
ėŝĐėĐɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤșɆ¶ķļƖɆƎėƋŨƎƢɆķëƖɆĈėėŝɆƋƎėƋëƎėĐɆļŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆƢķėɆƋƎŨǁļƖļŨŝƖɆŨįɆƢķėɆŨśƋëŝļėƖɆĉƢɆǥǣǤǩȚɆ©ĉķėĐƪŒėɆǫɆŨįɆ
ƢķėɆdëƎİėɆëŝĐɆnėĐļƪśɆ©ļǒėĐɆŨśƋëŝļėƖɆEƎŨƪƋƖɆȩĉĉŨƪŝƢƖɆëŝĐɆ¡ėƋŨƎƢƖȪɆȩśėŝĐśėŝƢȪɆ¡ėİƪŒëƢļŨŝƖɆǥǣǤǦɆȩƢķėɆȹ¡ėİƪŒëƢļŨŝƖȺȪȚɆƢķėɆdļƖƢļŝİɆ
¡ƪŒėƖɆŨįɆƢķėɆ½bɆDļŝëŝĉļëŒɆŨŝĐƪĉƢɆƪƢķŨƎļƢLjɆëŝĐɆƢķėɆ½bɆŨƎƋŨƎëƢėɆEŨǁėƎŝëŝĉėɆŨĐėșɆŝɆëĐǁļƖŨƎLjɆƎėƖŨŒƪƢļŨŝɆƢŨɆëƋƋƎŨǁėɆƢķėɆŝŝƪëŒɆ
¡ėƋŨƎƢɆŨŝɆ¡ėśƪŝėƎëƢļŨŝɆëŝĐɆƢķėɆŝŝƪëŒɆ©ƢëƢėśėŝƢɆǂļŒŒɆĈėɆƋƪƢɆƢŨɆƖķëƎėķŨŒĐėƎƖɆëƢɆƢķėɆǥǣǥǥɆEnș
©ļŝİŒėɆǘİƪƎėɆŨįɆƎėśƪŝėƎëƢļŨŝɆƢëĈŒėɆȩëƪĐļƢėĐȪɆ
¶ķėɆƎėśƪŝėƎëƢļŨŝɆŨįɆ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖȚɆƖķŨǂļŝİɆƢķėɆĈƎėëŏĐŨǂŝɆĈėƢǂėėŝɆĉŨśƋŨŝėŝƢƖɆǂļƢķɆĉŨśƋëƎëƢļǁėɆǘİƪƎėƖɆįŨƎɆƢķėɆƋƎļŨƎɆǘŝëŝĉļëŒɆ
LjėëƎȚɆļƖɆƖķŨǂŝɆĈėŒŨǂșɆDļİƪƎėƖɆƋƎŨǁļĐėĐɆķëǁėɆĈėėŝɆĉëŒĉƪŒëƢėĐɆļŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆƢķėɆ¡ėİƪŒëƢļŨŝƖșɆDƪƎƢķėƎɆļŝįŨƎśëƢļŨŝɆŨŝɆƢķėɆĉŨśƋŨŝėŝƢɆ
ėŒėśėŝƢƖɆļƖɆƋƎŨǁļĐėĐɆļŝɆƖƪĈƖėƍƪėŝƢɆƖėĉƢļŨŝƖș
Executive Directors
Base
salary ėŝėǘƢƖ Pension
Annual
ĈŨŝƪƖ
Long-term
incentive
1
Total
¶ŨƢëŒɆǘLJėĐɆ
remuneration
¶ŨƢëŒɆǁëƎļëĈŒėɆ
remuneration
£000 £000 £000 £000 £000 £000 £000 £000
`ėƢƢėɆpLjİëëƎĐȯŝĐėƎƖėŝ
2
2021 Ǫǣǫ 25 28 ǤȚǪǩǬ ȱ 2,530 ǪǩǤ ǤȚǪǩǬ
2020 ȱȱȱȱȱȱȱȱ
¡ŨĈɆÕŨŨĐ
3
2021 520 15 23 ǤȚǣǦǬ 3,844 5,441 558 4,883
2020 408 15 18 ȱǨǨǬ1,000 441 ǨǨǬ
¡ŨĈėƎƢɆLŨƖŏļŝ
4
2021 400 5 ȱ 800 ǦȚǨǥǬ ǧȚǪǦǧ 405 ǧȚǦǥǬ
2020 ȱȱȱȱȱȱȱȱ
©ķëLjɆ©ėİėǁ
5
2021 ǦǬȱȱȱȱǦǬǦǬȱ
2020 301 2 ȱȱȱ303 303 ȱ
ǤșɆ ŝɆëƖƖƪśėĐɆƖķëƎėɆƋƎļĉėɆŨįɆǤȚǫǬǣƋɆķëƖɆĈėėŝɆƪƖėĐɆƢŨɆĉëŒĉƪŒëƢėɆƢķėɆǁëŒƪėɆŨįɆƢķėɆǥǣǤǬɆd¶QɆëǂëƎĐƖɆƖķŨǂŝɆįŨƎɆėëĉķɆ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎɆļŝɆƎėƖƋėĉƢɆŨįɆǥǣǥǤșɆ¶ķļƖɆƎėƋƎėƖėŝƢƖɆƢķėɆ
ëǁėƎëİėɆƖķëƎėɆƋƎļĉėɆŨǁėƎɆƢķėɆǘŝëŒɆƍƪëƎƢėƎɆŨįɆƢķėɆǥǣǥǤɆǘŝëŝĉļëŒɆLjėëƎșɆ¶ķėɆƋƎŨƋŨƎƢļŨŝɆŨįɆƢķėɆǁëŒƪėɆŨįɆƢķėɆǥǣǤǬɆd¶QɆƢķëƢɆļƖɆëƢƢƎļĈƪƢëĈŒėɆƢŨɆƖķëƎėɆƋƎļĉėɆëƋƋƎėĉļëƢļŨŝɆļƖɆǪǦșǥɼșɆ¶ķėɆ
ǁëŒƪėƖɆƖķŨǂŝɆëŒƖŨɆļŝĉŒƪĐėɆƢķėɆǁëŒƪėɆŨįɆĐļǁļĐėŝĐɆėƍƪļǁëŒėŝƢƖɆƋëLjëĈŒėș
ǥșɆ `ėƢƢėɆpLjİëëƎĐȯŝĐėƎƖėŝɆǂëƖɆëƋƋŨļŝƢėĐɆ,{ɆŨŝɆǥǤɆ`ëŝƪëƎLjɆǥǣǥǤȚɆķëǁļŝİɆŌŨļŝėĐɆƢķėɆŨëƎĐɆëƖɆëɆpŨŝȯ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎɆļŝɆǥǣǤǬșɆDėėƖɆƋëļĐɆĐƪƎļŝİɆǥǣǥǣɆëŝĐɆǥǣǥǤɆįŨƎɆķėƎɆƎŨŒėɆëƖɆëɆ
pŨŝȯ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎɆëƎėɆƖķŨǂŝɆŨŝɆƋëİėɆǤǦǬșɆ
ǦșɆ ¶ķėɆëśŨƪŝƢɆƖķŨǂŝɆļŝɆŒëƖƢɆLjėëƎȼƖɆƎėƋŨƎƢɆįŨƎɆ¡ŨĈɆÕŨŨĐɆļŝɆƎėƖƋėĉƢɆŨįɆƢķėɆǥǣǤǫɆd¶QɆǂëƖɆĉëŒĉƪŒëƢėĐɆĈëƖėĐɆŨŝɆëŝɆëƖƖƪśėĐɆƖķëƎėɆƋƎļĉėɆŨįɆǤȚǣǦǨƋșɆ¶ķėɆëĉƢƪëŒɆƖķëƎėɆƋƎļĉėɆëƢɆǁėƖƢļŝİɆŨŝɆ
ǦɆpŨǁėśĈėƎɆǥǣǥǤɆǂëƖɆǥȚǣǦǤƋșɆ¶ķėɆëśŨƪŝƢɆƖķŨǂŝɆįŨƎɆǥǣǥǣɆķëƖɆĈėėŝɆƪƋĐëƢėĐɆƢŨɆƎėǙėĉƢɆƢķļƖɆĉķëŝİėɆëŝĐɆƢķėɆǁëŒƪėɆŨįɆĐļǁļĐėŝĐɆėƍƪļǁëŒėŝƢƖɆƋëLjëĈŒėșɆ¶ķėɆƋƎŨƋŨƎƢļŨŝɆŨįɆƢķėɆǁëŒƪėɆŨįɆ
ƢķėɆǥǣǤǫɆd¶QɆƢķëƢɆǂëƖɆëƢƢƎļĈƪƢëĈŒėɆƢŨɆƖķëƎėɆƋƎļĉėɆëƋƋƎėĉļëƢļŨŝɆļƖɆǨǣșǫɼșɆ
ǧșɆ ¡ŨĈėƎƢɆLŨƖŏļŝɆǂëƖɆëƋƋŨļŝƢėĐɆķļėįɆEŨǁėƎŝëŝĉėɆ{įǘĉėƎɆëŝĐɆƢŨɆƢķėɆŨëƎĐɆŨŝɆǤɆ`ëŝƪëƎLjɆǥǣǥǤș
ǨșɆ ©ķëLjɆ©ėİėǁɆƎėƖļİŝėĐɆįƎŨśɆƢķėɆŨëƎĐɆŨŝɆǥǤɆ`ëŝƪëƎLjɆǥǣǥǤșɆ¶ķėɆd¶QɆëǂëƎĐɆİƎëŝƢėĐɆƢŨɆ©ķëLjɆļŝɆǥǣǤǬɆŒëƋƖėĐɆǂķėŝɆķėɆŒėįƢɆėśƋŒŨLjśėŝƢɆëŝĐɆƖŨɆŝļŒɆǁëŒƪėɆļƖɆƖķŨǂŝɆļŝɆƢķėɆƢëĈŒėɆëĈŨǁėș
DƪƎƢķėƎɆļŝįŨƎśëƢļŨŝɆŨŝɆƢķėɆƖļŝİŒėɆǘİƪƎėɆŨįɆƎėśƪŝėƎëƢļŨŝɆƢëĈŒė
Base salary
©ëŒëƎļėƖɆëƎėɆŝŨƎśëŒŒLjɆƎėǁļėǂėĐɆŨŝɆǤɆ`ëŝƪëƎLjɆėëĉķɆLjėëƎș
ƖɆƖėƢɆŨƪƢɆļŝɆƢķėɆķëļƎȼƖɆƖƢëƢėśėŝƢɆŨŝɆƋëİėɆǤǤǩȚɆ`ėƢƢėɆpLjİëëƎĐȯŝĐėƎƖėŝɆǂëƖɆëƋƋŨļŝƢėĐɆ,{ɆŨŝɆǥǤɆ`ëŝƪëƎLjɆǥǣǥǤɆŨŝɆëɆƖëŒëƎLjɆŨįɆ
ɞǪǨǣȚǣǣǣșɆDėėƖɆƋëļĐɆƢŨɆ`ėƢƢėɆĐƪƎļŝİɆǥǣǥǣɆëŝĐɆǥǣǥǤɆǂķėŝɆƖķėɆƖėƎǁėĐɆëƖɆëɆpŨŝȯ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎɆëƎėɆƖķŨǂŝɆŨŝɆƋëİėɆǤǦǬș
¡ŨĈɆÕŨŨĐɆǂëƖɆŨŝɆëɆƖëŒëƎLjɆŨįɆɞǧǦǣȚǣǣǣɆƪŝƢļŒɆǥǣɆ`ëŝƪëƎLjɆǥǣǥǤȚɆǂķļĉķɆļŝĉƎėëƖėĐɆƢŨɆɞǨǥǨȚǣǣǣɆįƎŨśɆǥǤɆ`ëŝƪëƎLjɆǥǣǥǤɆǂķėŝɆķėɆǂëƖɆ
ëƋƋŨļŝƢėĐɆëƖɆ$ėƋƪƢLjɆ,{ȚɆļŝɆëĐĐļƢļŨŝɆƢŨɆķļƖɆD{ɆƎėƖƋŨŝƖļĈļŒļƢļėƖș
¡ŨĈėƎƢɆLŨƖŏļŝɆǂëƖɆŨŝɆëɆƖëŒëƎLjɆŨįɆɞǧǣǣȚǣǣǣɆįƎŨśɆķļƖɆëƋƋŨļŝƢśėŝƢɆƢŨɆƢķėɆŨëƎĐɆŨŝɆǤɆ`ëŝƪëƎLjɆǥǣǥǤș
©ķëLjɆ©ėİėǁɆǂëƖɆŨŝɆëɆƖëŒëƎLjɆŨįɆɞǩǪǨȚǣǣǣșɆLėɆŒėįƢɆƢķėɆŨëƎĐɆŨŝɆǥǤɆ`ëŝƪëƎLjɆǥǣǥǤș
ėŝėǘƢƖɆëŝĐɆƋėŝƖļŨŝ
,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆśëLjɆƎėĉėļǁėɆƢëLJëĈŒėɆĈėŝėǘƢƖɆƖƪĉķɆëƖɆƋƎļǁëƢėɆśėĐļĉëŒɆëŝĐɆŒļįėɆļŝƖƪƎëŝĉėɆëŝĐɆĉëƎɆ댌Ũǂëŝĉėș
`ėƢƢėɆpLjİëëƎĐȯŝĐėƎƖėŝɆƎėĉėļǁėĐɆëɆĉëƎɆ댌ŨǂëŝĉėɆŨįɆɞǥǨȚǣǣǣɆëŝĐȚɆįƎŨśɆnëLjɆǥǣǥǤȚɆëŝɆ댌ŨǂëŝĉėɆļŝɆŒļėƪɆŨįɆëŝɆėśƋŒŨLjėƎɆƋėŝƖļŨŝɆ
ĉŨŝƢƎļĈƪƢļŨŝɆėƍƪëŒɆƢŨɆǩɼɆŨįɆķėƎɆĈëƖėɆƖëŒëƎLjșɆɆĉëƖķɆ댌ŨǂëŝĉėɆǂëƖɆëƋƋƎŨǁėĐɆĈLjɆƢķėɆ¡ėśƪŝėƎëƢļŨŝɆŨśśļƢƢėėɆëƖɆ`ėƢƢėɆļƖɆëɆ$ëŝļƖķɆƢëLJɆ
ƎėƖļĐėŝƢɆëŝĐɆƢķėƎėįŨƎėɆŝŨƢɆëĈŒėɆƢŨɆƋëƎƢļĉļƋëƢėɆļŝɆëŝLjɆŨįɆƢķėɆEƎŨƪƋȼƖɆėLJļƖƢļŝİɆėśƋŒŨLjėėɆƋėŝƖļŨŝɆëƎƎëŝİėśėŝƢƖșɆ¶ķėɆƍƪëŝƢƪśɆļƖɆëŒļİŝėĐɆƢŨɆ
ƢķėɆśëLJļśƪśɆĉŨśƋëŝLjɆĉŨŝƢƎļĈƪƢļŨŝɆëǁëļŒëĈŒėɆƢŨɆŨƢķėƎɆėśƋŒŨLjėėƖɆļŝɆƢķėɆ½bșɆ
¡ŨĈɆÕŨŨĐɆƎėĉėļǁėĐɆëɆĉëƎɆ댌ŨǂëŝĉėɆŨįɆɞǤǣȚǪǣǣɆëŝĐɆƋëƎƢļĉļƋëƢėĐɆļŝɆƢķėɆĐėǘŝėĐɆĉŨŝƢƎļĈƪƢļŨŝɆƋėŝƖļŨŝɆëƎƎëŝİėśėŝƢƖɆǂķļĉķɆëƎėɆëǁëļŒëĈŒėɆŨŝɆ
ƢķėɆƖëśėɆĈëƖļƖɆëƖɆįŨƎɆŨƢķėƎɆĉŨŒŒėëİƪėƖȚɆƎėĉėļǁļŝİɆëɆĉŨśƋëŝLjɆĉŨŝƢƎļĈƪƢļŨŝɆŨįɆǧșǨɼɆŨįɆķļƖɆĈëƖėɆƖëŒëƎLjș
¡ŨĈėƎƢɆLŨƖŏļŝɆëŝĐɆ©ķëLjɆ©ėİėǁɆŨƋƢėĐɆŨƪƢɆŨįɆƢķėɆƋėŝƖļŨŝɆƋŒëŝș
Annual Report on Remuneration
Entain plc
|
Annual Report 2021
134
Governance
ǥǣǥǤɆëŝŝƪëŒɆĈŨŝƪƖɆ
¶ķėɆ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆǂėƎėɆėŒļİļĈŒėɆƢŨɆƋëƎƢļĉļƋëƢėɆļŝɆƢķėɆëŝŝƪëŒɆĈŨŝƪƖɆįŨƎɆǥǣǥǤșɆ
¶ķėɆëŝŝƪëŒɆĈŨŝƪƖɆįƎëśėǂŨƎŏɆįŨƎɆǥǣǥǤɆǂëƖɆĈëƖėĐɆŨŝɆƋėƎįŨƎśëŝĉėɆëİëļŝƖƢɆƢķƎėėɆŏėLjɆśėëƖƪƎėƖɆįŨƎɆ,ŝƢëļŝȚɆƪŝĐėƎŒLjļŝİɆEƎŨƪƋɆŨƋėƎëƢļŝİɆ
ƋƎŨǘƢȚɆƋƎėɆ½©ɆŌŨļŝƢɆǁėŝƢƪƎėɆȩǩǣɼȪȚɆİƎŨǂƢķɆļŝɆŨŝŒļŝėɆpE¡ɆȩǥǨɼȪɆëŝĐɆƖëįėƎɆĈėƢƢļŝİɆëŝĐɆİëśļŝİɆȩȹ©EȺȪɆȩǤǨɼȪșɆ¶ķėɆ©EɆśėƢƎļĉɆǂëƖɆļŝƢƎŨĐƪĉėĐɆ
ļŝɆǥǣǥǤȚɆƪŝĐėƎɆƢķėɆŨǁėƎƖļİķƢɆŨįɆƢķėɆ,©EɆŨśśļƢƢėėȚɆëŝĐɆśŨƎėɆĐėƢëļŒɆŨŝɆƢķėɆëƖƖėƖƖśėŝƢɆŨįɆƢķėɆǘŝëŒɆŨƪƢƢƪƎŝɆĉëŝɆĈėɆįŨƪŝĐɆļŝɆƢķėɆ,©EɆ
ŨśśļƢƢėėɆƎėƋŨƎƢɆŨŝɆƋëİėɆǤǤǣșɆƢɆƢķėɆƖƢëƎƢɆŨįɆƢķėɆLjėëƎɆƢķėɆŨśśļƢƢėėɆƖėƢɆƖƢƎėƢĉķļŝİɆƢëƎİėƢƖɆƪŝĐėƎɆƢķėƖėɆśėëƖƪƎėƖȚɆǂëƖɆƖëƢļƖǘėĐɆƢķëƢɆ
ƢķėƖėɆƎėƋƎėƖėŝƢėĐɆĉķ댌ėŝİļŝİɆĈƪƢɆƎėëŒļƖƢļĉɆƢëƎİėƢƖȚɆëŝĐɆƢķëƢɆƖļİŝļǘĉëŝƢɆŨƪƢȯƋėƎįŨƎśëŝĉėɆǂŨƪŒĐɆĈėɆƎėƍƪļƎėĐɆƢŨɆëĉķļėǁėɆëɆśëLJļśƪśɆƋëLjȯ
ŨƪƢș
¶ķėɆƢëƎİėƢƖɆƖėƢɆįŨƎɆǘŝëŝĉļëŒɆśėƢƎļĉƖȚɆƢķėɆƋėƎįŨƎśëŝĉėɆëĉķļėǁėĐɆëİëļŝƖƢɆ댌ɆśėƢƎļĉƖȚɆëŝĐɆƢķėɆƎėƖƪŒƢļŝİɆƋëLjȯŨƪƢɆļƖɆƖėƢɆŨƪƢɆļŝɆƢķėɆƢëĈŒėɆĈėŒŨǂș
Metric Weighting Threshold Target Stretch Actual
Pay-out
ëƖɇëɇɼɇŨį
maximum for
each metric
Total weighting
of each metric
as a % of
śëLJļśƪśɆĈŨŝƪƖɆ
opportunity
½ŝĐėƎŒLjļŝİɆEƎŨƪƋɆŨƋėƎëƢļŝİɆ
ƋƎŨǘƢ
1
60% ɞǨǦǪșǣś ɞǨǨǦșǩś ɞǨǫǤșǦś ɞǨǫǪșǨś 100% 60%
EƎŨǂƢķɆļŝɆŨŝŒļŝėɆpE¡
2
25% ǤɼɆİƎŨǂƢķ ǦɼɆİƎŨǂƢķ ǨɼɆİƎŨǂƢķ ǤǦɼɆİƎŨǂƢķ 100% 25%
Safer betting and gaming
3
15% ©ėėɆįŨŨƢŝŨƢėɆǦɆĈėŒŨǂ 100% 15%
¶ŨƢëŒɆëƖɆëɆɼɆŨįɆśëLJļśƪśɆŨƋƋŨƎƢƪŝļƢLj 100%
ǤșɆ QŝɆëƖƖėƖƖļŝİɆƢķėɆƪŝĐėƎŒLjļŝİɆEƎŨƪƋɆŨƋėƎëƢļŝİɆƋƎŨǘƢɆŨƪƢĉŨśėȚɆƢķėɆŨśśļƢƢėėɆĉŨŝƖļĐėƎėĐɆƖėǁėƎëŒɆļƢėśƖȚɆǂķļĉķɆļśƋëĉƢėĐɆĈŨƢķɆƋŨƖļƢļǁėŒLjɆëŝĐɆŝėİëƢļǁėŒLjɆĐƪƎļŝİɆǥǣǥǤșɆQŝɆƎėëĉķļŝİɆ
ƢķėļƎɆĉŨŝĉŒƪƖļŨŝȚɆëƖɆǂŨƪŒĐɆĈėɆėLJƋėĉƢėĐȚɆƢķėɆŨśśļƢƢėėɆķëǁėɆėLJĉŒƪĐėĐɆƢķėɆĈėŝėǘƢɆŨįɆįƪƎŒŨƪİķɆƋëLjśėŝƢƖɆƎėĉėļǁėĐɆĐƪƎļŝİɆǥǣǥǤșɆÕėɆķëǁėɆëŒƖŨɆėLJĉŒƪĐėĐɆƢķėɆŝėƢɆĈėŝėǘƢɆŨįɆ
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śļŝĐįƪŒɆŨįɆƢķėɆļśƋëĉƢɆŨŝɆƢķļƖɆśėƢƎļĉɆŨįɆƢķėɆŨǁļĐȯǤǬɆƋëŝĐėśļĉɆëŝĐɆļƢƖɆėįįėĉƢɆŨŝɆĉƪƖƢŨśėƎɆĈėķëǁļŨƪƎȚɆƢķėɆŨśśļƢƢėėɆǂėƎėɆƖëƢļƖǘėĐɆƢķëƢɆƢķėɆŨƪƢƋėƎįŨƎśëŝĉėɆëĉķļėǁėĐɆǂëƖɆŝŨƢɆ
ƖŨŒėŒLjɆëɆƢėśƋŨƎëƎLjɆėįįėĉƢșɆ¶ķėɆŨśśļƢƢėėɆĉŨŝĉŒƪĐėĐɆƢķëƢɆƢķėɆëĉķļėǁėśėŝƢɆƎėƋƎėƖėŝƢėĐɆȹƎėëŒȺɆİƎŨǂƢķɆëŝĐɆƢķėɆśëLJļśƪśɆƢëƎİėƢɆǂŨƪŒĐɆķëǁėɆĈėėŝɆėLJĉėėĐėĐɆǂļƢķŨƪƢɆƢķėɆƋŨƖļƢļǁėɆ
ļśƋëĉƢɆŨįɆŨǁļĐȯǤǬɆƎėŒëƢėĐɆƎėƖƢƎļĉƢļŨŝƖș
ǦșɆ QŝɆǥǣǥǤȚɆ,ŝƢëļŝɆļŝƢƎŨĐƪĉėĐɆëɆƖëįėƎɆĈėƢƢļŝİɆëŝĐɆİëśļŝİɆśėƢƎļĉɆƢŨɆŨƪƎɆëŝŝƪëŒɆĈŨŝƪƖɆĈëƖėĐɆŨŝɆƢķėɆĐėǁėŒŨƋśėŝƢɆŨįɆŨƪƎɆƋŒëLjėƎɆƋƎŨƢėĉƢļŨŝɆëŒİŨƎļƢķśƖșɆ¶ķėɆįƪŒŒɆśėƢƎļĉɆĉŨśƋƎļƖėĐɆŨįɆƢǂŨɆ
ėƍƪ댌LjɆǂėļİķƢėĐɆƋëƎƢƖɆëƢɆǪșǨɼɆėëĉķɆȩǤǨɼɆļŝɆƢŨƢëŒȪț
ȱɆ ½bɆśëƎŏėƢɆȱɆĈëƖėĐɆŨŝɆƢķėɆEƎŨƪƋȼƖɆƋƎŨİƎėƖƖɆļŝɆƎŨŒŒļŝİɆŨƪƢɆŝėǂɆƖļİŝļǘĉëŝƢŒLjɆėŝķëŝĉėĐɆƋƎŨƢėĉƢļŨŝɆƢƎëĉŏėƎƖȚɆǂļƢķļŝɆƢķėɆĐǁëŝĉėĐɆ¡ėƖƋŨŝƖļĈļŒļƢLjɆʁɆëƎėʆɆƋƎŨİƎëśśėȚɆǂļƢķɆƢķėɆëļśɆ
ŨįɆļśƋƎŨǁļŝİɆŨƪƎɆëĈļŒļƢLjɆƢŨɆļĐėŝƢļįLjɆëŝĐɆƋƎŨǁļĐėɆƢëļŒŨƎėĐɆƖƪƋƋŨƎƢɆëŝĐɆļŝƢėƎëĉƢļŨŝƖɆƢŨɆƢķŨƖėɆśŨƖƢɆëƢɆƎļƖŏș
ȱɆ QŝƢėƎŝëƢļŨŝëŒɆśëƎŏėƢɆȱɆĈëƖėĐɆŨŝɆƢķėɆEƎŨƪƋȼƖɆƋƎŨİƎėƖƖɆļŝɆƎŨŒŒļŝİɆŨƪƢɆŝėǂɆśëƎŏėƎƖɆëŝĐɆëŒİŨƎļƢķśƖɆȩĈėƖƋŨŏėɆĈLjɆƢėƎƎļƢŨƎLjȪɆǂļƢķļŝɆëƢɆŒėëƖƢɆǤǣɆŒėƖƖɆśëƢƪƎėɆļŝƢėƎŝëƢļŨŝëŒɆśëƎŏėƢƖȚɆ
ëƋƋŒLjļŝİɆŨƪƎɆŒėëƎŝļŝİƖɆëŝĐɆĈėƖƢɆƋƎëĉƢļĉėɆƢŨɆļśƋƎŨǁėɆŨƪƎɆƋŒëLjėƎɆƋƎŨƢėĉƢļŨŝɆŨįįėƎļŝİș
Ɇ ,QɆ¡ļƖŏɆnëŝëİėśėŝƢȚɆƢķėɆŒėëĐļŝİɆİëśĈŒļŝİɆķëƎśɆśļŝļśļƖëƢļŨŝɆĉŨŝƖƪŒƢëŝĉLjȚɆļŝĐėƋėŝĐėŝƢŒLjɆƎėǁļėǂėĐɆƢķėɆǂŨƎŏɆĉëƎƎļėĐɆŨƪƢɆëŝĐɆƋƎŨǁļĐėĐɆëĐǁļĉėɆƢŨɆƢķėɆ,©EɆŨśśļƢƢėėɆǂķļĉķɆķëƖɆ
ėŝëĈŒėĐɆļƢɆƢŨɆśëŏėɆëɆƎėĉŨśśėŝĐëƢļŨŝɆŨŝɆƢķėɆŨƪƢƢƪƎŝɆƢŨɆƢķėɆŨśśļƢƢėėșɆnŨƎėɆĐėƢëļŒɆŨŝɆƢķėɆëƖƖėƖƖśėŝƢɆŨįɆƢķėɆǘŝëŒɆŨƪƢƢƪƎŝɆĉëŝɆĈėɆįŨƪŝĐɆļŝɆƢķėɆ,©EɆŨśśļƢƢėėɆƎėƋŨƎƢɆŨŝɆƋëİėɆǤǤǣș
¶ķėɆŨśśļƢƢėėɆŝŨƢėĐɆƢķėɆŒėǁėŒɆŨįɆƋëLjȯŨƪƢȚɆǂķėŝɆëƖƖėƖƖėĐɆŨŝɆëɆįŨƎśƪŒëļĉɆĈëƖļƖȚɆǂķļĉķɆǂëƖɆƎėǙėĉƢļǁėɆŨįɆƢķėɆƖƢƎŨŝİɆpE¡ɆƋėƎįŨƎśëŝĉėɆëŝĐɆ
ƢķėɆĉŨŝƖļƖƢėŝƢɆëĈļŒļƢLjɆŨįɆŨƪƎɆŨƋėƎëƢļŝİɆśŨĐėŒɆƢŨɆĐėŒļǁėƎɆĐļǁėƎƖļǘėĐɆëŝĐɆƖƪƖƢëļŝëĈŒėɆİƎŨǂƢķșɆQŝɆŒļŝėɆǂļƢķɆƢķėɆƋƎŨǁļƖļŨŝƖɆŨįɆƢķėɆ½bɆŨƎƋŨƎëƢėɆ
EŨǁėƎŝëŝĉėɆŨĐėȚɆƢķėɆŨśśļƢƢėėɆĉëƎėįƪŒŒLjɆĉŨŝƖļĐėƎėĐɆǂķėƢķėƎɆƢķėɆƋƎŨƋŨƖėĐɆŨƪƢĉŨśėɆĉŨƪŒĐɆĈėɆŌƪƖƢļǘėĐɆļŝɆƢķėɆĉŨŝƢėLJƢɆŨįɆ,ŝƢëļŝȼƖɆŨǁėƎ댌Ɇ
ƋėƎįŨƎśëŝĉėșɆQŝɆĐŨļŝİɆƖŨȚɆļƢɆĉŨŝƖļĐėƎėĐțɆ
Ɇ ƪƖļŝėƖƖɆƋėƎįŨƎśëŝĉėɆĐƪƎļŝİɆǥǣǥǤȚɆļŝĉŒƪĐļŝİɆƋƎŨİƎėƖƖɆëİëļŝƖƢɆǘŝëŝĉļëŒȚɆŨƋėƎëƢļŨŝëŒȚɆëŝĐɆƖƢƎëƢėİļĉɆƢëƎİėƢƖȜɆ
Ɇ ¶ķėɆƍƪëŒļƢLjɆŨįɆƪŝĐėƎŒLjļŝİɆėëƎŝļŝİƖɆëŝĐɆǂķėƢķėƎɆëŝLjɆƖļİŝļǘĉëŝƢɆŨŝėȯŨįįɆįëĉƢŨƎƖɆļŝǙƪėŝĉėĐɆƢķėɆƎėƖƪŒƢƖȜɆ
Ɇ {ƪƎɆƎļƖŏɆëŝĐɆƎėƋƪƢëƢļŨŝëŒɆƋėƎįŨƎśëŝĉėȜɆ
Ɇ ¶ķėɆļŝĐļǁļĐƪëŒɆƋėƎįŨƎśëŝĉėɆŨįɆƢķėɆ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖȜɆëŝĐ
Ɇ ,ŝƢëļŝȼƖɆƖķëƎėɆƋƎļĉėɆƋėƎįŨƎśëŝĉėɆëŝĐɆƢķėɆėLJƋėƎļėŝĉėɆŨįɆŨƪƎɆƖķëƎėķŨŒĐėƎƖɆŨǁėƎɆƢķėɆLjėëƎș
¶ķėɆŨśśļƢƢėėɆŝŨƢėĐɆƢķėɆEƎŨƪƋȼƖɆėLJĉėŒŒėŝƢɆŨƋėƎëƢļŨŝëŒɆëŝĐɆǘŝëŝĉļëŒɆƋƎŨİƎėƖƖɆĐƪƎļŝİɆƢķėɆLjėëƎȚɆëƖɆƖėƢɆŨƪƢɆļŝɆƢķėɆǥǣǥǤɆEƎŨƪƋɆƋėƎįŨƎśëŝĉėɆ
ķļİķŒļİķƢƖɆļŝɆƢķėɆķëļƎȼƖɆŒėƢƢėƎɆŨŝɆƋëİėɆǤǤǩșɆ
¶ëŏļŝİɆ댌ɆƢķėɆëĈŨǁėɆįëĉƢŨƎƖɆļŝƢŨɆëĉĉŨƪŝƢȚɆƢķėɆŨśśļƢƢėėɆĉŨŝƖļĐėƎėĐɆƢķëƢɆƢķėɆŨƪƢĉŨśėɆƪŝĐėƎɆƢķėɆëŝŝƪëŒɆĈŨŝƪƖɆǂëƖɆŌƪƖƢļǘëĈŒėɆëŝĐɆëɆįëļƎɆ
ƎėǙėĉƢļŨŝɆŨįɆŨǁėƎ댌Ɇ,ŝƢëļŝɆƋėƎįŨƎśëŝĉėɆĐƪƎļŝİɆƢķėɆLjėëƎȚɆëŝĐɆƢķėƎėįŨƎėɆĉŨŝĉŒƪĐėĐɆŝŨɆįƪƎƢķėƎɆĐļƖĉƎėƢļŨŝëƎLjɆëĐŌƪƖƢśėŝƢƖɆǂėƎėɆŝėĉėƖƖëƎLjșɆ
ƖɆëɆƎėƖƪŒƢȚɆƢķėɆƢëĈŒėɆĈėŒŨǂɆƖėƢƖɆŨƪƢɆƢķėɆǘŝëŒɆŨƪƢĉŨśėɆëŝĐɆëŝŝƪëŒɆĈŨŝƪƖɆƋëLjëĈŒėɆƢŨɆėëĉķɆ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎɆįŨƎɆǥǣǥǤș
J Nygaard-Andersen
1
R Wood
2
R Hoskin
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©ëŒëƎLjɆėŒļİļĈŒėɆįŨƎɆǥǣǥǤɆĈŨŝƪƖ ɞǪǣǪȚǩǬǦ ɞǨǤǬȚǩǧǤ £400,000
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ǥșɆ ¡ŨĈɆÕŨŨĐȼƖɆĈŨŝƪƖɆėŒļİļĈŒėɆƖëŒëƎLjɆļƖɆƋƎŨȯƎëƢėĐɆƢŨɆƎėǙėĉƢɆķļƖɆƖëŒëƎLjɆŨįɆɞǧǦǣȚǣǣǣɆįƎŨśɆǤɆ`ëŝƪëƎLjɆƢŨɆǥǣɆ`ëŝƪëƎLjɆǥǣǥǤȚɆëŝĐɆķļƖɆƖëŒëƎLjɆŨįɆɞǨǥǨȚǣǣǣȚɆėįįėĉƢļǁėɆǥǤɆ`ëŝƪëƎLjɆǥǣǥǤș
LëŒįɆŨįɆƢķėɆƢŨƢëŒɆĈŨŝƪƖɆļƖɆƋëļĐɆļŝɆĉëƖķɆįŨŒŒŨǂļŝİɆƢķėɆLjėëƎȯėŝĐȚɆǂķļŒėɆķëŒįɆļƖɆĐėįėƎƎėĐɆļŝƢŨɆƖķëƎėƖɆįŨƎɆƢķƎėėɆLjėëƎƖɆƪŝĐėƎɆƢķėɆ$ėįėƎƎėĐɆ
ŨŝƪƖɆŒëŝșɆ
135
Overview
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Strategic report
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Governance
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Financial statements
Entain plc
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Annual Report 2021
Annual Report on Remuneration continued
2019 Long-Term Incentive Plan
¶ķėɆdŨŝİȯ¶ėƎśɆQŝĉėŝƢļǁėɆŒëŝɆǁëŒƪėƖɆƖķŨǂŝɆļŝɆƢķėɆƖļŝİŒėɆǘİƪƎėɆƢëĈŒėɆįŨƎɆǥǣǥǤɆƎėŒëƢėɆƢŨɆƢķėɆǁėƖƢļŝİɆŨįɆd¶QɆëǂëƎĐƖɆśëĐėɆļŝɆǥǣǤǬșɆ
¶ķėɆƢëƎİėƢƖɆëƢƢëĉķėĐɆƢŨɆƢķėɆǥǣǤǬɆd¶QɆëǂëƎĐƖɆëŝĐɆƢķėɆƋėƎįŨƎśëŝĉėɆŨƪƢĉŨśėɆëİëļŝƖƢɆƢķėƖėɆëƎėɆƖėƢɆŨƪƢɆĈėŒŨǂș
Measure Weighting
Threshold
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Maximum
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Cumulative adjusted EPS 50% 184p 214p ǥǥǪșǫƋ 100% of
maximum
Outcome 100% ©ƢƎëļİķƢȯŒļŝėɆǁėƖƢļŝİɇĈėƢǂėėŝ
ƢķƎėƖķŨŒĐɇëŝĐɇśëLJļśƪś
100% of
maximum
QŝɆĉŨŝƖļĐėƎļŝİɆƢķėɆŨƪƢĉŨśėɆŨįɆƢķėɆ,©ɆėŒėśėŝƢɆŨįɆƢķėɆǥǣǤǬɆd¶QȚɆƢķėɆŨśśļƢƢėėɆŝŨƢėĐɆƢķëƢɆƢķėɆƎėƋŨƎƢėĐɆƎėƖƪŒƢɆįŨƎɆ,©ɆŨǁėƎɆƢķėɆƢķƎėėȯLjėëƎɆ
ƋėƎįŨƎśëŝĉėɆƋėƎļŨĐɆėLJĉėėĐėĐɆƢķėɆƪƋƋėƎɆėŝĐɆŨįɆƢķėɆƢëƎİėƢɆƎëŝİėșɆQŝɆëƖƖėƖƖļŝİɆƢķėɆǘŝëŒɆŨƪƢĉŨśėȚɆƢķėɆŨśśļƢƢėėɆįƪƎƢķėƎɆƎėǁļėǂėĐɆƖėǁėƎëŒɆ
ļƢėśƖɆƢķëƢɆļśƋëĉƢėĐɆ,©ȚɆĈŨƢķɆƋŨƖļƢļǁėɆëŝĐɆŝėİëƢļǁėȚɆĐƪƎļŝİɆƢķėɆƋėƎįŨƎśëŝĉėɆƋėƎļŨĐșɆ¶ķėɆĈėŝėǘƢɆŨįɆįƪƎŒŨƪİķɆƋëLjśėŝƢƖɆƎėĉėļǁėĐɆĐƪƎļŝİɆ
ǥǣǥǣɆëŝĐɆǥǣǥǤɆķëǁėɆĈėėŝɆėLJĉŒƪĐėĐȚɆëƖɆķëƖɆƢķėɆļśƋëĉƢɆŨįɆƢķėɆļŝƢƎŨĐƪĉƢļŨŝɆŨįɆQD¡©ɆǤǩȚɆƢķėɆŝėƢɆĈėŝėǘƢɆŨįɆëĉƍƪļƖļƢļŨŝƖȚɆƢķėɆėLJļƢɆįƎŨśɆŨƪƎɆ
ĈƪƖļŝėƖƖėƖɆļŝɆ©ǂļƢǒėƎŒëŝĐɆëŝĐɆƢķėɆpėƢķėƎŒëŝĐƖɆëŝĐɆƢķėɆļśƋëĉƢɆŨįɆƎėİƪŒëƢŨƎLjɆĉķëŝİėƖɆļŝɆEėƎśëŝLjșɆpŨŝėɆŨįɆƢķėƖėɆļƢėśƖɆǂėƎėɆƎėǙėĉƢėĐɆļŝɆ
ƢķėɆŨƎļİļŝëŒɆ,©ɆƢëƎİėƢƖșɆ¶ķėɆƎėƖƪŒƢļŝİɆ,©ɆŨƪƢĉŨśėɆȩëƖɆƖķŨǂŝɆļŝɆƢķėɆƢëĈŒėɆëĈŨǁėȪɆĉŨŝƢļŝƪėƖɆƢŨɆėLJĉėėĐɆƢķėɆƪƋƋėƎɆėŝĐɆŨįɆƢķėɆƢëƎİėƢɆƎëŝİėșɆ
QŝɆƢķėɆŨśśļƢƢėėȼƖɆǁļėǂȚɆƢķļƖɆŒėǁėŒɆŨįɆǁėƖƢļŝİɆįŨƎɆƢķļƖɆƋëƎƢɆŨįɆƢķėɆëǂëƎĐɆļƖɆëɆįëļƎɆëŝĐɆƎėëƖŨŝëĈŒėɆŨƪƢĉŨśėș
ƖɆëŝɆëĐĐļƢļŨŝëŒɆĉķėĉŏȚɆƢķėɆŨśśļƢƢėėɆëƖƖėƖƖėĐɆǂķėƢķėƎɆ,ŝƢëļŝȼƖɆŨǁėƎ댌ɆƋėƎįŨƎśëŝĉėɆŨǁėƎɆƢķėɆƢķƎėėɆLjėëƎƖɆŌƪƖƢļǘėĐɆƢķėɆĉŨśĈļŝėĐɆ
ǁėƖƢļŝİɆŒėǁėŒɆŨįɆǤǣǣɼșɆQŝɆĐŨļŝİɆƖŨȚɆƢķėLjɆƢŨŨŏɆļŝƢŨɆëĉĉŨƪŝƢɆƢķėɆEƎŨƪƋȼƖɆǘŝëŝĉļëŒɆëŝĐɆŨƋėƎëƢļŨŝëŒɆëĉķļėǁėśėŝƢƖɆŨǁėƎɆƢķļƖɆƋėƎļŨĐȚɆŨƪƎɆƖķëƎėɆ
ƋƎļĉėɆƋėƎįŨƎśëŝĉėȚɆëŝĐɆŨƢķėƎɆĉŨŝƖļĐėƎëƢļŨŝƖɆƖƪĉķɆëƖɆƢķėɆƋƎŨİƎėƖƖɆǂėɆķëǁėɆśëĐėɆǂļƢķɆŨƪƎɆƖëįėƎɆĈėƢƢļŝİɆëŝĐɆİëśļŝİɆëŝĐɆƖƪƖƢëļŝëĈļŒļƢLjɆ
ƋƎŨİƎëśśėƖșɆ¶ķėɆŨśśļƢƢėėɆįŨƪŝĐɆļƢɆƋëƎƢļĉƪŒëƎŒLjɆƎėëƖƖƪƎļŝİɆƢķëƢɆŨǁėƎɆƢķėɆƋėƎļŨĐț
Ɇ ÕėɆķëǁėɆƖėėŝɆĉŨŝƢļŝƪėĐɆėLJƋëŝƖļŨŝɆļŝƢŨɆŝėǂɆśëƎŏėƢƖɆǂļƢķɆƢķėɆĉŨśƋŒėƢļŨŝɆŨįɆƢķėɆëĉƍƪļƖļƢļŨŝƖɆŨįɆėƢșƋƢɆļŝɆŨƎƢƪİëŒɆëŝĐɆ,ŝŒëĈƖɆɆļŝɆƢķėɆ
ëŒƢļĉƖȚɆëƖɆǂėŒŒɆëƖɆ½ŝļŏƎŝɆƢŨɆĐƎļǁėɆëĉĉėƖƖɆƢŨɆƢķėɆėƖƋŨƎƢƖɆƖŏļŒŒɆĈëƖėĐɆǂëİėƎļŝİɆśëƎŏėƢș
Ɇ ėƢnEnȚɆŨƪƎɆŌŨļŝƢɆǁėŝƢƪƎėɆļŝɆƢķėɆ½©ȚɆļƖɆŝŨǂɆŒļǁėɆļŝɆǥǤɆśëƎŏėƢƖɆǂļƢķɆƖƢƎŨŝİɆśŨśėŝƢƪśɆëƖɆëɆŒėëĐļŝİɆƋŒëLjėƎɆǂķėƎėɆļƢɆŨƋėƎëƢėƖș
Ɇ ¶ķėɆŨśƋëŝLjȼƖɆƖķëƎėɆƋƎļĉėɆķëĐɆļŝĉƎėëƖėĐɆĈLjɆǤǨǣɼɆįƎŨśɆǤɆ`ëŝƪëƎLjɆǥǣǤǬɆƢŨɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤȚɆĐėƖƋļƢėɆļśƋëĉƢƖɆįƎŨśɆŨǁļĐȯǤǬɆļŝɆƢķėɆ
ƖėĉŨŝĐɆëŝĐɆƢķļƎĐɆLjėëƎƖș
ŒŒɆŨįɆƢķėƖėɆįëĉƢŨƎƖɆİëǁėɆƢķėɆŨśśļƢƢėėɆĉŨśįŨƎƢɆƢķëƢɆëɆǁėƖƢļŝİɆŨƪƢĉŨśėɆŨįɆǤǣǣɼɆŨįɆśëLJļśƪśɆǂëƖɆįëļƎɆëŝĐɆƎėëƖŨŝëĈŒėȚɆëŝĐɆëƋƋƎŨƋƎļëƢėŒLjɆ
ƎėǙėĉƢėĐɆ,ŝƢëļŝȼƖɆƋėƎįŨƎśëŝĉėɆëŝĐɆǁëŒƪėɆĐėŒļǁėƎėĐɆƢŨɆƖķëƎėķŨŒĐėƎƖɆŨǁėƎɆƢķėɆƋėƎļŨĐș
¶ķėɆd¶QɆëǂëƎĐƖɆİƎëŝƢėĐɆļŝɆǥǣǤǬɆķëĐɆŝŨƢɆǁėƖƢėĐɆëƢɆƢķėɆƢļśėɆƢķļƖɆƎėƋŨƎƢɆǂëƖɆǘŝëŒļƖėĐȚɆëŝĐɆƖŨɆƢķėɆƎėƋŨƎƢėĐɆǁëŒƪėɆķëƖɆĈėėŝɆĈëƖėĐɆŨŝɆƢķėɆ
ëǁėƎëİėɆƖķëƎėɆƋƎļĉėɆļŝɆƢķėɆŒëƖƢɆƢķƎėėɆśŨŝƢķƖɆŨįɆƢķėɆǘŝëŝĉļëŒɆLjėëƎȚɆǂķļĉķɆǂëƖɆǤȚǫǬǣƋșɆ¶ķėɆśëLJļśƪśɆǁëŒƪėɆŨįɆƢķėɆëǂëƎĐƖȚɆƢķėɆǁëŒƪėɆŨįɆƢķėɆ
ëǂëƎĐƖɆļŝĉŒƪĐėĐɆļŝɆƢķėɆƖļŝİŒėɆǘİƪƎėɆŨįɆƎėśƪŝėƎëƢļŨŝɆƢëĈŒėɆëŝĐɆƢķėɆǁëŒƪėɆëƢƢƎļĈƪƢëĈŒėɆƢŨɆƖķëƎėɆƋƎļĉėɆśŨǁėśėŝƢɆļƖɆƖėƢɆŨƪƢɆĈėŒŨǂș
Name
LTIP shares
ƪŝĐėƎɇëǂëƎĐ
Maximum value of
ëǂëƎĐɇëĉķļėǁëĈŒė % vesting
LTIP shares
vesting
Value of
shares
vesting
Value of
dividend
equivalents
due
1
Total value
of LTIP
ȩƖļŝİŒėɇǘİƪƎėȪ
Value
ëƢƢƎļĈƪƢëĈŒėɆ
ƢŨɆƖķëƎėɇƋƎļĉėɆ
movement
¡ɆÕŨŨĐ ǤǬǪȚǣǧǧ ɞǦȚǪǥǧȚǤǦǥ 100% ǤǬǪȚǣǧǧ ɞǦȚǪǥǧȚǤǦǥ £120,204 £3,844,336 £2,845,323
¡ɆLŨƖŏļŝ 180,886 ɞǦȚǧǤǫȚǪǧǨ 100% 180,886 ɞǦȚǧǤǫȚǪǧǨ ɞǤǤǣȚǦǨǪ ɞǦȚǨǥǬȚǤǣǥ £2,612,010
ǤșɆ ëƖėĐɆŨŝɆĐļǁļĐėŝĐƖɆƋëļĐɆļŝɆƢķėɆƋėƎļŨĐɆƖļŝĉėɆƢķėɆĐëƢėɆŨįɆİƎëŝƢɆƢŨɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤș
2021 Long-Term Incentive Plan
Share awards granted during 2021 (audited)
¶ķėɆƢëĈŒėɆĈėŒŨǂɆƖėƢƖɆŨƪƢɆƖķëƎėɆëǂëƎĐƖɆİƎëŝƢėĐɆƢŨɆƢķėɆ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆĐƪƎļŝİɆǥǣǥǤɆƪŝĐėƎɆƢķėɆd¶QșɆpŨɆëǂëƎĐƖɆǂėƎėɆśëĐėɆƪŝĐėƎɆ
ƢķėɆŝŝƪëŒɆʁɆ$ėįėƎƎėĐɆŨŝƪƖɆŒëŝɆëƖɆƢķėɆ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖȼɆǂëļǁėĐɆƢķėļƎɆėŝƢļƢŒėśėŝƢɆƢŨɆƎėĉėļǁėɆëɆĈŨŝƪƖɆƪŝĐėƎɆƢķėɆǥǣǥǣɆEƎŨƪƋɆëŝŝƪëŒɆ
ĈŨŝƪƖɆƋŒëŝș
Name Award type Grant date
Face value of
award Shares awarded
1
% vesting
at threshold
performance
% vesting at
maximum
performance
Performance
conditions
`ɆpLjİëëƎĐȯ
Andersen d¶Q ǥǧɆnëƎĉķɆǥǣǥǤ £2,250,000 ǤǧǪȚǨǧǣ 25% 100% See next page
¡ɆÕŨŨĐ d¶Q ǥǧɆnëƎĉķɆǥǣǥǤ £1,312,500 86,065 25% 100% See next page
¡ɆLŨƖŏļŝ d¶Q ǥǧɆnëƎĉķɆǥǣǥǤ £1,000,000 ǩǨȚǨǪǦ 25% 100% See next page
ǤșɆ ©ķëƎėɆƋƎļĉėɆƪƖėĐɆįŨƎɆİƎëŝƢɆĉëŒĉƪŒëƢļŨŝƖɆļƖɆǤȚǨǥǨƋȚɆƢķėɆĉŒŨƖļŝİɆƖķëƎėɆƋƎļĉėɆŨŝɆƢķėɆĐëLjɆƋƎļŨƎɆƢŨɆİƎëŝƢș
Entain plc
|
Annual Report 2021
136
Governance
DŨƎɆƢķėɆǥǣǥǤɆd¶QȚɆƢķėɆŨśśļƢƢėėɆëİƎėėĐɆƢķëƢɆƢķėɆëǂëƎĐɆƖķŨƪŒĐɆĈėɆĈëƖėĐɆŨŝɆƢķėɆƖëśėɆśėëƖƪƎėƖɆëƖɆǥǣǥǣșɆ¶ķļƖɆƋƎŨǁļĐėƖɆëɆĈëŒëŝĉėɆŨįɆ
ėLJƢėƎŝëŒɆƎėŒëƢļǁėɆƋėƎįŨƎśëŝĉėɆëİëļŝƖƢɆƋėėƎƖɆëŝĐɆƢķėɆĈƎŨëĐėƎɆśëƎŏėƢɆëƖɆǂėŒŒɆëƖɆëĈƖŨŒƪƢėɆǘŝëŝĉļëŒɆƋėƎįŨƎśëŝĉėɆǂļƢķɆƎėįėƎėŝĉėɆƢŨɆ,©Ɇ
ǂķļĉķɆļƖɆëɆŏėLjɆƋėƎįŨƎśëŝĉėɆļŝĐļĉëƢŨƎɆįŨƎɆƢķėɆEƎŨƪƋșɆėƎįŨƎśëŝĉėɆįŨƎɆƢķėƖėɆëǂëƎĐƖɆǂļŒŒɆĈėɆśėëƖƪƎėĐɆŨǁėƎɆƢķėɆƋėƎļŨĐɆǤɆ`ëŝƪëƎLjɆǥǣǥǤɆƢŨɆ
ǦǤɆ$ėĉėśĈėƎɆǥǣǥǦș
Measure Weighting ¶ķƎėƖķŨŒĐɆȩǥǨɼɆǁėƖƢļŝİȪ nëLJļśƪśɆȩǤǣǣɼɆǁėƖƢļŝİȪ
¡ėŒëƢļǁėɆ¶©¡ɆǁƖșɆD¶©,ɆǤǣǣ {ŝėȯƢķļƎĐ
nėĐļëŝ ½ƋƋėƎɇƍƪëƎƢļŒė
¡ėŒëƢļǁėɆ¶©¡ɆǁƖșɆĈėƖƋŨŏėɆƋėėƎɆİƎŨƪƋ
1
{ŝėȯƢķļƎĐ
Cumulative adjusted EPS {ŝėȯƢķļƎĐ 255p ǥǬǩƋ
©ƢƎëļİķƢȯŒļŝėɆǁėƖƢļŝİɆĈėƢǂėėŝɆƢķƎėƖķŨŒĐɆëŝĐɆśëLJļśƪś
ǤșɆ ¶ķėɆĈėƖƋŨŏėɆƋėėƎɆİƎŨƪƋɆĉŨśƋƎļƖėƖɆƢķėɆįŨŒŒŨǂļŝİɆĉŨśƋëŝļėƖɆįŨƎɆƢķėɆǥǣǥǤɆëǂëƎĐƖțɆǫǫǫɆLŨŒĐļŝİƖȚɆėƢƖƖŨŝȚɆëėƖëƎƖɆ,ŝƢėƎƢëļŝśėŝƢȚɆ,ǁŨŒƪƢļŨŝɆEëśļŝİɆEƎŨƪƋȚɆDŒƪƢƢėƎɆ,ŝƢėƎƢëļŝśėŝƢȚɆ
EëśėƖLjƖȚɆQŝƢėƎŝëƢļŨŝëŒɆEëśėɆ¶ėĉķŝŨŒŨİLjȚɆbļŝĐƎėĐɆEƎŨƪƋȚɆŒëLjƢėĉķȚɆ¡ëŝŏɆEƎŨƪƋɆëŝĐɆ¶ëĈŨƎƋɆLŨŒĐļŝİƖș
¶ķėɆŨśśļƢƢėėɆǂëƖɆĉŨśįŨƎƢëĈŒėɆƢķëƢɆƢķėɆ,©ɆƢëƎİėƢƖɆƎėƋƎėƖėŝƢėĐɆƖƢƎėƢĉķļŝİɆƋėƎįŨƎśëŝĉėȚɆǂļƢķɆśëŝëİėśėŝƢɆƎėƍƪļƎėĐɆƢŨɆĐėŒļǁėƎɆƢķƎėėȯɆ
LjėëƎɆE¡ɆļŝɆ,©ɆŨįɆǤǩɼɆƢŨɆƎėëĉķɆśëLJļśƪśɆǁėƖƢļŝİș
¶ķėɆƢėƎśƖɆŨįɆƢķėɆǥǣǥǤɆëǂëƎĐƖɆƋƎŨǁļĐėɆƢķėɆŨśśļƢƢėėɆǂļƢķɆƢķėɆëĈļŒļƢLjɆƢŨɆƎėǁļėǂɆƢķėɆŨƪƢĉŨśėɆëƢɆǁėƖƢļŝİɆëŝĐɆƢŨɆśëŏėɆëƋƋƎŨƋƎļëƢėɆ
ëĐŌƪƖƢśėŝƢƖɆļįɆļƢɆĉŨŝĉŒƪĐėƖɆƢķëƢɆƋëƎƢļĉļƋëŝƢƖɆķëǁėɆĈėŝėǘƢėĐɆįƎŨśɆȹǂļŝĐį댌ɆİëļŝƖȺɆŨǁėƎɆƢķėɆƋėƎįŨƎśëŝĉėɆƋėƎļŨĐșɆ¶ķėɆŨśśļƢƢėėɆëŒƖŨɆ
ƎėƢëļŝƖɆƢķėɆëĈļŒļƢLjȚɆƪŝĐėƎɆƢķėɆƢėƎśƖɆŨįɆƢķėɆŨŒļĉLjȚɆƢŨɆėLJėƎĉļƖėɆĐļƖĉƎėƢļŨŝɆƢŨɆŨǁėƎƎļĐėɆƢķėɆįŨƎśƪŒëļĉɆŨƪƢĉŨśėƖɆļįɆļƢɆĈėŒļėǁėƖɆƢķëƢɆƢķėɆŨƪƢƢƪƎŝɆļƖɆ
ŝŨƢɆëƋƋƎŨƋƎļëƢėș
Shareholdings and share interests (audited)
©ķëƎėķŨŒĐļŝİɆİƪļĐėŒļŝėƖ
,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆëƎėɆƎėƍƪļƎėĐɆƢŨɆśëļŝƢëļŝɆëɆƖķëƎėķŨŒĐļŝİɆëƖɆĐėƢėƎśļŝėĐɆĈLjɆƢķėɆŨśśļƢƢėėɆëŝĐɆƎėƢëļŝɆƢķļƖɆįŨƎɆëɆƋėƎļŨĐɆŨįɆƢļśėɆįŨŒŒŨǂļŝİɆ
ĉėƖƖëƢļŨŝɆįƎŨśɆƢķėɆƎŨŒėșɆ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆëƎėɆėLJƋėĉƢėĐɆƢŨɆĈƪļŒĐɆƪƋɆƢķėļƎɆƖķëƎėķŨŒĐļŝİɆŨǁėƎɆëɆƋėƎļŨĐɆŨįɆǘǁėɆLjėëƎƖɆįƎŨśɆƢķėɆĐëƢėɆŨįɆ
ëƋƋŨļŝƢśėŝƢɆëƖɆëŝɆ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎɆȩŨƎȚɆļįɆŒëƢėƎȚɆįƎŨśɆƢķėɆĐëƢėɆŨįɆëŝLjɆĉķëŝİėɆƢŨɆƢķėɆƢėƎśƖɆŨįɆƢķėɆƖķëƎėķŨŒĐļŝİɆƎėƍƪļƎėśėŝƢȪșɆ©ķëƎėƖɆƢķëƢɆ
ĉŨƪŝƢɆƢŨǂëƎĐƖɆƢķėɆƎėƍƪļƎėśėŝƢɆëƎėɆƢķŨƖėɆƢķëƢɆëƎėɆĈėŝėǘĉļ댌LjɆŨǂŝėĐȚɆëŝLjɆǁėƖƢėĐɆƖķëƎėɆëǂëƎĐƖɆƖƪĈŌėĉƢɆƢŨɆëɆķŨŒĐļŝİɆƋėƎļŨĐɆëŝĐɆƪŝǁėƖƢėĐɆ
ĐėįėƎƎėĐɆĈŨŝƪƖɆƖķëƎėƖɆȩŨŝɆëŝɆëįƢėƎȯƢëLJɆĈëƖļƖȪșɆ¶ķėɆĉƪƎƎėŝƢɆƖķëƎėķŨŒĐļŝİɆƎėƍƪļƎėśėŝƢƖɆëƎėț
Ɇ ,{ɆȱɆǧǣǣɼɆŨįɆĈëƖėɆƖëŒëƎLjș
Ɇ {ƢķėƎɆ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆȱɆǥǣǣɼɆŨįɆĈëƖėɆƖëŒëƎLjș
QŝɆŒļŝėɆǂļƢķɆƢķėɆƋƎŨǁļƖļŨŝƖɆŨįɆƢķėɆ½bɆŨƎƋŨƎëƢėɆEŨǁėƎŝëŝĉėɆŨĐėȚɆƢķėɆŨśśļƢƢėėɆķëƖɆļśƋŒėśėŝƢėĐɆƋŨƖƢȯėśƋŒŨLjśėŝƢɆƖķëƎėķŨŒĐļŝİɆ
ƎėƍƪļƎėśėŝƢƖɆįŨƎɆƢķėɆ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆƢŨɆėŝƖƪƎėɆƢķëƢɆƢķėLjɆƎėśëļŝɆëŒļİŝėĐɆǂļƢķɆƖķëƎėķŨŒĐėƎƖɆįŨƎɆëɆƋėƎļŨĐɆëįƢėƎɆƢķėLjɆƖƢėƋɆĐŨǂŝɆįƎŨśɆ
ƢķėɆŨëƎĐșɆ¶ķėɆŨśśļƢƢėėɆėLJƋėĉƢƖɆ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆƢŨɆśëļŝƢëļŝɆǤǣǣɼɆŨįɆƢķėļƎɆİƪļĐėŒļŝėɆȩŨƎɆƢķėļƎɆëĉƢƪëŒɆķŨŒĐļŝİɆļįɆŒŨǂėƎȪɆįŨƎɆƢǂŨɆLjėëƎƖɆ
įŨŒŒŨǂļŝİɆĐėƋëƎƢƪƎėșɆ©ķëƎėƖɆƋƪƎĉķëƖėĐɆĈLjɆƢķėɆ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆŨƪƢɆŨįɆƢķėļƎɆŨǂŝɆįƪŝĐƖɆǂļŒŒɆŝŨƢɆĉŨƪŝƢɆƢŨǂëƎĐƖɆƢķėƖėɆİƪļĐėŒļŝėƖșɆ¶ŨɆëƖƖļƖƢɆ
ļŝɆƢķėɆļśƋŒėśėŝƢëƢļŨŝɆŨįɆƢķėɆƋŨƖƢȯėśƋŒŨLjśėŝƢɆƖķëƎėķŨŒĐļŝİɆİƪļĐėŒļŝėɆŨƪƎɆƋŨŒļĉLjɆļŝĉŒƪĐėƖɆƢķėɆƋŨƢėŝƢļëŒɆƢŨɆƎėƍƪļƎėɆŒėëǁėƎƖɆƢŨɆĐėƋŨƖļƢɆƢķėɆ
ƎėƍƪļƖļƢėɆŝƪśĈėƎɆŨįɆƖķëƎėƖɆļŝƢŨɆëɆƢƎƪƖƢɆŨƎɆŝŨśļŝėėɆëƎƎëŝİėśėŝƢșɆQŝɆƢķėɆĉëƖėɆŨįɆİŨŨĐɆŒėëǁėƎƖȚɆįƪƢƪƎėɆǁėƖƢļŝİƖɆśëLjɆĈėɆśëĐėɆƖƪĈŌėĉƢɆƢŨɆ
ëĐķėƎėŝĉėɆƢŨɆƢķėɆƖķëƎėķŨŒĐļŝİɆƎėƍƪļƎėśėŝƢș
137 Overview
|
Strategic report
|
Governance
|
Financial statements
Entain plc
|
Annual Report 2021
Annual Report on Remuneration continued
©ķëƎėɆļŝƢėƎėƖƢƖ
ƖɆëƢɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤȚɆƢķėɆǁëŒƪėɆŨįɆ`ėƢƢėɆpLjİëëƎĐȯŝĐėƎƖėŝȚɆ¡ŨĈɆÕŨŨĐɆëŝĐɆ¡ŨĈėƎƢɆLŨƖŏļŝȼƖɆĈėŝėǘĉļëŒɆƖķëƎėķŨŒĐļŝİƖɆǂėƎėɆɞǣșǥśȚɆ
ɞǤșǣśɆëŝĐɆɞǤșǥśɆƎėƖƋėĉƢļǁėŒLjșɆDŨŒŒŨǂļŝİɆƢķėļƎɆëƋƋŨļŝƢśėŝƢƖɆƢŨɆƢķėɆŨëƎĐȚɆ`ėƢƢėɆpLjİëëƎĐȯŝĐėƎƖėŝȚɆļŝɆǥǣǥǤȚɆëŝĐɆ¡ŨĈɆÕŨŨĐȚɆļŝɆǥǣǤǬȚɆ
ĉŨŝƢļŝƪėɆƢŨɆĈƪļŒĐɆƪƋɆƢķėļƎɆķŨŒĐļŝİƖɆļŝɆ,ŝƢëļŝɆƖķëƎėƖșɆ¡ŨĈėƎƢɆLŨƖŏļŝɆǂëƖɆëƋƋŨļŝƢėĐɆƢŨɆƢķėɆŨëƎĐɆļŝɆǥǣǥǤɆëŝĐɆśėėƢƖɆķļƖɆƖķëƎėķŨŒĐļŝİɆ
ƎėƍƪļƎėśėŝƢɆŨįɆǥǣǣɼɆŨįɆĈëƖėɆƖëŒëƎLjș
,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖȼɆƖķëƎėɆļŝƢėƎėƖƢƖɆëƖɆëƢɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤɆëƎėɆƖėƢɆŨƪƢɆĈėŒŨǂș
Share interests
ƖƪĈŌėĉƢɆƢŨ
performance conditions
Share interests not
ƖƪĈŌėĉƢɆƢŨ
performance
conditions
Name
pƪśĈėƎɆŨįɆ
Ĉėŝėǘĉļ댌LjɆ
owned shares
1
Share
awards
Share
options
Share
awards
Share
options
¶ŨƢëŒɇļŝƢėƎėƖƢƖɆ
ëƢɆǦǤɇ$ėĉėśĈėƎɆ
2021
Value of shares
ķėŒĐɇëƖɇɼɇŨįɆ
ĈëƖėɇƖëŒëƎLj
2
Shareholding
requirement
met?
`ɆpLjİëëƎĐȯŝĐėƎ Ɩėŝ ǬȚ Ǭ ǣ ǣ ǤǧǪȚǨǧ ǣ ȱ ȱ ȱ ǤǨǪȚǧǧ ǣ 22% N
¡ɆÕŨŨĐ 40,052 ǧǤǬȚǬǤǥ ȱ ǦǬȚǣǩǪ ȱ ǧǬǬȚǣǦǤ ǤǬǨɼ N
¡ɆLŨƖŏļŝ
3
ǩǬȚǧǦǨ ȱ ǦǩǨȚǩǤǬ ȱ ȱ 435,054 ǥǬǥɼ Y
S Segev
4
1,602,800 ȱǩǩǦȚǬǨǫȱ53,352 2,320,110 ŝȦë ŝȦë
ǤșɆ ėŝėǘĉļ댌LjɆŨǂŝėĐɆƖķëƎėƖɆļŝĉŒƪĐėɆƖķëƎėƖɆķėŒĐɆĐļƎėĉƢŒLjɆŨƎɆļŝĐļƎėĉƢŒLjɆĈLjɆĉŨŝŝėĉƢėĐɆƋėƎƖŨŝƖșɆ¶ķėɆǁëŒƪėɆŨįɆɞǣșǥśȚɆɞǤșǣśɆëŝĐɆɞǤșǥśɆįŨƎɆ`ėƢƢėɆpLjİëëƎĐȯŝĐėƎƖėŝȚɆ¡ŨĈɆÕŨŨĐɆëŝĐɆ
¡ŨĈėƎƢɆLŨƖŏļŝɆƎėƖƋėĉƢļǁėŒLjɆļƖɆĈëƖėĐɆŨŝɆƢķėɆĉŒŨƖļŝİɆƖķëƎėɆƋƎļĉėɆëƢɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤɆȩǤȚǩǫǦƋȪșɆ¶ķėƎėɆǂėƎėɆŝŨɆĉķëŝİėƖɆļŝɆƢķėɆŝƪśĈėƎɆŨįɆĈėŝėǘĉļ댌LjɆŨǂŝėĐɆƖķëƎėƖɆįŨƎɆëŝLjɆ
,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎɆĈėƢǂėėŝɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤɆëŝĐɆƢķėɆĐëƢėɆƢķļƖɆƎėƋŨƎƢɆǂëƖɆƖļİŝėĐș
ǥșɆ QŝɆŒļŝėɆǂļƢķɆŨƪƎɆƖķëƎėķŨŒĐļŝİɆƋŨŒļĉLjȚɆƢķėɆǁëŒƪėɆŨįɆƖķëƎėƖɆķėŒĐɆëƖɆëɆƋėƎĉėŝƢëİėɆŨįɆĈëƖėɆƖëŒëƎLjɆļŝĉŒƪĐėƖɆƖķëƎėƖɆŨǂŝėĐɆĈLjɆƢķėɆ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆëŝĐɆƢķėɆëįƢėƎȯƢëLJɆƖķëƎėƖɆķėŒĐɆƪŝĐėƎɆ
ƢķėɆŝŝƪëŒɆʁɆ$ėįėƎƎėĐɆŨŝƪƖɆŒëŝșɆ¶ķėɆǁëŒƪėɆŨįɆƖķëƎėķŨŒĐļŝİɆļƖɆĈëƖėĐɆŨŝɆƢķėɆĉŒŨƖļŝİɆƖķëƎėɆƋƎļĉėɆëƢɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤɆȩǤȚǩǫǦƋȪș
ǦșɆ QŝɆŒļŝėɆǂļƢķɆŨƪƎɆĈėŒŨǂɆŨëƎĐɆ¡ėśƪŝėƎëƢļŨŝɆŨŒļĉLjȚɆ¡ŨĈėƎƢɆLŨƖŏļŝɆƎėĉėļǁėĐɆëɆĉëƖķɆëǂëƎĐɆŨįɆɞǪǨǣȚǣǣǣɆļŝɆƪİƪƖƢɆǥǣǥǣȚɆǂķļĉķɆǂļŒŒɆĈėɆƋëLjëĈŒėɆļŝɆ`ëŝƪëƎLjɆǥǣǥǧȚɆƖƪĈŌėĉƢɆƢŨɆĉŨŝƢļŝƪėĐɆ
ėśƋŒŨLjśėŝƢș
ǧșɆ ƖɆëɆįŨƎśėƎɆ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎȚɆƢķėɆļŝįŨƎśëƢļŨŝɆƖķŨǂŝɆëĈŨǁėɆįŨƎɆ©ķëLjɆ©ėİėǁɆƎėǙėĉƢƖɆƢķėɆƋŨƖļƢļŨŝɆŨŝɆǥǤɆ`ëŝƪëƎLjɆǥǣǥǤȚɆƢķėɆĐëƢėɆķėɆƖƢėƋƋėĐɆĐŨǂŝɆįƎŨśɆƢķėɆŨëƎĐșɆ¶ķėɆǩǩǦȚǬǨǫɆ
ƖķëƎėɆŨƋƢļŨŝƖɆķėŒĐȚɆƖƪĈŌėĉƢɆƢŨɆƋėƎįŨƎśëŝĉėɆĉŨŝĐļƢļŨŝƖȚɆŒëƋƖėĐɆǂķėŝɆķėɆŒėįƢɆėśƋŒŨLjśėŝƢɆëŝĐɆƢķėɆƖķëƎėɆŨƋƢļŨŝƖȚɆŝŨƢɆƖƪĈŌėĉƢɆƢŨɆƋėƎįŨƎśëŝĉėɆĉŨŝĐļƢļŨŝƖȚɆǁėƖƢėĐɆƪŝĐėƎɆƢķėɆǥǣǤǪɆd¶QɆ
ëǂëƎĐɆëŝĐɆǂėƎėɆėLJėƎĉļƖėĐɆļŝɆnëƎĉķɆǥǣǥǤș
,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖȼɆƖėƎǁļĉėɆĉŨŝƢƎëĉƢƖɆëŝĐɆėLJƢėƎŝëŒɆëƋƋŨļŝƢśėŝƢƖ
,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆķëǁėɆƎŨŒŒļŝİɆĉŨŝƢƎëĉƢƖȚɆƢėƎśļŝëĈŒėɆĈLjɆėļƢķėƎɆƋëƎƢLjɆİļǁļŝİɆƢķėɆëƋƋƎŨƋƎļëƢėɆŝŨƢļĉėș
Director Date appointed Arrangement Notice period
`ɆpLjİëëƎĐȯŝĐėƎƖėŝ ǥǤɆ`ëŝƪëƎLjɆǥǣǥǤ Service contract 12 months
¡ɆÕŨŨĐ ǨɆnëƎĉķɆǥǣǤǬ Service contract 12 months
¡ɆLŨƖŏļŝ ǤɆ`ëŝƪëƎLjɆǥǣǥǤ Service contract 12 months
©ƪĈŌėĉƢɆƢŨɆŨëƎĐɆëƋƋƎŨǁëŒȚɆ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆëƎėɆëĈŒėɆƢŨɆëĉĉėƋƢɆëƋƋƎŨƋƎļëƢėɆŨƪƢƖļĐėɆpŨŝȯ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎɆëƋƋŨļŝƢśėŝƢƖɆƋƎŨǁļĐėĐɆƢķėɆ
ëİİƎėİëƢėɆĉŨśśļƢśėŝƢɆļƖɆĉŨśƋëƢļĈŒėɆǂļƢķɆƢķėļƎɆĐƪƢļėƖɆëƖɆ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖșɆ¶ķėɆ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆĉŨŝĉėƎŝėĐɆśëLjɆƎėƢëļŝɆįėėƖɆƋëļĐɆ
įŨƎɆƢķėƖėɆƖėƎǁļĉėƖșɆ`ėƢƢėɆpLjİëëƎĐȯŝĐėƎƖėŝɆļƖɆëɆpŨŝȯ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎɆŨįɆŨŒŨƋŒëƖƢɆȦ©ɆëŝĐɆļŝɆǥǣǥǤɆƖķėɆǂëƖɆƋëļĐɆįėėƖɆŨįɆǩǣǣȚǣǣǣɆ$bbɆ
ǂķļĉķɆƖķėɆƎėƢëļŝėĐșɆ¶ķėɆŨƢķėƎɆ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆĐŨɆŝŨƢɆĉƪƎƎėŝƢŒLjɆķŨŒĐɆëŝLjɆėLJƢėƎŝëŒɆëƋƋŨļŝƢśėŝƢƖș
ëLjśėŝƢƖɆįŨƎɆŒŨƖƖɆŨįɆŨįǘĉėɆȩëƪĐļƢėĐȪ
ƖɆëŝŝŨƪŝĉėĐɆŨŝɆǤǤɆ`ëŝƪëƎLjɆǥǣǥǤȚɆ©ķëLjɆ©ėİėǁɆƎėƖļİŝėĐɆįƎŨśɆ,ŝƢëļŝɆƢŨɆƢëŏėɆƪƋɆëɆŝėǂɆƎŨŒėșɆLėɆƖƢėƋƋėĐɆĐŨǂŝɆįƎŨśɆƢķėɆŨëƎĐɆŨŝɆ
ǥǤɆ`ëŝƪëƎLjɆëŝĐɆŒėįƢɆėśƋŒŨLjśėŝƢɆŨŝɆǦǤɆnëLjɆǥǣǥǤșɆQŝɆŒļŝėɆǂļƢķɆŨƪƎɆ¡ėśƪŝėƎëƢļŨŝɆŨŒļĉLjț
Ɇ ©ķëLjɆƎėĉėļǁėĐɆɞǥǧǦȚǬǤǥɆļŝɆƖëŒëƎLjɆëŝĐɆĈėŝėǘƢƖɆĈėƢǂėėŝɆǥǥɆ`ëŝƪëƎLjɆǥǣǥǤɆëŝĐɆƢķėɆĐëƢėɆŨįɆƢėƎśļŝëƢļŨŝȜɆķļƖɆƖëŒëƎLjɆƎėśëļŝėĐɆƪŝĉķëŝİėĐɆ
ëƢɆǤɆ`ëŝƪëƎLjɆǥǣǥǤșɆ©ķëLjȼƖɆƖëŒëƎLjɆëŝĐɆĈėŝėǘƢƖɆƎėĉėļǁėĐɆƪƋɆƢŨɆǥǤɆ`ëŝƪëƎLjɆǥǣǥǤɆëƎėɆƖķŨǂŝɆļŝɆƢķėɆƖļŝİŒėɆǘİƪƎėɆƢëĈŒėɆŨŝɆƋëİėɆǤǦǧș
Ɇ {ƪƢƖƢëŝĐļŝİɆëǂëƎĐƖɆƪŝĐėƎɆƢķėɆd¶QɆŒëƋƖėĐɆǂķėŝɆķėɆŒėįƢɆėśƋŒŨLjśėŝƢɆŨįɆƢķėɆEƎŨƪƋɆëƢɆƢķėɆėŝĐɆŨįɆnëLjɆǥǣǥǤș
Ɇ pŨɆëŝŝƪëŒɆĈŨŝƪƖɆǂëƖɆƋëLjëĈŒėɆļŝɆƎėƖƋėĉƢɆŨįɆǥǣǥǤș
Ɇ QŝɆŒļŝėɆǂļƢķɆŨƪƎɆƋŨƖƢȯėśƋŒŨLjśėŝƢɆƖķëƎėķŨŒĐļŝİɆƎėƍƪļƎėśėŝƢɆƋŨŒļĉLjȚɆ©ķëLjɆļƖɆƎėƍƪļƎėĐɆƢŨɆśėėƢɆķļƖɆįƪŒŒɆƖķëƎėķŨŒĐļŝİɆƎėƍƪļƎėśėŝƢɆŨįɆǧǣǣɼɆ
įŨƎɆƢǂŨɆLjėëƎƖɆįŨŒŒŨǂļŝİɆķļƖɆĐėƋëƎƢƪƎėș
ëLjśėŝƢƖɆƢŨɆƋëƖƢɆ$ļƎėĉƢŨƎƖɆȩëƪĐļƢėĐȪ
bėŝŝėƢķɆŒėLJëŝĐėƎɆƎėƢļƎėĐɆëƖɆ,{ɆŨŝɆǤǪɆ`ƪŒLjɆǥǣǥǣɆëŝĐɆįƪŒŒɆĐėƢëļŒƖɆŨįɆķļƖɆŒėëǁļŝİɆëƎƎëŝİėśėŝƢƖɆĉëŝɆĈėɆįŨƪŝĐɆļŝɆƢķėɆǥǣǥǣɆ$ļƎėĉƢŨƎƖȼɆ
¡ėśƪŝėƎëƢļŨŝɆ¡ėƋŨƎƢșɆ¶ķļƖɆļŝĉŒƪĐėƖɆƢķėɆƎėƍƪļƎėśėŝƢȚɆƪŝĐėƎɆƢķėɆŨŒļĉLjȚɆƢŨɆśëļŝƢëļŝɆëɆƖķëƎėķŨŒĐļŝİɆŨįɆǧǣǣɼɆŨįɆƖëŒëƎLjɆįŨƎɆƢǂŨɆLjėëƎƖɆ
įŨŒŒŨǂļŝİɆķļƖɆĐėƋëƎƢƪƎėșɆ¶ķėɆƢëĈŒėɆĈėŒŨǂɆƖėƢƖɆŨƪƢɆĐėƢëļŒƖɆŨįɆƢķėɆ$ɆëŝĐɆd¶QɆëǂëƎĐƖȚɆśëĐėɆļŝɆǥǣǤǫȚɆǂķļĉķɆǂėƎėɆĈŨƢķɆƎėŒėëƖėĐɆƢŨɆķļśɆ
ŨŝɆƢķėɆŨƎĐļŝëƎLjɆǁėƖƢļŝİɆĐëƢėɆŨįɆǥǣɆ©ėƋƢėśĈėƎɆǥǣǥǤșɆ¶ķėɆǥǣǤǫɆd¶QɆëǂëƎĐɆǂëƖɆƋƎŨȯƎëƢėĐɆįŨƎɆƢļśėɆƖėƎǁėĐɆĐƪƎļŝİɆƢķėɆƋėƎįŨƎśëŝĉėɆƋėƎļŨĐɆ
ëƖɆǂėŒŒɆëƖɆƢķėɆƋėƎįŨƎśëŝĉėɆĉŨŝĐļƢļŨŝșɆLėɆëŒƖŨɆƎėĉėļǁėĐɆĐļǁļĐėŝĐɆėƍƪļǁëŒėŝƢƖɆŨŝɆ댌ɆŨįɆƢķėɆǁėƖƢėĐɆƖķëƎėƖș
Award End of performance period pƪśĈėƎɆŨįɆƖķëƎėƖ
ǥǣǤǫɆd¶Q 31 December 2020 ǤǤǫȚǣǦǬ
ǥǣǤǫɆ$ 20 September 2021 ǤǣǣȚǨǪǩ
Entain plc
|
Annual Report 2021
138 Governance
ķëļƎśëŝɆëŝĐɆpŨŝȯ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖ
©ļŝİŒėɆǘİƪƎėɆŨįɆƎėśƪŝėƎëƢļŨŝɆƢëĈŒėɆȩëƪĐļƢėĐȪ
¶ķėɆƎėśƪŝėƎëƢļŨŝɆŨįɆƢķėɆpŨŝȯ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆļƖɆƖķŨǂŝɆĈėŒŨǂșɆ
Non-Executive Directors
Fees
1
£000
ėŝėǘƢƖ
£000
Annual
ĈŨŝƪƖ
£000
Long-term
incentives
£000
Pension
£000
Total
£000
¶ŨƢëŒɆǘLJėĐɆ
remuneration
¶ŨƢëŒɆǁëƎļëĈŒėɆ
remuneration
ëƎƎLjɆEļĈƖŨŝ
2
2021 450 ȱȱȱȱ450 450 ȱ
2020 428 ȱȱȱȱ428 428 ȱ
ļėƎƎėɆŨƪĉķƪƢ
2
2021 108 ȱȱȱȱ108 108 ȱ
2020 106 ȱȱȱȱ106 106 ȱ
Stella David
3
2021 128 ȱȱȱȱ128 128 ȱ
2020 ȱȱȱȱȱȱȱȱ
nëƎŏɆEƎėİŨƎLj
4
2021 88 ȱȱȱȱ88 88 ȱ
2020 ȱȱȱȱȱȱȱȱ
ėƢėƎɆQƖŨŒë
2
2021 85 ȱȱȱȱ85 85 ȱ
2020 81 ȱȱȱȱ81 81 ȱ
ÔļĉŏLjɆ`ëƎśëŝ
3
2021 ǪǣȱȱȱȱǪǣǪǣȱ
2020 ȱȱȱȱȱȱȱȱ
ÔļƎİļŝļëɆnĉ$ŨǂėŒŒ
2
2021 106 ȱȱȱȱ106 106 ȱ
2020 101 ȱȱȱȱ101 101 ȱ
©ƢėƋķėŝɆnŨƎëŝë
2,5
2021 28 ȱȱȱȱ28 28 ȱ
2020 ǤǧǪȱȱȱȱǤǧǪǤǧǪȱ
`ėƢƢėɆpLjİëëƎĐȯŝĐėƎƖėŝ
6
2021 ǪȱȱȱȱǪǪȱ
2020 85 ȱȱȱȱ85 85 ȱ
David Satz 2021 85 ȱȱȱȱ85 85 ȱ
2020 ǤǪȱȱȱȱǤǪǤǪȱ
DŨƎśėƎɆpŨŝȯ,LJėĉƪƢļǁėɆ
Directors
Ǫ
2021 _ ȱȱȱȱȱȱȱ
2020 ǤǨǪȱȱȱȱǤǨǪǤǨǪȱ
ǤșɆ pŨŝȯ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆƎėĉėļǁėɆįėėƖɆŨŝŒLjɆëŝĐɆĐŨɆŝŨƢɆƎėĉėļǁėɆëŝLjɆëĐĐļƢļŨŝëŒɆĈėŝėǘƢƖɆŨƎɆĈŨŝƪƖɆƋëLjśėŝƢƖșɆ
ǥșɆ QŝɆǥǣǥǣȚɆëƎƎLjɆEļĈƖŨŝȚɆļėƎƎėɆŨƪĉķƪƢȚɆėƢėƎɆQƖŨŒëȚɆÔļƎİļŝļëɆnĉ$ŨǂėŒŒɆëŝĐɆ©ƢėƋķėŝɆnŨƎëŝëɆǂėƎėɆ댌ɆƖƪĈŌėĉƢɆƢŨɆëɆǥǣɼɆƎėĐƪĉƢļŨŝɆļŝɆįėėƖɆįŨƎɆƢķƎėėɆśŨŝƢķƖșɆ
ǦșɆ ©ƢėŒŒëɆ$ëǁļĐɆëŝĐɆÔļĉŏLjɆ`ëƎśëŝɆŌŨļŝėĐɆƢķėɆŨëƎĐɆŨŝɆǧɆnëƎĉķɆǥǣǥǤș
ǧșɆ nëƎŏɆEƎėİŨƎLjɆŌŨļŝėĐɆƢķėɆŨëƎĐɆŨŝɆǤǪɆnëƎĉķɆǥǣǥǤș
ǨșɆ ©ƢėƋķėŝɆnŨƎëŝëɆƖƢėƋƋėĐɆĐŨǂŝɆįƎŨśɆƢķėɆŨëƎĐɆŨŝɆǧɆnëƎĉķɆǥǣǥǤș
ǩșɆ `ėƢƢėɆpLjİëëƎĐȯŝĐėƎƖėŝɆƖƢėƋƋėĐɆĐŨǂŝɆëƖɆëɆpŨŝȯ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎɆǂķėŝɆƖķėɆǂëƖɆëƋƋŨļŝƢėĐɆëƖɆ,{ɆŨŝɆǥǤɆ`ëŝƪëƎLjɆǥǣǥǤșɆLėƎɆƎėśƪŝėƎëƢļŨŝɆëƖɆ,{ɆļƖɆƖėƢɆŨƪƢɆŨŝɆƋëİėɆǤǦǧș
ǪșɆ DėėƖɆƢŨƢ댌ļŝİɆɞǤǨǪȚǣǣǣɆǂėƎėɆƋëļĐɆƢŨɆpŨŝȯ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆļŝɆǥǣǥǣɆǂķŨɆƖƢŨŨĐɆĐŨǂŝɆįƎŨśɆƢķėɆŨëƎĐɆĐƪƎļŝİɆƢķëƢɆLjėëƎɆëŝĐɆƎėĉėļǁėĐɆŝŨɆįėėƖɆļŝɆƎėŒëƢļŨŝɆƢŨɆǥǣǥǤș
139 Overview
|
Strategic report
|
Governance
|
Financial statements
Entain plc
|
Annual Report 2021
Fee structure
¶ķėɆƢëĈŒėɆĈėŒŨǂɆƖėƢƖɆŨƪƢɆƢķėɆįėėɆƖƢƎƪĉƢƪƎėɆįŨƎɆǥǣǥǥɆįŨƎɆƢķėɆpŨŝȯ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆëŝĐɆƢķėɆķëļƎśëŝɆŨįɆƢķėɆŨëƎĐșɆ¶ķėƖėɆëƎėɆƪŝĉķëŝİėĐɆ
įƎŨśɆƢķŨƖėɆļŝɆǥǣǥǤșɆQŝɆėëƎŒLjɆǥǣǥǣȚɆƢķėɆpŨŝȯ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆǂėƎėɆİļǁėŝɆƢķėɆŨŝėȯŨįįɆĉķŨļĉėɆƢŨɆķëǁėɆƢķėļƎɆįėėƖɆĐėŝŨśļŝëƢėĐɆļŝɆėļƢķėƎɆ
EɆŨƎɆ,ƪƎŨƖȚɆëŝĐɆƖƪĈƖėƍƪėŝƢŒLjɆëŝɆėƍƪļǁëŒėŝƢɆ½©$ɆįėėɆŒėǁėŒɆǂëƖɆėƖƢëĈŒļƖķėĐș
As at 1 January 2022
ķëļƎśëŝɆŨįɆƢķėɆŨëƎĐ £450,000
©ėŝļŨƎɆQŝĐėƋėŝĐėŝƢɆpŨŝȯ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎ £155,000
ŨëƎĐɆśėśĈėƎ ɑǤǣǣȚǣǣǣɆŨƎɆɞǫǨȚǣǣǣɆŨƎɆɏǤǤǪȚǣǣǣ
Chair of Audit, Remuneration or ESG Committee €25,000 or £21,000
Letters of appointment
pŨŝȯ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆëƎėɆëƋƋŨļŝƢėĐɆƪŝĐėƎɆŒėƢƢėƎƖɆŨįɆëƋƋŨļŝƢśėŝƢɆëŝĐɆëƖɆƖƪĉķɆĐŨɆŝŨƢɆķëǁėɆƖėƎǁļĉėɆĉŨŝƢƎëĉƢƖșɆƋëƎƢɆįƎŨśɆƢķėɆķëļƎśëŝɆ
ŨįɆƢķėɆŨëƎĐȚɆėëĉķɆpŨŝȯ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎɆļƖɆƖƪĈŌėĉƢɆƢŨɆëŝɆļŝļƢļëŒɆƢķƎėėȯLjėëƎɆƢėƎśɆƖƪĈŌėĉƢɆƢŨɆëŝŝƪëŒɆƎėȯėŒėĉƢļŨŝɆëƢɆƢķėɆŨśƋëŝLjȼƖɆEnș
ŒŒɆŒėƢƢėƎƖɆŨįɆëƋƋŨļŝƢśėŝƢɆëƎėɆëǁëļŒëĈŒėɆįŨƎɆǁļėǂļŝİɆëƢɆƢķėɆŨśƋëŝLjȼƖɆƎėİļƖƢėƎėĐɆŨįǘĉėɆëŝĐɆëƢɆƢķėɆEnș
Director Date appointed Arrangement Notice period
ɆEļĈƖŨŝ ǧɆpŨǁėśĈėƎɆǥǣǤǬ dėƢƢėƎɆŨįɆëƋƋŨļŝƢśėŝƢ 3 months
ɆŨƪĉķƪƢ 13 September 2018 dėƢƢėƎɆŨįɆëƋƋŨļŝƢśėŝƢ 3 months
S David ǧɆnëƎĉķɆǥǣǥǤ dėƢƢėƎɆŨįɆëƋƋŨļŝƢśėŝƢ 3 months
nɆEƎėİŨƎLj ǤǪɆnëƎĉķɆǥǣǥǤ dėƢƢėƎɆŨįɆëƋƋŨļŝƢśėŝƢ 3 months
ɆQƖŨŒë ǥɆDėĈƎƪëƎLjɆǥǣǤǩ dėƢƢėƎɆŨįɆëƋƋŨļŝƢśėŝƢ 3 months
ÔɆ`ëƎśëŝ ǧɆnëƎĉķɆǥǣǥǤ dėƢƢėƎɆŨįɆëƋƋŨļŝƢśėŝƢ 3 months
ÔɆnĉ$ŨǂėŒŒ ǩɆ`ƪŝėɆǥǣǤǫ dėƢƢėƎɆŨįɆëƋƋŨļŝƢśėŝƢ 3 months
D Satz 22 October 2020 dėƢƢėƎɆŨįɆëƋƋŨļŝƢśėŝƢ 3 months
Share interests (audited)
pŨŝȯ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖȼɆƖķëƎėɆļŝƢėƎėƖƢƖɆëƖɆëƢɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤɆëƎėɆƖėƢɆŨƪƢɆĈėŒŨǂșɆÕļƢķɆƢķėɆėLJĉėƋƢļŨŝɆŨįɆ©ƢėŒŒëɆ$ëǁļĐɆëŝĐɆÔļĉŏLjɆ`ëƎśëŝɆ
ǂķŨɆŨŝŒLjɆŌŨļŝėĐɆƢķėɆŨëƎĐɆļŝɆnëƎĉķɆǥǣǥǤɆëŝĐɆ$ëǁļĐɆ©ëƢǒɆǂķŨɆŌŨļŝėĐɆƢķėɆŨëƎĐɆļŝɆ{ĉƢŨĈėƎɆǥǣǥǣȚɆ댌ɆpŨŝȯ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆķŨŒĐɆƖķëƎėƖɆ
ǂļƢķɆëɆǁëŒƪėɆļŝɆėLJĉėƖƖɆŨįɆŨŝėɆƢļśėƖɆƢķėļƎɆëŝŝƪëŒɆįėėș
Director
pƪśĈėƎɆŨįɆĈėŝėǘĉļ댌LjɆ
owned shares
1
ɆEļĈƖŨŝ ǩǫȚǧǦǪ
ɆŨƪĉķƪƢ 38,500
S David 3,652
nɆEƎėİŨƎLj ǪȚǧǧǩ
ɆQƖŨŒë 36,135
ÔɆ`ëƎśëŝ ȱ
ÔɆnĉ$ŨǂėŒŒ 15,000
©ɆnŨƎëŝë
2
34,184
D Satz ȱ
ǤșɆ ėŝėǘĉļ댌LjɆŨǂŝėĐɆƖķëƎėƖɆļŝĉŒƪĐėɆƖķëƎėƖɆķėŒĐɆĐļƎėĉƢŒLjɆŨƎɆļŝĐļƎėĉƢŒLjɆĈLjɆĉŨŝŝėĉƢėĐɆƋėƎƖŨŝƖșɆ¶ķėƎėɆǂėƎėɆŝŨɆĉķëŝİėƖɆļŝɆƢķėɆŝƪśĈėƎɆŨįɆƖķëƎėƖɆŨǂŝėĐɆŨƪƢƎļİķƢɆįŨƎɆëŝLjɆpŨŝȯ,LJėĉƪƢļǁėɆ
$ļƎėĉƢŨƎɆĈėƢǂėėŝɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤɆëŝĐɆƢķėɆĐëƢėɆƢķļƖɆƎėƋŨƎƢɆǂëƖɆƖļİŝėĐș
ǥșɆ ƖɆëɆįŨƎśėƎɆpŨŝȯ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎȚɆƢķėɆĈėŝėǘĉļ댌LjɆŨǂŝėĐɆƖķëƎėƖɆįŨƎɆ©ƢėƋķėŝɆnŨƎëŝëɆƎėǙėĉƢƖɆƢķėɆƋŨƖļƢļŨŝɆŨŝɆǧɆnëƎĉķɆǥǣǥǤȚɆƢķėɆĐëƢėɆķėɆƖƢėƋƋėĐɆĐŨǂŝɆįƎŨśɆƢķėɆŨëƎĐș
Mark Gregory
Chair of the Remuneration Committee
ǦɆnëƎĉķɆǥǣǥǥ
Annual Report on Remuneration continued
Entain plc
|
Annual Report 2021
140
Governance
Principal activity
,ŝƢëļŝɆƋŒĉɆȩƢķėɆȹŨśƋëŝLjȺȪɆëŝĐɆļƢƖɆƖƪĈƖļĐļëƎļėƖɆȩƢŨİėƢķėƎɆƢķėɆ
ȹEƎŨƪƋȺȪɆļƖɆëɆśëŌŨƎɆļŝƢėƎŝëƢļŨŝëŒɆƖƋŨƎƢƖȯĈėƢƢļŝİɆëŝĐɆİëśļŝİɆ
ĉŨśƋëŝLjɆŨƋėƎëƢļŝİɆĈŨƢķɆŨŝŒļŝėɆëŝĐɆļŝɆƢķėɆƎėƢëļŒɆƖėĉƢŨƎș
¶ķėɆŨśƋëŝLjɆļƖɆƎėİļƖƢėƎėĐɆëƖɆëɆƋƪĈŒļĉɆŒļśļƢėĐɆĉŨśƋëŝLjɆƪŝĐėƎɆ
ƢķėɆQƖŒėɆŨįɆnëŝɆŨśƋëŝļėƖɆĉƢɆǥǣǣǩɆëŝĐɆļƖɆŒļƖƢėĐɆļŝɆƢķėɆƎėśļƪśɆ
ĉëƢėİŨƎLjɆŨŝɆƢķėɆnëļŝɆnëƎŏėƢɆŨįɆƢķėɆdŨŝĐŨŝɆ©ƢŨĉŏɆ,LJĉķëŝİėș
Results and future performance
ɆƎėǁļėǂɆŨįɆƢķėɆEƎŨƪƋȼƖɆƎėƖƪŒƢƖɆëŝĐɆëĉƢļǁļƢļėƖɆļƖɆĉŨǁėƎėĐɆǂļƢķļŝɆ
ƢķėɆ©ƢƎëƢėİļĉɆ¡ėƋŨƎƢɆŨŝɆƋëİėƖɆǩɆƢŨɆǫǩșɆ¶ķļƖɆļŝĉŨƎƋŨƎëƢėƖɆƢķėɆ
ķëļƎśëŝȼƖɆƖƢëƢėśėŝƢȚɆķļėįɆ,LJėĉƪƢļǁėɆëŝĐɆķļėįɆDļŝëŝĉļëŒɆ{įǘĉėƎȼƖɆ
ƎėǁļėǂȚɆǂķļĉķɆļŝĉŒƪĐėɆëŝɆļŝĐļĉëƢļŨŝɆŨįɆŒļŏėŒLjɆįƪƢƪƎėɆĐėǁėŒŨƋśėŝƢƖș
Key performance indicators
bėLjɆƋėƎįŨƎśëŝĉėɆļŝĐļĉëƢŨƎƖɆļŝɆƎėŒëƢļŨŝɆƢŨɆƢķėɆEƎŨƪƋȼƖɆëĉƢļǁļƢļėƖɆëƎėɆ
ĉŨŝƢļŝƪ댌LjɆƎėǁļėǂėĐɆĈLjɆƖėŝļŨƎɆśëŝëİėśėŝƢɆëŝĐɆëƎėɆƋƎėƖėŝƢėĐɆŨŝɆ
ƋëİėɆǥǤș
Dividends
{ŝɆǩɆƋƎļŒɆǥǣǥǣɆƢķėɆEƎŨƪƋɆëŝŝŨƪŝĉėĐɆƢķëƢɆƢķėɆǥǣǤǬɆƖėĉŨŝĐɆļŝƢėƎļśɆ
ĐļǁļĐėŝĐɆǂŨƪŒĐɆĈėɆǂļƢķĐƎëǂŝɆĐƪėɆƢŨɆƢķėɆŨŝİŨļŝİɆƪŝĉėƎƢëļŝƢLjɆ
ƖƪƎƎŨƪŝĐļŝİɆŨǁļĐȯǤǬɆëŝĐɆĐļǁļĐėŝĐƖɆķëǁėɆŝŨƢɆƎėƖƪśėĐɆƖļŝĉėɆƢķëƢɆ
ĐëƢėșɆpŨɆļŝƢėƎļśɆĐļǁļĐėŝĐƖɆķëǁėɆĈėėŝɆĐėĉŒëƎėĐɆǂļƢķɆƎėƖƋėĉƢɆƢŨɆƢķėɆ
LjėëƎɆėŝĐėĐɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤș
ƢɆƢķėɆĐëƢėɆŨįɆƢķļƖɆƎėƋŨƎƢȚɆƢķėɆŨëƎĐɆķëƖɆŝŨƢɆƋƎŨƋŨƖėĐɆëɆĐļǁļĐėŝĐɆ
İļǁėŝɆƢķëƢɆśëŝLjɆŨįɆŨƪƎɆśëƎŏėƢƖɆĉŨŝƢļŝƪėĐɆƢŨɆĈėɆļśƋëĉƢėĐɆĈLjɆ
ŨǁļĐȯǤǬɆƎėƖƢƎļĉƢļŨŝƖɆļŝƢŨɆƢķėɆƖƢëƎƢɆŨįɆƢķėɆŝėǂɆǘŝëŝĉļëŒɆLjėëƎșɆ
LŨǂėǁėƎȚɆƋƎŨİƎėƖƖɆƎėśëļŝƖɆėŝĉŨƪƎëİļŝİɆëŝĐɆƢķėɆŨëƎĐɆǂļŒŒɆƎėǁļėǂɆ
ƢķėɆƋëLjśėŝƢɆŨįɆĐļǁļĐėŝĐƖɆǂļƢķɆįƪƢƪƎėɆƎėƖƪŒƢƖș
ŨƎƋŨƎëƢėɆEŨǁėƎŝëŝĉė
The Directors recognise the importance of corporate governance
ëŝĐɆƢķėļƎɆëƖƖŨĉļëƢėĐɆƎėƋŨƎƢɆļƖɆƖėƢɆŨƪƢɆŨŝɆƋëİėƖɆǫǫɆƢŨɆǤǧǥșɆ
The information in that section is deemed to form part of this
¡ėƋŨƎƢɆëŝĐɆƖŨɆįƪŒǘŒƖɆƢķėɆƎėƍƪļƎėśėŝƢƖɆŨįɆƢķėɆĉŨƎƋŨƎëƢėɆİŨǁėƎŝëŝĉėɆ
ƖƢëƢėśėŝƢɆįŨƎɆƢķėɆƋƪƎƋŨƖėƖɆŨįɆ$¶¡ɆǪșǥșǤș
ƖɆëɆĉŨśƋëŝLjɆƍƪŨƢėĐɆŨŝɆƢķėɆƎėśļƪśɆnëļŝɆnëƎŏėƢɆŨįɆƢķėɆdŨŝĐŨŝɆ
©ƢŨĉŏɆ,LJĉķëŝİėȚɆƢķėɆŨśƋëŝLjɆķëƖɆëĐŨƋƢėĐɆƢķėɆǥǣǤǫɆ½bɆŨƎƋŨƎëƢėɆ
EŨǁėƎŝëŝĉėɆŨĐėɆȩȹŨĐėȺȪȚɆëƖɆëśėŝĐėĐɆįƎŨśɆƢļśėɆƢŨɆƢļśėȚɆëŝĐɆǂļŒŒɆ
ƖėėŏɆƢŨɆĉŨśƋŒLjɆǂļƢķɆƋƎėśļƪśɆŒļƖƢėĐɆĉŨśƋëŝLjɆŝŨƎśƖɆƢŨɆƢķėɆėLJƢėŝƢɆ
ëƋƋƎŨƋƎļëƢėɆįŨƎɆƢķėɆƖļǒėɆëŝĐɆŝëƢƪƎėɆŨįɆƢķėɆŨśƋëŝLjș
Engagement with Employee Statements
¶ķļƖɆļƖɆĐļƖĉƪƖƖėĐɆļŝɆƢķėɆƖǤǪǥɆ©ƢëƢėśėŝƢɆŨŝɆƋëİėɆǦǩɆëŝĐɆŨŝɆ
ƋëİėƖɇǬǫɆƢŨɆǬǬș
Engagement with Stakeholder Statements
¶ķļƖɆļƖɆĐļƖĉƪƖƖėĐɆļŝɆƢķėɆƖǤǪǥɆ©ƢëƢėśėŝƢɆŨŝɆƋëİėƖɆǦǩɆƢŨɆǦǬɆëŝĐɇŨŝɆ
ƋëİėƖɆǬǫɆƢŨɆǬǬș
ƪƖƢŨśėƎɆëŝĐɆĉƎėĐļƢŨƎɆƋëLjśėŝƢɆƋŨŒļĉLj
¶ķėɆEƎŨƪƋɆļƖɆĉŨśśļƢƢėĐɆƢŨɆƋƎŨśƋƢɆƋëLjśėŝƢɆŨįɆĉƪƖƢŨśėƎɆĉëƖķȯŨƪƢɆ
requests and maintains adequate cash reserves to cover customer
ǂļƢķĐƎëǂëŒƖɆëŝĐɆĈëŒëŝĉėƖșɆ
pŨƎśëŒŒLjɆƋëLjśėŝƢƖɆǂļŒŒɆĈėɆśëĐėɆƢŨɆĉƪƖƢŨśėƎƖɆǂļƢķļŝɆƖėǁėŝɆĐëLjƖɆŨįɆ
ƎėĉėļǁļŝİɆëɆĉƪƖƢŨśėƎɆļŝƖƢƎƪĉƢļŨŝș
QŝɆƢķėɆĉëƖėɆŨįɆŨƢķėƎɆĉƎėĐļƢŨƎƖȚɆļƢɆļƖɆƢķėɆEƎŨƪƋȼƖɆƋŨŒļĉLjɆƢŨɆëİƎėėɆƢėƎśƖɆ
ëƢɆƢķėɆŨƪƢƖėƢɆŨįɆëɆƢƎëŝƖëĉƢļŨŝɆëŝĐɆėŝƖƪƎėɆĉŨśƋŒļëŝĉėɆǂļƢķɆƖƪĉķɆ
ëİƎėėĐɆƢėƎśƖșɆQŝɆƢķėɆėǁėŝƢɆƢķëƢɆëŝɆļŝǁŨļĉėɆļƖɆĉŨŝƢėƖƢėĐɆƢķėŝɆƢķėɆ
EƎŨƪƋɆļŝįŨƎśƖɆƢķėɆƖƪƋƋŒļėƎɆǂļƢķŨƪƢɆĐėŒëLjɆëŝĐɆƖėėŏƖɆƢŨɆƖėƢƢŒėɆƢķėɆ
ĐļƖƋƪƢėɆƍƪļĉŏŒLjșɆ$ƪƎļŝİɆǥǣǥǣȚɆƢķėɆEƎŨƪƋɆëƋƋŨļŝƢėĐɆëɆƪƖƢŨśėƎɆ
{śĈƪĐƖśëŝɆ$ļƎėĉƢŨƎș
Articles of Association
¶ķėɆŨśƋëŝLjȼƖɆƎƢļĉŒėƖɆŨįɆƖƖŨĉļëƢļŨŝɆśëLjɆŨŝŒLjɆĈėɆëśėŝĐėĐɆĈLjɆ
ƖƋėĉļëŒɆƎėƖŨŒƪƢļŨŝɆëƢɆëɆİėŝėƎëŒɆśėėƢļŝİɆŨįɆƖķëƎėķŨŒĐėƎƖșɆ
Directors
¶ķėɆ$ļƎėĉƢŨƎƖɆŨįɆƢķėɆŨśƋëŝLjɆǂķŨɆǂėƎėɆļŝɆŨįǘĉėɆĐƪƎļŝİɆƢķėɆLjėëƎȚɆ
ëƎėɆĐļƖĉŒŨƖėĐɆŨŝɆƋëİėƖɆǫǫȯǫǬɆș
¶ķėɆŨśƋëŝLjȼƖɆƎƢļĉŒėƖɆŨįɆƖƖŨĉļëƢļŨŝɆƋƎŨǁļĐėɆƢķëƢɆëŝLjɆŝėǂɆ
$ļƎėĉƢŨƎɆëƋƋŨļŝƢėĐɆĈLjɆƢķėɆŨëƎĐɆĐƪƎļŝİɆƢķėɆLjėëƎȚɆķëǁļŝİɆŝŨƢɆĈėėŝɆ
ƋƎėǁļŨƪƖŒLjɆėŒėĉƢėĐɆĈLjɆƖķëƎėķŨŒĐėƎƖȚɆśëLjɆķŨŒĐɆŨįǘĉėɆŨŝŒLjɆƪŝƢļŒɆƢķėɆ
ŝėLJƢɆEnȚɆǂķėŝɆƢķëƢɆ$ļƎėĉƢŨƎɆśƪƖƢɆƎėƢļƎėɆëŝĐɆƖƢëŝĐɆįŨƎɆėŒėĉƢļŨŝɆëƢɆ
ƢķėɆśėėƢļŝİșɆ¶ķėɆƎƢļĉŒėƖɆëŒƖŨɆƎėƍƪļƎėɆŨŝėɆƢķļƎĐɆŨįɆƢķėɆ$ļƎėĉƢŨƎƖɆŝŨƢɆ
ŝėǂŒLjɆëƋƋŨļŝƢėĐɆƖļŝĉėɆƢķėɆŒëƖƢɆEnɆƢŨɆƖėėŏɆƎėȯėŒėĉƢļŨŝș
QŝɆĉŨśƋŒļëŝĉėɆǂļƢķɆƢķėɆƎėĉŨśśėŝĐëƢļŨŝɆŨįɆƢķėɆǥǣǤǫɆŨĐėȚɆ댌Ɇ
$ļƎėĉƢŨƎƖɆǂļŒŒɆƖėėŏɆƎėëƋƋŨļŝƢśėŝƢɆëƢɆƢķėɆǥǣǥǥɆEnȚɆëƖɆƢķėLjɆĐļĐɆ
ļŝɆǥǣǥǤș
Directors’ remuneration
ŨƢķɆ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆķëǁėɆ©ėƎǁļĉėɆİƎėėśėŝƢƖɆëŝĐɆ댌ɆƢķėɆ
pŨŝȯ,LJėĉƪƢļǁėɆ$ļƎėĉƢŨƎƖɆķëǁėɆdėƢƢėƎƖɆŨįɆƋƋŨļŝƢśėŝƢɆëŝĐɆƢķėɆ
ĐėƢëļŒƖɆŨįɆƢķėļƎɆŏėLjɆƢėƎśƖɆëƎėɆƖėƢɆŨƪƢɆļŝɆƢķėɆ$ļƎėĉƢŨƎƖȼɆ¡ėśƪŝėƎëƢļŨŝɆ
¡ėƋŨƎƢșɆ$ėƢëļŒƖɆŨįɆƎėśƪŝėƎëƢļŨŝɆŨįɆėëĉķɆ$ļƎėĉƢŨƎɆëƎėɆƋƎŨǁļĐėĐɆļŝɆƢķėɆ
¡ėśƪŝėƎëƢļŨŝɆ¡ėƋŨƎƢɆŨŝɆƋëİėƖɆǤǤǩɆƢŨɆǤǧǣș
Powers of directors
©ƪĈŌėĉƢɆƢŨɆĉŨśƋëŝLjɆŒëǂɆëŝĐɆƢķėɆŨśƋëŝLjȼƖɆëƎƢļĉŒėƖȚɆƢķėɆ$ļƎėĉƢŨƎƖɆ
śëLjɆėLJėƎĉļƖėɆ댌ɆŨįɆƢķėɆƋŨǂėƎƖɆŨįɆƢķėɆŨśƋëŝLjɆëŝĐɆśëLjɆĐėŒėİëƢėɆ
ƢķėļƎɆƋŨǂėƎɆëŝĐɆĐļƖĉƎėƢļŨŝɆƢŨɆŨśśļƢƢėėƖșɆ¶ķėɆëƎƢļĉŒėƖɆİļǁėɆƢķėɆ
$ļƎėĉƢŨƎƖɆƋŨǂėƎɆƢŨɆëƋƋŨļŝƢɆëŝĐɆƎėƋŒëĉėɆ$ļƎėĉƢŨƎƖșɆ
Directors’ interests
This is reported in the Directors’ Remuneration Report on pages
116 to 140 and provides details of the interests of each Director,
ļŝĉŒƪĐļŝİɆĐėƢëļŒƖɆŨįɆĉƪƎƎėŝƢɆļŝĉėŝƢļǁėɆƖĉķėśėƖɆëŝĐɆŒŨŝİȯƢėƎśɆ
incentive schemes, the interests of Directors in the share
ĉëƋļƢëŒɆŨįɆƢķėɆŨśƋëŝLjɆëŝĐɆĐėƢëļŒƖɆŨįɆƢķėļƎɆƖķëƎėɆļŝƢėƎėƖƢƖɆëƖɆëƢɆ
ǦǤɆ$ėĉėśĈėƎɆǥǣǥǤș
Directors’ Report
141 Overview
|
Strategic report
|
Governance
|
Financial statements
Entain plc
|
Annual Report 2021
ŨŝǙļĉƢƖɆŨįɆļŝƢėƎėƖƢ
{ŝɆëƋƋŨļŝƢśėŝƢȚɆėëĉķɆ$ļƎėĉƢŨƎɆśƪƖƢɆŝŨƢļįLjɆƢķėɆŨśƋëŝLjɆŨįɆƢķėļƎɆ
ėLJƢėƎŝëŒɆĈŨëƎĐɆëƋƋŨļŝƢśėŝƢƖȚɆŨƢķėƎɆƖļİŝļǘĉëŝƢɆĉŨśśļƢśėŝƢƖɆëŝĐɆ
ëŝLjɆëĉƢƪëŒɆŨƎɆƋŨƢėŝƢļëŒɆĉŨŝǙļĉƢƖɆŨįɆļŝƢėƎėƖƢșɆ,ëĉķɆ$ļƎėĉƢŨƎɆļƖɆƎėƍƪļƎėĐɆ
ƢŨɆĐļƖĉŒŨƖėɆëĉƢƪëŒɆŨƎɆƋŨƢėŝƢļëŒɆĉŨŝǙļĉƢƖɆŨįɆļŝƢėƎėƖƢƖɇƢŨɆƢķėɆŨëƎĐɆëŝĐɆ
ǂķėƎėɆëĉƢƪëŒɆŨƎɆƋŨƢėŝƢļëŒɆĉŨŝǙļĉƢƖɆŨįɆļŝƢėƎėƖƢɆëƎļƖėȚɆƢķėɇƎėŒėǁëŝƢɆ
$ļƎėĉƢŨƎɆĐŨėƖɆŝŨƢɆƎėĉėļǁėɆŨëƎĐɆƋëƋėƎƖɆëŝĐɆļƖɆėLJĉŒƪĐėĐɆįƎŨśɆ
discussions and voting on the subject matter that gives rise to the
ĉŨŝǙļĉƢșɆ¶ķėɆŨëƎĐɆķëƖɆëɆƋŨŒļĉLjɆƢŨɆļĐėŝƢļįLjɆëŝĐɆśëŝëİėɆ$ļƎėĉƢŨƎƖȼɆ
ĉŨŝǙļĉƢƖɆŨƎɆƋŨƢėŝƢļëŒɆĉŨŝǙļĉƢƖɆŨįɆļŝƢėƎėƖƢș
Directors’ Indemnities
¶ķėɆŨśƋëŝLjɆķëƖɆėŝƢėƎėĐɆļŝƢŨɆĐėėĐƖɆŨįɆļŝĐėśŝļƢLjɆǂļƢķɆėëĉķɆŨįɆƢķėɆ
$ļƎėĉƢŨƎƖȚɆǂķļĉķɆĉŨśƋŒLjɆǂļƢķɆƢķėɆQƖŒėɆŨįɆnëŝɆŨśƋëŝļėƖɆĉƢɆǥǣǣǩȜɆ
ƢķėƖėɆƎėśëļŝɆļŝɆįŨƎĉėɆëƖɆëƢɆƢķėɆĐëƢėɆŨįɆƢķļƖɆƎėƋŨƎƢș
Share capital
$ėƢëļŒƖɆŨįɆƢķėɆŨśƋëŝLjȼƖɆëƪƢķŨƎļƖėĐɆëŝĐɆļƖƖƪėĐɆƖķëƎėɆĉëƋļƢëŒȚɆ
ƢŨİėƢķėƎɆǂļƢķɆĐėƢëļŒƖɆŨįɆƢķėɆśŨǁėśėŝƢɆƢķėƎėļŝȚɆëƎėɆƖėƢɆŨƪƢɆļŝɆ
pŨƢėɆǥǫɆƢŨɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖșɆ¶ķļƖɆļŝĉŒƪĐėƖɆƢķėɆƎļİķƢƖɆëŝĐɆ
obligations attaching to shares and restrictions on the transfer
ŨįɆƖķëƎėƖșɆ
©ƪĈƖƢëŝƢļëŒɆƖķëƎėķŨŒĐļŝİƖɆȱɆQŝƢėƎėƖƢƖɆļŝɆǁŨƢļŝİɆƎļİķƢƖ
ƖɆëƢɆǥǫɆDėĈƎƪëƎLjɆǥǣǥǥȚɆƢķėɆŨśƋëŝLjɆķëĐɆĈėėŝɆŝŨƢļǘėĐɆļŝɆ
ëĉĉŨƎĐëŝĉėɆǂļƢķɆķëƋƢėƎɆǨɆŨįɆƢķėɆ$ļƖĉŒŨƖƪƎėɆëŝĐɆ¶ƎëŝƖƋëƎėŝĉLjɆ
¡ƪŒėƖɆŨįɆƢķėɆįŨŒŒŨǂļŝİɆļŝƢėƎėƖƢƖɆļŝɆƢķėɆŨśƋëŝLjȼƖɆ©ķëƎėƖțɆ
Shareholder
pƪśĈėƎɆŨįɆ
Shares
% of Issued Share
ëƋļƢëŒɆʁɆ¶ŨƢëŒɆ
Voting rights
1
The Capital
Group Companies
64,825,853 ǤǤșǣǨɼ
Sands
ëƋļƢëŒɆnëŝëİėśėŝƢ
ǥǫȚǬǣǣȚǦǦǬ ǧșǬǦɼ
ǤșɆ ¶ķėɆŨśƋëŝLjɆķëĐɆǨǫǩȚǩǨǧȚǦǨǨɆŨƎĐļŝëƎLjɆƖķëƎėƖɆļŝɆļƖƖƪėɆŨŝɆǥǫɆDėĈƎƪëƎLjɆǥǣǥǥș
½ƖėɆŨįɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖ
¶ķėɆƎļƖŏɆśëŝëİėśėŝƢɆŨĈŌėĉƢļǁėƖɆëŝĐɆƋŨŒļĉļėƖɆŨįɆƢķėɆEƎŨƪƋɆëƎėɆƖėƢɆ
ŨƪƢɆǂļƢķļŝɆpŨƢėɆǥǨɆŨįɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖș
Political donations
¶ķėɆŨśƋëŝLjɆĐļĐɆŝŨƢɆśëŏėɆëŝLjɆƋŨŒļƢļĉëŒɆĐŨŝëƢļŨŝƖɆŨƎɆļŝĉƪƎɆëŝLjɆ
ƋŨŒļƢļĉëŒɆėLJƋėŝĐļƢƪƎėɆĐƪƎļŝİɆǥǣǥǤɆȩǥǣǥǣțɆpļŒȪș
Insurance
¶ķėɆŨśƋëŝLjɆśëļŝƢëļŝƖɆëɆĐļƎėĉƢŨƎƖɆëŝĐɆŨįǘĉėƎƖȼɆŒļëĈļŒļƢLjɆļŝƖƪƎëŝĉėɆ
ƋŨŒļĉLjɆļŝɆƎėƖƋėĉƢɆŨįɆëŝLjɆŒėİëŒɆĉŨƖƢƖɆƢķëƢɆśëLjɆĈėɆļŝĉƪƎƎėĐɆëİëļŝƖƢɆƢķėɆ
$ļƎėĉƢŨƎƖɆļŝɆĐėëŒļŝİɆǂļƢķɆëŝLjɆŒėİëŒɆĉŒëļśƖɆŨƎɆļŝǁėƖƢļİëƢļŨŝƖș
Annual General Meeting
¶ķėɆŨśƋëŝLjȼƖɆŝŝƪëŒɆEėŝėƎëŒɆnėėƢļŝİɆǂļŒŒɆĈėɆķėŒĐɆŨŝɆǥǧɆ`ƪŝėɆ
ǥǣǥǥɆëƢɆ¶ķėɆƎėǂėƎLjȚɆķļƖǂėŒŒɆ©ƢƎėėƢȚɆdŨŝĐŨŝɆ,ǤÛɆǧ©ș
Independent Auditors
bnEɆddɆȩȹbnEȺȪɆķëƖɆėLJƋƎėƖƖėĐɆļƢƖɆǂļŒŒļŝİŝėƖƖɆƢŨɆĉŨŝƢļŝƪėɆ
ļŝɆŨįǘĉėɆëƖɆëƪĐļƢŨƎɆëŝĐɆëɆƎėƖŨŒƪƢļŨŝɆƢŨɆƎėȯëƋƋŨļŝƢɆbnEɆǂļŒŒɆĈėɆ
ƋƎŨƋŨƖėĐɆëƢɆƢķėɆįŨƎƢķĉŨśļŝİɆEnș
©ŨɆįëƎɆëƖɆƢķėɆ$ļƎėĉƢŨƎƖɆëƎėɆëǂëƎėȚɆƢķėƎėɆļƖɆŝŨɆƎėŒėǁëŝƢɆëƪĐļƢɆ
ļŝįŨƎśëƢļŨŝɆȩëƖɆĐėǘŝėĐɆĈLjɆ©ėĉƢļŨŝɆǧǤǫɆŨįɆƢķėɆŨśƋëŝļėƖɆĉƢɆǥǣǣǩȪɆ
ŨįɆǂķļĉķɆƢķėɆŨśƋëŝLjȼƖɆëƪĐļƢŨƎƖɆëƎėɆƪŝëǂëƎėȚɆëŝĐɆėëĉķɆ$ļƎėĉƢŨƎɆ
ķëƖɆƢëŏėŝɆ댌ɆƢķėɆƖƢėƋƖɆƢķëƢɆķėɆŨƎɆƖķėɆŨƪİķƢɆƢŨɆķëǁėɆƢëŏėŝɆëƖɆëɆ
$ļƎėĉƢŨƎɆļŝɆŨƎĐėƎɆƢŨɆśëŏėɆķļśƖėŒįɆŨƎɆķėƎƖėŒįɆëǂëƎėɆŨįɆëŝLjɆƎėŒėǁëŝƢɆ
ëƪĐļƢɆļŝįŨƎśëƢļŨŝɆëŝĐɆƢŨɆėƖƢëĈŒļƖķɆƢķëƢɆƢķėɆŨśƋëŝLjȼƖɆëƪĐļƢŨƎƖɆëƎėɆ
ëǂëƎėɆŨįɆƢķëƢɆļŝįŨƎśëƢļŨŝș
{ŝɆĈėķëŒįɆŨįɆƢķėɆŨëƎĐț
`ɆnɆëƎƎLjɆEļĈƖŨŝ
Chairman
ǦɆnëƎĉķɆǥǣǥǥ
¡ėİļƖƢėƎėĐɆŨįǘĉėțɆǦǥɆƢķŨŒɆ©ƢƎėėƢɆ$ŨƪİŒëƖȚɆQƖŒėɆŨįɆnëŝȚɆQnǤɆǤ`
Director’s Report continued
Entain plc
|
Annual Report 2021
142 Governance
Financial statements
145 Independent Auditor’s Report
152 Consolidated income statement
153 Consolidated statement of
comprehensive income
154 Consolidated balance sheet
155 Consolidated statement of
changes in equity
156 Consolidated statement of
ĉëƖķɆǙŨǂƖ
157 Notes to the consolidated
ǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖ
204 Company income statement
205 Company balance sheet
ǥǣǩɆ ɆŨśƋëŝLjɆƖƢëƢėśėŝƢɆŨįɆĉķëŝİėƖɇ
in equity
207 Notes to the Company
ǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖ
212 Glossary
213 Shareholder &
Corporate information
143
Overview
| Strategic report | Governance | Financial statements
Entain plc
| Annual Report 2021
Financial
sta tements
Entain plc | Annual Report 2021
144 Financial statements
Independent Auditor’s Report to
the members of Entain plc
ǤɆ{ƪƎɆŨƋļŝļŨŝɆļƖɆƪŝśŨĐļǘėĐɆ
ÕėɆķëǁėɆëƪĐļƢėĐɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆŨįɆ,ŝƢëļŝɆŒĉɆȩȹƢķėɆ
ŨśƋëŝLjȺȪɆįŨƎɆƢķėɆLjėëƎɆėŝĐėĐɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤɆǂķļĉķɆĉŨśƋƎļƖėɆ
the Consolidated Income Statement, the Consolidated Statement
of Comprehensive Income, the Consolidated Balance Sheet, the
Consolidated Statement of Changes in Equity, the Consolidated
©ƢëƢėśėŝƢɆŨįɆëƖķɆDŒŨǂƖȚɆƢķėɆŨśƋëŝLjɆQŝĉŨśėɆ©ƢëƢėśėŝƢȚɆƢķėɆ
Company Balance Sheet, the Company Statement of Changes
ļŝɇ,ƍƪļƢLjȚɆëŝĐɆƢķėɆƎėŒëƢėĐɆŝŨƢėƖȚɆļŝĉŒƪĐļŝİɆƢķėɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖɆ
ļŝɇpŨƢėɆǧșɆ
In our opinion:
Ɇ ¶ķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆİļǁėɆëɆƢƎƪėɆëŝĐɆįëļƎɆǁļėǂɆŨįɆƢķėɆ
state of the Group’s and of the parent Company’s affairs as
ëƢɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤɆëŝĐɆŨįɆƢķėɆEƎŨƪƋȼƖɆƋƎŨǘƢɆëŝĐɆƋëƎėŝƢɆ
ŨśƋëŝLjȼƖɆƋƎŨǘƢɆįŨƎɆƢķėɆLjėëƎɆƢķėŝɆėŝĐėĐȜɆ
Ɇ ¶ķėɆEƎŨƪƋɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆķëǁėɆĈėėŝɆƋƎŨƋėƎŒLjɆƋƎėƋëƎėĐɆ
ļŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆQŝƢėƎŝëƢļŨŝëŒɆDļŝëŝĉļëŒɆ¡ėƋŨƎƢļŝİɆ©ƢëŝĐëƎĐƖɆ
ëƖɇëĐŨƋƢėĐɆĈLjɆƢķėɆ,ƪƎŨƋėëŝɆ½ŝļŨŝȜɆ
Ɇ ¶ķėɆƋëƎėŝƢɆŨśƋëŝLjɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆķëǁėɆĈėėŝɆƋƎŨƋėƎŒLjɆ
ƋƎėƋëƎėĐɆļŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆ½bɆëĉĉŨƪŝƢļŝİɆƖƢëŝĐëƎĐƖȚɆ
ļŝĉŒƪĐļŝİɇD¡©ɆǤǣǤɆ¡ėĐƪĉėĐɆ$ļƖĉŒŨƖƪƎėɆDƎëśėǂŨƎŏȜɆëŝĐɆ
Ɇ ¶ķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆķëǁėɆĈėėŝɆƋƎėƋëƎėĐɆļŝɆëĉĉŨƎĐëŝĉėɆ
ǂļƢķɇƢķėɆƎėƍƪļƎėśėŝƢƖɆŨįɆƢķėɆQƖŒėɆŨįɆnëŝɆŨśƋëŝļėƖɆĉƢɆǥǣǣǩșɆ
Basis for opinion
ÕėɆĉŨŝĐƪĉƢėĐɆŨƪƎɆëƪĐļƢɆļŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆQŝƢėƎŝëƢļŨŝëŒɆ
©ƢëŝĐëƎĐƖɆŨŝɆƪĐļƢļŝİɆȩ½bȪɆȩȹQ©ƖɆȩ½bȪȺȪɆëŝĐɆëƋƋŒļĉëĈŒėɆŒëǂșɆ
{ƪƎɆƎėƖƋŨŝƖļĈļŒļƢļėƖɆëƎėɆĐėƖĉƎļĈėĐɆĈėŒŨǂșɆÕėɆķëǁėɆįƪŒǘŒŒėĐɆŨƪƎɆ
ethical responsibilities under, and are independent of the Group in
ëĉĉŨƎĐëŝĉėɆǂļƢķȚɆ½bɆėƢķļĉëŒɆƎėƍƪļƎėśėŝƢƖɆļŝĉŒƪĐļŝİɆƢķėɆD¡Ɇ,ƢķļĉëŒɆ
©ƢëŝĐëƎĐɆëƖɆƎėƍƪļƎėĐɆĈLjɆƢķėɆƎŨǂŝɆ$ėƋėŝĐėŝĉļėƖȼɆƪĐļƢɆ¡ƪŒėƖɆëŝĐɆ
EƪļĐëŝĉėșɆÕėɆĈėŒļėǁėɆƢķëƢɆƢķėɆëƪĐļƢɆėǁļĐėŝĉėɆǂėɆķëǁėɆŨĈƢëļŝėĐɆļƖɆ
ëɆƖƪįǘĉļėŝƢɆëŝĐɆëƋƋƎŨƋƎļëƢėɆĈëƖļƖɆįŨƎɆŨƪƎɆŨƋļŝļŨŝșɆ
2 Key audit matters: our assessment of risks of
śëƢėƎļëŒɇśļƖƖƢëƢėśėŝƢ
bėLjɆëƪĐļƢɆśëƢƢėƎƖɆëƎėɆƢķŨƖėɆśëƢƢėƎƖɆƢķëƢȚɆļŝɆŨƪƎɆƋƎŨįėƖƖļŨŝëŒɆ
ŌƪĐİėśėŝƢȚɆǂėƎėɆŨįɆśŨƖƢɆƖļİŝļǘĉëŝĉėɆļŝɆƢķėɆëƪĐļƢɆŨįɆƢķėɆǘŝëŝĉļëŒɆ
ƖƢëƢėśėŝƢƖɆëŝĐɆļŝĉŒƪĐėɆƢķėɆśŨƖƢɆƖļİŝļǘĉëŝƢɆëƖƖėƖƖėĐɆƎļƖŏƖɆŨįɆ
śëƢėƎļëŒɆśļƖƖƢëƢėśėŝƢɆȩǂķėƢķėƎɆŨƎɆŝŨƢɆĐƪėɆƢŨɆįƎëƪĐȪɆļĐėŝƢļǘėĐɆĈLjɆ
ƪƖȚɆļŝĉŒƪĐļŝİɆƢķŨƖėɆǂķļĉķɆķëĐɆƢķėɆİƎėëƢėƖƢɆėįįėĉƢɆŨŝțɆƢķėɆŨǁėƎ댌Ɇ
ëƪĐļƢɆƖƢƎëƢėİLjȜɆƢķėɆ댌ŨĉëƢļŨŝɆŨįɆƎėƖŨƪƎĉėƖɆļŝɆƢķėɆëƪĐļƢȜɆëŝĐɆĐļƎėĉƢļŝİɆ
ƢķėɆėįįŨƎƢƖɆŨįɆƢķėɆėŝİëİėśėŝƢɆƢėëśșɆÕėɆƖƪśśëƎļƖėɆĈėŒŨǂɆƢķėɆ
ŏėLjɆëƪĐļƢɆśëƢƢėƎƖȚɆļŝɆĐėĉƎėëƖļŝİɆŨƎĐėƎɆŨįɆëƪĐļƢɆƖļİŝļǘĉëŝĉėȚɆļŝɆ
ëƎƎļǁļŝİɆëƢɆŨƪƎɆëƪĐļƢɆŨƋļŝļŨŝɆëĈŨǁėȚɆƢŨİėƢķėƎɆǂļƢķɆŨƪƎɆŏėLjɆëƪĐļƢɆ
ƋƎŨĉėĐƪƎėƖɆƢŨɆëĐĐƎėƖƖɆƢķŨƖėɆśëƢƢėƎƖɆëŝĐɆŨƪƎɆǘŝĐļŝİƖɆįƎŨśɆƢķŨƖėɆ
procedures in order that the Company’s members, as a body, may
ĈėƢƢėƎɆƪŝĐėƎƖƢëŝĐɆƢķėɆƋƎŨĉėƖƖɆĈLjɆǂķļĉķɆǂėɆëƎƎļǁėĐɆëƢɆŨƪƎɆëƪĐļƢɆ
ŨƋļŝļŨŝșɆ¶ķėƖėɆśëƢƢėƎƖɆǂėƎėɆëĐĐƎėƖƖėĐȚɆëŝĐɆŨƪƎɆǘŝĐļŝİƖɆëƎėɆĈëƖėĐɆ
ŨŝɆƋƎŨĉėĐƪƎėƖɆƪŝĐėƎƢëŏėŝȚɆļŝɆƢķėɆĉŨŝƢėLJƢɆŨįȚɆëŝĐɆƖŨŒėŒLjɆįŨƎɆƢķėɆ
ƋƪƎƋŨƖėɆŨįȚɆŨƪƎɆëƪĐļƢɆŨįɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëƖɆëɆǂķŨŒėȚɆëŝĐɆ
in forming our opinion thereon, and consequently are incidental
ƢŨɆƢķëƢɆŨƋļŝļŨŝȚɆëŝĐɆǂėɆĐŨɆŝŨƢɆƋƎŨǁļĐėɆëɆƖėƋëƎëƢėɆŨƋļŝļŨŝɆŨŝɆ
ƢķėƖėɆśëƢƢėƎƖș
A
Revenue recognition from
online operations
B
Recoverability of parent
Company’s investments in
subsidiaries and receivables
due from Group entities
ȩëƎėŝƢɆŨśƋëŝLjɆŨŝŒLjȪ
C
ɆɆEëśļŝİɆƢëLJėƖɆļŝɆ
ļśśëƢƪƎėɆśëƎŏėƢƖ
D
ɆɆnëŝëİėśėŝƢɆŨǁėƎƎļĐėɆ
of controls
E
ɆɆ$ļƖĉŒŨƖƪƎėɆȱɆnƖɆļŝĉŒƪĐļŝİɆ
separately disclosed items
F
ɆɆƎŨǁļƖļŨŝƖȦĉŨŝƢļŝİėŝƢɆ
liabilities for litigation
ëŝĐȦŨƎɆĈƎėëĉķėƖɆŨįɆŒëǂƖɆ
and regulations
G
Acquisition accounting
H
Valuation of the Group’s
EëŒëɆŨƎëŒɆĐėǘŝėĐɆ
ĈėŝėǘƢɆƋėŝƖļŨŝɆ
I
Revenue recognition
įƎŨśɇ½bɆ¡ėƢëļŒ
J
ɆɆ$ļƎėĉƢɆƢëLJëƢļŨŝ
K
Share-based payments
L
Contingent consideration
M
Going concern and Long-
Term Viability Statement
ŨƢėŝƢļëŒɆļśƋëĉƢɆŨŝɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖ
dļŏėŒļķŨŨĐɆŨįɆśëƢėƎļëŒɆśļƖƖƢëƢėśėŝƢ
bėLjɆëƪĐļƢɆśëƢƢėƎ
Change compared to prior year
{ƢķėƎɆƎļƖŏƖ pėǂɆƎļƖŏ
Low High
High
A
B
C
D
M
H
I
J
K
L
E
Dynamic Audit planning tool
ȩ¡ėŒëƢļǁėɆƖļİŝļǘĉëŝĉėɆŨįɆëƪĐļƢɆƎļƖŏƖɆĈėįŨƎėɆƢëŏļŝİɆëĉĉŨƪŝƢɆŨįɆĉŨŝƢƎŨŒȩƖȪ
F
G
145 Overview
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Strategic report
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Governance
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Financial statements
Entain plc
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Annual Report 2021
QŝĐėƋėŝĐėŝƢɆƪĐļƢŨƎȼƖɆ¡ėƋŨƎƢɆƢŨɆƢķėɆśėśĈėƎƖɆŨįɆ,ŝƢëļŝɆƋŒĉɆcontinued
Data reconciliations: Where GITCs over in-house managed
systems handling the transfer of data are not designed and
implemented effectively, comparing the amounts of revenue in the
accounting records against the amounts reported in the platform
ŨƎɆĈLjɆƢķļƎĐɆƋëƎƢļėƖɆȩƖŨƪƎĉėɆĐëƢëȪȚɆëƖɆëƋƋŒļĉëĈŒėȚɆįŨƎɆėëĉķɆśŨŝƢķɆëŝĐɆ
ĈLjɇŒëĈėŒɆëŝĐɆƎėĉŨŝĉļŒļŝİɆƢķėɆļŝįŨƎśëƢļŨŝɆĈėƢǂėėŝɆƖLjƖƢėśƖș
¶ėƖƢƖɆŨįɆĐėƢëļŒƖɆȩƢƎëĉļŝİɆëŝĐɆǁŨƪĉķļŝİȪțɆWe assessed the
appropriateness of revenue recognised by:
Tracing a sample of sporting betting and gaming transactions
ƢķƎŨƪİķɆƢķėɆƋŒëƢįŨƎśɆŨƎɆƢŨɆƢķļƎĐɆƋëƎƢLjɆƖLjƖƢėśƖɆȩǂķėŝɆ
outsourced), and assessing that they are appropriately recorded
ǂļƢķļŝɆƢķėɆǘŝëŝĉļëŒɆļŝįŨƎśëƢļŨŝɆƖLjƖƢėśƖɆëƢɆƢķėɆƢƎëŝƖëĉƢļŨŝɆŒėǁėŒȜ
Vouching a sample of sporting betting transactions from data
ǂëƎėķŨƪƖėɆƢŨɆƢķėɆƋŒëƢįŨƎśɆƢŨɆǁėƎļįLjɆĉŨƎƎėĉƢɆĉëŒĉƪŒëƢļŨŝɆŨįɆƢķėɆ
ƋëLjȯŨƪƢɆĈëƖėĐɆŨŝɆƢķėɆƖƢëŏėɆƋŒëĉėĐɆëŝĐɆŨĐĐƖɆŨįįėƎėĐɆŨŝɆƢķėɆ
ļŝĐļǁļĐƪëŒɆĈėƢȜ
Vouching a sample of sporting betting and gaming transactions
įƎŨśɆĐëƢëɆǂëƎėķŨƪƖėɆƢŨɆƢķėɆƋŒëƢįŨƎśɆŨƎɆƢŨɆƢķļƎĐɆƋëƎƢLjɆ
ƖLjƖƢėśƖɆȩǂķėŝɆŨƪƢƖŨƪƎĉėĐȪɆëŝĐɆëƖƖėƖƖļŝİɆƢķëƢɆƢķėLjɆëƎėɆ
ëƋƋƎŨƋƎļëƢėŒLjɆƎėĉŨƎĐėĐȜɆ
Ɇ {ĈƢëļŝļŝİɆėLJƢėƎŝëŒɆĉŨŝǘƎśëƢļŨŝɆŨįɆĉŒļėŝƢɆįƪŝĐƖɆķėŒĐɆļŝɆƢķėɆ
ƋëLjśėŝƢɆƖėƎǁļĉėɆƋƎŨǁļĐėƎƖɆëŝĐɆƎėĉŨŝĉļŒļŝİɆƢķėɆŨĈƢëļŝėĐɆĈëŝŏɆ
ĈëŒëŝĉėɆĉŨŝǘƎśëƢļŨŝɆƢŨɆƢķėɆĉƪƖƢŨśėƎƖȼɆëĉĉŨƪŝƢƖȜɆëŝĐ
Ɇ ėƎįŨƎśļŝİɆëɆƖƪĈƖƢëŝƢļǁėɆëŝëŒLjƢļĉëŒɆƋƎŨĉėĐƪƎėɆŨǁėƎɆƢķėɆȹ¡ėƢƪƎŝɆ
ƢŨɆƋŒëLjėƎȺɆƎëƢļŨș
Assessing transparency: We also considered the adequacy of the
EƎŨƪƋȼƖɆĐļƖĉŒŨƖƪƎėƖɆļŝɆƎėƖƋėĉƢɆŨįɆƎėǁėŝƪėș
{ƪƎɆǘŝĐļŝİƖɆȱɆ{ƪƎɆƢėƖƢļŝİɆļĐėŝƢļǘėĐɆŝŨɆśëƢėƎļëŒɆėƎƎŨƎƖɆļŝɆƢķėɆ
recording of revenue transactions for the Online businesses
ȩǥǣǥǣțɇŝŨɆśëƢėƎļëŒɆėƎƎŨƎƖɆļĐėŝƢļǘėĐȪșɆ
Revenue recognition from online operations
ȩǥǣǥǤțɆɞǦȚǣǤǣșǥɆśļŒŒļŨŝȚɆǥǣǥǣțɆɞǥȚǩǫǣșǩɆśļŒŒļŨŝȪ
¡ėįėƎɆƢŨɆƋëİėɆǤǩǦɆȩëĉĉŨƪŝƢļŝİɆƋŨŒļĉLjȪɆëŝĐɆƋëİėƖɆǤǩǧɆƢŨɆǤǩǩɆ
ȩǘŝëŝĉļëŒɆĐļƖĉŒŨƖƪƎėƖȪș
The risk (Data capture and processing error or fraud – Revenue
įƎŨśɆŨŝŒļŝėɆŨƋėƎëƢļŨŝƖȪțɆƎļƖŏɆǁƖɆǥǣǥǣ ÍÎ – Revenue streams
ëƎėɆĉŨśƋƪƢėĐɆëŝĐɆƎėĉŨƎĐėĐɆŨŝɆķļİķŒLjɆĉŨśƋŒėLJɆQ¶ɆƖLjƖƢėśƖȚɆǂķļĉķɆ
ƋƎŨĉėƖƖɆëɆķļİķɆǁŨŒƪśėɆŨįɆŒŨǂɆǁëŒƪėɆƢƎëŝƖëĉƢļŨŝƖɆǂļƢķɆƢķėɆŏėLjɆ
ėŒėśėŝƢƖɆĈėļŝİɆƢķėɆİëśļŝİɆëŝĐɆĈėƢƢļŝİɆƋŒëƢįŨƎśƖɆȩȹƋŒëƢįŨƎśȺȪȚɆ
ĉƪƖƢŨśėƎɆǂ댌ėƢƖȚɆƢķėɆĐëƢëɆǂëƎėķŨƪƖėȚɆëŝĐɆƢķėɆǘŝëŝĉļëŒɆƖLjƖƢėśƖșɆ
Systematic errors in calculations in aggregation could result in
ļŝĉŨƎƎėĉƢɆƎėƋŨƎƢļŝİɆŨįɆƎėǁėŝƪėșɆ
The Group’s income streams across its online operations are
ĐėƋėŝĐėŝƢɆŨŝɆƢķėļƎɆĉŨƎėɆǘŝëŝĉėɆƋƎŨĉėƖƖėƖɆëŝĐɆėįįėĉƢļǁėŝėƖƖɆŨįɆ
operational controls to accurately report and reconcile revenue
ƢƎëŝƖëĉƢļŨŝƖɆĈėƢǂėėŝɆƢķėɆƋŒëƢįŨƎśȚɆƢķėɆĐëƢëɆǂëƎėķŨƪƖėɆëŝĐɆƢķėɆ
ǘŝëŝĉļëŒɆƖLjƖƢėśƖȚɆëŝĐɆƢķėƎėɆļƖɆëɆƎļƖŏɆƢķëƢɆƪŝëƪƢķŨƎļƖėĐɆĉķëŝİėƖɆ
ĉŨƪŒĐɆĈėɆśëĐėɆļŝɆƢķėɆĐëƢëɆǂëƎėķŨƪƖėɆŨƎɆƢķėɆǘŝëŝĉļëŒɆƖLjƖƢėśƖɆ
ǂķļĉķɆśëLjɆƎėƖƪŒƢɆļŝɆƢķėɆŨǁėƎƖƢëƢėśėŝƢɆŨįɆƎėǁėŝƪėșɆ
Our response – Our procedures included:
Control operation:ɆDŨƎɆƢķėɆEƎŨƪƋȼƖɆļŝȯķŨƪƖėɆƖLjƖƢėśƖɆǂėɆƪƢļŒļƖėĐɆ
ŨƪƎɆŨǂŝɆQ¶ɆƖƋėĉļëŒļƖƢƖɆƢŨɆëƖƖėƖƖɆƢķėɆƎėŒėǁëŝƢɆQ¶ɆƖLjƖƢėśƖɆëŝĐɆ
controls by:
Testing the functionality of the platform that processes player
ëĉƢļǁļƢLjȚɆĉƪƖƢŨśėƎȼƖɆǂ댌ėƢƖɆƎėĉŨŝĉļŒļëƢļŨŝɆëŝĐɆĉëƖķɆśŨǁėśėŝƢƖȜ
Ɇ ¶ėƖƢļŝİɆƢķėɆĐëƢëɆǙŨǂɆļŝɆƢķėɆŨŝŒļŝėɆĈėƢƢļŝİɆėŝǁļƎŨŝśėŝƢɆĈLjɆ
observing bets placed from the customer-facing systems and
tracing the transactions to the platform, and then from the
ĐëƢëɆǂëƎėķŨƪƖėɆȩƖƢŨƎëİėȪɆƢŨɆƢķėɆǘŝëŝĉļëŒɆļŝįŨƎśëƢļŨŝɆƖLjƖƢėśƖɆ
ȩëĉĉŨƪŝƢļŝİɆƎėĉŨƎĐƖȪɆƢŨɆëƖƖėƖƖɆǂķėƢķėƎɆƢķėɆļŝįŨƎśëƢļŨŝɆļƖɆƋëƖƖėĐɆ
ëƋƋƎŨƋƎļëƢėŒLjɆįƎŨśɆŨŝėɆƖLjƖƢėśɆƢŨɆëŝŨƢķėƎȜɆ
Ɇ ¶ėƖƢļŝİɆƢķėɆƎėŒėǁëŝƢɆİėŝėƎëŒɆQ¶ɆĉŨŝƢƎŨŒƖɆȩȹEQ¶ƖȺȪɆļŝĉŒƪĐļŝİɆ
access to programs and data, program change and development
ȱɆƖƋėĉļǘĉ댌LjɆėǁëŒƪëƢļŝİɆëĉĉŨƪŝƢɆƖėƢȯƪƋɆëŝĐɆƢėƎśļŝëƢļŨŝɆŨįɆƪƖėƎƖȚɆ
ƋëƖƖǂŨƎĐɆƎėƖƢƎļĉƢļŨŝƖȚɆƪƖėƎƖɆǂļƢķɆƋƎļǁļŒėİėĐɆëĉĉėƖƖȚɆƋƎŨİƎëśɆ
ĉķëŝİėɆëŝĐɆĐėǁėŒŨƋśėŝƢɆƋƎŨĉėƖƖɆĉŨŝƢƎŨŒƖȚɆëŝĐɆƢėƖƢļŝİɆǂķėƢķėƎɆ
ëŝLjɆƪŝëƪƢķŨƎļƖėĐɆĉķëŝİėƖɆķëǁėɆĈėėŝɆśëĐėɆƢŨɆƢķėɆƖLjƖƢėśȜ
Where GITCs are not operating effectively over in-house
systems handling the transfer of data, testing the operating
effectiveness of compensating manual controls reconciling the
ëĉĉŨƪŝƢļŝİɆƎėĉŨƎĐƖɆƢŨɆƢķėɆƢķļƎĐɆƋëƎƢLjɆƖLjƖƢėśƖȜɆëŝĐ
Assessing the overall IT environment, including relevant IT
security policies and procedures, IT organisational structure,
Q¶ɇƖƢƎëƢėİLjɆëŝĐɆƎėƋŨƎƢļŝİȚɆĐļƖëƖƢėƎɆƎėĉŨǁėƎLjɆëŝĐɆĈëĉŏȯƪƋɆƢėƖƢļŝİș
Entain plc
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Annual Report 2021
146 Financ
ial statements
¡ėĉŨǁėƎëĈļŒļƢLjɆŨįɆƋëƎėŝƢɆŨśƋëŝLjȼƖɆļŝǁėƖƢśėŝƢƖɆļŝɆƖƪĈƖļĐļëƎļėƖɆ
ëŝĐɆƎėĉėļǁëĈŒėƖɆĐƪėɆįƎŨśɆEƎŨƪƋɆėŝƢļƢļėƖɆȩƋëƎėŝƢɆŨśƋëŝLjɆŨŝŒLjȪțɆ
(2021 carrying value: £5,114.7 million, 2020 carrying value:
ɞǨȚǣǤǫșǧɆśļŒŒļŨŝȪ
¡ėįėƎɆƢŨɆƋëİėƖɆǥǣǪɆëŝĐɆǥǣǬɆȩŨśƋëŝLjɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉLjȪɆëŝĐɆ
ƋëİėƖɆǥǤǣɆƢŨɆǥǤǤɆȩŨśƋëŝLjɆǘŝëŝĉļëŒɆĐļƖĉŒŨƖƪƎėƖȪș
¶ķėɆƎļƖŏɆȩ¡ėĉŨǁėƎëĈļŒļƢLjɆŨįɆƋëƎėŝƢɆŨśƋëŝLjȼƖɆļŝǁėƖƢśėŝƢƖɆ
ļŝɆƖƪĈƖļĐļëƎļėƖɆëŝĐɆƎėĉėļǁëĈŒėƖɆĐƪėɆįƎŨśɆEƎŨƪƋɆėŝƢļƢļėƖȪțɆ
risk vs 2020 Ð – The carrying amount of the parent Company’s
investments in subsidiaries and of the intra-Group debtor balance
ƢŨİėƢķėƎɆƎėƋƎėƖėŝƢƖɆǬǬɼɆȩǥǣǥǣțɆǬǬɼȪɆŨįɆƢķėɆƋëƎėŝƢɆŨśƋëŝLjȼƖɆ
ƢŨƢëŒɆëƖƖėƢƖșɆ¶ķėļƎɆƎėĉŨǁėƎëĈļŒļƢLjɆļƖɆŝŨƢɆëƢɆëɆķļİķɆƎļƖŏɆŨįɆƖļİŝļǘĉëŝƢɆ
śļƖƖƢëƢėśėŝƢɆŨƎɆƖƪĈŌėĉƢɆƢŨɆƖļİŝļǘĉëŝƢɆŌƪĐİėśėŝƢșɆLŨǂėǁėƎȚɆĐƪėɆ
ƢŨɆƢķėļƎɆśëƢėƎļëŒļƢLjɆļŝɆƢķėɆĉŨŝƢėLJƢɆŨįɆƢķėɆƋëƎėŝƢɆŨśƋëŝLjɆǘŝëŝĉļëŒɆ
statements, this is considered to be the area that had the greatest
ėįįėĉƢɆŨŝɆŨƪƎɆŨǁėƎ댌ɆƋëƎėŝƢɆŨśƋëŝLjɆëƪĐļƢș
ÕėɆƋėƎįŨƎśėĐɆƢķėɆƢėƖƢƖɆĈėŒŨǂɆƎëƢķėƎɆƢķëŝɆƖėėŏļŝİɆƢŨɆƎėŒLjɆŨŝɆëŝLjɆŨįɆ
the Company’s controls because the nature of the balance is such
ƢķëƢɆǂėɆǂŨƪŒĐɆėLJƋėĉƢɆƢŨɆŨĈƢëļŝɆëƪĐļƢɆėǁļĐėŝĉėɆƋƎļśëƎļŒLjɆƢķƎŨƪİķɆ
ƢķėɆĐėƢëļŒėĐɆƋƎŨĉėĐƪƎėƖɆĐėƖĉƎļĈėĐș
Our response – Our procedures included:
Benchmarking assumptions: We challenged the assumptions
ƪƖėĐɆļŝɆƢķėɆĉëƖķɆǙŨǂƖɆļŝĉŒƪĐėĐɆļŝɆƢķėɆĈƪĐİėƢƖɆĈëƖėĐɆŨŝɆ
ŨƪƎɆŏŝŨǂŒėĐİėɆŨįɆƢķėɆEƎŨƪƋɆëŝĐɆƢķėɆśëƎŏėƢƖɆļŝɆǂķļĉķɆƢķėɆ
ƖƪĈƖļĐļëƎļėƖɆŨƋėƎëƢėș
Historical comparisons: We assessed the reasonableness
of the budgets by considering the historical accuracy of the
ƋƎėǁļŨƪƖɆįŨƎėĉëƖƢƖș
Our sector experience: We evaluated the current level of trading,
ļŝĉŒƪĐļŝİɆļĐėŝƢļįLjļŝİɆëŝLjɆļŝĐļĉëƢļŨŝƖɆŨįɆëɆĐŨǂŝƢƪƎŝɆļŝɆëĉƢļǁļƢLjȚɆ
ĈLjɆėLJëśļŝļŝİɆƢķėɆƋŨƖƢɆLjėëƎɆėŝĐɆśëŝëİėśėŝƢɆëĉĉŨƪŝƢƖɆëŝĐɆ
ĉŨŝƖļĐėƎļŝİɆŨƪƎɆŏŝŨǂŒėĐİėɆŨįɆƢķėɆEƎŨƪƋɆëŝĐɆƢķėɆśëƎŏėƢș
Comparing valuations: We compared the carrying value of the
parent Company’s investments in subsidiaries and receivables
due from Group entities to value in use calculations for the relevant
E½ƖɆëŝĐɆƢŨɆƢķėɆśëƎŏėƢɆĉëƋļƢëŒļƖëƢļŨŝɆŨįɆƢķėɆEƎŨƪƋș
Assessing transparency: We assessed the adequacy of the parent
Company’s disclosures in respect of investments in subsidiaries and
EƎŨƪƋɆĐėĈƢŨƎɆĈëŒëŝĉėƖș
{ƪƎɆǘŝĐļŝİƖ – We found the Company’s conclusion that there is
no impairment of investments in subsidiaries and intercompany
ƎėĉėļǁëĈŒėƖɆƢŨɆĈėɆĈëŒëŝĉėĐɆȩǥǣǥǣțɆĈëŒëŝĉėĐȪș
ÕėɆĉŨŝƢļŝƪėɆƢŨɆƋėƎįŨƎśɆƋƎŨĉėĐƪƎėƖɆŨǁėƎɆİëśļŝİɆƢëLJėƖɆļŝɆļśśëƢƪƎėɆ
śëƎŏėƢƖșɆLŨǂėǁėƎȚɆįŨŒŒŨǂļŝİɆƢķėɆƎƪŒļŝİɆśëĐėɆĈLjɆƢķėɆĐśļŝļƖƢƎëƢļǁėɆ
ŨƪƎƢɆŨįɆƋƋėëŒɆļŝɆƢķėŝƖɆļŝɆƎėŒëƢļŨŝɆƢŨɆƢķėɆķļƖƢŨƎļĉɆEƎėėŏɆƢëLJɆĉëƖėɆ
ĐƪƎļŝİɆƢķėɆLjėëƎȚɆǂėɆķëǁėɆŝŨƢɆëƖƖėƖƖėĐɆƢķļƖɆëƖɆŨŝėɆŨįɆƢķėɆśŨƖƢɆ
ƖļİŝļǘĉëŝƢɆƎļƖŏƖɆļŝɆŨƪƎɆĉƪƎƎėŝƢɆLjėëƎɆëƪĐļƢɆëŝĐȚɆƢķėƎėįŨƎėȚɆļƢɆļƖɆŝŨƢɆ
ƖėƋëƎëƢėŒLjɆļĐėŝƢļǘėĐɆļŝɆŨƪƎɆƎėƋŨƎƢɆƢķļƖɆLjėëƎș
3 Our application of materiality and an overview of the
scope of our audit
nëƢėƎļëŒļƢLjɆįŨƎɆƢķėɆEƎŨƪƋɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëƖɆëɆǂķŨŒėɆǂëƖɆ
ƖėƢɆëƢɆɞǦǨɆśļŒŒļŨŝɆȩǥǣǥǣțɆɞǥǣɆśļŒŒļŨŝȪȚɆĐėƢėƎśļŝėĐɆǂļƢķɆƎėįėƎėŝĉėɆ
ƢŨɆëɆĈėŝĉķśëƎŏɆŨįɆEƎŨƪƋɆƎėǁėŝƪėɆȩŨįɆǂķļĉķɆļƢɆƎėƋƎėƖėŝƢƖɆǣșǬɼɆ
ȩǥǣǥǣțɆǣșǩɼȪȪșɆ¶ķėɆƖļİŝļǘĉëŝƢɆļŝĉƎėëƖėɆļŝɆśëƢėƎļëŒļƢLjɆƋƎļśëƎļŒLjɆ
ëƎŨƖėɆĐƪėɆŨƪƎɆƎėëƖƖėƖƖśėŝƢɆŨįɆƢķėɆƎļƖŏɆļŝɆƢķėɆĈƪƖļŝėƖƖȚɆƢķėɆİƎŨǂƢķɆ
ļŝɆƎėǁėŝƪėɆëŝĐȚɆƢķėɆEƎŨƪƋȼƖɆƎėƖļŒļėŝĉėɆƢŨɆƢķėɆļśƋëĉƢɆŨįɆŨǁļĐȯǤǬșɆ
ÕėɆĉŨŝƖļĐėƎɆƢŨƢëŒɆƎėǁėŝƪėɆƢŨɆĈėɆƢķėɆśŨƖƢɆëƋƋƎŨƋƎļëƢėɆĈėŝĉķśëƎŏɆ
ëƖɆļƢɆƋƎŨǁļĐėƖɆëɆśŨƎėɆƖƢëĈŒėɆśėëƖƪƎėɆLjėëƎɆŨŝɆLjėëƎɆƢķëŝɆEƎŨƪƋɆƋƎŨǘƢɆ
ĈėįŨƎėɆƢëLJș
nëƢėƎļëŒļƢLjɆįŨƎɆƢķėɆƋëƎėŝƢɆŨśƋëŝLjɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëƖɆëɆ
ǂķŨŒėɆǂëƖɆƖėƢɆëƢɆɞǤǪɆśļŒŒļŨŝɆȩǥǣǥǣțɆɞǫɆśļŒŒļŨŝȪȚɆĐėƢėƎśļŝėĐɆǂļƢķɆ
ƎėįėƎėŝĉėɆƢŨɆëɆĈėŝĉķśëƎŏɆŨįɆƢŨƢëŒɆëƖƖėƢƖȚɆŨįɆǂķļĉķɆļƢɆƎėƋƎėƖėŝƢƖɆ
ǣșǦɼɆȩǥǣǥǣțɆǣșǥɼȪș
QŝɆŒļŝėɆǂļƢķɆŨƪƎɆëƪĐļƢɆśėƢķŨĐŨŒŨİLjȚɆŨƪƎɆƋƎŨĉėĐƪƎėƖɆŨŝɆļŝĐļǁļĐƪëŒɆ
ëĉĉŨƪŝƢɆĈëŒëŝĉėƖɆëŝĐɆĐļƖĉŒŨƖƪƎėƖɆǂėƎėɆƋėƎįŨƎśėĐɆƢŨɆëɆŒŨǂėƎɆ
threshold, performance materiality, so as to reduce to an
ëĉĉėƋƢëĈŒėɆŒėǁėŒɆƢķėɆƎļƖŏɆƢķëƢɆļŝĐļǁļĐƪ댌LjɆļśśëƢėƎļëŒɆśļƖƖƢëƢėśėŝƢƖɆ
in individual account balances add up to a material amount across
ƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëƖɆëɆǂķŨŒėș
ėƎįŨƎśëŝĉėɆśëƢėƎļëŒļƢLjɆǂëƖɆƖėƢɆëƢɆǪǨɼɆȩǥǣǥǣțɆǪǨɼȪɆŨįɆśëƢėƎļëŒļƢLjɆ
įŨƎɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëƖɆëɆǂķŨŒėȚɆǂķļĉķɆėƍƪëƢėƖɆƢŨɆ
ɞǥǩșǥǨɆśļŒŒļŨŝɆȩǥǣǥǣțɆɞǤǨɆśļŒŒļŨŝȪɆįŨƎɆƢķėɆEƎŨƪƋɆëŝĐɆɞǤǥșǪǨɆśļŒŒļŨŝɆ
ȩǥǣǥǣțɆɞǩɆśļŒŒļŨŝȪɆįŨƎɆƢķėɆƋëƎėŝƢɆŨśƋëŝLjșɆÕėɆëƋƋŒļėĐɆƢķļƖɆ
percentage in our determination of performance materiality
ĈėĉëƪƖėɆǂėɆĐļĐɆŝŨƢɆļĐėŝƢļįLjɆëŝLjɆįëĉƢŨƎƖɆļŝĐļĉëƢļŝİɆëŝɆėŒėǁëƢėĐɆ
ŒėǁėŒɇŨįɆƎļƖŏșɆ
We agreed to report to the Audit Committee any corrected or
ƪŝĉŨƎƎėĉƢėĐɆļĐėŝƢļǘėĐɆśļƖƖƢëƢėśėŝƢƖɆėLJĉėėĐļŝİɆɞǤșǫɆśļŒŒļŨŝɆ
ȩǥǣǥǣțɆɞǤɆśļŒŒļŨŝȪȚɆļŝɆëĐĐļƢļŨŝɆƢŨɆŨƢķėƎɆļĐėŝƢļǘėĐɆśļƖƖƢëƢėśėŝƢƖɆ
ƢķëƢɇǂëƎƎëŝƢėĐɆƎėƋŨƎƢļŝİɆŨŝɆƍƪëŒļƢëƢļǁėɆİƎŨƪŝĐƖș
{įɆƢķėɆEƎŨƪƋȼƖɆǤǣɆȩǥǣǥǣțɆǤǣȪɆƎėƋŨƎƢļŝİɆĉŨśƋŨŝėŝƢƖȚɆǂėɆƖƪĈŌėĉƢėĐɆ
ƢķƎėėɆȩǥǣǥǣțɆįŨƪƎȪɆƢŨɆįƪŒŒɆƖĉŨƋėɆëƪĐļƢƖɆįŨƎɆEƎŨƪƋɆƋƪƎƋŨƖėƖɆëŝĐɆŨŝėɆ
ȩǥǣǥǣțɆŝŨŝėȪɆƢŨɆƖƋėĉļǘėĐɆƎļƖŏȯįŨĉƪƖėĐɆëƪĐļƢɆƋƎŨĉėĐƪƎėƖșɆ¶ķėɆŒëƢƢėƎɆ
ǂëƖɆŝŨƢɆǘŝëŝĉļ댌LjɆƖļİŝļǘĉëŝƢɆėŝŨƪİķɆƢŨɆƎėƍƪļƎėɆëɆįƪŒŒɆƖĉŨƋėɆëƪĐļƢɆ
įŨƎɆEƎŨƪƋɆƋƪƎƋŨƖėƖȚɆĈƪƢɆĐļĐɆƋƎėƖėŝƢɆƖƋėĉļǘĉɆļŝĐļǁļĐƪëŒɆƎļƖŏƖɆƢķëƢɆ
ŝėėĐėĐɆƢŨɆĈėɆëĐĐƎėƖƖėĐșɆ¶ķėɆĐėĉƎėëƖėɆļŝɆŝƪśĈėƎɆŨįɆĉŨśƋŨŝėŝƢƖɆ
ƖƪĈŌėĉƢɆƢŨɆįƪŒŒɆƖĉŨƋėɆëƪĐļƢƖɆļƖɆëɆƎėƖƪŒƢɆŨįɆƢķėɆEƎŨƪƋɆĉŨśĈļŝļŝİɆƢǂŨɆ
ĉŨśƋŨŝėŝƢƖɆƢŨİėƢķėƎɆļŝɆƢķėɆĉƪƎƎėŝƢɆLjėëƎș
ÕėɆƖƪĈŌėĉƢėĐɆŨŝėɆȩǥǣǥǣțɆŝŨŝėȪɆĉŨśƋŨŝėŝƢɆƢŨɆƖƋėĉļǘėĐɆƎļƖŏȯ
focused audit procedures over revenue, cost of sales and
ĉŨśƋŒļëŝĉėɆǂļƢķɆŒëǂƖɆëŝĐɆƎėİƪŒëƢļŨŝș
DŨƎɆƢķėɆƎėƖļĐƪëŒɆƖļLJɆĉŨśƋŨŝėŝƢƖȚɆǂėɆƋėƎįŨƎśėĐɆëŝëŒLjƖļƖɆëƢɆëŝɆ
ëİİƎėİëƢėĐɆEƎŨƪƋɆŒėǁėŒɆƢŨɆƎėȯėLJëśļŝėɆŨƪƎɆëƖƖėƖƖśėŝƢɆƢķëƢɆƢķėƎėɆ
ǂėƎėɆŝŨɆƖļİŝļǘĉëŝƢɆƎļƖŏƖɆŨįɆśëƢėƎļëŒɆśļƖƖƢëƢėśėŝƢɆǂļƢķļŝɆƢķėƖėș
The component materialities ranged from £17 million to £31 million
ȩǥǣǥǣțɆɞǫɆśļŒŒļŨŝɆƢŨɆɞǤǧɆśļŒŒļŨŝȪȚɆëŝĐɆǂėƎėɆĐėƢėƎśļŝėĐɆķëǁļŝİɆ
ƎėİëƎĐɆƢŨɆƢķėɆśļLJɆŨįɆƖļǒėɆëŝĐɆƎļƖŏɆƋƎŨǘŒėɆŨįɆƢķėɆEƎŨƪƋɆëĉƎŨƖƖɆ
ƢķėɆĉŨśƋŨŝėŝƢƖș
¶ķėɆǂŨƎŏɆŨŝɆ댌ɆŨįɆƢķėɆĉŨśƋŨŝėŝƢƖɆȩǥǣǥǣțɆ댌ɆŨįɆƢķėɆĉŨśƋŨŝėŝƢƖȪȚɆ
ļŝĉŒƪĐļŝİɆƢķėɆëƪĐļƢɆŨįɆƢķėɆƋëƎėŝƢɆŨśƋëŝLjȚɆǂëƖɆƋėƎįŨƎśėĐɆĈLjɆƢķėɆ
EƎŨƪƋɆƢėëśș
147
Overview
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Strategic report
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Governance
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Financial statements
Entain plc
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Annual Report 2021
QŝĐėƋėŝĐėŝƢɆƪĐļƢŨƎȼƖɆ¡ėƋŨƎƢɆƢŨɆƢķėɆśėśĈėƎƖɆŨįɆ,ŝƢëļŝɆƋŒĉɆcontinued
Revenue (%)
EBITDA (pre corporate
costs and bonus) (%)
£ƙųǦƭ͘Ďğķųƙğ͘ƭñǓ̹͘Β̺
Net assets (%)
79
76
21
24
% coverage full scope 2021
% out of scope 2021
͘Β͘ĐųǍğƙñĸğ͘ơƖğĐņǦğė͘ƙņơř͘
́͘ķųĐƵơơğė͘ñƵėņƭ͘ƖƙųĐğėƵƙğơ͘˫˩˫˪͘
% coverage full scope 2020
% out of scope 2020
76%
(2020: 79%)
77
61
23
25
14
75%
(2020: 77%)
87
75
13
16
9
84%
(2020: 87%)
99
97
1
3
97%
(2020: 99%)
ÕėɆǂėƎėɆëĈŒėɆƢŨɆƎėŒLjɆƪƋŨŝɆƢķėɆEƎŨƪƋȼƖɆļŝƢėƎŝëŒɆĉŨŝƢƎŨŒɆŨǁėƎɆ
ǘŝëŝĉļëŒɆƎėƋŨƎƢļŝİɆļŝɆƖėǁėƎëŒɆëƎėëƖɆŨįɆŨƪƎɆëƪĐļƢȚɆǂķėƎėɆŨƪƎɆĉŨŝƢƎŨŒƖɆ
ƢėƖƢļŝİɆƖƪƋƋŨƎƢėĐɆƢķļƖɆëƋƋƎŨëĉķȚɆǂķļĉķɆėŝëĈŒėĐɆƪƖɆƢŨɆƎėĐƪĉėɆƢķėɆ
ƖĉŨƋėɆŨįɆŨƪƎɆƖƪĈƖƢëŝƢļǁėɆëƪĐļƢɆǂŨƎŏȜɆļŝɆƢķėɆŨƢķėƎɆëƎėëƖɆƢķėɆƖĉŨƋėɆ
ŨįɇƢķėɆëƪĐļƢɆǂŨƎŏɆƋėƎįŨƎśėĐɆǂëƖɆįƪŒŒLjɆƖƪĈƖƢëŝƢļǁėș
¶ķėɆĉŨśƋŨŝėŝƢƖɆǂļƢķļŝɆƢķėɆƖĉŨƋėɆŨįɆŨƪƎɆǂŨƎŏɆëĉĉŨƪŝƢėĐɆįŨƎɆƢķėɆ
ƋėƎĉėŝƢëİėƖɆļŒŒƪƖƢƎëƢėĐɆĈėŒŨǂș
4 The impact of climate change on our audit
QŝɆƋŒëŝŝļŝİɆŨƪƎɆëƪĐļƢȚɆǂėɆķëǁėɆĉŨŝƖļĐėƎėĐɆƢķėɆƋŨƢėŝƢļëŒɆļśƋëĉƢɆ
ŨįɆĉŒļśëƢėɆĉķëŝİėɆŨŝɆƢķėɆEƎŨƪƋȼƖɆĈƪƖļŝėƖƖɆëŝĐɆļƢƖɆǘŝëŝĉļëŒɆ
ƖƢëƢėśėŝƢƖșɆ¶ëŏļŝİɆļŝƢŨɆëĉĉŨƪŝƢɆƢķėɆŝëƢƪƎėɆŨįɆƢķėɆĈƪƖļŝėƖƖɆ
operations, the level of headroom on the long term assets and the
ƖŨŒǁėŝĉLjɆŨįɆƢķėɆEƎŨƪƋɆǂėɆĐļĐɆŝŨƢɆļĐėŝƢļįLjɆëŝLjɆƎļƖŏƖɆƢķëƢɆƖļİŝļǘĉëŝƢŒLjɆ
ļśƋëĉƢɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆŨįɆƢķėɆEƎŨƪƋɆŨƎɆŨƪƎɆëƪĐļƢș
We read the climate related disclosure in the front half of the
ëŝŝƪëŒɆƎėƋŨƎƢɆëŝĐɆĉŨŝƖļĐėƎėĐɆĉŨŝƖļƖƢėŝĉLjɆǂļƢķɆƢķėɆǘŝëŝĉļëŒɆ
ƖƢëƢėśėŝƢƖɆëŝĐɆŨƪƎɆëƪĐļƢɆŏŝŨǂŒėĐİėș
5 Going concern
¶ķėɆ$ļƎėĉƢŨƎƖɆķëǁėɆƋƎėƋëƎėĐɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆŨŝɆƢķėɆ
going concern basis as they do not intend to liquidate the Group
or the Company or to cease their operations, and as they have
ĉŨŝĉŒƪĐėĐɆƢķëƢɆƢķėɆEƎŨƪƋȼƖɆëŝĐɆƢķėɆŨśƋëŝLjȼƖɆǘŝëŝĉļëŒɆƋŨƖļƢļŨŝɆ
śėëŝƖɆƢķëƢɆƢķļƖɆļƖɆƎėëŒļƖƢļĉșɆ¶ķėLjɆķëǁėɆëŒƖŨɆĉŨŝĉŒƪĐėĐɆƢķëƢɆƢķėƎėɆ
ëƎėɆŝŨɆśëƢėƎļëŒɆƪŝĉėƎƢëļŝƢļėƖɆƢķëƢɆĉŨƪŒĐɆķëǁėɆĉëƖƢɆƖļİŝļǘĉëŝƢɆĐŨƪĈƢɆ
over their ability to continue as a going concern for at least a year
įƎŨśɆƢķėɆĐëƢėɆŨįɆëƋƋƎŨǁëŒɆŨįɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆȩȹƢķėɆİŨļŝİɆ
ĉŨŝĉėƎŝɆƋėƎļŨĐȺȪșɆ
ÕėɆƪƖėĐɆŨƪƎɆŏŝŨǂŒėĐİėɆŨįɆƢķėɆEƎŨƪƋȚɆļƢƖɆļŝĐƪƖƢƎLjȚɆëŝĐɆƢķėɆİėŝėƎëŒɆ
ėĉŨŝŨśļĉɆėŝǁļƎŨŝśėŝƢɆƢŨɆļĐėŝƢļįLjɆƢķėɆļŝķėƎėŝƢɆƎļƖŏƖɆƢŨɆļƢƖɆĈƪƖļŝėƖƖɆ
śŨĐėŒɆëŝĐɆëŝëŒLjƖėĐɆķŨǂɆƢķŨƖėɆƎļƖŏƖɆśļİķƢɆëįįėĉƢɆƢķėɆEƎŨƪƋȼƖɆëŝĐɆ
ŨśƋëŝLjȼƖɆǘŝëŝĉļëŒɆƎėƖŨƪƎĉėƖɆŨƎɆëĈļŒļƢLjɆƢŨɆĉŨŝƢļŝƪėɆŨƋėƎëƢļŨŝƖɆ
ŨǁėƎɆƢķėɆİŨļŝİɆĉŨŝĉėƎŝɆƋėƎļŨĐșɆ¶ķėɆƎļƖŏƖɆƢķëƢɆǂėɆĉŨŝƖļĐėƎėĐɆśŨƖƢɆ
ŒļŏėŒLjɆƢŨɆëĐǁėƎƖėŒLjɆëįįėĉƢɆƢķėɆEƎŨƪƋȼƖɆëŝĐɆŨśƋëŝLjȼƖɆëǁëļŒëĈŒėɆ
ǘŝëŝĉļëŒɆƎėƖŨƪƎĉėƖɆëŝĐɆśėƢƎļĉƖɆƎėŒėǁëŝƢɆƢŨɆĐėĈƢɆĉŨǁėŝëŝƢƖɆŨǁėƎɆƢķļƖɆ
ƋėƎļŨĐɆǂėƎėțɆ
Ɇ ¶ķėɆļśƋëĉƢɆŨįɆƖļİŝļǘĉëŝƢɆĉķëŝİėƖɆļŝɆƎėİƪŒëƢļŨŝɆëįįėĉƢļŝİɆƢķėɆ
EƎŨƪƋȼƖɆëĈļŒļƢLjɆƢŨɆŨƋėƎëƢėɆļŝɆĉėƎƢëļŝɆƢėƎƎļƢŨƎļėƖȜɆëŝĐ
Ɇ ¶ķėɆļśƋëĉƢɆŨįɆëɆƖļİŝļǘĉëŝƢɆĈƪƖļŝėƖƖɆĉŨŝƢļŝƪļƢLjɆļƖƖƪėɆëįįėĉƢļŝİɆ
ƢķėɆEƎŨƪƋȼƖɆŨƋėƎëƢļŝİɆƖLjƖƢėśƖɆįŨƎɆëɆƖļİŝļǘĉëŝƢɆƋŨƎƢļŨŝɆŨįɆƢķėɆ
İŨļŝİɆĉŨŝĉėƎŝɆƋėƎļŨĐșɆ
We also considered less predictable but realistic second order
impacts, such as political or policy changes that could affect
ĐėśëŝĐɆļŝɆƢķėɆEƎŨƪƋȼƖɆśëƎŏėƢƖș
ÕėɆĉŨŝƖļĐėƎėĐɆǂķėƢķėƎɆƢķėƖėɆƎļƖŏƖɆĉŨƪŒĐɆƋŒëƪƖļĈŒLjɆëįįėĉƢɆƢķėɆ
liquidity or covenant compliance in the going concern period by
ĉŨśƋëƎļŝİɆƖėǁėƎėȚɆĈƪƢɆƋŒëƪƖļĈŒėɆĐŨǂŝƖļĐėɆƖĉėŝëƎļŨƖɆƢķëƢɆĉŨƪŒĐɆ
ëƎļƖėɆįƎŨśɆƢķėƖėɆƎļƖŏƖɆļŝĐļǁļĐƪ댌LjɆëŝĐɆĉŨŒŒėĉƢļǁėŒLjɆëİëļŝƖƢɆƢķėɆŒėǁėŒɆ
ŨįɆëǁëļŒëĈŒėɆǘŝëŝĉļëŒɆƎėƖŨƪƎĉėƖɆëŝĐɆĉŨǁėŝëŝƢƖɆļŝĐļĉëƢėĐɆĈLjɆƢķėɆ
EƎŨƪƋȼƖɆǘŝëŝĉļëŒɆįŨƎėĉëƖƢƖșɆ
ÕėɆĉŨŝƖļĐėƎėĐɆǂķėƢķėƎɆƢķėɆİŨļŝİɆĉŨŝĉėƎŝɆĐļƖĉŒŨƖƪƎėɆļŝɆpŨƢėɆǥɆƢŨɆ
ƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆİļǁėƖɆëɆįƪŒŒɆëŝĐɆëĉĉƪƎëƢėɆĐėƖĉƎļƋƢļŨŝɆŨįɆ
ƢķėɆ$ļƎėĉƢŨƎƖȼɆëƖƖėƖƖśėŝƢɆŨįɆİŨļŝİɆĉŨŝĉėƎŝȚɆļŝĉŒƪĐļŝİɆƢķėɆļĐėŝƢļǘėĐɆ
ƎļƖŏƖɆëŝĐȚɆĐėƋėŝĐėŝĉļėƖȚɆëŝĐɆƎėŒëƢėĐɆƖėŝƖļƢļǁļƢļėƖșɆ
{ƪƎɆĉŨŝĉŒƪƖļŨŝƖɆĈëƖėĐɆŨŝɆƢķļƖɆǂŨƎŏț
We consider that the Directors’ use of the going concern basis
ŨįɆëĉĉŨƪŝƢļŝİɆļŝɆƢķėɆƋƎėƋëƎëƢļŨŝɆŨįɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆ
ļƖɆëƋƋƎŨƋƎļëƢėȜ
Ɇ ÕėɆķëǁėɆŝŨƢɆļĐėŝƢļǘėĐȚɆëŝĐɆĉŨŝĉƪƎɆǂļƢķɆƢķėɆ$ļƎėĉƢŨƎƖȼɆ
assessment that there is not, a material uncertainty related to
events or conditions that, individually or collectively, may cast
ƖļİŝļǘĉëŝƢɆĐŨƪĈƢɆŨŝɆƢķėɆEƎŨƪƋȼƖɆŨƎɆŨśƋëŝLjȼƖɆëĈļŒļƢLjɆƢŨɆĉŨŝƢļŝƪėɆ
ëƖɆëɆİŨļŝİɆĉŨŝĉėƎŝɆįŨƎɆƢķėɆİŨļŝİɆĉŨŝĉėƎŝɆƋėƎļŨĐȜɆëŝĐ
Ɇ ÕėɆķëǁėɆŝŨƢķļŝİɆśëƢėƎļëŒɆƢŨɆëĐĐɆŨƎɆĐƎëǂɆëƢƢėŝƢļŨŝɆƢŨɆļŝɆƎėŒëƢļŨŝɆ
ƢŨɆƢķėɆ$ļƎėĉƢŨƎƖȼɆƖƢëƢėśėŝƢɆļŝɆpŨƢėɆǥɆƢŨɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆ
ŨŝɆƢķėɆƪƖėɆŨįɆƢķėɆİŨļŝİɆĉŨŝĉėƎŝɆĈëƖļƖɆŨįɆëĉĉŨƪŝƢļŝİɆǂļƢķɆŝŨɆ
śëƢėƎļëŒɆƪŝĉėƎƢëļŝƢļėƖɆƢķëƢɆśëLjɆĉëƖƢɆƖļİŝļǘĉëŝƢɆĐŨƪĈƢɆŨǁėƎɆƢķėɆ
Group and Company’s use of that basis for the going concern
ƋėƎļŨĐȚɆëŝĐɆǂėɆįŨƪŝĐɆƢķėɆİŨļŝİɆĉŨŝĉėƎŝɆĐļƖĉŒŨƖƪƎėɆļŝɆpŨƢėɆǥɆƢŨɆ
ĈėɆëĉĉėƋƢëĈŒėș
LŨǂėǁėƎȚɆëƖɆǂėɆĉëŝŝŨƢɆƋƎėĐļĉƢɆ댌ɆįƪƢƪƎėɆėǁėŝƢƖɆŨƎɆĉŨŝĐļƢļŨŝƖɆëŝĐɆ
as subsequent events may result in outcomes that are inconsistent
ǂļƢķɆŌƪĐİėśėŝƢƖɆƢķëƢɆǂėƎėɆƎėëƖŨŝëĈŒėɆëƢɆƢķėɆƢļśėɆƢķėLjɆǂėƎėɆśëĐėȚɆ
the above conclusions are not a guarantee that the Group or the
ŨśƋëŝLjɆǂļŒŒɆĉŨŝƢļŝƪėɆļŝɆŨƋėƎëƢļŨŝșɆ
Entain plc
|
Annual Report 2021
148 Financ
ial statements
ǩɆɆDƎëƪĐɆëŝĐɆĈƎėëĉķėƖɆŨįɆŒëǂƖɆëŝĐɆƎėİƪŒëƢļŨŝƖɆ
ȱɇëĈļŒļƢLjɇƢŨɇĐėƢėĉƢ
Identifying and responding to risks of material misstatement
due to fraud.
¶ŨɆļĐėŝƢļįLjɆƎļƖŏƖɆŨįɆśëƢėƎļëŒɆśļƖƖƢëƢėśėŝƢɆĐƪėɆƢŨɆįƎëƪĐɆȩȹįƎëƪĐɆ
ƎļƖŏƖȺȪɆǂėɆëƖƖėƖƖėĐɆėǁėŝƢƖɆŨƎɆĉŨŝĐļƢļŨŝƖɆƢķëƢɆĉŨƪŒĐɆļŝĐļĉëƢėɆëŝɆ
incentive or pressure to commit fraud or provide an opportunity to
ĉŨśśļƢɆįƎëƪĐșɆ{ƪƎɆƎļƖŏɆëƖƖėƖƖśėŝƢɆƋƎŨĉėĐƪƎėƖɆļŝĉŒƪĐėĐț
Enquiring of Directors, and internal audit and inspection of
policy documentation as to the Group’s high-level policies and
procedures to prevent and detect fraud including the internal
ëƪĐļƢɆįƪŝĉƢļŨŝȚɆëŝĐɆƢķėɆEƎŨƪƋȼƖɆĉķëŝŝėŒɆįŨƎɆȹǂķļƖƢŒėĈŒŨǂļŝİȺȚɆëƖɆ
ǂėŒŒɆëƖɆǂķėƢķėƎɆƢķėLjɆķëǁėɆŏŝŨǂŒėĐİėɆŨįɆëŝLjɆëĉƢƪëŒȚɆƖƪƖƋėĉƢėĐɆ
ŨƎɆ댌ėİėĐɆįƎëƪĐș
Reading Board, Audit Committee and Remuneration
ŨśśļƢƢėėɆśļŝƪƢėƖș
Considering remuneration incentive schemes and performance
ƢëƎİėƢƖɆįŨƎɆ$ļƎėĉƢŨƎƖɆëŝĐɆķŨǂɆƢķėƖėɆëƎėɆļśƋëĉƢėĐɆĈLjɆƖėƋëƎëƢėŒLjɆ
ĐļƖĉŒŨƖėĐɆļƢėśƖș
Ɇ ½ƖļŝİɆëŝëŒLjƢļĉëŒɆƋƎŨĉėĐƪƎėƖɆƢŨɆļĐėŝƢļįLjɆëŝLjɆƪŝƪƖƪëŒɆŨƎɆ
ƪŝėLJƋėĉƢėĐɆƎėŒëƢļŨŝƖķļƋƖș
Ɇ QĐėŝƢļįLjļŝİɆįƎëƪĐɆƎļƖŏƖȚɆǂļƢķɆëƖƖļƖƢëŝĉėɆįƎŨśɆŨƪƎɆįŨƎėŝƖļĉɆ
specialists, based on discussions of the circumstances of
ƢķėɆEƎŨƪƋș
ÕėɆĉŨśśƪŝļĉëƢėĐɆļĐėŝƢļǘėĐɆįƎëƪĐɆƎļƖŏƖɆƢķƎŨƪİķŨƪƢɆƢķėɆëƪĐļƢɆƢėëśɆ
ëŝĐɆƎėśëļŝėĐɆëŒėƎƢɆƢŨɆëŝLjɆļŝĐļĉëƢļŨŝƖɆŨįɆįƎëƪĐɆƢķƎŨƪİķŨƪƢɆƢķėɆëƪĐļƢș
ƖɆƎėƍƪļƎėĐɆĈLjɆëƪĐļƢļŝİɆƖƢëŝĐëƎĐƖȚɆëŝĐɆƢëŏļŝİɆļŝƢŨɆëĉĉŨƪŝƢɆ
ƋŨƖƖļĈŒėɆƋƎėƖƖƪƎėƖɆƢŨɆśėėƢɆƋƎŨǘƢɆƢëƎİėƢƖȚɆǂėɆƋėƎįŨƎśɆƋƎŨĉėĐƪƎėƖɆ
ƢŨɆëĐĐƎėƖƖɆƢķėɆƎļƖŏɆŨįɆśëŝëİėśėŝƢɆŨǁėƎƎļĐėɆŨįɆĉŨŝƢƎŨŒƖɆëŝĐɆƢķėɆ
ƎļƖŏɆŨįɆįƎëƪĐƪŒėŝƢɆƎėǁėŝƪėɆƎėĉŨİŝļƢļŨŝȚɆļŝɆƋëƎƢļĉƪŒëƎɆƢķėɆƎļƖŏɆƢķëƢɆ
revenue from the Group’s online operations is recorded incorrectly,
ƢķëƢɆśëŝëİėśėŝƢɆśëLjɆĈėɆļŝɆëɆƋŨƖļƢļŨŝɆƢŨɆśëŏėɆļŝëƋƋƎŨƋƎļëƢėɆ
ëĉĉŨƪŝƢļŝİɆėŝƢƎļėƖȚɆëŝĐɆƢķėɆƎļƖŏɆŨįɆĈļëƖɆļŝɆëĉĉŨƪŝƢļŝİɆėƖƢļśëƢėƖɆëŝĐɆ
judgements such as accounting for acquisitions and the recognition
ŨįɆļŝƢëŝİļĈŒėɆëƖƖėƢƖȚɆƋƎŨǁļƖļŨŝƖɆįŨƎɆİëśļŝİɆƢëLJɆŨĈŒļİëƢļŨŝƖȚɆ
ƋƎŨǁļƖļŨŝƖɆįŨƎɆļśƋëļƎśėŝƢɆëŝĐɆƋėŝƖļŨŝɆëƖƖƪśƋƢļŨŝƖș
Further detail in respect of online revenue recognition is set out in
ƢķėɆŏėLjɆëƪĐļƢɆśëƢƢėƎɆĐļƖĉŒŨƖƪƎėɆļŝɆƖėĉƢļŨŝɆǥɆŨįɆƢķļƖɆƎėƋŨƎƢș
We also performed procedures including:
Identifying journal entries and other adjustments to test for all
įƪŒŒɆƖĉŨƋėɆĉŨśƋŨŝėŝƢƖɆĈëƖėĐɆŨŝɆƎļƖŏɆĉƎļƢėƎļëɆëŝĐɆĉŨśƋëƎļŝİɆƢķėɆ
ļĐėŝƢļǘėĐɆėŝƢƎļėƖɆƢŨɆƖƪƋƋŨƎƢļŝİɆĐŨĉƪśėŝƢëƢļŨŝșɆ¶ķėƖėɆļŝĉŒƪĐėĐțɆ
ƪŝƪƖƪëŒɆƎėǁėŝƪėɆƋëļƎļŝİƖȜɆƪŝƪƖƪëŒɆŌŨƪƎŝëŒƖɆǂļƢķɆëɆĉƎėĐļƢɆŨƎɆĐėĈļƢɆ
ƢŨɆėŝƢƎLjɆƢŨɆĉëƖķȜɆëŝĐȚɆƪŝƪƖƪëŒɆŌŨƪƎŝëŒƖɆļŝɆƖėŒĐŨśɆƪƖėĐɆƋëļƎļŝİƖș
Ɇ ,ǁëŒƪëƢėĐɆƢķėɆĈƪƖļŝėƖƖɆƋƪƎƋŨƖėɆŨįɆƖļİŝļǘĉëŝƢɆ
ƪŝƪƖƪëŒɆƢƎëŝƖëĉƢļŨŝƖș
Ɇ ƖƖėƖƖļŝİɆǂķėƢķėƎɆƖļİŝļǘĉëŝƢɆëĉĉŨƪŝƢļŝİɆėƖƢļśëƢėƖɆëƎėɆ
ļŝĐļĉëƢļǁėɆŨįɆëɆƋŨƢėŝƢļëŒɆĈļëƖș
Identifying and responding to risks of material misstatement
related to compliance with laws and regulations.
ÕėɆļĐėŝƢļǘėĐɆëƎėëƖɆŨįɆŒëǂƖɆëŝĐɆƎėİƪŒëƢļŨŝƖɆƢķëƢɆĉŨƪŒĐɆƎėëƖŨŝëĈŒLjɆ
ĈėɆėLJƋėĉƢėĐɆƢŨɆķëǁėɆëɆśëƢėƎļëŒɆėįįėĉƢɆŨŝɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆ
įƎŨśɆŨƪƎɆİėŝėƎëŒɆĉŨśśėƎĉļëŒɆëŝĐɆƖėĉƢŨƎɆėLJƋėƎļėŝĉėɆëŝĐɆƢķƎŨƪİķɆ
ĐļƖĉƪƖƖļŨŝɆǂļƢķɆƢķėɆ$ļƎėĉƢŨƎƖɆëŝĐɆŨƢķėƎɆśëŝëİėśėŝƢɆȩëƖɆƎėƍƪļƎėĐɆ
by auditing standards), and from inspection of the Group’s
ƎėİƪŒëƢŨƎLjɆëŝĐɆŒėİëŒɆĉŨƎƎėƖƋŨŝĐėŝĉėɆëŝĐɆĐļƖĉƪƖƖėĐɆǂļƢķɆƢķėɆ
Directors and other management the policies and procedures
ƎėİëƎĐļŝİɆĉŨśƋŒļëŝĉėɆǂļƢķɆŒëǂƖɆëŝĐɆƎėİƪŒëƢļŨŝƖșɆ
ƖɆƢķėɆEƎŨƪƋɆļƖɆƎėİƪŒëƢėĐȚɆŨƪƎɆëƖƖėƖƖśėŝƢɆŨįɆƎļƖŏƖɆļŝǁŨŒǁėĐɆİëļŝļŝİɆ
an understanding of the control environment including the entity’s
ƋƎŨĉėĐƪƎėƖɆįŨƎɆĉŨśƋŒLjļŝİɆǂļƢķɆƎėİƪŒëƢŨƎLjɆƎėƍƪļƎėśėŝƢƖșɆ
ÕėɆĉŨśśƪŝļĉëƢėĐɆļĐėŝƢļǘėĐɆŒëǂƖɆëŝĐɆƎėİƪŒëƢļŨŝƖɆƢķƎŨƪİķŨƪƢɆŨƪƎɆ
team and remained alert to any indications of non-compliance
ƢķƎŨƪİķŨƪƢɆƢķėɆëƪĐļƢșɆ
¶ķėɆƋŨƢėŝƢļëŒɆėįįėĉƢɆŨįɆƢķėƖėɆŒëǂƖɆëŝĐɆƎėİƪŒëƢļŨŝƖɆŨŝɆƢķėɆǘŝëŝĉļëŒɆ
ƖƢëƢėśėŝƢƖɆǁëƎļėƖɆĉŨŝƖļĐėƎëĈŒLjș
DļƎƖƢŒLjȚɆƢķėɆEƎŨƪƋɆļƖɆƖƪĈŌėĉƢɆƢŨɆŒëǂƖɆëŝĐɆƎėİƪŒëƢļŨŝƖɆƢķëƢɆĐļƎėĉƢŒLjɆ
ëįįėĉƢɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆļŝĉŒƪĐļŝİɆǘŝëŝĉļëŒɆƎėƋŨƎƢļŝİɆ
ŒėİļƖŒëƢļŨŝɆȩļŝĉŒƪĐļŝİɆƎėŒëƢėĐɆĉŨśƋëŝļėƖɆŒėİļƖŒëƢļŨŝȪȚɆëŝĐɆƢëLJëƢļŨŝɆ
ŒėİļƖŒëƢļŨŝɆëŝĐɆǂėɆëƖƖėƖƖėĐɆƢķėɆėLJƢėŝƢɆŨįɆĉŨśƋŒļëŝĉėɆǂļƢķɆƢķėƖėɆ
ŒëǂƖɆëŝĐɆƎėİƪŒëƢļŨŝƖɆëƖɆƋëƎƢɆŨįɆŨƪƎɆƋƎŨĉėĐƪƎėƖɆŨŝɆƢķėɆƎėŒëƢėĐɆ
ǘŝëŝĉļëŒɆƖƢëƢėśėŝƢɆļƢėśƖșɆ
©ėĉŨŝĐŒLjȚɆƢķėɆEƎŨƪƋɆļƖɆƖƪĈŌėĉƢɆƢŨɆśëŝLjɆŨƢķėƎɆŒëǂƖɆëŝĐɆƎėİƪŒëƢļŨŝƖɆ
ǂķėƎėɆƢķėɆĉŨŝƖėƍƪėŝĉėƖɆŨįɆŝŨŝȯĉŨśƋŒļëŝĉėɆĉŨƪŒĐɆķëǁėɆëɆśëƢėƎļëŒɆ
ėįįėĉƢɆŨŝɆëśŨƪŝƢƖɆŨƎɆĐļƖĉŒŨƖƪƎėƖɆļŝɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖȚɆįŨƎɆ
ļŝƖƢëŝĉėɆƢķƎŨƪİķɆƢķėɆļśƋŨƖļƢļŨŝɆŨįɆǘŝėƖɆŨƎɆŒļƢļİëƢļŨŝɆŨƎɆƢķėɆŒŨƖƖɆ
ŨįɆƢķėɆEƎŨƪƋȼƖɆŒļĉėŝĉėɆƢŨɆŨƋėƎëƢėșɆÕėɆļĐėŝƢļǘėĐɆƢķėɆįŨŒŒŨǂļŝİɆ
ëƎėëƖɆëƖɆƢķŨƖėɆśŨƖƢɆŒļŏėŒLjɆƢŨɆķëǁėɆƖƪĉķɆëŝɆėįįėĉƢțɆëŝƢļȯĈƎļĈėƎLjɆ
and corruption, recognising the nature of the Group’s operations,
and responsible gaming legislation across all of the territories
ǂķėƎėɆƢķėɆEƎŨƪƋɆİėŝėƎëƢėƖɆśëƢėƎļëŒɆƎėǁėŝƪėƖșɆƪĐļƢļŝİɆƖƢëŝĐëƎĐƖɆ
limit the required audit procedures to identify non-compliance
ǂļƢķɆƢķėƖėɆŒëǂƖɆëŝĐɆƎėİƪŒëƢļŨŝƖɆƢŨɆėŝƍƪļƎLjɆŨįɆƢķėɆ$ļƎėĉƢŨƎƖɆ
and other management and inspection of regulatory and legal
ĉŨƎƎėƖƋŨŝĐėŝĉėȚɆļįɆëŝLjșɆ¶ķėƎėįŨƎėɆļįɆëɆĈƎėëĉķɆŨįɆŨƋėƎëƢļŨŝëŒɆ
regulations is not disclosed to us or evident from relevant
ĉŨƎƎėƖƋŨŝĐėŝĉėȚɆëŝɆëƪĐļƢɆǂļŒŒɆŝŨƢɆĐėƢėĉƢɆƢķëƢɆĈƎėëĉķș
ŨŝƢėLJƢɆŨįɆƢķėɆëĈļŒļƢLjɆŨįɆƢķėɆëƪĐļƢɆƢŨɆĐėƢėĉƢɆįƎëƪĐɆŨƎɆ
ĈƎėëĉķėƖɆŨįɇŒëǂɆŨƎɆƎėİƪŒëƢļŨŝș
{ǂļŝİɆƢŨɆƢķėɆļŝķėƎėŝƢɆŒļśļƢëƢļŨŝƖɆŨįɆëŝɆëƪĐļƢȚɆƢķėƎėɆļƖɆëŝɆ
ƪŝëǁŨļĐëĈŒėɆƎļƖŏɆƢķëƢɆǂėɆśëLjɆŝŨƢɆķëǁėɆĐėƢėĉƢėĐɆƖŨśėɆśëƢėƎļëŒɆ
śļƖƖƢëƢėśėŝƢƖɆļŝɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖȚɆėǁėŝɆƢķŨƪİķɆǂėɆķëǁėɆ
ƋƎŨƋėƎŒLjɆƋŒëŝŝėĐɆëŝĐɆƋėƎįŨƎśėĐɆŨƪƎɆëƪĐļƢɆļŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆ
ëƪĐļƢļŝİɆƖƢëŝĐëƎĐƖșɆDŨƎɆėLJëśƋŒėȚɆƢķėɆįƪƎƢķėƎɆƎėśŨǁėĐɆŝŨŝȯ
ĉŨśƋŒļëŝĉėɆǂļƢķɆŒëǂƖɆëŝĐɆƎėİƪŒëƢļŨŝƖɆļƖɆįƎŨśɆƢķėɆėǁėŝƢƖɆëŝĐɆ
ƢƎëŝƖëĉƢļŨŝƖɆƎėǙėĉƢėĐɆļŝɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖȚɆƢķėɆŒėƖƖɆŒļŏėŒLjɆƢķėɆ
ļŝķėƎėŝƢŒLjɆŒļśļƢėĐɆƋƎŨĉėĐƪƎėƖɆƎėƍƪļƎėĐɆĈLjɆëƪĐļƢļŝİɆƖƢëŝĐëƎĐƖɆǂŨƪŒĐɆ
ļĐėŝƢļįLjɆļƢșɆ
QŝɆëĐĐļƢļŨŝȚɆëƖɆǂļƢķɆëŝLjɆëƪĐļƢȚɆƢķėƎėɆƎėśëļŝėĐɆëɆķļİķėƎɆƎļƖŏɆŨįɆ
non-detection of fraud, as these may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of
ļŝƢėƎŝëŒɆĉŨŝƢƎŨŒƖșɆ{ƪƎɆëƪĐļƢɆƋƎŨĉėĐƪƎėƖɆëƎėɆĐėƖļİŝėĐɆƢŨɆĐėƢėĉƢɆ
śëƢėƎļëŒɆśļƖƖƢëƢėśėŝƢșɆÕėɆëƎėɆŝŨƢɆƎėƖƋŨŝƖļĈŒėɆįŨƎɆƋƎėǁėŝƢļŝİɆ
ŝŨŝȯĉŨśƋŒļëŝĉėɆŨƎɆįƎëƪĐɆëŝĐɆĉëŝŝŨƢɆĈėɆėLJƋėĉƢėĐɆƢŨɆĐėƢėĉƢɆŝŨŝȯ
ĉŨśƋŒļëŝĉėɆǂļƢķɆ댌ɆŒëǂƖɆëŝĐɆƎėİƪŒëƢļŨŝƖș
149 Overview
|
Strategic report
|
Governance
|
Financial statements
E
ntain plc
|
Annual Report 2021
QŝĐėƋėŝĐėŝƢɆƪĐļƢŨƎȼƖɆ¡ėƋŨƎƢɆƢŨɆƢķėɆśėśĈėƎƖɆŨįɆ,ŝƢëļŝɆƋŒĉɆcontinued
7 We have nothing to report on the other information
ļŝɇƢķėɇŝŝƪëŒɆ¡ėƋŨƎƢɆ
The Directors are responsible for the other information presented
ļŝɆƢķėɆŝŝƪëŒɆ¡ėƋŨƎƢɆƢŨİėƢķėƎɆǂļƢķɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖșɆ
{ƪƎɆŨƋļŝļŨŝɆŨŝɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆĐŨėƖɆŝŨƢɆĉŨǁėƎɆƢķėɆŨƢķėƎɆ
ļŝįŨƎśëƢļŨŝɆëŝĐȚɆëĉĉŨƎĐļŝİŒLjȚɆǂėɆĐŨɆŝŨƢɆėLJƋƎėƖƖɆëŝɆëƪĐļƢɆŨƋļŝļŨŝɆ
ŨƎȚɆėLJĉėƋƢɆëƖɆėLJƋŒļĉļƢŒLjɆƖƢëƢėĐɆĈėŒŨǂȚɆëŝLjɆįŨƎśɆŨįɆëƖƖƪƎëŝĉėɆ
ĉŨŝĉŒƪƖļŨŝɆƢķėƎėŨŝșɆ
Our responsibility is to read the other information and, in doing so,
ĉŨŝƖļĐėƎɆǂķėƢķėƎȚɆĈëƖėĐɆŨŝɆŨƪƎɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëƪĐļƢɆǂŨƎŏȚɆ
ƢķėɆļŝįŨƎśëƢļŨŝɆƢķėƎėļŝɆļƖɆśëƢėƎļ댌LjɆśļƖƖƢëƢėĐɆŨƎɆļŝĉŨŝƖļƖƢėŝƢɆǂļƢķɆ
ƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆŨƎɆŨƪƎɆëƪĐļƢɆŏŝŨǂŒėĐİėșɆëƖėĐɆƖŨŒėŒLjɆŨŝɆ
ƢķëƢɆǂŨƎŏɆǂėɆķëǁėɆŝŨƢɆļĐėŝƢļǘėĐɆśëƢėƎļëŒɆśļƖƖƢëƢėśėŝƢƖɆļŝɆƢķėɆ
ŨƢķėƎɆļŝįŨƎśëƢļŨŝșɆ
Directors’ remuneration report
QŝɆëĐĐļƢļŨŝɆƢŨɆŨƪƎɆëƪĐļƢɆŨįɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖȚɆƢķėɆ$ļƎėĉƢŨƎƖɆ
have engaged us to audit the information in the Directors’
Remuneration Report that is described as having been audited,
ǂķļĉķɆƢķėɆ$ļƎėĉƢŨƎƖɆķëǁėɆĐėĉļĐėĐɆƢŨɆƋƎėƋëƎėɆëƖɆļįɆƢķėɆŨśƋëŝLjɆ
ǂëƖɆƎėƍƪļƎėĐɆƢŨɆĉŨśƋŒLjɆǂļƢķɆƢķėɆƎėƍƪļƎėśėŝƢƖɆŨįɆ©ĉķėĐƪŒėɆǫɆƢŨɆ¶ķėɆ
dëƎİėɆëŝĐɆnėĐļƪśȯƖļǒėĐɆŨśƋëŝļėƖɆëŝĐɆEƎŨƪƋƖɆȩĉĉŨƪŝƢƖɆëŝĐɆ
¡ėƋŨƎƢƖȪɆ¡ėİƪŒëƢļŨŝƖɆǥǣǣǫɆȩ©QɆǥǣǣǫɆpŨșɆǧǤǣȪɆśëĐėɆƪŝĐėƎɆƢķėɆ½bɆ
ŨśƋëŝļėƖɆĉƢɆǥǣǣǩș
In our opinion the part of the Directors’ Remuneration Report to
ĈėɆëƪĐļƢėĐɆķëƖɆĈėėŝɆƋƎŨƋėƎŒLjɆƋƎėƋëƎėĐɆļŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆƢķėɆ
½bɆŨśƋëŝļėƖɆĉƢɆǥǣǣǩȚɆëƖɆļįɆƢķŨƖėɆƎėƍƪļƎėśėŝƢƖɆëƋƋŒļėĐɆƢŨɆ
ƢķėɆŨśƋëŝLjșɆ
Disclosures of emerging and principal risks and longer-
ƢėƎśɇǁļëĈļŒļƢLjɆ
ÕėɆëƎėɆƎėƍƪļƎėĐɆƢŨɆƋėƎįŨƎśɆƋƎŨĉėĐƪƎėƖɆƢŨɆļĐėŝƢļįLjɆǂķėƢķėƎɆƢķėƎėɆ
ļƖɆëɆśëƢėƎļëŒɆļŝĉŨŝƖļƖƢėŝĉLjɆĈėƢǂėėŝɆƢķėɆ$ļƎėĉƢŨƎƖȼɆĐļƖĉŒŨƖƪƎėƖɆļŝɆ
ƎėƖƋėĉƢɆŨįɆėśėƎİļŝİɆëŝĐɆƋƎļŝĉļƋëŒɆƎļƖŏƖɆëŝĐɆƢķėɆǁļëĈļŒļƢLjɆƖƢëƢėśėŝƢȚɆ
ëŝĐɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëŝĐɆŨƪƎɆëƪĐļƢɆŏŝŨǂŒėĐİėșɆ
ëƖėĐɆŨŝɆƢķŨƖėɆƋƎŨĉėĐƪƎėƖȚɆǂėɆķëǁėɆŝŨƢķļŝİɆśëƢėƎļëŒɆƢŨɆëĐĐɆŨƎɆ
ĐƎëǂɆëƢƢėŝƢļŨŝɆƢŨɆļŝɆƎėŒëƢļŨŝɆƢŨțɆ
Ɇ ¶ķėɆ$ļƎėĉƢŨƎƖȼɆĉŨŝǘƎśëƢļŨŝɆǂļƢķļŝɆƢķėɆÔļëĈļŒļƢLjɆ©ƢëƢėśėŝƢɆŨŝɆ
ƋëİėɆǫǩɆƢķëƢɆƢķėLjɆķëǁėɆĉëƎƎļėĐɆŨƪƢɆëɆƎŨĈƪƖƢɆëƖƖėƖƖśėŝƢɆŨįɆƢķėɆ
ėśėƎİļŝİɆëŝĐɆƋƎļŝĉļƋëŒɆƎļƖŏƖɆįëĉļŝİɆƢķėɆEƎŨƪƋȚɆļŝĉŒƪĐļŝİɆƢķŨƖėɆ
ƢķëƢɆǂŨƪŒĐɆƢķƎėëƢėŝɆļƢƖɆĈƪƖļŝėƖƖɆśŨĐėŒȚɆįƪƢƪƎėɆƋėƎįŨƎśëŝĉėȚɆ
ƖŨŒǁėŝĉLjɆëŝĐɆŒļƍƪļĐļƢLjȜɆ
Ɇ ¶ķėɆ,śėƎİļŝİɆëŝĐɆƎļŝĉļƋëŒɆ¡ļƖŏƖɆĐļƖĉŒŨƖƪƎėƖɆĐėƖĉƎļĈļŝİɆƢķėƖėɆ
ƎļƖŏƖɆëŝĐɆķŨǂɆėśėƎİļŝİɆƎļƖŏƖɆëƎėɆļĐėŝƢļǘėĐȚɆëŝĐɆėLJƋŒëļŝļŝİɆķŨǂɆ
ƢķėLjɆëƎėɆĈėļŝİɆśëŝëİėĐɆëŝĐɆśļƢļİëƢėĐȜɆëŝĐɆ
Ɇ ¶ķėɆ$ļƎėĉƢŨƎƖȼɆėLJƋŒëŝëƢļŨŝɆļŝɆƢķėɆÔļëĈļŒļƢLjɆ©ƢëƢėśėŝƢɆŨįɆķŨǂɆƢķėLjɆ
ķëǁėɆëƖƖėƖƖėĐɆƢķėɆƋƎŨƖƋėĉƢƖɆŨįɆƢķėɆEƎŨƪƋȚɆŨǁėƎɆǂķëƢɆƋėƎļŨĐɆ
ƢķėLjɆķëǁėɆĐŨŝėɆƖŨɆëŝĐɆǂķLjɆƢķėLjɆĉŨŝƖļĐėƎėĐɆƢķëƢɆƋėƎļŨĐɆƢŨɆĈėɆ
ëƋƋƎŨƋƎļëƢėȚɆëŝĐɆƢķėļƎɆƖƢëƢėśėŝƢɆëƖɆƢŨɆǂķėƢķėƎɆƢķėLjɆķëǁėɆëɆ
ƎėëƖŨŝëĈŒėɆėLJƋėĉƢëƢļŨŝɆƢķëƢɆƢķėɆEƎŨƪƋɆǂļŒŒɆĈėɆëĈŒėɆƢŨɆĉŨŝƢļŝƪėɆļŝɆ
operation and meet its liabilities as they fall due over the period
ŨįɆƢķėļƎɆëƖƖėƖƖśėŝƢȚɆļŝĉŒƪĐļŝİɆëŝLjɆƎėŒëƢėĐɆĐļƖĉŒŨƖƪƎėƖɆĐƎëǂļŝİɆ
ëƢƢėŝƢļŨŝɆƢŨɆëŝLjɆŝėĉėƖƖëƎLjɆƍƪëŒļǘĉëƢļŨŝƖɆŨƎɆëƖƖƪśƋƢļŨŝƖșɆ
ëƖėĐɆŨŝɆƢķėɆëĈŨǁėɆƋƎŨĉėĐƪƎėƖȚɆǂėɆķëǁėɆĉŨŝĉŒƪĐėĐɆƢķëƢɆƢķėɆëĈŨǁėɆ
ĐļƖĉŒŨƖƪƎėƖɆëƎėɆśëƢėƎļ댌LjɆĉŨŝƖļƖƢėŝƢɆǂļƢķɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆ
ëŝĐɆŨƪƎɆëƪĐļƢɆŏŝŨǂŒėĐİėș
{ƪƎɆǂŨƎŏɆļƖɆŒļśļƢėĐɆƢŨɆëƖƖėƖƖļŝİɆƢķėƖėɆśëƢƢėƎƖɆļŝɆƢķėɆĉŨŝƢėLJƢɆŨįɆ
ŨŝŒLjɆƢķėɆŏŝŨǂŒėĐİėɆëĉƍƪļƎėĐɆĐƪƎļŝİɆŨƪƎɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆ
ëƪĐļƢșɆƖɆǂėɆĉëŝŝŨƢɆƋƎėĐļĉƢɆ댌ɆįƪƢƪƎėɆėǁėŝƢƖɆŨƎɆĉŨŝĐļƢļŨŝƖɆëŝĐɆëƖɆ
subsequent events may result in outcomes that are inconsistent
ǂļƢķɆŌƪĐİėśėŝƢƖɆƢķëƢɆǂėƎėɆƎėëƖŨŝëĈŒėɆëƢɆƢķėɆƢļśėɆƢķėLjɆǂėƎėɆśëĐėȚɆ
the absence of anything to report on these statements is not a
İƪëƎëŝƢėėɆëƖɆƢŨɆƢķėɆEƎŨƪƋȼƖɆëŝĐɆŨśƋëŝLjȼƖɆŒŨŝİėƎȯƢėƎśɆǁļëĈļŒļƢLjș
ŨƎƋŨƎëƢėɆİŨǁėƎŝëŝĉėɆĐļƖĉŒŨƖƪƎėƖɆɆ Ɇ
ÕėɆëƎėɆƎėƍƪļƎėĐɆƢŨɆƋėƎįŨƎśɆƋƎŨĉėĐƪƎėƖɆƢŨɆļĐėŝƢļįLjɆǂķėƢķėƎɆƢķėƎėɆ
ļƖɆëɆśëƢėƎļëŒɆļŝĉŨŝƖļƖƢėŝĉLjɆĈėƢǂėėŝɆƢķėɆ$ļƎėĉƢŨƎƖȼɆĉŨƎƋŨƎëƢėɆ
İŨǁėƎŝëŝĉėɆĐļƖĉŒŨƖƪƎėƖɆëŝĐɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëŝĐɆŨƪƎɆ
ëƪĐļƢɆŏŝŨǂŒėĐİėș
ëƖėĐɆŨŝɆƢķŨƖėɆƋƎŨĉėĐƪƎėƖȚɆǂėɆķëǁėɆĉŨŝĉŒƪĐėĐɆƢķëƢɆėëĉķɆŨįɆƢķėɆ
įŨŒŒŨǂļŝİɆļƖɆśëƢėƎļ댌LjɆĉŨŝƖļƖƢėŝƢɆǂļƢķɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëŝĐɆ
ŨƪƎɆëƪĐļƢɆŏŝŨǂŒėĐİėțɆ
The Directors’ statement that they consider that the annual
ƎėƋŨƎƢɆëŝĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆƢëŏėŝɆëƖɆëɆǂķŨŒėɆļƖɆįëļƎȚɆĈëŒëŝĉėĐɆ
and understandable, and provides the information necessary for
shareholders to assess the Group’s position and performance,
ĈƪƖļŝėƖƖɆśŨĐėŒɆëŝĐɆƖƢƎëƢėİLjȜɆ
Ɇ ¶ķėɆƖėĉƢļŨŝɆŨįɆƢķėɆëŝŝƪëŒɆƎėƋŨƎƢɆĐėƖĉƎļĈļŝİɆƢķėɆǂŨƎŏɆŨįɆƢķėɆ
ƪĐļƢɆŨśśļƢƢėėȚɆļŝĉŒƪĐļŝİɆƢķėɆƖļİŝļǘĉëŝƢɆļƖƖƪėƖɆƢķëƢɆƢķėɆƪĐļƢɆ
ŨśśļƢƢėėɆĉŨŝƖļĐėƎėĐɆļŝɆƎėŒëƢļŨŝɆƢŨɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖȚɆëŝĐɆ
ķŨǂɆƢķėƖėɆļƖƖƪėƖɆǂėƎėɆëĐĐƎėƖƖėĐȜɆëŝĐ
Ɇ ¶ķėɆƖėĉƢļŨŝɆŨįɆƢķėɆëŝŝƪëŒɆƎėƋŨƎƢɆƢķëƢɆĐėƖĉƎļĈėƖɆƢķėɆƎėǁļėǂɆŨįɆ
ƢķėɆėįįėĉƢļǁėŝėƖƖɆŨįɆƢķėɆEƎŨƪƋȼƖɆƎļƖŏɆśëŝëİėśėŝƢɆëŝĐɆļŝƢėƎŝëŒɆ
ĉŨŝƢƎŨŒɆƖLjƖƢėśƖș
ÕėɆëƎėɆƎėƍƪļƎėĐɆƢŨɆƎėǁļėǂɆƢķėɆƋëƎƢɆŨįɆƢķėɆŨƎƋŨƎëƢėɆEŨǁėƎŝëŝĉėɆ
©ƢëƢėśėŝƢɆƎėŒëƢļŝİɆƢŨɆƢķėɆEƎŨƪƋȼƖɆĉŨśƋŒļëŝĉėɆǂļƢķɆƢķėɆƋƎŨǁļƖļŨŝƖɆŨįɆ
ƢķėɆ½bɆŨƎƋŨƎëƢėɆEŨǁėƎŝëŝĉėɆŨĐėɆƖƋėĉļǘėĐɆĈLjɆƢķėɆdļƖƢļŝİɆ¡ƪŒėƖɆ
įŨƎɆŨƪƎɆƎėǁļėǂșɆÕėɆķëǁėɆŝŨƢķļŝİɆƢŨɆƎėƋŨƎƢɆļŝɆƢķļƖɆƎėƖƋėĉƢșɆ
Entain plc
|
Annual Report 2021
150 Financ
ial statements
ǫɆɆ¡ėƖƋėĉƢļǁėɆƎėƖƋŨŝƖļĈļŒļƢļėƖɆ
$ļƎėĉƢŨƎƖȼɆƎėƖƋŨŝƖļĈļŒļƢļėƖ
ƖɆėLJƋŒëļŝėĐɆśŨƎėɆįƪŒŒLjɆļŝɆƢķėļƎɆƖƢëƢėśėŝƢɆƖėƢɆŨƪƢɆŨŝɆƋëİėɆǪǪȚɆ
ƢķėɆ$ļƎėĉƢŨƎƖɆëƎėɆƎėƖƋŨŝƖļĈŒėɆįŨƎțɆƢķėɆƋƎėƋëƎëƢļŨŝɆŨįɆƢķėɆǘŝëŝĉļëŒɆ
ƖƢëƢėśėŝƢƖɆļŝĉŒƪĐļŝİɆĈėļŝİɆƖëƢļƖǘėĐɆƢķëƢɆƢķėLjɆİļǁėɆëɆƢƎƪėɆëŝĐɆ
įëļƎɆǁļėǂȜɆƖƪĉķɆļŝƢėƎŝëŒɆĉŨŝƢƎŨŒɆëƖɆƢķėLjɆĐėƢėƎśļŝėɆļƖɆŝėĉėƖƖëƎLjɆƢŨɆ
ėŝëĈŒėɆƢķėɆƋƎėƋëƎëƢļŨŝɆŨįɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆƢķëƢɆëƎėɆįƎėėɆįƎŨśɆ
śëƢėƎļëŒɆśļƖƖƢëƢėśėŝƢȚɆǂķėƢķėƎɆĐƪėɆƢŨɆįƎëƪĐɆŨƎɆėƎƎŨƎȜɆëƖƖėƖƖļŝİɆ
the Group and parent Company’s ability to continue as a going
ĉŨŝĉėƎŝȚɆĐļƖĉŒŨƖļŝİȚɆëƖɆëƋƋŒļĉëĈŒėȚɆśëƢƢėƎƖɆƎėŒëƢėĐɆƢŨɆİŨļŝİɆĉŨŝĉėƎŝȜɆ
and using the going concern basis of accounting unless they either
intend to liquidate the Group or the parent Company or to cease
ŨƋėƎëƢļŨŝƖȚɆŨƎɆķëǁėɆŝŨɆƎėëŒļƖƢļĉɆëŒƢėƎŝëƢļǁėɆĈƪƢɆƢŨɆĐŨɆƖŨșɆ
ƪĐļƢŨƎȼƖɆƎėƖƋŨŝƖļĈļŒļƢļėƖɆ
{ƪƎɆŨĈŌėĉƢļǁėƖɆëƎėɆƢŨɆŨĈƢëļŝɆƎėëƖŨŝëĈŒėɆëƖƖƪƎëŝĉėɆëĈŨƪƢɆǂķėƢķėƎɆ
ƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëƖɆëɆǂķŨŒėɆëƎėɆįƎėėɆįƎŨśɆśëƢėƎļëŒɆ
śļƖƖƢëƢėśėŝƢȚɆǂķėƢķėƎɆĐƪėɆƢŨɆįƎëƪĐɆŨƎɆėƎƎŨƎȚɆëŝĐɆƢŨɆļƖƖƪėɆŨƪƎɆ
ŨƋļŝļŨŝɆļŝɆëŝɆëƪĐļƢŨƎȼƖɆƎėƋŨƎƢșɆ¡ėëƖŨŝëĈŒėɆëƖƖƪƎëŝĉėɆļƖɆëɆķļİķɆŒėǁėŒɆ
of assurance, but does not guarantee that an audit conducted
ļŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆQ©ƖɆȩ½bȪɆǂļŒŒɆëŒǂëLjƖɆĐėƢėĉƢɆëɆśëƢėƎļëŒɆ
śļƖƖƢëƢėśėŝƢɆǂķėŝɆļƢɆėLJļƖƢƖșɆnļƖƖƢëƢėśėŝƢƖɆĉëŝɆëƎļƖėɆįƎŨśɆįƎëƪĐɆ
or error and are considered material if, individually or in aggregate,
ƢķėLjɆĉŨƪŒĐɆƎėëƖŨŝëĈŒLjɆĈėɆėLJƋėĉƢėĐɆƢŨɆļŝǙƪėŝĉėɆƢķėɆėĉŨŝŨśļĉɆ
ĐėĉļƖļŨŝƖɆŨįɆƪƖėƎƖɆƢëŏėŝɆŨŝɆƢķėɆĈëƖļƖɆŨįɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖșɆ
A fuller description of our responsibilities is provided on the FRC’s
ǂėĈƖļƢėɆëƢɆǂǂǂșįƎĉșŨƎİșƪŏȦëƪĐļƢŨƎƖƎėƖƋŨŝƖļĈļŒļƢļėƖșɆ
9 The purpose of our audit work and to whom we owe
ŨƪƎɇƎėƖƋŨŝƖļĈļŒļƢļėƖɆɆ
This report is made solely to the Company’s members, as a body,
ļŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆ©ėĉƢļŨŝɆǫǣɆȩĉȪɆŨįɆƢķėɆQƖŒėɆŨįɆnëŝɆŨśƋëŝļėƖɆ
ĉƢɆǥǣǣǩɆëŝĐɆƢķėɆƢėƎśƖɆŨįɆŨƪƎɆėŝİëİėśėŝƢɆĈLjɆƢķėɆŨśƋëŝLjșɆ
{ƪƎɆëƪĐļƢɆǂŨƎŏɆķëƖɆĈėėŝɆƪŝĐėƎƢëŏėŝɆƖŨɆƢķëƢɆǂėɆśļİķƢɆƖƢëƢėɆƢŨɆƢķėɆ
ŨśƋëŝLjȼƖɆśėśĈėƎƖɆƢķŨƖėɆśëƢƢėƎƖɆǂėɆëƎėɆƎėƍƪļƎėĐɆƢŨɆƖƢëƢėɆƢŨɆ
ƢķėśɆļŝɆëŝɆëƪĐļƢŨƎȼƖɆƎėƋŨƎƢȚɆëŝĐɆƢķėɆįƪƎƢķėƎɆśëƢƢėƎƖɆǂėɆëƎėɆƎėƍƪļƎėĐɆ
ƢŨɆƖƢëƢėɆƢŨɆƢķėśɆļŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆƢķėɆƢėƎśƖɆëİƎėėĐɆǂļƢķɆƢķėɆ
ŨśƋëŝLjȚɆëŝĐɆįŨƎɆŝŨɆŨƢķėƎɆƋƪƎƋŨƖėșɆ¶ŨɆƢķėɆįƪŒŒėƖƢɆėLJƢėŝƢɆƋėƎśļƢƢėĐɆ
ĈLjɆŒëǂȚɆǂėɆĐŨɆŝŨƢɆëĉĉėƋƢɆŨƎɆëƖƖƪśėɆƎėƖƋŨŝƖļĈļŒļƢLjɆƢŨɆëŝLjŨŝėɆŨƢķėƎɆ
than the Company and the Company’s members, as a body, for our
ëƪĐļƢɆǂŨƎŏȚɆįŨƎɆƢķļƖɆƎėƋŨƎƢȚɆŨƎɆįŨƎɆƢķėɆŨƋļŝļŨŝƖɆǂėɆķëǁėɆįŨƎśėĐș
Mark Flanagan
Responsible Individual
įŨƎɆëŝĐɆŨŝɆĈėķëŒįɆŨįɆbnEɆddȚɆ©ƢëƢƪƢŨƎLjɆƪĐļƢŨƎ
Chartered Accountants and Recognised Auditors
©ƢɆpļĉķŨŒëƖɆLŨƪƖė
ëƎŏɆ¡Ũǂ
Nottingham
NG1 6FQ
ǦɆnëƎĉķɆǥǣǥǥ
151
Overview
|
Strategic report
|
Governance
|
Financial statements
Entain plc
|
Annual Report 2021
Consolidated income statement
for the year ended 31 December 2021
2021 2020
Notes
Underlying
items
£m
Separately
disclosed
Items
(note 6)
£m
Total
£m
Underlying
items
£m
Separately
disclosed
items
(note 6)
£m
Total
£m
Net Gaming Revenue 3,886.3 – 3,886.3 3,628.5 – 3,628.5
VAT/GST (56.3 ) – (56.3 ) (66.9 ) – (66.9 )
Revenue 5 3,830.0 – 3,830.0 3,561.6 – 3,561.6
Cost of sales 7 (1,394.2 ) – (1,394.2 ) (1,253.0 ) – (1,253.0 )
EƎŨƖƖɆƋƎŨǘƢ 2,435.8 – 2,435.8 2,308.6 – 2,308.6
Administrative costs 7 (1,789.2 ) (128.3 ) (1,917.5 ) (1,718.9 ) (170.6 ) (1,889.5 )
Contribution 1,851.5 – 1,851.5 1,740.2 – 1,740.2
Administrative costs excluding marketing (1,204.9 ) (128.3 ) (1,333.2 ) (1,150.5 ) (170.6 ) (1,321.1 )
EƎŨƪƋɆŨƋėƎëƢļŝİɆƋƎŨǘƢȦȩŒŨƖƖȪɆĈėįŨƎėɆƖķëƎėɆ
ŨįɆƎėƖƪŒƢƖɆįƎŨśɆŌŨļŝƢɆǁėŝƢƪƎėƖɆëŝĐɆëƖƖŨĉļëƢėƖ 646.6 (128.3 ) 518.3 589.7 (170.6 ) 419.1
Share of results from joint ventures and associates 16,17 (162.5 ) – (162.5 ) (60.2 ) – (60.2 )
EƎŨƪƋɆŨƋėƎëƢļŝİɆƋƎŨǘƢȦȩŒŨƖƖȪ 484.1 (128.3 ) 355.8 529.5 (170.6 ) 358.9
Finance expense 8 (77.1 ) (5.8 ) (82.9 ) (76.5 ) (5.3 ) (81.8 )
Finance income 8 2.1 – 2.1 2.3 – 2.3
Gains/(losses) arising from change in fair value
ŨįɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖ 8 62.0 – 62.0 (61.8 ) – (61.8 )
Gains/(losses) arising from foreign exchange
on debt instruments 8 56.2 – 56.2 (42.9 ) – (42.9 )
ƎŨǘƢȦȩŒŨƖƖȪɆĈėįŨƎėɆƢëLJ 527.3 (134.1 ) 393.2 350.6 (175.9 ) 174.7
Income tax 10 (90.1 ) (27.5 ) (117.6 ) (63.0 ) 2.1 (60.9 )
ƎŨǘƢȦȩŒŨƖƖȪɆįƎŨśɆĉŨŝƢļŝƪļŝİɆŨƋėƎëƢļŨŝƖ 437.2 (161.6 ) 275.6 287.6 (173.8 ) 113.8
Loss for the year from discontinued operations
after tax 21 (5.6 ) (9.3 ) (14.9 ) (14.4 ) (20.0 ) (34.4 )
ƎŨǘƢȦȩŒŨƖƖȪɆįŨƎɆƢķėɆLjėëƎ 431.6 (170.9 ) 260.7 273.2 (193.8 ) 79.4
Attributable to:
Equity holders of the parent 420.2 (170.9 ) 249.3 251.6 (193.8 ) 57.8
Non-controlling interests 11.4 – 11.4 21.6 – 21.6
,ëƎŝļŝİƖɆƋėƎɆƖķëƎėɆŨŝɆƋƎŨǘƢɆįŨƎɆƢķėɆLjėëƎ
from continuing operations 54.3 p
1
DƎŨśɆƋƎŨǘƢɆįŨƎɆƢķėɆLjėëƎ 12 53.3 p
1
$ļŒƪƢėĐɆėëƎŝļŝİƖɆƋėƎɆƖķëƎėɆŨŝɆƋƎŨǘƢɆįŨƎɆƢķėɆLjėëƎɆ
from continuing operations 53.8 p
1
DƎŨśɆƋƎŨǘƢɆįŨƎɆƢķėɆLjėëƎ 12 52.8 p
1
Memo
EBITDAR
2
Rent and associated costs
3
(17.1 ) – (17.1 ) (19.0 ) – (19.0 )
EBITDA 881.7 19.2 900.9 843.1 141.4 984.5
Share based payments (12.3 ) – (12.3 ) (14.8 ) – (14.8 )
Depreciation, amortisation and impairment (222.8 ) (147.5 ) (370.3 ) (238.6 ) (312.0 ) (550.6 )
Share of results from joint ventures and associates (162.5 ) – (162.5 ) (60.2 ) – (60.2 )
EƎŨƪƋɆŨƋėƎëƢļŝİɆƋƎŨǘƢȦȩŒŨƖƖȪ 484.1 (128.3 ) 355.8 529.5 (170.6 ) 358.9
ǤșɆ ¶ķėɆĉëŒĉƪŒëƢļŨŝɆŨįɆƪŝĐėƎŒLjļŝİɆėëƎŝļŝİƖɆƋėƎɆƖķëƎėɆķëƖɆĈėėŝɆëĐŌƪƖƢėĐɆįŨƎɆƖėƋëƎëƢėŒLjɆĐļƖĉŒŨƖėĐɆļƢėśƖȚɆëŝĐɆįŨƎɆƢķėɆƎėśŨǁëŒɆŨįɆįŨƎėļİŝɆėLJĉķëŝİėɆǁŨŒëƢļŒļƢLjɆëƎļƖļŝİɆŨŝɆǘŝëŝĉļëŒɆ
instruments as it provides a better understanding of the underlying performance of the Group. See note 12 for further details.
2. Included within the Income Statement and Memo above are certain non-statutory measures. The use of these items and the reconciliation to their statutory equivalents
is provided above and on page 66 of the report.
3. Rent and associated costs include VAT and rent not captured by IFRS 16. These are predominantly driven by VAT on rental charges not being recoverable and held over leases.
¶ķėɆŝŨƢėƖɆŨŝɆƋëİėƖɆǤǨǪɆƢŨɆǥǣǦɆįŨƎśɆëŝɆļŝƢėİƎëŒɆƋëƎƢɆŨįɆƢķėƖėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖș
Entain plc
|
Annual Report 2021
152 Financial statements
Consolidated statement of comprehensive income
for the year ended 31 December 2021
Notes
2021
£m
2020
£m
ƎŨǘƢɆįŨƎɆƢķėɆLjėëƎ 260.7 79.4
Other comprehensive (expense)/income:
QƢėśƖɆƢķëƢɆśëLjɆĈėɆƎėĉŒëƖƖļǘėĐɆƢŨɆƋƎŨǘƢɆŨƎɆŒŨƖƖț
Currency differences on translation of foreign operations (128.3 ) 137.7
¶ŨƢëŒɆļƢėśƖɆƢķëƢɆśëLjɆĈėɆƎėĉŒëƖƖļǘėĐɆƢŨɆƋƎŨǘƢɆŨƎɆŒŨƖƖ (128.3 ) 137.7
QƢėśƖɆƢķëƢɆǂļŒŒɆŝŨƢɆĈėɆƎėĉŒëƖƖļǘėĐɆƢŨɆƋƎŨǘƢɆŨƎɆŒŨƖƖț
¡ėȯśėëƖƪƎėśėŝƢɆŨįɆĐėǘŝėĐɆĈėŝėǘƢɆƋėŝƖļŨŝɆƖĉķėśė 30 31.2 (0.2 )
¶ëLJɆŨŝɆƎėȯśėëƖƪƎėśėŝƢɆŨįɆĐėǘŝėĐɆĈėŝėǘƢɆƋėŝƖļŨŝɆƖĉķėśė 10 (10.9 ) 0.1
Share of associate other comprehensive (expense)/income 17
¶ŨƢëŒɆļƢėśƖɆƢķëƢɆǂļŒŒɆŝŨƢɆĈėɆƎėĉŒëƖƖļǘėĐɆƢŨɆƋƎŨǘƢɆŨƎɆŒŨƖƖ
Other comprehensive (expense)/income for the year, net of tax
(108.0 ) 137.9
Total comprehensive income for the year
Attributable to:
Equity holders of the parent: 141.3 195.7
Non-controlling interests 11.4 21.6
¶ķėɆŝŨƢėƖɆŨŝɆƋëİėƖɆǤǨǪɆƢŨɆǥǣǦɆįŨƎśɆëŝɆļŝƢėİƎëŒɆƋëƎƢɆŨįɆƢķėƖėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖș
153
Overview
|
Strategic report
|
Governance
|
Financial statements
Entain plc
|
Annual Report 2021
Notes
2021
£m
2020
£m
Assets
Non-current assets
Goodwill 13
Intangible assets 13 2,152.5 2,105.4
Property, plant and equipment 15
Interest in joint venture 16 9.7 6.2
Interest in associates and other investments 17
Trade and other receivables 18
{ƢķėƎɆǘŝëŝĉļëŒɆëƖƖėƢƖ 26 0.3 4.4
Deferred tax assets 10 141.4 129.8
¡ėƢļƎėśėŝƢɆĈėŝėǘƢɆëƖƖėƢ 30
Current assets
Trade and other receivables 18 539.8 475.8
Income and other taxes recoverable 23.1 13.6
$ėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖ 26
Cash and cash equivalents 19 487.1 706.7
ƖƖėƢƖɆļŝɆĐļƖƋŨƖëŒɆİƎŨƪƋɆĉŒëƖƖļǘėĐɆëƖɆķėŒĐɆįŨƎɆƖëŒė 21 – 199.1
Total assets
Liabilities
Current liabilities
Trade and other payables 20
(695.8 ) (687.4 )
Balances with customers 27
(205.9 ) (241.1 )
Lease liabilities 22
(78.2 ) (89.8 )
Interest bearing loans and borrowings 23
(121.1 ) (14.1 )
Corporate tax liabilities
(59.1 ) (66.4 )
Provisions 24
(43.5 ) (49.4 )
$ėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖ 26
{ƢķėƎɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖ 26
(36.1 ) (147.5 )
(1,239.7 ) (1,321.8 )
Non-current liabilities
Interest bearing loans and borrowings 23 (2,161.3 ) (2,085.7 )
Lease liabilities 22 (215.5 ) (248.2 )
Deferred tax liabilities 10 (408.0 ) (331.7 )
Provisions 24 (6.4 ) (19.5 )
{ƢķėƎɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖ 26 (52.6 ) (9.3 )
(2,843.8 ) (2,694.4 )
dļëĈļŒļƢļėƖɆļŝɆĐļƖƋŨƖëŒɆİƎŨƪƋɆĉŒëƖƖļǘėĐɆëƖɆķėŒĐɆįŨƎɆƖëŒė 21
Total liabilities
(4,083.5 ) (4,188.2 )
Net assets
Equity
Issued share capital 28
Share Premium 1,207.3 1,206.6
Merger Reserve 2,527.4 2,527.4
Translation reserve
Retained earnings
(635.8 ) (901.3 )
,ƍƪļƢLjɆƖķëƎėķŨŒĐėƎƖȼɆįƪŝĐƖ 3,167.1 3,029.2
Non-controlling interests 35 1.4 52.3
¶ŨƢëŒɆƖķëƎėķŨŒĐėƎƖȼɆėƍƪļƢLj 3,168.5 3,081.5
¶ķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆŨŝɆƋëİėƖɆǤǨǥɆƢŨɆǥǣǦɆǂėƎėɆëƋƋƎŨǁėĐɆĈLjɆƢķėɆŨëƎĐɆŨįɆ$ļƎėĉƢŨƎƖɆŨŝɆǦɆnëƎĉķɆǥǣǥǥɆëŝĐɆƖļİŝėĐɆŨŝɆļƢƖɆĈėķëŒįɆĈLj
J Nygaard-Andersen R Wood
ķļėįɆ,LJėĉƪƢļǁėɆ{įǘĉėƎɆ $ėƋƪƢLjɆķļėįɆ,LJėĉƪƢļǁėɆ{įǘĉėƎȦķļėįɆDļŝëŝĉļëŒɆ{įǘĉėƎ
Consolidated balance sheet (Company number 4685V)
At 31 December 2021
Entain plc
|
Annual Report 2021
154
Financial statements
Issued
share
capital
£m
Share
premium
£m
Merger
Reserve
£m
Translation
reserve
1
£m
Retained
earnings
£m
Equity
shareholders’
funds
£m
Non-
controlling
Interests
(note 35)
£m
Total
Shareholders’
equity
£m
At 1 January 2020 4.8 1,198.0 2,527.4 54.0 (971.4 ) 2,812.8 43.1 2,855.9
ƎŨǘƢɆįŨƎɆƢķėɆLjėëƎ – – – – 57.8 57.8 21.6 79.4
Other comprehensive income – – – 137.7 0.2 137.9 – 137.9
Total comprehensive income – – – 137.7 58.0 195.7 21.6 217.3
Share options exercised – 8.6 – – – 8.6 – 8.6
Share-based payments charge– – – – 12.1 12.1 – 12.1
Equity dividends (note 11) – – – – – – (12.4 ) (12.4 )
At 31 December 2020 4.8 1,206.6 2,527.4 191.7 (901.3 ) 3,029.2 52.3 3,081.5
At 1 January 2021 4.8 1,206.6 2,527.4 191.7 (901.3 ) 3,029.2 52.3 3,081.5
ƎŨǘƢɆįŨƎɆƢķėɆLjėëƎ – – – – 249.3 249.3 11.4 260.7
Other comprehensive income – – – (128.3 ) 20.3 (108.0 ) – (108.0 )
Total comprehensive income – – – (128.3 ) 269.6 141.3 11.4 152.7
Share options exercised – 0.7 – – – 0.7 – 0.7
Share-based payments charge – – – – 6.9 6.9 – 6.9
Business combinations (note 32) – – – – (50.0 ) (50.0 ) 14.2 (35.8 )
Purchase of non-controlling
interests (note 35) – – – – 39.0 39.0 (52.0 ) (13.0 )
Equity dividends (note 11) – – – – – – (24.5 ) (24.5 )
At 31 December 2021 4.8 1,207.3 2,527.4 63.4 (635.8 ) 3,167.1 1.4 3,168.5
ǤșɆ ¶ķėɆƢƎëŝƖŒëƢļŨŝɆƎėƖėƎǁėɆļƖɆƪƖėĐɆƢŨɆƎėĉŨƎĐɆėLJĉķëŝİėɆĐļįįėƎėŝĉėƖɆëƎļƖļŝİɆįƎŨśɆƢķėɆƢƎëŝƖŒëƢļŨŝɆŨįɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆŨįɆƖƪĈƖļĐļëƎļėƖɆǂļƢķɆŝŨŝȯ©ƢėƎŒļŝİɆįƪŝĉƢļŨŝëŒɆĉƪƎƎėŝĉļėƖș
¶ķėɆŝŨƢėƖɆŨŝɆƋëİėƖɆǤǨǪɆƢŨɆǥǣǦɆįŨƎśɆëŝɆļŝƢėİƎëŒɆƋëƎƢɆŨįɆƢķėƖėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖș
Consolidated statement of changes in equity
for the year ended 31 December 2021
155
Overview
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Strategic report
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Governance
|
Financial statements
Entain plc
|
Annual Report 2021
Notes
2021
£m
2020
£m
ëƖķɆİėŝėƎëƢėĐɆĈLjɆŨƋėƎëƢļŨŝƖ 29 803.8 864.8
Income taxes paid (98.7 ) (59.2 )
pėƢɆǘŝëŝĉėɆėLJƋėŝƖėɆƋëļĐ (73.3 ) (95.3 )
p
ėƢɆĉëƖķɆİėŝėƎëƢėĐɆįƎŨśɆŨƋėƎëƢļŝİɆëĉƢļǁļƢļėƖ 631.8 710.3
ëƖķɆǙŨǂƖɆįƎŨśɆļŝǁėƖƢļŝİɆëĉƢļǁļƢļėƖț
Acquisitions (449.8 ) –
Cash acquired on business combinations 22.3 –
C
ash disposed on sale of business (53.7 ) –
Purchase of intangible assets (106.4 ) (101.6 )
Purcha
se of property, plant and equipment (69.8 ) (62.6 )
Proceeds from the sale of property, plant and equipment including disposal of shops 1.9 6.9
P
urchase of investments in associates and other investments (29.4 ) –
I
nvestment in joint ventures (164.4 ) (61.8 )
pėƢɆĉëƖķɆƪƖėĐɆļŝɆļŝǁėƖƢļŝİɆëĉƢļǁļƢļėƖ (849.3 ) (219.1 )
ëƖķɆǙŨǂƖɆįƎŨśɆǘŝëŝĉļŝİɆëĉƢļǁļƢļėƖț
Proceeds from issue of ordinary shares 0.7 8.6
N
et proceeds from borrowings 797.2 –
Repayment of borrowings (566.1 ) (43.5 )
©
ėƢƢŒėśėŝƢɆŨįɆĐėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖɆëŝĐɆŨƢķėƎɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖɆ (149.8 ) (11.3 )
P
ayment of lease liabilities (87.9 ) (85.9 )
Equity dividends paid
1
(24.5 ) (12.4 )
pėƢɆĉëƖķɆƪƖėĐɆļŝɆǘŝëŝĉļŝİɆëĉƢļǁļƢļėƖɆ (30.4 ) (144.5 )
Net (decrease)/increase in cash and cash equivalents (247.9 ) 346.7
E
ffect of changes in foreign exchange rates (14.8 ) 13.0
C
ash and cash equivalents at beginning of the year 749.8 390.1
ëƖķɆëŝĐɆĉëƖķɆėƍƪļǁëŒėŝƢƖɆëƢɆėŝĐɆŨįɆƢķėɆLjėëƎ
2
ŨŝƖŨŒļĐëƢėĐɆƖƢëƢėśėŝƢɆŨįɆĉëƖķɆǙŨǂƖ
for the year ended 31 December 2021
Entain plc
|
Annual Report 2021
156 Financ
ial statements
1. Equity dividends paid represent dividends paid to non-controlling interests of £24 . 5 m (2020: £1 2. 4 m).
2. Cash and cash equivalents at the beginning of the year include £43 .1 m of cash within assets in disposal group classified as held for sale.
The notes on pages 157 to 203 form an integral part of these consolidated financial statements.
ǤɆŨƎƋŨƎëƢėɆļŝįŨƎśëƢļŨŝ
publicly on the London Stock Exchange. The principal activities of the Company and its subsidiaries (“the Group”) are described in the
ƖƢƎëƢėİļĉɆƎėƋŨƎƢșɆ¶ķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆŨįɆƢķėɆEƎŨƪƋɆįŨƎɆƢķėɆLjėëƎɆėŝĐėĐɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤɆǂėƎėɆëƪƢķŨƎļƖėĐɆįŨƎɆļƖƖƪėɆļŝɆ
accordance with a resolution of the Directors on 3 March 2022.
The nature of the Group’s operations and its principal activities are set out in note 5.
ǥɆëƖļƖɆŨįɆƋƎėƋëƎëƢļŨŝ
¶ķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆŨįɆƢķėɆEƎŨƪƋɆķëǁėɆĈėėŝɆƋƎėƋëƎėĐɆļŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆQŝƢėƎŝëƢļŨŝëŒɆDļŝëŝĉļëŒɆ¡ėƋŨƎƢļŝİɆ©ƢëŝĐëƎĐƖɆ
adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union and with the Isle of Man Companies Act 2006
applicable to companies reporting under IFRSs. The accounting policies set out in this section as detailed have been applied consistently
year on year other than for the changes in accounting policies set out in note 3.
Going concern
¶ķėɆEƎŨƪƋɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëƎėɆƋƎėƋëƎėĐɆƪŝĐėƎɆƢķėɆķļƖƢŨƎļĉëŒɆĉŨƖƢɆĉŨŝǁėŝƢļŨŝɆƪŝŒėƖƖɆŨƢķėƎǂļƖėɆƖƢëƢėĐșɆQŝɆëĐŨƋƢļŝİɆƢķėɆİŨļŝİɆĉŨŝĉėƎŝɆ
ĈëƖļƖɆŨįɆƋƎėƋëƎëƢļŨŝɆļŝɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖȚɆƢķėɆ$ļƎėĉƢŨƎƖɆķëǁėɆĉŨŝƖļĐėƎėĐɆƢķėɆĉƪƎƎėŝƢɆƢƎëĐļŝİɆƋėƎįŨƎśëŝĉėɆŨįɆƢķėɆEƎŨƪƋȚɆƢķėɆǘŝëŝĉļëŒɆ
forecasts and the principal risks and uncertainties, including the ongoing impact of Covid-19. In addition, the Directors have considered
all matters discussed in connection with the long-term viability statement including the modelling of “severe but plausible” downside
scenarios such as legislation changes impacting the Group’s Online business and new lockdowns affecting the Group’s Retail operations.
$ėƖƋļƢėɆƢķėɆŝėƢɆĉƪƎƎėŝƢɆŒļëĈļŒļƢLjɆƋŨƖļƢļŨŝȚɆƢķėɆŒėǁėŒɆŨįɆƢķėɆEƎŨƪƋȼƖɆëǁëļŒëĈŒėɆĉëƖķɆȩĉɞǧǣǣśȪȚɆëǁëļŒëĈŒėɆǘŝëŝĉļŝİɆįëĉļŒļƢļėƖɆȩļŝĉŒƪĐļŝİɆëŝɆ
undrawn revolving credit facility of c£500m) and the forecast covenant headroom even under the sensitised downside scenarios,
the Directors believe that the Group is well placed to manage the risks and uncertainties that it faces. As such, the Directors have a
ƎėëƖŨŝëĈŒėɆėLJƋėĉƢëƢļŨŝɆƢķëƢɆƢķėɆEƎŨƪƋɆǂļŒŒɆķëǁėɆëĐėƍƪëƢėɆǘŝëŝĉļëŒɆƎėƖŨƪƎĉėƖɆƢŨɆĉŨŝƢļŝƪėɆļŝɆŨƋėƎëƢļŨŝëŒɆėLJļƖƢėŝĉėɆëŝĐɆķëǁėȚɆƢķėƎėįŨƎėȚɆ
ĉŨŝƖļĐėƎėĐɆļƢɆëƋƋƎŨƋƎļëƢėɆƢŨɆëĐŨƋƢɆƢķėɆİŨļŝİɆĉŨŝĉėƎŝɆĈëƖļƖɆŨįɆƋƎėƋëƎëƢļŨŝɆļŝɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖș
¶ķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëƎėɆƋƎėƖėŝƢėĐɆļŝɆŨƪŝĐƖɆ©ƢėƎŒļŝİɆȩɞȪșɆŒŒɆǁëŒƪėƖɆëƎėɆļŝɆśļŒŒļŨŝƖɆȩɞśȪɆƎŨƪŝĐėĐɆƢŨɆŨŝėɆĐėĉļśëŒɆƋŒëĉėɆ
ėLJĉėƋƢɆǂķėƎėɆŨƢķėƎǂļƖėɆļŝĐļĉëƢėĐșɆ¶ķėɆƖėƋëƎëƢėŒLjɆĐļƖĉŒŨƖėĐɆļƢėśƖɆķëǁėɆĈėėŝɆļŝĉŒƪĐėĐɆǂļƢķļŝɆƢķėɆëƋƋƎŨƋƎļëƢėɆĉŒëƖƖļǘĉëƢļŨŝƖɆļŝɆƢķėɆ
consolidated income statement. Further details are given in note 6.
ǦɆķëŝİėƖɆļŝɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖ
DƎŨśɆǤɆ`ëŝƪëƎLjɆǥǣǥǤɆƢķėɆEƎŨƪƋɆķëƖɆŝŨƢɆĈėėŝɆƎėƍƪļƎėĐɆƢŨɆëĐŨƋƢȚɆįŨƎɆƢķėɆǘƎƖƢɆƢļśėȚɆëŝLjɆŝėǂɆƖƢëŝĐëƎĐƖȚɆļŝƢėƎƋƎėƢëƢļŨŝƖȚɆŨƎɆëśėŝĐśėŝƢƖɆëƖɆ
there have been no new issues effective in the reporting year.
ǧɆ©ƪśśëƎLjɆŨįɆƖļİŝļǘĉëŝƢɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖɆ
ǧșǤɆëƖļƖɆŨįɆĉŨŝƖŨŒļĐëƢļŨŝ
¶ķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆĉŨśƋƎļƖėɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆŨįɆƢķėɆEƎŨƪƋɆëƢɆǦǤɆ$ėĉėśĈėƎɆėëĉķɆLjėëƎșɆ¶ķėɆĉŨŝƖŨŒļĐëƢļŨŝɆ
has been performed using the results to 31 December for all subsidiaries, using consistent accounting policies. With the exception of a
ƖśëŒŒɆŝƪśĈėƎɆŨįɆļśśëƢėƎļëŒɆƖƪĈƖļĐļëƎļėƖȚɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆŨįɆƢķŨƖėɆƖƪĈƖļĐļëƎļėƖɆëƎėɆƋƎėƋëƎėĐɆƢŨɆǦǤɆ$ėĉėśĈėƎșɆŨŝƢƎŨŒɆļƖɆëĉķļėǁėĐɆ
where the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect these
returns through its power over the investee.
All intragroup transactions, balances, income and expenses are eliminated on consolidation.
Subsidiaries are consolidated, using the acquisition method of accounting, from the date on which control is transferred to the Group
and cease to be consolidated from the date on which control is transferred from the Group. On acquisition, the assets and liabilities and
contingent liabilities of a subsidiary are measured at fair value at the date of acquisition. Any excess of the cost of acquisition over the
įëļƎɆǁëŒƪėƖɆŨįɆƢķėɆƖėƋëƎëƢėŒLjɆļĐėŝƢļǘëĈŒėɆŝėƢɆëƖƖėƢƖɆëĉƍƪļƎėĐɆļƖɆƎėĉŨİŝļƖėĐɆëƖɆİŨŨĐǂļŒŒșɆÕķėƎėɆŝėĉėƖƖëƎLjȚɆëĐŌƪƖƢśėŝƢƖɆëƎėɆśëĐėɆƢŨɆƢķėɆ
ǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆŨįɆƖƪĈƖļĐļëƎļėƖɆƢŨɆĈƎļŝİɆƢķėɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖɆƪƖėĐɆļŝɆŒļŝėɆǂļƢķɆƢķŨƖėɆƪƖėĐɆĈLjɆƢķėɆEƎŨƪƋș
ǧșǥɆƎļƢļĉëŒɆëĉĉŨƪŝƢļŝİɆėƖƢļśëƢėƖɆëŝĐɆŌƪĐİėśėŝƢƖ
¶ķėɆƋƎėƋëƎëƢļŨŝɆŨįɆǘŝëŝĉļëŒɆļŝįŨƎśëƢļŨŝɆƎėƍƪļƎėƖɆƢķėɆƪƖėɆŨįɆëƖƖƪśƋƢļŨŝƖȚɆėƖƢļśëƢėƖɆëŝĐɆŌƪĐİėśėŝƢƖɆëĈŨƪƢɆįƪƢƪƎėɆĉŨŝĐļƢļŨŝƖșɆ½ƖėɆŨįɆ
available information and application of judgement are inherent in the formation of estimates. Actual results in the future may differ from
those reported.
pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖ
for the year ended 31 December 2021
157
Overview
|
Strategic report
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Governance
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Financial statements
Entain plc
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Annual Report 2021
ǧɆ©ƪśśëƎLjɆŨįɆƖļİŝļǘĉëŝƢɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖɆ(continued)
ǧșǥɆƎļƢļĉëŒɆëĉĉŨƪŝƢļŝİɆėƖƢļśëƢėƖɆëŝĐɆŌƪĐİėśėŝƢƖɆ(continued)
Judgements
Management believes that the areas where judgement has been applied are:
– accounting for uncertain tax positions (note 18); and
– separately disclosed items (note 6).
Accounting for uncertain tax positions
The Group is subject to various forms of tax in a number of jurisdictions. Given the nature of the industry within which the Group operates,
the tax and regulatory regimes are continuously changing and, as such, the Group is exposed to a small number of uncertain tax positions.
Judgement is applied in or order to adequately provide for uncertain tax positions where it is believed that it is more likely than not that
ëŝɆėĉŨŝŨśļĉɆŨƪƢǙŨǂɆǂļŒŒɆëƎļƖėșɆQŝɆƋëƎƢļĉƪŒëƎȚɆĐƪƎļŝİɆǥǣǥǤɆŌƪĐİėśėŝƢɆķëƖɆĈėėŝɆëƋƋŒļėĐɆļŝɆƢķėɆEƎŨƪƋȼƖɆëĉĉŨƪŝƢļŝİɆįŨƎɆEƎėėŏɆƢëLJɆëŝĐɆįƪƎƢķėƎɆ
disclosure is given in note 18.
Separately disclosed items
To assist in understanding the underlying performance of the Group, management applies judgement to identify those items that are
deemed to warrant separate disclosure due to either their nature or size. Whilst not limited to, the following items of pre-tax income and
expense are generally disclosed separately:
– amortisation of acquired intangibles resulting from IFRS 3 “Business Combinations” fair value exercises;
– ƋƎŨǘƢƖɆŨƎɆŒŨƖƖėƖɆŨŝɆĐļƖƋŨƖëŒȚɆĉŒŨƖƪƎėȚɆŨƎɆļśƋëļƎśėŝƢɆŨįɆŝŨŝȯĉƪƎƎėŝƢɆëƖƖėƢƖɆŨƎɆĈƪƖļŝėƖƖėƖȜ
– corporate transaction and restructuring costs;
– legal, regulatory and tax litigation;
– changes in the fair value of contingent consideration; and
– the related tax effect of these items.
ŝLjɆŨƢķėƎɆŝŨŝȯƎėĉƪƎƎļŝİɆļƢėśƖɆëƎėɆĉŨŝƖļĐėƎėĐɆļŝĐļǁļĐƪ댌LjɆįŨƎɆĉŒëƖƖļǘĉëƢļŨŝɆëƖɆƖėƋëƎëƢėŒLjɆĐļƖĉŒŨƖėĐɆĈLjɆǁļƎƢƪėɆŨįɆƢķėļƎɆŝëƢƪƎėɆŨƎɆƖļǒėșɆ
During 2021 the Group separately disclosed a net charge on continuing operations of £134.1m including £144.2m of amortisation of
acquired intangibles resulting from IFRS 3.
The separate disclosure of these items allows a clearer understanding of the trading performance on a consistent and comparable basis,
ƢŨİėƢķėƎɆǂļƢķɆëŝɆƪŝĐėƎƖƢëŝĐļŝİɆŨįɆƢķėɆėįįėĉƢɆŨįɆŝŨŝȯƎėĉƪƎƎļŝİɆŨƎɆŒëƎİėɆļŝĐļǁļĐƪëŒɆƢƎëŝƖëĉƢļŨŝƖɆƪƋŨŝɆƢķėɆŨǁėƎ댌ɆƋƎŨǘƢëĈļŒļƢLjɆŨįɆƢķėɆEƎŨƪƋș
¶ķėɆƖėƋëƎëƢėŒLjɆĐļƖĉŒŨƖėĐɆļƢėśƖɆķëǁėɆĈėėŝɆļŝĉŒƪĐėĐɆǂļƢķļŝɆƢķėɆëƋƋƎŨƋƎļëƢėɆĉŒëƖƖļǘĉëƢļŨŝƖɆļŝɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆļŝĉŨśėɆƖƢëƢėśėŝƢșɆ
Further details are given in note 6.
Estimates
nëŝëİėśėŝƢɆĈėŒļėǁėƖɆƢķëƢɆƢķėɆëƎėëɆǂķėƎėɆƖļİŝļǘĉëŝƢɆėƖƢļśëƢėƖɆķëǁėɆĈėėŝɆśëĐėɆǂļƢķļŝɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢɆëƎėț
– accounting for business combinations (note 32).
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the
period in which the estimate is revised.
Further information about key assumptions concerning the future and other key sources of estimation uncertainty are set out below;
Business combinations
For business combinations, the Group estimates the fair value of the consideration transferred, which can include assumptions
about the future business performance of the business acquired and an appropriate discount rate to determine the fair value of any
contingent consideration.
The Group then estimates the fair value of assets acquired and liabilities assumed in the business combination, including any separately
ļĐėŝƢļǘëĈŒėɆļŝƢëŝİļĈŒėɆëƖƖėƢƖșɆ¶ķėƖėɆėƖƢļśëƢėƖɆëŒƖŨɆƎėƍƪļƎėɆļŝƋƪƢƖɆëŝĐɆëƖƖƪśƋƢļŨŝƖɆļŝĉŒƪĐļŝİɆįƪƢƪƎėɆėëƎŝļŝİƖȚɆĉƪƖƢŨśėƎɆëƢƢƎļƢļŨŝɆƎëƢėƖɆëŝĐɆ
discount rates. The Group engages external experts to support the valuation process, where appropriate. IFRS 3 “Business Combinations”
allows the Group to recognise provisional fair values if the initial accounting for the business combination is incomplete.
The fair value of contingent consideration recognised in business combinations is reassessed at each reporting date, using updated
ļŝƋƪƢƖɆëŝĐɆëƖƖƪśƋƢļŨŝƖɆĈëƖėĐɆŨŝɆƢķėɆŒëƢėƖƢɆǘŝëŝĉļëŒɆįŨƎėĉëƖƢƖɆįŨƎɆƢķėɆƎėŒėǁëŝƢɆĈƪƖļŝėƖƖșɆDëļƎɆǁëŒƪėɆśŨǁėśėŝƢƖɆëŝĐɆƢķėɆƪŝǂļŝĐļŝİɆŨįɆƢķėɆ
discounting is recognised within the income statement as a separately disclosed item. See note 6 and note 32 for further details.
pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued
for the year ended 31 December 2021
Entain plc
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Annual Report 2021
158
Financial statements
ǧɆ©ƪśśëƎLjɆŨįɆƖļİŝļǘĉëŝƢɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖɆ(continued)
ǧșǥɆƎļƢļĉëŒɆëĉĉŨƪŝƢļŝİɆėƖƢļśëƢėƖɆëŝĐɆŌƪĐİėśėŝƢƖɆ(continued)
Goodwill on acquisition is initially measured at cost, being the excess of the cost of the business combination over the Group’s interest in
ƢķėɆŝėƢɆįëļƎɆǁëŒƪėɆŨįɆƢķėɆƖėƋëƎëƢėŒLjɆļĐėŝƢļǘëĈŒėɆëƖƖėƢƖȚɆŒļëĈļŒļƢļėƖɆëŝĐɆĉŨŝƢļŝİėŝƢɆŒļëĈļŒļƢļėƖɆëƢɆƢķėɆĐëƢėɆŨįɆëĉƍƪļƖļƢļŨŝșɆQŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆ
QD¡©ɆǦɆƪƖļŝėƖƖɆŨśĈļŝëƢļŨŝƖȚɆİŨŨĐǂļŒŒɆļƖɆŝŨƢɆëśŨƎƢļƖėĐɆĈƪƢɆƎėǁļėǂėĐɆįŨƎɆļśƋëļƎśėŝƢɆëƢɆƢķėɆǘƎƖƢɆƎėƋŨƎƢļŝİɆƋėƎļŨĐɆëįƢėƎɆëĉƍƪļƖļƢļŨŝɆëŝĐɆ
then annually thereafter. As such it is stated at cost less any provision for impairment of value. Any impairment is recognised immediately
in the consolidated income statement and is not subsequently reversed.
On acquisition, any goodwill acquired is allocated to cash generating units for the purpose of impairment testing. Where goodwill forms
part of a cash generating unit and part of the operation within that unit is disposed of, the goodwill associated with the disposal is
included in the carrying amount of the assets when determining the gain or loss on disposal.
ǧșǦɆ{ƢķėƎɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖ
Intangible assets
Intangible assets acquired separately are capitalised at cost and those acquired as part of a business combination are capitalised
separately from goodwill if the fair value can be measured reliably on initial recognition. The costs relating to internally generated
intangible assets, principally software costs, are capitalised if the criteria for recognition as assets are met. Other expenditure is charged
in the year in which the expenditure is incurred. Following initial recognition, intangible assets are carried at cost less any accumulated
amortisation and any accumulated impairment losses.
¶ķėɆƪƖėįƪŒɆŒļǁėƖɆŨįɆƢķėƖėɆļŝƢëŝİļĈŒėɆëƖƖėƢƖɆëƎėɆëƖƖėƖƖėĐɆƢŨɆĈėɆėļƢķėƎɆǘŝļƢėɆŨƎɆļŝĐėǘŝļƢėșɆŒŒɆļŝĐėǘŝļƢėɆŒļǁėĐɆëƖƖėƢƖɆëƎėɆƖƪĈŌėĉƢɆƢŨɆëŝɆëŝŝƪëŒɆ
ļśƋëļƎśėŝƢɆƎėǁļėǂɆįƎŨśɆƢķėɆLjėëƎɆŨįɆëĉƍƪļƖļƢļŨŝșɆÕķėƎėɆëśŨƎƢļƖëƢļŨŝɆļƖɆĉķëƎİėĐɆŨŝɆëƖƖėƢƖɆǂļƢķɆǘŝļƢėɆŒļǁėƖȚɆƢķļƖɆėLJƋėŝƖėɆļƖɆƢëŏėŝɆƢŨɆƢķėɆ
consolidated income statement through the “operating expenses, depreciation and amortisation” line item. Useful lives are reviewed on
an annual basis.
A summary of the policies applied to the Group’s intangible assets is as follows:
Retail licences Lower of 15 years, or duration of licence
Software - purchased & internally capitalised costs 2-15 years
Trademarks & brand names ǤǣȯǤǨɆLjėëƎƖȚɆŨƎɆļŝĐėǘŝļƢėɆŒļįė
Customer relationships 3-15 years
¶ķėɆƪƖėįƪŒɆŒļǁėƖɆŨįɆ댌ɆļŝƢëŝİļĈŒėɆëƖƖėƢƖɆëƎėɆƎėǁļėǂėĐɆëƢɆėëĉķɆǘŝëŝĉļëŒɆƋėƎļŨĐɆėŝĐșɆQśƋëļƎśėŝƢɆƢėƖƢļŝİɆļƖɆƋėƎįŨƎśėĐɆëŝŝƪ댌LjɆįŨƎɆļŝƢëŝİļĈŒėɆ
assets which are not subject to systematic amortisation and where an indicator of impairment exists for all other intangible assets.
An intangible asset is derecognised on disposal, with any gain or loss arising (calculated as the difference between the net disposal
proceeds and the carrying amount of the item) included in the consolidated income statement in the year of disposal.
ėŝƖļŨŝƖɆëŝĐɆŨƢķėƎɆƋŨƖƢȯėśƋŒŨLjśėŝƢɆĈėŝėǘƢƖ
¶ķėɆEƎŨƪƋȼƖɆĐėǘŝėĐɆĈėŝėǘƢɆƋėŝƖļŨŝɆƋŒëŝƖȚɆƢķėɆdëĐĈƎŨŏėƖɆėŝƖļŨŝɆŒëŝɆëŝĐɆƢķėɆEëŒëɆŨƎëŒɆėŝƖļŨŝɆŒëŝɆķŨŒĐɆëƖƖėƢƖɆƖėƋëƎëƢėŒLjɆįƎŨśɆƢķėɆ
EƎŨƪƋșɆ¶ķėɆƋėŝƖļŨŝɆĉŨƖƢɆƎėŒëƢļŝİɆƢŨɆĈŨƢķɆƋŒëŝƖɆëƎėɆëƖƖėƖƖėĐɆļŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆƢķėɆëĐǁļĉėɆŨįɆļŝĐėƋėŝĐėŝƢɆƍƪëŒļǘėĐɆëĉƢƪëƎļėƖɆƪƖļŝİɆƢķėɆ
projected unit credit method.
Actuarial gains or losses are recognised in the consolidated statement of comprehensive income in the period in which they arise.
ŝLjɆƋëƖƢɆƖėƎǁļĉėɆĉŨƖƢɆļƖɆƎėĉŨİŝļƖėĐɆļśśėĐļëƢėŒLjșɆ¶ķėɆƎėƢļƎėśėŝƢɆĈėŝėǘƢɆëƖƖėƢɆƎėĉŨİŝļƖėĐɆļŝɆƢķėɆĈëŒëŝĉėɆƖķėėƢɆƎėƋƎėƖėŝƢƖɆƢķėɆįëļƎɆǁëŒƪėɆŨįɆ
ƖĉķėśėɆëƖƖėƢƖɆŒėƖƖɆƢķėɆǁëŒƪėɆŨįɆƢķėɆĐėǘŝėĐɆĈėŝėǘƢɆŨĈŒļİëƢļŨŝƖș
QŝɆëĉĉŨƪŝƢļŝİɆįŨƎɆƢķėɆEƎŨƪƋȼƖɆĐėǘŝėĐɆĈėŝėǘƢɆƋėŝƖļŨŝɆƋŒëŝƖȚɆļƢɆļƖɆŝėĉėƖƖëƎLjɆįŨƎɆśëŝëİėśėŝƢɆƢŨɆśëŏėɆëɆŝƪśĈėƎɆŨįɆėƖƢļśëƢėƖɆëŝĐɆ
ëƖƖƪśƋƢļŨŝƖɆėëĉķɆLjėëƎșɆ¶ķėƖėɆļŝĉŒƪĐėɆƢķėɆĐļƖĉŨƪŝƢɆƎëƢėƖȚɆļŝǙëƢļŨŝɆƎëƢėƖɆëŝĐɆŒļįėɆėLJƋėĉƢëŝĉLjșɆQŝɆśëŏļŝİɆƢķėƖėɆėƖƢļśëƢėƖɆëŝĐɆëƖƖƪśƋƢļŨŝƖȚɆ
management considers advice provided by external advisers, such as actuaries. Where actual experience differs to these estimates,
actuarial gains and losses are recognised directly in other comprehensive income. Refer to note 30 for details of the values of assets and
obligations and key assumptions used. Although the Group anticipates that plan surpluses will be utilised during the life of the plans to
ëĐĐƎėƖƖɆśėśĈėƎɆĈėŝėǘƢƖȚɆƢķėɆEƎŨƪƋɆƎėĉŨİŝļƖėƖɆļƢƖɆƋėŝƖļŨŝɆƖƪƎƋŒƪƖɆļŝɆįƪŒŒɆŨŝɆƢķėɆĈëƖļƖɆƢķëƢɆļƢɆĐŨėƖɆŝŨƢɆĉŨŝƖļĐėƎɆƢķėƎėɆƢŨɆĈėɆƖƪĈƖƢëŝƢļǁėɆ
restrictions on the return of residual plan assets in the event of a winding up of the plans after all member obligations have been met.
¶ķėɆEƎŨƪƋȼƖɆĉŨŝƢƎļĈƪƢļŨŝƖɆƢŨɆĐėǘŝėĐɆĉŨŝƢƎļĈƪƢļŨŝɆƖĉķėśėƖɆëƎėɆĉķëƎİėĐɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆļŝĉŨśėɆƖƢëƢėśėŝƢɆļŝɆƢķėɆƋėƎļŨĐɆƢŨɆǂķļĉķɆƢķėɆ
contributions relate.
¶ķėƎėɆļƖɆëɆĐėİƎėėɆŨįɆėƖƢļśëƢļŨŝɆļŝǁŨŒǁėĐɆļŝɆƋƎėĐļĉƢļŝİɆƢķėɆƪŒƢļśëƢėɆĈėŝėǘƢƖɆƋëLjëĈŒėɆƪŝĐėƎɆĐėǘŝėĐɆĈėŝėǘƢɆƋėŝƖļŨŝɆëƎƎëŝİėśėŝƢƖșɆ
The pension scheme liabilities are determined using actuarial valuations. The actuarial valuation involves making assumptions about
discount rates, mortality rates and future pension increases. Due to the long-term nature of these plans, such estimates are subject to
uncertainty. See note 30 for details on sensitivity analysis performed around these estimates.
¶ķėɆEƎŨƪƋȼƖɆĐėǘŝėĐɆĈėŝėǘƢɆƋėŝƖļŨŝɆƖĉķėśėƖɆĈŨƢķɆķëǁėɆëɆŝėƢɆëƖƖėƢɆƋŨƖļƢļŨŝɆǂķėŝɆśėëƖƪƎėĐɆŨŝɆëŝɆQ©ɆǤǬɆĈëƖļƖșɆ`ƪĐİėśėŝƢɆļƖɆëƋƋŒļėĐȚɆ
based on legal, actuarial, and accounting guidance in IFRIC 14, regarding the amounts of net pension asset that is recognised in the
consolidated balance sheet. Further details are given in note 30.
159
Overview
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Strategic report
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Governance
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Financial statements
Entain plc
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Annual Report 2021
ǧɆ©ƪśśëƎLjɆŨįɆƖļİŝļǘĉëŝƢɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖɆ(continued)
ǧșǦɆ{ƢķėƎɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖɆ(continued)
Impairment
On acquisition, any goodwill acquired is allocated to cash generating units for the purpose of impairment testing. Where goodwill forms
part of a cash generating unit and part of the operation within that unit is disposed of, the goodwill associated with the disposal is
included in the carrying amount of the assets when determining the gain or loss on disposal.
ŝɆļśƋëļƎśėŝƢɆƎėǁļėǂɆļƖɆƋėƎįŨƎśėĐɆįŨƎɆİŨŨĐǂļŒŒɆëŝĐɆŨƢķėƎɆļŝĐėǘŝļƢėɆŒļįėɆëƖƖėƢƖɆŨŝɆëƢɆŒėëƖƢɆëŝɆëŝŝƪëŒɆĈëƖļƖșɆDŨƎɆ댌ɆŨƢķėƎɆŝŨŝȯĉƪƎƎėŝƢɆ
assets an impairment review is performed where there are indicators of impairment. This requires an estimation of the recoverable
amount which is the higher of an asset’s fair value less costs to sell and its value in use. Estimating a value in use amount requires
śëŝëİėśėŝƢɆƢŨɆśëŏėɆëŝɆėƖƢļśëƢėɆŨįɆƢķėɆėLJƋėĉƢėĐɆįƪƢƪƎėɆĉëƖķɆǙŨǂƖɆįƎŨśɆėëĉķɆĉëƖķɆİėŝėƎëƢļŝİɆƪŝļƢɆëŝĐɆƢŨɆĐļƖĉŨƪŝƢɆĉëƖķɆǙŨǂƖɆĈLjɆëɆ
ƖƪļƢëĈŒėɆĐļƖĉŨƪŝƢɆƎëƢėɆļŝɆŨƎĐėƎɆƢŨɆĉëŒĉƪŒëƢėɆƢķėɆƋƎėƖėŝƢɆǁëŒƪėɆŨįɆƢķŨƖėɆĉëƖķɆǙŨǂƖșɆ,ƖƢļśëƢļŝİɆëŝɆëƖƖėƢȼƖɆįëļƎɆǁëŒƪėɆŒėƖƖɆĉŨƖƢƖɆƢŨɆƖėŒŒɆļƖɆ
ĐėƢėƎśļŝėĐɆƪƖļŝİɆįƪƢƪƎėɆĉëƖķǙŨǂɆëŝĐɆƋƎŨǘƢɆƋƎŨŌėĉƢļŨŝƖɆëƖɆǂėŒŒɆëƖɆļŝĐƪƖƢƎLjɆŨĈƖėƎǁėĐɆśƪŒƢļƋŒėƖɆëŝĐɆƋƪĈŒļĉŒLjɆŨĈƖėƎǁėĐɆƖķëƎėɆƋƎļĉėƖɆįŨƎɆ
similar gambling companies. See note 14 for details on sensitivity analysis performed around these estimates.
ÕļƢķļŝɆ½bɆëŝĐɆ,ƪƎŨƋėëŝɆ¡ėƢëļŒȚɆƢķėɆĉëƖķɆİėŝėƎëƢļŝİɆƪŝļƢƖɆëƎėɆİėŝėƎ댌LjɆëŝɆļŝĐļǁļĐƪëŒɆdļĉėŝƖėĐɆėƢƢļŝİɆ{įǘĉėɆȩȹd{ȺȪɆëŝĐɆƢķėƎėįŨƎėȚɆ
ļśƋëļƎśėŝƢɆļƖɆǘƎƖƢɆëƖƖėƖƖėĐɆëƢɆƢķļƖɆŒėǁėŒɆįŨƎɆŒļĉėŝĉėƖȚɆƎļİķƢɆŨįɆƪƖėɆȩȹ¡{½ȺȪɆëƖƖėƢƖɆëŝĐɆƋƎŨƋėƎƢLjȚɆƋŒëŝƢɆëŝĐɆėƍƪļƋśėŝƢȚɆǂļƢķɆëŝLjɆļśƋëļƎśėŝƢɆ
arising booked to licences and property, plant and equipment on a pro-rata basis.
Impairment losses are recognised in the consolidated income statement.
Investments in joint ventures
A joint venture is an entity in which the Group holds an interest on a long-term basis, and which is jointly controlled by the Group and one
or more other venturers under a contractual agreement.
Joint control exists only when decisions about the relevant activities require the unanimous consent of the parties that collectively control
the arrangement.
The Group’s share of results of joint ventures is included in the Group consolidated income statement using the equity method of
accounting. Investments in joint ventures are carried in the Group consolidated balance sheet at cost plus post-acquisition changes in
the Group’s share of net assets of the entity less any impairment in value. The carrying value of investments in joint ventures includes
acquired goodwill.
If the Group’s share of losses in the joint venture equals or exceeds its investment in the joint venture, the Group does not recognise further
ŒŨƖƖėƖȚɆƪŝŒėƖƖɆļƢɆķëƖɆŨĈŒļİëƢļŨŝƖɆƢŨɆĉŨŝƢļŝƪėɆƢŨɆƋƎŨǁļĐėɆǘŝëŝĉļëŒɆƖƪƋƋŨƎƢɆƢŨɆƢķėɆŌŨļŝƢɆǁėŝƢƪƎėș
Investments in associates
ƖƖŨĉļëƢėƖɆëƎėɆƢķŨƖėɆĈƪƖļŝėƖƖėƖɆļŝɆǂķļĉķɆƢķėɆEƎŨƪƋɆķëƖɆëɆŒŨŝİȯƢėƎśɆļŝƢėƎėƖƢɆëŝĐɆļƖɆëĈŒėɆƢŨɆėLJėƎĉļƖėɆƖļİŝļǘĉëŝƢɆļŝǙƪėŝĉėɆŨǁėƎɆƢķėɆǘŝëŝĉļëŒɆ
and operational policies but does not have control or joint control over those policies.
The Group’s share of results of associates is included in the Group’s consolidated income statement using the equity method of
accounting. Investments in associates are carried in the Group’s consolidated balance sheet at cost plus post-acquisition changes in the
Group’s share of net assets of the entity less any impairment in value. The carrying value of investments in associates includes acquired
goodwill. If the Group’s share of losses in the associate equals or exceed its investments in the associate, the Group does not recognise
įƪƎƢķėƎɆŒŨƖƖėƖȚɆƪŝŒėƖƖɆļƢɆķëƖɆŨĈŒļİëƢļŨŝƖɆƢŨɆĉŨŝƢļŝƪėɆƢŨɆƋƎŨǁļĐėɆǘŝëŝĉļëŒɆƖƪƋƋŨƎƢɆƢŨɆƢķėɆëƖƖŨĉļëƢėș
Property, plant and equipment
Land is stated at cost less any impairment in value.
Buildings, plant and equipment are stated at cost less accumulated depreciation and any impairment in value.
$ėƋƎėĉļëƢļŨŝɆļƖɆëƋƋŒļėĐɆƪƖļŝİɆƢķėɆƖƢƎëļİķƢȯŒļŝėɆśėƢķŨĐɆƢŨɆƖƋėĉļǘĉɆĉŒëƖƖėƖɆŨįɆëƖƖėƢɆƢŨɆƎėĐƪĉėɆƢķėśɆƢŨɆƢķėļƎɆƎėƖļĐƪëŒɆǁëŒƪėɆŨǁėƎɆƢķėļƎɆ
estimated useful economic lives.
Land and buildings dŨǂėƎɆŨįɆǨǣɆLjėëƎƖȚɆŨƎɆėƖƢļśëƢėĐɆƪƖėįƪŒɆŒļįėɆŨįɆƢķėɆĈƪļŒĐļŝİȚɆŨƎɆŒėëƖėșɆQŝĐėǘŝļƢėɆŒļǁėƖɆ
are attached to any freehold land held and therefore it is not depreciated
Plant and equipment 3-5 years
DļLJƢƪƎėƖɆëŝĐɆǘƢƢļŝİƖ 3-10 years
¡ļİķƢɆŨįɆ½ƖėɆȩȹ¡{½ȺȪɆëƖƖėƢƖɆëƎļƖļŝİɆƪŝĐėƎɆŒėëƖėɆĉŨŝƢƎëĉƢƖɆëƎėɆĐėƋƎėĉļëƢėĐɆŨǁėƎɆƢķėɆŒėëƖėɆƢėƎśɆȩëƖɆĐėǘŝėĐɆļŝɆQD¡©ɆǤǩȪɆĈėļŝİɆƢķėɆƋėƎļŨĐɆ
to the expiry date of the lease, unless it is expected that a break clause will be exercised when the lease term is the period to the date of
the break.
The carrying values of property, plant and equipment are reviewed for impairment where an indicator of impairment exists as to whether
there are events or changes in circumstances indicating that the carrying values may not be recoverable. If any such indication exists
and where the carrying values exceed the estimated recoverable amount, the assets or cash generating units are written down to their
recoverable amount.
pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued
for the year ended 31 December 2021
Entain plc
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Annual Report 2021
160
Financial statements
ǧɆ©ƪśśëƎLjɆŨįɆƖļİŝļǘĉëŝƢɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖɆ(continued)
ǧșǦɆ{ƢķėƎɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖɆ(continued)
The recoverable amount of property, plant and equipment is the greater of fair value less costs to sell and value in use. In assessing value
ļŝɆƪƖėȚɆƢķėɆėƖƢļśëƢėĐɆįƪƢƪƎėɆĉëƖķɆǙŨǂƖɆëƎėɆĐļƖĉŨƪŝƢėĐɆƢŨɆƢķėļƎɆƋƎėƖėŝƢɆǁëŒƪėɆƪƖļŝİɆëɆƋƎėȯƢëLJɆĐļƖĉŨƪŝƢɆƎëƢėɆƢķëƢɆƎėǙėĉƢƖɆĉƪƎƎėŝƢɆśëƎŏėƢɆ
ëƖƖėƖƖśėŝƢƖɆŨįɆƢķėɆƢļśėɆǁëŒƪėɆŨįɆśŨŝėLjɆëŝĐɆƢķėɆƎļƖŏƖɆƖƋėĉļǘĉɆƢŨɆƢķėɆëƖƖėƢșɆDŨƎɆëŝɆëƖƖėƢɆƢķëƢɆĐŨėƖɆŝŨƢɆİėŝėƎëƢėɆŒëƎİėŒLjɆļŝĐėƋėŝĐėŝƢɆĉëƖķɆ
ļŝǙŨǂƖȚɆƢķėɆƎėĉŨǁėƎëĈŒėɆëśŨƪŝƢɆļƖɆĐėƢėƎśļŝėĐɆįŨƎɆƢķėɆĉëƖķɆİėŝėƎëƢļŝİɆƪŝļƢɆƢŨɆǂķļĉķɆƢķėɆëƖƖėƢɆĈėŒŨŝİƖș
An item of property, plant and equipment is derecognised upon disposal, with any gain or loss arising (calculated as the difference
between the net disposal proceeds and the carrying amount of the item) included in the consolidated income statement in the year
of disposal.
Leases
¶ķėɆEƎŨƪƋɆķëƖɆëƋƋŒļėĐɆQD¡©ɆǤǩɆŨŝŒLjɆƢŨɆƢķŨƖėɆĉŨŝƢƎëĉƢƖɆƢķëƢɆǂėƎėɆƋƎėǁļŨƪƖŒLjɆļĐėŝƢļǘėĐɆëƖɆëɆŒėëƖėɆƪŝĐėƎɆQ©ɆǤǪɆdėëƖėƖȚɆëŝLjɆĉŨŝƢƎëĉƢƖɆŝŨƢɆ
ƋƎėǁļŨƪƖŒLjɆļĐėŝƢļǘėĐɆëƖɆŒėëƖėƖɆķëǁėɆŝŨƢɆĈėėŝɆƎėëƖƖėƖƖėĐɆįŨƎɆƢķėɆƋƪƎƋŨƖėƖɆŨįɆëĐŨƋƢļŝİɆQD¡©ɆǤǩșɆĉĉŨƎĐļŝİŒLjȚɆƢķėɆĐėǘŝļƢļŨŝɆŨįɆëɆŒėëƖėɆƪŝĐėƎɆ
IFRS 16 has only been applied to contracts entered into on or after 1 January 2019.
Leases, other than those with a lease period of less than one year at inception, or where the original cost of the asset acquired would be a
negligible amount (see note 22), are capitalised at the inception at the present value of the minimum lease payments. Lease payments are
ëƋƋŨƎƢļŨŝėĐɆĈėƢǂėėŝɆƢķėɆǘŝëŝĉėɆĉķëƎİėƖɆëŝĐɆƎėĐƪĉƢļŨŝɆŨįɆƢķėɆŒėëƖėɆŒļëĈļŒļƢLjɆƖŨɆëƖɆƢŨɆëĉķļėǁėɆëɆĉŨŝƖƢëŝƢɆƎëƢėɆŨįɆļŝƢėƎėƖƢɆŨŝɆƢķėɆƎėśëļŝļŝİɆ
balance of the liability. Finance charges are charged directly against income.
ROU assets are included within property, plant and equipment at cost and depreciated over their estimated useful lives, which normally
equates to the lives of the leases, after considering anticipated residual values.
¡{½ɆëƖƖėƢƖɆǂķļĉķɆëƎėɆƖƪĈȯŒėëƖėĐɆƢŨɆĉƪƖƢŨśėƎƖɆëƎėɆĉŒëƖƖļǘėĐɆëƖɆǘŝëŝĉėɆŒėëƖėƖɆļįɆƢķėɆŒėëƖėɆëİƎėėśėŝƢƖɆƢƎëŝƖįėƎɆƖƪĈƖƢëŝƢļ댌LjɆ댌ɆƢķėɆƎļƖŏƖɆ
ëŝĐɆƎėǂëƎĐƖɆŨįɆƪƖëİėɆƢŨɆƢķėɆŒėƖƖėėșɆŒŒɆŨƢķėƎɆƖƪĈȯŒėëƖėƖɆëƎėɆĉŒëƖƖļǘėĐɆëƖɆŨƋėƎëƢļŝİɆŒėëƖėƖșɆÕķėŝɆëƖƖėƢƖɆëƎėɆƖƪĈŌėĉƢɆƢŨɆǘŝëŝĉėɆŒėëƖėƖȚɆƢķėɆ
present value of the sub-lease is recognised as a receivable, net of allowances for expected credit losses and the related ROU asset is de-
ƎėĉŨİŝļƖėĐșɆ¶ķėɆĐļįįėƎėŝĉėɆĈėƢǂėėŝɆƢķėɆİƎŨƖƖɆƎėĉėļǁëĈŒėɆëŝĐɆƢķėɆƋƎėƖėŝƢɆǁëŒƪėɆŨįɆƢķėɆƎėĉėļǁëĈŒėɆļƖɆƎėĉŨİŝļƖėĐɆëƖɆƪŝėëƎŝėĐɆǘŝëŝĉėɆŒėëƖėɆ
income. Finance lease interest income is recognised over the term of the lease using the net investment method (before tax) so as to give
a constant rate of return on the net investment in sub-leases. Operating lease rental income is recognised on a straight-line basis over the
life of the lease.
Cash and cash equivalents
Cash and cash equivalents consist of cash at bank and in hand, short-term deposits with an original maturity of less than three months
(and customer balances).
Financial assets
DļŝëŝĉļëŒɆëƖƖėƢƖɆëƎėɆƎėĉŨİŝļƖėĐɆǂķėŝɆƢķėɆEƎŨƪƋɆĈėĉŨśėƖɆƋëƎƢLjɆƢŨɆƢķėɆĉŨŝƢƎëĉƢƖɆƢķëƢɆİļǁėɆƎļƖėɆƢŨɆƢķėśșɆ¶ķėɆEƎŨƪƋɆĉŒëƖƖļǘėƖɆǘŝëŝĉļëŒɆ
ëƖƖėƢƖɆëƢɆļŝĉėƋƢļŨŝɆëƖɆǘŝëŝĉļëŒɆëƖƖėƢƖɆëƢɆëśŨƎƢļƖėĐɆĉŨƖƢȚɆǘŝëŝĉļëŒɆëƖƖėƢƖɆëƢɆįëļƎɆǁëŒƪėɆƢķƎŨƪİķɆƋƎŨǘƢɆŨƎɆŒŨƖƖɆŨƎɆǘŝëŝĉļëŒɆëƖƖėƢƖɆëƢɆįëļƎɆǁëŒƪėɆ
through other comprehensive income.
DļŝëŝĉļëŒɆëƖƖėƢƖɆëƢɆëśŨƎƢļƖėĐɆĉŨƖƢɆëƎėɆŝŨŝȯĐėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆëƖƖėƢƖɆǂļƢķɆǘLJėĐɆŨƎɆĐėƢėƎśļŝëĈŒėɆƋëLjśėŝƢƖɆƢķëƢɆëƎėɆŝŨƢɆƍƪŨƢėĐɆļŝɆëŝɆ
ëĉƢļǁėɆśëƎŏėƢșɆ{ŝɆļŝļƢļëŒɆƎėĉŨİŝļƢļŨŝȚɆǘŝëŝĉļëŒɆëƖƖėƢƖɆëƢɆëśŨƎƢļƖėĐɆĉŨƖƢɆëƎėɆśėëƖƪƎėĐɆëƢɆįëļƎɆǁëŒƪėɆŝėƢɆŨįɆƢƎëŝƖëĉƢļŨŝɆĉŨƖƢƖș
¶ƎëĐėɆƎėĉėļǁëĈŒėƖɆëƎėɆİėŝėƎ댌LjɆëĉĉŨƪŝƢėĐɆįŨƎɆëƢɆëśŨƎƢļƖėĐɆĉŨƖƢșɆ,LJƋėĉƢėĐɆĉƎėĐļƢɆŒŨƖƖėƖɆëƎėɆƎėĉŨİŝļƖėĐɆįŨƎɆǘŝëŝĉļëŒɆëƖƖėƢƖɆƎėĉŨƎĐėĐɆëƢɆ
amortised cost, including trade receivables. Expected credit losses are calculated by using an appropriate probability of default, taking
accounts of a range of possible future scenarios and applying this to the estimated exposure of the Group at the point of default.
DļŝëŝĉļëŒɆëƖƖėƢƖɆëƢɆįëļƎɆǁëŒƪėɆƢķƎŨƪİķɆƋƎŨǘƢɆŨƎɆŒŨƖƖɆļŝĉŒƪĐėɆĐėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖșɆDļŝëŝĉļëŒɆëƖƖėƢƖɆƢķƎŨƪİķɆƋƎŨǘƢɆŨƎɆŒŨƖƖɆëƎėɆ
measured initially at fair value with transaction costs taken directly to the consolidated income statement. Subsequently, the fair values
are remeasured, and gains and losses are recognised in the consolidated income statement.
Financial assets at fair value through other comprehensive income comprise equity investments that are designated as such on
acquisition. These investments are measured initially at fair value. Subsequently, the fair values are remeasured, and gains and losses are
recognised in the consolidated statement of comprehensive income.
Financial liabilities
Financial liabilities comprise trade and other payables, interest bearing loans and borrowings, contingent consideration, ante-post bets,
İƪëƎëŝƢėėƖɆëŝĐɆĐėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖșɆ{ŝɆļŝļƢļëŒɆƎėĉŨİŝļƢļŨŝȚɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖɆëƎėɆśėëƖƪƎėĐɆëƢɆįëļƎɆǁëŒƪėɆŝėƢɆŨįɆƢƎëŝƖëĉƢļŨŝɆ
ĉŨƖƢƖɆǂķėƎėɆƢķėLjɆëƎėɆŝŨƢɆĉëƢėİŨƎļƖėĐɆëƖɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖɆëƢɆįëļƎɆǁëŒƪėșɆDļŝëŝĉļëŒɆŒļëĈļŒļƢļėƖɆśėëƖƪƎėĐɆëƢɆįëļƎɆǁëŒƪėɆļŝĉŒƪĐėɆĉŨŝƢļŝİėŝƢɆ
ĉŨŝƖļĐėƎëƢļŨŝȚɆĐėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖȚɆëŝƢėȯƋŨƖƢɆĈėƢƖɆëŝĐɆİƪëƎëŝƢėėƖș
Financial liabilities at fair value are measured initially at fair value, with transaction costs taken directly to the consolidated income
statement. Subsequently, the fair values are remeasured and gains and losses from changes therein are recognised in the consolidated
income statement.
Trade and other payables are held at amortised cost and include amounts due to clients representing customer deposits and winnings,
which is matched by an equal and opposite amount within cash and cash equivalents.
161 Overview
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Strategic report
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Governance
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Financial statements
Entain plc
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Annual Report 2021
ǧɆ©ƪśśëƎLjɆŨįɆƖļİŝļǘĉëŝƢɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖɆ(continued)
ǧșǦɆ{ƢķėƎɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖɆ(continued)
All interest-bearing loans and borrowings are initially recognised at fair value net of issue costs associated with the borrowing.
After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using the effective interest
rate method.
$ėƎėĉŨİŝļƢļŨŝɆŨįɆǘŝëŝĉļëŒɆëƖƖėƢƖɆëŝĐɆŒļëĈļŒļƢļėƖɆ
DļŝëŝĉļëŒɆëƖƖėƢƖɆëƎėɆĐėƎėĉŨİŝļƖėĐɆǂķėŝɆƢķėɆƎļİķƢɆƢŨɆƎėĉėļǁėɆĉëƖķɆǙŨǂƖɆįƎŨśɆƢķėɆëƖƖėƢƖɆķëƖɆėLJƋļƎėĐɆŨƎɆǂķėŝɆƢķėɆEƎŨƪƋɆķëƖɆƢƎëŝƖįėƎƎėĐɆ
ļƢƖɆĉŨŝƢƎëĉƢƪëŒɆƎļİķƢɆƢŨɆƎėĉėļǁėɆƢķėɆĉëƖķɆǙŨǂƖɆįƎŨśɆƢķėɆǘŝëŝĉļëŒɆëƖƖėƢƖɆŨƎɆķëƖɆëƖƖƪśėĐɆëŝɆŨĈŒļİëƢļŨŝɆƢŨɆƋëLjɆƢķėɆƎėĉėļǁėĐɆĉëƖķɆǙŨǂƖɆļŝɆįƪŒŒɆ
without material delay to a third party, and either:
– substantially all the risks and rewards of ownership have been transferred; or
– substantially all the risks and rewards have neither been retained nor transferred but control is not retained.
Financial liabilities are derecognised when the obligation is discharged, cancelled or expires.
$ėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖ
¶ķėɆEƎŨƪƋɆƪƖėƖɆĐėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖɆƖƪĉķɆëƖɆĉƎŨƖƖɆĉƪƎƎėŝĉLjɆƖǂëƋƖȚɆįŨƎėļİŝɆėLJĉķëŝİėɆƖǂëƋƖɆëŝĐɆļŝƢėƎėƖƢɆƎëƢėɆƖǂëƋƖȚɆƢŨɆ
ķėĐİėɆļƢƖɆƎļƖŏƖɆëƖƖŨĉļëƢėĐɆǂļƢķɆļŝƢėƎėƖƢɆƎëƢėɆëŝĐɆįŨƎėļİŝɆĉƪƎƎėŝĉLjɆǙƪĉƢƪëƢļŨŝƖșɆ$ėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖɆëƎėɆƎėĉŨİŝļƖėĐɆļŝļƢļ댌LjɆëŝĐɆ
subsequently at fair value. The gains or losses on remeasurement are taken to the consolidated income statement.
$ėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖɆëƎėɆĉŒëƖƖļǘėĐɆëƖɆëƖƖėƢƖɆǂķėƎėɆƢķėļƎɆįëļƎɆǁëŒƪėɆļƖɆƋŨƖļƢļǁėȚɆŨƎɆëƖɆŒļëĈļŒļƢļėƖɆǂķėƎėɆƢķėļƎɆįëļƎɆǁëŒƪėɆļƖɆŝėİëƢļǁėșɆ
Derivative assets and liabilities arising from different transactions are only offset if the transactions are with the same counterparty, a
ŒėİëŒɆƎļİķƢɆŨįɆŨįįƖėƢɆėLJļƖƢƖȚɆëŝĐɆƢķėɆƋëƎƢļėƖɆļŝƢėŝĐɆƢŨɆƖėƢƢŒėɆƢķėɆĉëƖķɆǙŨǂƖɆŨŝɆëɆŝėƢɆĈëƖļƖș
Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that
ëŝɆŨƪƢǙŨǂɆŨįɆƎėƖŨƪƎĉėƖɆėśĈŨĐLjļŝİɆėĉŨŝŨśļĉɆĈėŝėǘƢƖɆǂļŒŒɆĈėɆƎėƍƪļƎėĐɆƢŨɆƖėƢƢŒėɆƢķėɆŨĈŒļİëƢļŨŝɆëŝĐɆëɆƎėŒļëĈŒėɆėƖƢļśëƢėɆĉëŝɆĈėɆśëĐėɆŨįɆƢķėɆ
amount of the obligation.
Provisions are measured at the Directors’ best estimate of the expenditure required to settle the obligation at the balance sheet date and
ëƎėɆĐļƖĉŨƪŝƢėĐɆƢŨɆƋƎėƖėŝƢɆǁëŒƪėɆǂķėƎėɆƢķėɆėįįėĉƢɆļƖɆśëƢėƎļëŒɆƪƖļŝİɆëɆƋƎėȯƢëLJɆƎëƢėɆƢķëƢɆƎėǙėĉƢƖɆĉƪƎƎėŝƢɆśëƎŏėƢɆëƖƖėƖƖśėŝƢƖɆŨįɆƢķėɆƢļśėɆ
ǁëŒƪėɆŨįɆśŨŝėLjɆëŝĐɆƢķėɆƎļƖŏƖɆƖƋėĉļǘĉɆƢŨɆƢķėɆŒļëĈļŒļƢLjșɆ¶ķėɆƪŝǂļŝĐļŝİɆŨįɆƢķėɆĐļƖĉŨƪŝƢɆļƖɆƎėĉŨİŝļƖėĐɆëƖɆëɆǘŝëŝĉėɆėLJƋėŝƖėș
Foreign currency translation
The presentational currency of Entain PLC and the functional currencies of its UK subsidiaries are Pounds Sterling (£).
Other than Sterling the main functional currencies of subsidiaries are the Euro (€), the US Dollar ($) and the Australian Dollar (A$). At the
reporting date, the assets and liabilities of non-Sterling subsidiaries are translated into Pounds Sterling (£) at the rate of exchange
ƎƪŒļŝİɆëƢɆƢķėɆĈëŒëŝĉėɆƖķėėƢɆĐëƢėɆëŝĐɆƢķėļƎɆĉëƖķȯǙŨǂƖɆëƎėɆƢƎëŝƖŒëƢėĐɆëƢɆƢķėɆǂėļİķƢėĐɆëǁėƎëİėɆėLJĉķëŝİėɆƎëƢėƖɆįŨƎɆƢķėɆLjėëƎșɆ¶ķėɆƋŨƖƢȯƢëLJɆ
exchange differences arising on the retranslation are taken directly to other comprehensive income.
Transactions in foreign currencies are initially recorded in the subsidiary’s functional currency and translated at the foreign currency rate
ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the foreign
currency rate of exchange ruling at the balance sheet date.
All foreign currency translation differences are taken to the consolidated income statement. Non-monetary items that are measured at
historical cost in a foreign currency are translated using the exchange rate at the date of the initial transaction. Non-monetary items
measured at fair value in a foreign currency are translated using the exchange rate at the date when the fair value was determined.
On disposal of a foreign entity, the deferred cumulative retranslation differences previously recognised in equity relating to that particular
įŨƎėļİŝɆėŝƢļƢLjɆëƎėɆƎėĉŨİŝļƖėĐɆļŝɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆļŝĉŨśėɆƖƢëƢėśėŝƢɆëƖɆƋëƎƢɆŨįɆƢķėɆƋƎŨǘƢɆŨƎɆŒŨƖƖɆŨŝɆĐļƖƋŨƖëŒș
The following exchange rates were used in 2021 and 2020:
2021 2020
Currency Average Year end Average Year end
Euro (€) 1.159 1.190 1.131 1.112
US Dollar ($)
1.375 1.354 1.286 1.365
Australian Dollar (A$) 1.832 1.862 1.876 1.765
Income tax
Deferred tax is provided on all temporary differences at the balance sheet date, between the tax bases of assets and liabilities and their
ĉëƎƎLjļŝİɆëśŨƪŝƢƖɆįŨƎɆǘŝëŝĉļëŒɆƎėƋŨƎƢļŝİɆƋƪƎƋŨƖėƖɆėLJĉėƋƢț
– on the initial recognition of goodwill;
– where the deferred tax liability arises from the initial recognition of an asset or liability in a transaction that is not a business
ĉŨśĈļŝëƢļŨŝɆëŝĐȚɆëƢɆƢķėɆƢļśėɆŨįɆƢķėɆƢƎëŝƖëĉƢļŨŝȚɆëįįėĉƢƖɆŝėļƢķėƎɆƢķėɆëĉĉŨƪŝƢļŝİɆƋƎŨǘƢɆŝŨƎɆƢķėɆƢëLJɆƋƎŨǘƢȜɆëŝĐ
– associated with investments in subsidiaries, joint ventures and associates, where the timing of the reversal of the temporary
differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.
pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued
for the year ended 31 December 2021
Entain plc
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Annual Report 2021
162
Financial statements
ǧɆ©ƪśśëƎLjɆŨįɆƖļİŝļǘĉëŝƢɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖɆ(continued)
ǧșǦɆ{ƢķėƎɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖɆ(continued)
Deferred tax assets are recognised for all deductible temporary differences and carry forward of unused tax assets and unused tax
ŒŨƖƖėƖȚɆƢŨɆƢķėɆėLJƢėŝƢɆƢķëƢɆļƢɆļƖɆƋƎŨĈëĈŒėɆƢķëƢɆƢëLJëĈŒėɆƋƎŨǘƢɆǂļŒŒɆĈėɆëǁëļŒëĈŒėɆëİëļŝƖƢɆǂķļĉķɆƢķėɆĐėĐƪĉƢļĈŒėɆƢėśƋŨƎëƎLjɆĐļįįėƎėŝĉėƖɆëŝĐɆĉëƎƎLjɆ
forward of unused tax assets and unused tax losses can be utilised.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable
ƢķëƢɆƖƪįǘĉļėŝƢɆƢëLJëĈŒėɆƋƎŨǘƢɆǂļŒŒɆĈėɆëǁëļŒëĈŒėɆƢŨɆ댌ŨǂɆ댌ɆŨƎɆƋëƎƢɆŨįɆƢķėɆĐėįėƎƎėĐɆƢëLJɆëƖƖėƢɆƢŨɆĈėɆƪƢļŒļƖėĐș
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or
the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date.
Deferred tax balances are not discounted.
Interest or penalties payable and receivable in relation to income tax are recognised as an income tax expense or credit in the
consolidated income statement.
QŝĉŨśėɆƢëLJɆėLJƋėŝƖėƖɆëƎėɆƎėĉŨİŝļƖėĐɆǂļƢķļŝɆƋƎŨǘƢɆëŝĐɆŒŨƖƖɆėLJĉėƋƢɆƢŨɆƢķėɆėLJƢėŝƢɆƢķëƢɆļƢɆƎėŒëƢėƖɆƢŨɆļƢėśƖɆƎėĉŨİŝļƖėĐɆļŝɆŨƢķėƎɆĉŨśƋƎėķėŝƖļǁėɆ
income or directly in equity, in which case it is recognised in other comprehensive income or directly in equity.
Revenues, expenses and assets are recognised net of the amount of sales tax except:
– where the sales tax incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the
sales tax is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and
– receivables and payables are stated with the amount of sales tax included.
The net amount of sales tax recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the
consolidated balance sheet.
Equity instruments and dividends
Equity instruments issued by the Company are recorded at the fair value of proceeds received net of direct issue costs.
DļŝëŒɆĐļǁļĐėŝĐƖɆƋƎŨƋŨƖėĐɆĈLjɆƢķėɆŨëƎĐɆŨįɆ$ļƎėĉƢŨƎƖɆëŝĐɆƪŝƋëļĐɆëƢɆƢķėɆLjėëƎɆėŝĐɆëƎėɆŝŨƢɆƎėĉŨİŝļƖėĐɆļŝɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆƪŝƢļŒɆƢķėLjɆ
have been approved by shareholders at the Annual General Meeting. Interim dividends are recognised when paid.
Revenue
The Group reports the gains and losses on all betting and gaming activities as revenue, which is measured at the fair value of the
consideration received or receivable from customers less free bets, promotions, bonuses and other fair value adjustments. Revenue is net
of VAT/GST. The Group considers betting and gaming revenue to be out of the scope of IFRS 15 Revenue, and accounts for those revenues
within the scope of IFRS 9 Financial Instruments.
DŨƎɆŒļĉėŝƖėĐɆĈėƢƢļŝİɆŨįǘĉėƖɆȩd{ƖȪȚɆŨŝɆĉŨƪƎƖėɆĈėƢƢļŝİȚɆŨƎėɆ¶ėŒėƋķŨŝėɆėƢƢļŝİȚɆśŨĈļŒėɆĈėƢƢļŝİȚɆ$ļİļƢëŒɆĈƪƖļŝėƖƖėƖɆȩļŝĉŒƪĐļŝİɆƖƋŨƎƢƖĈŨŨŏȚɆ
betting exchange, casino, games, other number bets), revenue represents gains and losses, being the amounts staked and fees received,
less total payouts recognised on the settlement of the event. Open betting positions (“Ante-post”) are carried at fair value and gains and
losses arising on these positions are recognised in revenue. See note 26 for details of ante-post positions at the year end.
¶ķėɆįŨŒŒŨǂļŝİɆįŨƎśƖɆŨįɆƎėǁėŝƪėɆëƎėɆëĉĉŨƪŝƢėĐɆįŨƎɆǂļƢķļŝɆƢķėɆƖĉŨƋėɆŨįɆQD¡©ɆǤǨɆ¡ėǁėŝƪėșɆ¡ėǁėŝƪėɆįƎŨśɆƢķėɆŨŝŒļŝėɆƋŨŏėƎɆĈƪƖļŝėƖƖɆƎėǙėĉƢƖɆ
the net income (rake) earned from poker hands completed by the year end. In the case of the greyhound stadia, revenue represents
income arising from the operation of the greyhound stadia in the year, including sales of refreshments, net of VAT. Given the nature of
these revenue streams they are not considered to be subject to judgement over the performance obligations, amount received or timing
of recognition.
Government assistance
Receipts from government assistance programs such as, furlough, are recorded as reductions in the costs against which they have been
received. See note 7 for more details.
Finance expense and income
DļŝëŝĉėɆėLJƋėŝƖėɆëŝĐɆļŝĉŨśėɆëƎļƖļŝİɆŨŝɆļŝƢėƎėƖƢɆĈėëƎļŝİɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖɆĉëƎƎļėĐɆëƢɆëśŨƎƢļƖėĐɆĉŨƖƢɆëƎėɆƎėĉŨİŝļƖėĐɆļŝɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆ
income statement using the effective interest rate method. Finance expense includes the amortisation of fees that are an integral part
ŨįɆƢķėɆėįįėĉƢļǁėɆǘŝëŝĉėɆĉŨƖƢɆŨįɆëɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢȚɆļŝĉŒƪĐļŝİɆļƖƖƪėɆĉŨƖƢƖȚɆëŝĐɆƢķėɆëśŨƎƢļƖëƢļŨŝɆŨįɆëŝLjɆŨƢķėƎɆĐļįįėƎėŝĉėƖɆĈėƢǂėėŝɆƢķėɆ
ëśŨƪŝƢɆļŝļƢļ댌LjɆƎėĉŨİŝļƖėĐɆëŝĐɆƢķėɆƎėĐėśƋƢļŨŝɆƋƎļĉėșɆŒŒɆǘŝëŝĉėɆėLJƋėŝƖėƖɆëƎėɆƎėĉŨİŝļƖėĐɆŨǁėƎɆƢķėɆëǁëļŒëĈļŒļƢLjɆƋėƎļŨĐș
Share-based payment transactions
Certain employees (including Directors) of the Group receive remuneration in the form of equity settled share-based payment
transactions, whereby employees render services in exchange for shares or rights over shares (equity settled transactions).
The cost of equity settled transactions is measured by reference to the fair value at the date on which they are granted. Further details
of which are given in note 31. In valuing equity settled transactions, no account is taken of any performance conditions, other than
conditions linked to the price of the shares of Entain PLC (market conditions).
163 Overview
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Strategic report
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Governance
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Financial statements
Entain plc
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Annual Report 2021
ǧɆ©ƪśśëƎLjɆŨįɆƖļİŝļǘĉëŝƢɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖɆ(continued)
ǧșǦɆ{ƢķėƎɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖɆ(continued)
The cost of equity settled transactions is recognised in the consolidated income statement, with a corresponding credit in equity, over
ƢķėɆƋėƎļŨĐɆļŝɆǂķļĉķɆƢķėɆƋėƎįŨƎśëŝĉėɆĉŨŝĐļƢļŨŝƖɆëƎėɆįƪŒǘŒŒėĐȚɆėŝĐļŝİɆŨŝɆƢķėɆĐëƢėɆŨŝɆǂķļĉķɆƢķėɆƎėŒėǁëŝƢɆėśƋŒŨLjėėƖɆĈėĉŨśėɆįƪŒŒLjɆėŝƢļƢŒėĐɆƢŨɆ
the award (vesting date). The cumulative expense recognised for equity settled transactions at each reporting date until the vesting date
ƎėǙėĉƢƖɆƢķėɆėLJƢėŝƢɆƢŨɆǂķļĉķɆƢķėɆǁėƖƢļŝİɆƋėƎļŨĐɆķëƖɆėLJƋļƎėĐɆëŝĐɆƢķėɆŝƪśĈėƎɆŨįɆëǂëƎĐƖɆƢķëƢȚɆļŝɆƢķėɆŨƋļŝļŨŝɆŨįɆƢķėɆ$ļƎėĉƢŨƎƖɆŨįɆƢķėɆEƎŨƪƋɆëƢɆ
that date, based on the best available estimate of the number of equity instruments, will ultimately vest.
No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a market condition,
ǂķļĉķɆëƎėɆƢƎėëƢėĐɆëƖɆǁėƖƢļŝİɆļƎƎėƖƋėĉƢļǁėɆŨįɆǂķėƢķėƎɆŨƎɆŝŨƢɆƢķėɆśëƎŏėƢɆĉŨŝĐļƢļŨŝɆļƖɆƖëƢļƖǘėĐȚɆƋƎŨǁļĐėĐɆƢķëƢɆ댌ɆŨƢķėƎɆƋėƎįŨƎśëŝĉėɆ
ĉŨŝĐļƢļŨŝƖɆëƎėɆƖëƢļƖǘėĐș
¶ķėɆĐļŒƪƢļǁėɆėįįėĉƢɆŨįɆŨƪƢƖƢëŝĐļŝİɆŨƋƢļŨŝƖɆļƖɆƎėǙėĉƢėĐɆëƖɆëĐĐļƢļŨŝëŒɆƖķëƎėɆĐļŒƪƢļŨŝɆļŝɆƢķėɆĉŨśƋƪƢëƢļŨŝɆŨįɆėëƎŝļŝİƖɆƋėƎɆƖķëƎėɆëƖɆƖķŨǂŝɆļŝɆ
note 12.
4.4 Future accounting developments
The standards and interpretations that are issued, but not yet effective, excluding those relating to annual improvements, up to the date
ŨįɆļƖƖƪëŝĉėɆŨįɆƢķėɆEƎŨƪƋȼƖɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëƎėɆĐļƖĉŒŨƖėĐɆĈėŒŨǂșɆ¶ķėɆEƎŨƪƋɆļŝƢėŝĐƖɆƢŨɆëĐŨƋƢɆƢķėƖėɆƖƢëŝĐëƎĐƖȚɆļįɆëƋƋŒļĉëĈŒėȚɆǂķėŝɆƢķėLjɆ
ĈėĉŨśėɆėįįėĉƢļǁėșɆpŨŝėɆŨįɆƢķėƖėɆëƎėɆėLJƋėĉƢėĐɆƢŨɆķëǁėɆëɆƖļİŝļǘĉëŝƢɆėįįėĉƢɆŨŝɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆŨįɆƢķėɆEƎŨƪƋɆëƖɆƖėƢɆ
out below:
IAS 1 Presentation of Financial Statements śėŝĐśėŝƢƖɆƢŨɆƢķėɆĉŒëƖƖļǘĉëƢļŨŝɆŨįɆŒļëĈļŒļƢļėƖɆëƖɆĉƪƎƎėŝƢɆŨƎɆŝŨŝȯĉƪƎƎėŝƢ 1 January 2023
Amendments to IAS1 Presentation of Financial Statements and IFRS
Practice Statement 2 Making Materiality Judgments
IAS 8 Accounting Policies, Changes in
Accounting Estimates and Errors
Amendments to clarify between changes in accounting estimates
and changes in accounting policies
1 January 2023
IAS 12 Income Taxes Amendments to the measurement techniques for current
and deferred taxes
1 January 2023
IAS 16 Property, Plant and Equipment śėŝĐśėŝƢƖɆƢŨɆƢķėɆĐėǘŝļƢļŨŝɆŨįɆƖëŒėƖɆƋƎŨĉėėĐƖɆëŝĐɆƎėŒëƢėĐɆĉŨƖƢƖ 1 January 2022
IAS 37 Provisions, Contingent Liabilities
and Contingent Assets
śėŝĐśėŝƢƖɆƢŨɆƢķėɆĐėǘŝļƢļŨŝɆŨįɆĉŨƖƢƖɆƢŨɆįƪŒǘŒɆëŝɆŨŝėƎŨƪƖɆĉŨŝƢƎëĉƢ 1 January 2022
IAS 41 Agriculture Amendments to the measurement techniques for biological assets 1 January 2022
IFRS 3 Business Combinations Updating a reference to the Conceptual Framework 1 January 2022
IFRS 17 Insurance Contracts Original issue 1 January 2023
ǨɆ©ėİśėŝƢɆļŝįŨƎśëƢļŨŝ
The Group’s operating segments are based on the reports reviewed by the Executive management team (which is collectively considered
to be the Chief Operating Decision Maker (CODM)) to make strategic decisions, and allocate resources.
IFRS 8 requires segment information to be presented on the same basis as that used by the CODM for assessing performance and
댌ŨĉëƢļŝİɆƎėƖŨƪƎĉėƖșɆ¶ķėɆEƎŨƪƋȼƖɆŨƋėƎëƢļŝİɆƖėİśėŝƢƖɆëƎėɆŝŨǂɆëİİƎėİëƢėĐɆļŝƢŨɆƢķėɆǘǁėɆƎėƋŨƎƢëĈŒėɆƖėİśėŝƢƖɆëƖɆĐėƢëļŒėĐɆĈėŒŨǂșɆ
This represents a change from 2020 with our former UK and European Retail segments now combined to form one Retail segment and
ëɆpėǂɆ{ƋƋŨƎƢƪŝļƢļėƖɆƖėİśėŝƢɆĉƎėëƢėĐɆƢŨɆƎėǙėĉƢɆƢķėɆļŝǁėƖƢśėŝƢɆƖƢƎëƢėİLjɆļŝɆļŝŝŨǁëƢļŨŝɆëŝĐɆŝėǂɆƋƎŨĐƪĉƢƖɆëŝĐɆǁėƎƢļĉëŒƖɆëƖɆƋƎėǁļŨƪƖŒLjɆ
communicated. Both changes are in line with the changes in the Group’s reporting to the executive management team (CODM), with the
¡ėƢëļŒɆĉŨŝƖŨŒļĐëƢļŨŝɆëŒƖŨɆëɆƋƎŨĐƪĉƢɆŨįɆŨƪƎɆ¡ėƢëļŒɆƖėİśėŝƢɆĐļƖƋŒëLjļŝİɆĉŨŝƖļƖƢėŝƢɆƢƎëĐļŝİɆƋëƢƢėƎŝƖɆëŝĐɆƎļƖŏɆƋƎŨǘŒėƖɆëĉƎŨƖƖɆƢėƎƎļƢŨƎļėƖɆëŝĐɆ댌Ɇ
İėŨİƎëƋķļėƖɆŝŨǂɆƎėƋŨƎƢļŝİɆļŝƢŨɆƢķėɆ$ėƋƪƢLjɆķļėįɆ,LJėĉƪƢļǁėɆ{įǘĉėƎȦķļėįɆDļŝëŝĉļëŒɆ{įǘĉėƎșɆ
– Online: comprises betting and gaming activities from online and mobile operations. Sports Brands include bwin, Coral, Crystalbet,
Eurobet, Ladbrokes and Sportingbet; Gaming Brands include CasinoClub, Foxy Bingo, Gala, Gioco Digitale, partypoker and
PartyCasino, Optibet and Ninja;
– Retail: comprises betting and retail activities in the shop estates in Great Britain, Northern Ireland, Jersey, Republic of Ireland,
Belgium and Italy;
– New opportunities: Unikrn and innovation spend;
– ŨƎƋŨƎëƢėțɆļŝĉŒƪĐėƖɆĉŨƖƢƖɆëƖƖŨĉļëƢėĐɆǂļƢķɆEƎŨƪƋɆįƪŝĉƢļŨŝƖɆļŝĉŒƪĐļŝİɆEƎŨƪƋɆėLJėĉƪƢļǁėȚɆŒėİëŒȚɆEƎŨƪƋɆǘŝëŝĉėȚɆ½©ɆŌŨļŝƢɆǁėŝƢƪƎėȚɆƢëLJɆëŝĐɆ
treasury; and
– Other segments: includes activities primarily related to telephone betting, Stadia and on course pitches.
The Executive management team of the Group has chosen to assess the performance of operating segments based on a measure of net
ƎėǁėŝƪėȚɆ,Q¶$¡ȚɆ,Q¶$ȚɆëŝĐɆŨƋėƎëƢļŝİɆƋƎŨǘƢɆǂļƢķɆǘŝëŝĉėɆĉŨƖƢƖɆëŝĐɆƢëLJëƢļŨŝɆĉŨŝƖļĐėƎėĐɆįŨƎɆƢķėɆEƎŨƪƋɆëƖɆëɆǂķŨŒėșɆ©ėėɆƋëİėɆǩǩɆŨįɆƢķļƖɆ
annual report for further considerations of the use of Non-GAAP measures. Transfer prices between operating segments are on an arm’s-
length basis in a manner similar to transactions with third parties.
pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued
for the year ended 31 December 2021
Entain plc
|
Annual Report 2021
164
Financial statements
ǨɆ©ėİśėŝƢɆļŝįŨƎśëƢļŨŝɆ(continued)
The segment results for the year ended 31 December were as follows:
2021
Online
£m
Retail
£m
ŒŒɆŨƢķėƎɆ
segments
£m
pėǂɆ
Opportunities
£m
Corporate
£m
Elimination
ŨįɆļŝƢėƎŝëŒɆ
revenue
£m
Total
Group
£m
NGR
1
3,066.5 791.1 32.8 – – (4.1) 3,886.3
VAT/GST (56.3) –––––(56.3)
Revenue 3,010.2 791.1 32.8 – – (4.1) 3,830.0
EƎŨƖƖɆƎŨǘƢ 1,871.5 535.8 28.5–––2,435.8
Contribution
2
1,294.7 529.0 27.8 – – – 1,851.5
Operating costs excluding
marketing costs (393.7) (447.5) (22.1) (8.8) (80.6) – (952.7)
Underlying EBITDAR before
separately disclosed items 901.0 81.5 5.7 (8.8) (80.6) – 898.8
Rental costs (2.0) (14.6) (0.1) – (0.4) – (17.1)
Underlying EBITDA before
separately disclosed items 899.0 66.9 5.6 (8.8) (81.0) – 881.7
Share based payments (5.3) (1.9) (0.1) – (5.0) – (12.3)
Depreciation and Amortisation (116.7) (102.4) (2.9) (0.4) (0.4) – (222.8)
Share of joint ventures and
associates
(1.0) – 0.4 – (161.9) – (162.5)
{ƋėƎëƢļŝİɆƋƎŨǘƢȦȩŒŨƖƖȪɆĈėįŨƎėɆ
separately disclosed items 776.0 (37.4) 3.0 (9.2) (248.3) – 484.1
Separately disclosed items (note 6) (154.0) 1.4 (1.7) – 26.0 – (128.3)
EƎŨƪƋɆŨƋėƎëƢļŝİɆƋƎŨǘƢȦȩŒŨƖƖȪ 622.0 (36.0) 1.3 (9.2) (222.3) – 355.8
pėƢɆǘŝëŝĉėɆļŝĉŨśė 37.4
ƎŨǘƢɆĈėįŨƎėɆƢëLJ 393.2
Income tax (117.6)
ƎŨǘƢɆįŨƎɆƢķėɆLjėëƎɆįƎŨśɆ
continuing operations
275.6
Loss for the year from discontinued
operations after tax (note 21) (14.9)
ƎŨǘƢɆįŨƎɆƢķėɆLjėëƎɆëįƢėƎɆ
discontinued operations 260.7
1. Included within NGR are amounts of £82.6m (2020: £116.6m) in relation to online poker services and £20.5m (2020: £14.9m) arising from the operation of greyhound stadia
recognised under IFRS 15 Revenue.
ǥșɆ ŨŝƢƎļĈƪƢļŨŝɆƎėƋƎėƖėŝƢƖɆİƎŨƖƖɆƋƎŨǘƢɆŒėƖƖɆśëƎŏėƢļŝİɆĉŨƖƢƖɆëŝĐɆļƖɆëɆŏėLjɆƋėƎįŨƎśëŝĉėɆśėƢƎļĉɆƪƖėĐɆĈLjɆƢķėɆEƎŨƪƋȚɆƋëƎƢļĉƪŒëƎŒLjɆļŝɆ{ŝŒļŝėș
165 Overview
|
Strategic report
|
Governance
|
Financial statements
Entain plc
|
Annual Report 2021
ǨɆ©ėİśėŝƢɆļŝįŨƎśëƢļŨŝɆ(continued)
2020
Re-presented
Online
£m
Retail
£m
All other
segments
£m
Corporate
£m
Elimination
of internal
revenue
£m
Total
Group
£m
NGR 2,747.5 857.1 27.8 – (3.9) 3,628.5
VAT/GST (66.9) ––––(66.9)
Revenue 2,680.6 857.1 27.8 – (3.9) 3,561.6
EƎŨƖƖɆƎŨǘƢ 1,708.7 577.5 22.4 – – 2,308.6
Contribution
1
1,147.4 571.7 21.1 – – 1,740.2
Operating costs excluding marketing costs (342.5) (456.1) (25.0) (54.5) – (878.1)
Underlying EBITDAR before separately
disclosed items 804.9 115.6 (3.9) (54.5) – 862.1
Rental costs (1.4) (17.3) (0.3) – – (19.0)
Underlying EBITDA before separately
disclosed items 803.5 98.3 (4.2) (54.5) – 843.1
Share based payments (4.3) (1.5) – (9.0) – (14.8)
Depreciation and Amortisation (120.1) (115.8) (2.7) – – (238.6)
Share of joint ventures and associates 0.1 – 0.3 (60.6) – (60.2)
{ƋėƎëƢļŝİɆƋƎŨǘƢȦȩŒŨƖƖȪɆĈėįŨƎėɆƖėƋëƎëƢėŒLjɆ
disclosed items 679.2 (19.0) (6.6) (124.1) – 529.5
Separately disclosed items (note 6) (304.5) 226.3 – (92.4) – (170.6)
EƎŨƪƋɆŨƋėƎëƢļŝİɆƋƎŨǘƢȦȩŒŨƖƖȪ 374.7 207.3 (6.6) (216.5) – 358.9
pėƢɆǘŝëŝĉėɆėLJƋėŝƖė (184.2)
ƎŨǘƢɆĈėįŨƎėɆƢëLJ 174.7
Income tax (60.9)
ƎŨǘƢɆįŨƎɆƢķėɆLjėëƎɆįƎŨśɆĉŨŝƢļŝƪļŝİɆŨƋėƎëƢļŨŝƖ 113.8
Loss for the year from discontinued
operations after tax (note 21) (34.4)
ƎŨǘƢɆįŨƎɆƢķėɆLjėëƎɆëįƢėƎɆĐļƖĉŨŝƢļŝƪėĐɆŨƋėƎëƢļŨŝƖ 79.4
ǤșɆ ŨŝƢƎļĈƪƢļŨŝɆƎėƋƎėƖėŝƢƖɆİƎŨƖƖɆƋƎŨǘƢɆŒėƖƖɆśëƎŏėƢļŝİɆĉŨƖƢƖɆëŝĐɆļƖɆëɆŏėLjɆƋėƎįŨƎśëŝĉėɆśėƢƎļĉɆƪƖėĐɆĈLjɆƢķėɆEƎŨƪƋȚɆƋëƎƢļĉƪŒëƎŒLjɆļŝɆ{ŝŒļŝėș
EėŨİƎëƋķļĉëŒɆļŝįŨƎśëƢļŨŝ
Revenue by destination and non-current assets on a geographical basis for the Group, are as follows:
2021 2020
re-presented
Revenue
£m
Non-current
assets
3
£m
Revenue
£m
Non-current
assets
3
£m
United Kingdom 1,754.5 3,007.2 1,675.5 3,116.4
Australia 458.1 507.0 383.3 557.8
Italy
392.4 483.0 353.6 428.4
Rest of Europe
1
966.2 1,807.0 962.9 1,569.0
Rest of the world
2
258.8 103.6 186.3 4.5
Total
3,830.0 5,907.8 3,561.6 5,676.1
1. Rest of Europe is predominantly driven by markets in Germany, Belgium and Georgia.
2. Rest of the world is predominantly driven by the market in Brazil.
ǦșɆ pŨŝȯĉƪƎƎėŝƢɆëƖƖėƢƖɆėLJĉŒƪĐļŝİɆŨƢķėƎɆǘŝëŝĉļëŒɆëƖƖėƢƖȚɆĐėįėƎƎėĐɆƢëLJɆëƖƖėƢƖɆëŝĐɆƎėƢļƎėśėŝƢɆĈėŝėǘƢɆëƖƖėƢƖș
pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued
for the year ended 31 December 2021
Entain plc
|
Annual Report 2021
166
Financial statements
6 Separately disclosed items
2021
£m
2020
£m
Amortisation of acquired intangibles
1
144.2 307.0
Integration costs
2
17.3 25.1
Corporate transaction costs
3
9.4 –
Tax litigation/ one-off legislative impacts
4
(80.2) (223.5)
Legal and onerous contract provisions
5
26.2 8.9
ƎŨǘƢɆŨŝɆĐļƖƋŨƖëŒɆŨįɆƋƎŨƋėƎƢLjȚɆƋŒëŝƢɆëŝĐɆėƍƪļƋśėŝƢ
6
(1.9) (6.9)
Movement in fair value of contingent consideration
7
6.1 42.4
Issue costs write off
8
5.8 5.3
Impairment loss
9
3.3 5.0
Triennial restructuring costs – 8.3
Other one-off items
10
3.9 4.3
Total before tax
134.1 175.9
Tax on separately disclosed items
11
27.5 (2.1)
Separately disclosed items for the year from continuing operations
161.6 173.8
Separately disclosed items for the year from discontinued operations (note 21)
9.3 20.0
Separately disclosed items for the year after discontinued operations
170.9 193.8
1. Amortisation charges in relation to acquired intangible assets arising from the various acquisitions made by the Group in recent years, including Ladbrokes Coral, Crystalbet,
Enlabs, Portugal and Unikrn.
2. Final costs associated with the integration of the Ladbrokes Coral Group and legacy GVC businesses, including redundancy costs.
3. During the year, the Group incurred a number of transaction costs associated with M&A activity including Enlabs, Portugal and Unikrn as well as the approaches for the Entain
Group by US based betting and gaming businesses.
4. In November 2021, the Athens Administrative Court of Appeal found in favour of the Group on the 2010/11 Greek Tax case. The ruling stipulated that the previous amounts paid
by the Group plus interest were now due to Entain. Whilst the Greek authorities have appealed the decision by the courts, the Group has recognised the full receivable due under
the court ruling including reversing charges previously recognised in the Income Statement in respect of 2010/11. The credit of £80.2m recognised also includes £7.1m in respect
ŨįɆƢķėɆǘŝëŒɆëśŨƪŝƢɆƎėĉėļǁėĐɆļŝɆƎėƖƋėĉƢɆŨįɆƢķėɆ½bɆÔ¶ɆĉŒëļśɆȩǥǣǥǣțɆɞǥǥǦșǣśȪșɆ
5. Includes costs associated with complying with the HMRC investigation as well as a provision for potential settlement costs on matters associated with past trading activity.
6. Relates to the sale of various retail assets.
7. Costs associated with discount unwind and movements in the fair value of contingent consideration on acquisition activity from previous years.
ǫșɆ QƖƖƪėɆĉŨƖƢƖɆǂƎļƢƢėŝɆŨįįɆŨŝɆƢķėɆƎėǘŝëŝĉļŝİɆŨįɆ½©ɆĐėŝŨśļŝëƢėĐɆŒŨëŝƖɆëŝĐɆƢķėɆEƎŨƪƋȼƖɆƎėǁŨŒǁļŝİɆĉƎėĐļƢɆįëĉļŒļƢLjɆļŝɆƢķėɆLjėëƎș
9. During the current year, the Group recorded a non-cash impairment charge against certain leased assets which are now vacant and against assets relating to the disposed
Betdaq business.
10. Relates predominantly to the one-off costs associated with Covid-19.
11. The tax charge on separately disclosed items of £27.5m (2020: credit of £2.1m) represents -20.5% (2020: 1.2%) of the separately disclosed items incurred of £134.1m (2020:
£175.9m). This is lower than the expected rate of 19.0% (2020: 19.0%) as certain corporate transaction costs and integration costs are non-deductible for tax purposes, as
ǂėŒŒɆëƖɆƢķėɆļśƋëĉƢɆŨįɆƖļİŝļǘĉëŝƢɆėŒėśėŝƢƖɆŨįɆëśŨƎƢļƖëƢļŨŝɆŨįɆëĉƍƪļƎėĐɆļŝƢëŝİļĈŒėƖɆĈėļŝİɆƖƪĈŌėĉƢɆƢŨɆŒŨǂėƎɆŨǁėƎƖėëƖɆƢëLJɆƎëƢėƖșɆQŝɆëĐĐļƢļŨŝȚɆƢķėɆĉķëŝİėƖɆļŝɆįƪƢƪƎėɆ½bɆëŝĐɆEļĈƎëŒƢëƎɆ
corporation tax rates have been applied to deferred tax liabilities recognised against acquired intangibles resulting in a current year charge.
¶ķėɆļƢėśƖɆëĈŨǁėɆƎėǙėĉƢɆļŝĉŨśėƖɆëŝĐɆėLJƋėŝĐļƢƪƎėƖɆǂķļĉķɆëƎėɆėļƢķėƎɆėLJĉėƋƢļŨŝëŒɆļŝɆŝëƢƪƎėɆŨƎɆƖļǒėɆŨƎɆëƎėɆëƖƖŨĉļëƢėĐɆǂļƢķɆƢķėɆëśŨƎƢļƖëƢļŨŝɆ
of acquired intangibles. The Directors believe that each of these items warrants separate disclosure as they do not form part of
the day to day underlying trade of the Group and are not expected to persist beyond the short term (excluding the amortisation of
acquired intangibles).
167
Overview
|
Strategic report
|
Governance
|
Financial statements
Entain plc
|
Annual Report 2021
7 Administrative costs
ƎŨǘƢɆĈėįŨƎėɆƢëLJȚɆŝėƢɆǘŝëŝĉėɆėLJƋėŝƖėɆëŝĐɆƖėƋëƎëƢėŒLjɆĐļƖĉŒŨƖėĐɆļƢėśƖɆķëƖɆĈėėŝɆëƎƎļǁėĐɆëƢɆëįƢėƎɆĉķëƎİļŝİț
2021
£m
2020
£m
Betting tax and Machine Games Duty 837.3 767.1
Revenue share arrangements 440.3 386.6
Software royalties
116.1 91.6
Other cost of sales 0.5 7.7
Cost of sales
1,394.2 1,253.0
Salaries and payroll-related expenses (note 9) 575.4 514.9
Property expenses
63.1 62.7
Content and levy expenses 137.5 136.1
Marketing expenses 584.3 568.4
Depreciation and amortisation – owned assets
169.0 176.2
Depreciation and amortisation – leased assets 53.8 62.4
Other operating expenses 206.1 198.2
Administrative costs 1,789.2 1,718.9
©ėƋëƎëƢėŒLjɆĐļƖĉŒŨƖėĐɆļƢėśƖɆĈėįŨƎėɆƢëLJɆëŝĐɆǘŝëŝĉėɆėLJƋėŝƖėɆȩŝŨƢėɆǩȪ
128.3 170.6
Total 3,311.7 3,142.5
$ƪƎļŝİɆƢķėɆLjėëƎɆƢķėɆEƎŨƪƋɆĈėŝėǘƢėĐɆįƎŨśɆɞǧǫșǪśɆȩǥǣǥǣțɆɞǩǥșǬśȪɆŨįɆİŨǁėƎŝśėŝƢɆƖƪƋƋŨƎƢɆļŝɆƢķėɆįŨƎśɆŨįɆįƪƎŒŨƪİķɆƎėĉėļƋƢƖɆëĉƎŨƖƖɆƢķėɆ
various countries in which the Group operates, predominantly the UK and the Republic of Ireland. There are no ongoing obligations
on the Group for the amounts received which have been recorded as a reduction to salaries and payroll-related expenses within
underlying trading.
Fees payable to KPMG were as follows:
2021
£m
2020
£m
Audit and audit-related services:
ƪĐļƢɆŨįɆƢķėɆƋëƎėŝƢɆŨśƋëŝLjɆëŝĐɆEƎŨƪƋɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖ
0.6 0.6
Audit of the Company’s subsidiaries
1.9 1.5
Audit-related assurance services 0.5 0.4
Total fees 3.0 2.5
ǫɆDļŝëŝĉėɆėLJƋėŝƖėɆëŝĐɆļŝĉŨśė
2021
£m
2020
£m
Bank loans and overdrafts (63.3) (60.2)
Interest on lease liabilities
1
(13.8) (16.3)
Issue costs write off (note 6) (5.8) (5.3)
¶ŨƢëŒɆǘŝëŝĉėɆėLJƋėŝƖė
(82.9) (81.8)
Interest receivable
2.1 2.3
EëļŝƖȦȩŒŨƖƖėƖȪɆëƎļƖļŝİɆŨŝɆǘŝëŝĉļëŒɆĐėƎļǁëƢļǁėƖ 62.0 (61.8)
Gains/(losses) arising on foreign exchange on debt instruments 56.2 (42.9)
pėƢɆǘŝëŝĉėɆļŝĉŨśėȦȩėLJƋėŝƖėȪ 37.4 (184.2)
1. Interest on lease liabilities of £13.8m (2020: £16.3) is net of £0.2m of sub-let interest receivable (2020: £0.4m).
pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued
for the year ended 31 December 2021
Entain plc
|
Annual Report 2021
168
Financial statements
ǬɆ,śƋŒŨLjėėɆƖƢëįįɆĉŨƖƢƖ
The average monthly number of employees (including Executive Directors) was:
2021
Number
2020
Number
Online 8,929 6,447
Retail 14,363 16,806
Other 428 463
Corporate
1
918 271
24,638 23,987
1. Certain central functions have been recategorised to sit within a centralised corporate segment rather than within a divisionalised one.
The number of people employed by the Group at 31 December 2021 was 25,554 (2020: 23,573).
2021
£m
2020
£m
Wages and salaries 503.1 444.2
Redundancy costs
1
6.0 9.1
Social security costs
41.6 40.3
Other pension costs (note 30)
2
16.3 15.6
Share-based payments (note 31) 12.3 14.8
579.3 524.0
1. Included within redundancy costs are £3.4m (2020: £6.7m) which are included within separately disclosed items.
2. Included within other pension costs are £0.5m (2020: £2.4m) which are included within separately disclosed items.
QŝɆëĐĐļƢļŨŝɆƢŨɆƖëŒëƎLjȚɆėśƋŒŨLjėėƖɆśëLjɆƍƪëŒļįLjɆįŨƎɆǁëƎļŨƪƖɆĈėŝėǘƢɆƖĉķėśėƖɆŨƋėƎëƢėĐɆĈLjɆƢķėɆEƎŨƪƋșɆ,ŒļİļĈļŒļƢLjɆįŨƎɆĈėŝėǘƢƖɆļƖɆŝŨƎśëŒŒLjɆ
ĐėƢėƎśļŝėĐɆëĉĉŨƎĐļŝİɆƢŨɆëŝɆėśƋŒŨLjėėȼƖɆŒėŝİƢķɆŨįɆƖėƎǁļĉėɆëŝĐɆŒėǁėŒɆŨįɆƎėƖƋŨŝƖļĈļŒļƢLjșɆ¶ķėɆëśŨƪŝƢƖɆŨįɆƖŨśėɆĈėŝėǘƢƖɆëƎėɆƋƎŨƋŨƎƢļŨŝëƢėɆƢŨɆ
individual salary.
ėŝėǘƢƖɆśëLjɆļŝĉŒƪĐėɆļŝƖƪƎėĐɆĈėŝėǘƢƖɆƢķëƢɆĉëŝɆĉŨǁėƎɆƋƎļǁëƢėɆķėëŒƢķĉëƎėɆįŨƎɆƢķėɆėśƋŒŨLjėėɆëŝĐɆƢķėļƎɆļśśėĐļëƢėɆįëśļŒLjȚɆŒŨŝİȯƢėƎśɆĐļƖëĈļŒļƢLjȚɆ
ƋėƎƖŨŝëŒɆëĉĉļĐėŝƢɆëŝĐɆĐėëƢķɆļŝɆƖėƎǁļĉėɆĉŨǁėƎșɆŨśƋëŝLjɆĉëƎƖȚɆļŝĉŒƪĐļŝİɆįƪėŒɆĈėŝėǘƢƖȚɆëƎėɆƋƎŨǁļĐėĐɆƋƎėĐŨśļŝëŝƢŒLjɆƢŨɆśėėƢɆŌŨĈɆƎėƍƪļƎėśėŝƢƖɆ
but also to certain executives.
Staff costs are stated net of furlough receipts as discussed in note 7.
ǤǣɆQŝĉŨśėɆƢëLJ
Analysis of expense for the year:
2021
£m
2020
£m
Current income tax:
– UK 97.4 89.1
– adjustments in respect of previous years
(6.8) 7.2
Deferred tax:
– relating to origination and reversal of temporary differences 32.3 (33.9)
– adjustments in respect of previous years (5.3) (2.8)
Income tax expense reported in the income statement
117.6 59.6
Income tax expense is attributable to
ƎŨǘƢɆįƎŨśɆĉŨŝƢļŝƪļŝİɆŨƋėƎëƢļŨŝƖ
117.6 60.9
Loss from discontinued operations – (1.3)
117.6 59.6
Deferred tax charged/(credited) directly to other comprehensive income
10.9 (0.1)
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ǤǣɆQŝĉŨśėɆƢëLJɆ(continued)
ɆƎėĉŨŝĉļŒļëƢļŨŝɆŨįɆļŝĉŨśėɆƢëLJɆėLJƋėŝƖėɆȩǥǣǥǣțɆėLJƋėŝƖėȪɆëƋƋŒļĉëĈŒėɆƢŨɆƋƎŨǘƢɆȩǥǣǥǣțɆƋƎŨǘƢȪɆĈėįŨƎėɆƢëLJɆëƢɆƢķėɆ½bɆƖƢëƢƪƢŨƎLjɆļŝĉŨśėɆƢëLJɆƎëƢėɆƢŨɆ
the income tax expense (2020: expense) for the years ended 31 December 2021 and 31 December 2020 is as follows:
2021
£m
2020
£m
ƎŨǘƢɆįƎŨśɆĉŨŝƢļŝƪļŝİɆŨƋėƎëƢļŨŝƖɆĈėįŨƎėɆļŝĉŨśėɆƢëLJ 393.2 174.7
Loss from discontinued operations before tax
(14.9) (35.7)
ƎŨǘƢɆĈėįŨƎėɆƢëLJ
378.3 139.0
Corporation tax expense thereon at 19.00%
71.9 26.4
Adjusted for the effects of:
– Lower effective tax rates on overseas earnings (10.7) (6.9)
– Non-deductible expenses
7.0 10.6
– Fair value adjustment to contingent consideration 1.2 5.9
– Goodwill impairment – 2.4
– Impact of additional 50% deduction for marketing expenditure in Gibraltar
(18.4) –
– Increase in unrecognised tax losses
50.5 18.5
– (Decrease)/increase in unrecognised deferred interest (0.4) 2.2
– Revaluation of deferred tax balances following increase in UK and Overseas tax rates 28.3 –
– Difference in current and deferred tax rates
0.3 (3.9)
Adjustments in respect of prior years:
– Deferred tax prior year adjustments
(5.3) (2.8)
– Current tax adjustments (6.8) 7.2
Income tax expense
117.6 59.6
Reported as:
– expense in consolidated income statement (before separately disclosed items) 90.1 63.0
– expense/(credit) in consolidated income statement (tax on separately disclosed items) (note 6)
27.5 (3.4)
Income tax expense 117.6 59.6
$ėįėƎƎėĐɆƢëLJ
Deferred tax at 31 December relates to the following:
$ėįėƎƎėĐɆƢëLJ
liabilities
$ėįėƎƎėĐɆƢëLJ
assets
2021
£m
2020
£m
2021
£m
2020
£m
Property, plant and equipment – – (62.3) (58.6)
Intangible assets
333.0 284.7 (27.3) (19.8)
¡ėƢļƎėśėŝƢɆĈėŝėǘƢɆëƖƖėƢƖɆ 33.3 22.6 – –
Losses
– – (27.0) (27.2)
Other temporary difference 41.7 24.4 (24.8) (24.2)
Deferred tax liabilities/ (assets)
408.0 331.7 (141.4) (129.8)
pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued
for the year ended 31 December 2021
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Financial statements
ǤǣɆQŝĉŨśėɆƢëLJɆ(continued)
Movements in deferred tax during the year ended 31 December 2021 were recognised as follows:
Net deferred tax liabilities/(assets)
Property,
plant and
equipment
£m
Intangible
assets
£m
Retirement
ĈėŝėǘƢɆëƖƖėƢƖ
£m
Losses
£m
Other
temporary
differences
£m
Total
£m
At 31 December 2020 (56.1) 304.9 23.4 (33.2) (5.2) 233.8
Income statement 0.1 (48.7) (0.7) 6.7 5.9 (36.7)
Other comprehensive income – – (0.1) – – (0.1)
Exchange adjustment (0.2) 6.3 – (0.7) (0.5) 4.9
At 31 December 2021 (56.2) 262.5 22.6 (27.2) 0.2 201.9
Income statement
(6.9) 24.2 (0.2) (0.9) 10.8 27.0
Other comprehensive income – – 10.9 – – 10.9
Arising on business combinations (note 32) – 25.0 – – 7.2 32.2
Exchange adjustment 0.8 (6.0) – 1.1 (1.3) (5.4)
At 31 December 2021 (62.3) 305.7 33.3 (27.0) 16.9 266.6
Amounts presented on the consolidated balance sheet:
2021
£m
2020
£m
Deferred tax liabilities 408.0 331.7
Deferred tax assets
(141.4) (129.8)
Net deferred tax liability 266.6 201.9
Deferred tax assets are considered recognisable based on the ability of future offset against deferred tax liabilities or against future
ƢëLJëĈŒėɆƋƎŨǘƢƖșɆ
As at 31 December 2021, the Group had £1,621.6m (2020: £1,660.7m) of gross unrecognised deferred tax assets. This unrecognised
deferred tax asset consists of £213.3m of capital losses (2020: £213.3m), £1,408.7m of trading losses (2020: £1,407.2m), £nil of deferred
interest relief (2020: £40.2m) and £0.4m of other deferred tax assets (2020: £nil). These assets have not been recognised as they are not
expected to be utilised in the foreseeable future.
¶ķėƎėɆëƎėɆŝŨɆƖļİŝļǘĉëŝƢɆƪŝƎėĉŨİŝļƖėĐɆƢëLJëĈŒėɆƢėśƋŨƎëƎLjɆĐļįįėƎėŝĉėƖɆëƖƖŨĉļëƢėĐɆǂļƢķɆļŝǁėƖƢśėŝƢƖɆļŝɆƖƪĈƖļĐļëƎļėƖș
The standard rate of UK corporation tax throughout the period was 19.0%.
In the UK Budget on 3 March 2021, the Chancellor announced that the standard rate of UK Corporation Tax would be increased from 19%
to 25% with effect from 1 April 2023. This was substantively enacted on 24 May 2021. Both the 19% and the 25% rate have therefore
been used in measuring the UK deferred tax items at the date of this Report, depending on the expected date of reversal of any timing
differences. The impact of the UK Corporation Tax increase in this Report is a credit of £13.0m to Underlying Items, and a charge of
£10.6m to Separately Disclosed Items.
In the Gibraltar Budget on 20 July 2021, the Chief Minister announced that the standard rate of Gibraltar Corporate Income Tax would
be increased from 10% to 12.5% with effect from 1 August 2021. This was substantively enacted on 26 July 2021. The 12.5% rate has
therefore been used in measuring the Gibraltar deferred tax items at the date of this Report. The impact of the Gibraltar Corporate Income
Tax increase in this Report is a credit of £5.8m to Underlying Items, and a charge of £36.7m to Separately Disclosed Items. The Gibraltar
Budget also introduced a temporary enhanced tax deduction for qualifying business marketing and promotion costs, which will apply
for the years ending 31 December 2021 and 31 December 2022. This was substantively enacted on 30 July 2021. The impact of this
temporary measure in this Report is a credit of £18.4m to Underlying Items.
¶ķėɆEƎŨƪƋȼƖɆįƪƢƪƎėɆƢëLJɆĉķëƎİėȚɆëŝĐɆėįįėĉƢļǁėɆƢëLJɆƎëƢėȚɆĉŨƪŒĐɆĈėɆëįįėĉƢėĐɆĈLjɆëɆŝƪśĈėƎɆŨįɆįëĉƢŨƎƖɆļŝĉŒƪĐļŝİɆƢķėɆśļLJɆŨįɆƋƎŨǘƢƖɆëƎļƖļŝİɆļŝɆėëĉķɆ
country, changes to statutory corporate tax rates and the impact of continuing global tax reforms.
The Group has noted the OECD’s work on the taxation of the digital economy and the EU Proposal for a Council Directive on ensuring
a global minimum level of taxation for multinational groups, issued on 22 December 2021. If implemented, these are expected to apply
to the Group from the year ended 31 December 2023. The Group expects this to increase the future Effective Tax Rate on Underlying
Items. It is not yet possible to quantify the impact these changes will have until further details on the proposals and their implementation
become available.
The deferred tax assets and liabilities are measured at the tax rates of the respective territories which are expected to apply to the year in
which the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at
ƢķėɆĈëŒëŝĉėɆƖķėėƢɆĐëƢėșɆ$ėįėƎƎėĐɆƢëLJɆŨŝɆƎėƢļƎėśėŝƢɆĈėŝėǘƢɆëƖƖėƢƖɆļƖɆƋƎŨǁļĐėĐɆëƢɆǦǨșǣɼȚɆǂķļĉķɆļƖɆƢķėɆƎëƢėɆëƋƋŒļĉëĈŒėɆƢŨɆƎėįƪŝĐƖș
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11 Dividends
The dividends in the year of £24.5m relate entirely to dividends paid out to non-controlling interests (2020: £12.4m).
ǤǥɆ,ëƎŝļŝİƖɆƋėƎɆƖķëƎė
ëƖļĉɆėëƎŝļŝİƖɆƋėƎɆƖķëƎėɆķëƖɆĈėėŝɆĉëŒĉƪŒëƢėĐɆĈLjɆĐļǁļĐļŝİɆƢķėɆƋƎŨǘƢɆįŨƎɆƢķėɆLjėëƎɆëƢƢƎļĈƪƢëĈŒėɆƢŨɆƖķëƎėķŨŒĐėƎƖɆŨįɆƢķėɆŨśƋëŝLjɆŨįɆɞǥǧǬșǦśɆ
(2020: £57.8m) by the weighted average number of shares in issue during the year of 585.7m (2020: 583.7m).
At 31 December 2021, there were 586.6m €0.01 ordinary shares in issue.
The calculation of adjusted earnings per share which removes separately disclosed items and foreign exchange gains and losses arising
ŨŝɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖɆķëƖɆëŒƖŨɆĈėėŝɆĐļƖĉŒŨƖėĐɆëƖɆļƢɆƋƎŨǁļĐėƖɆëɆĈėƢƢėƎɆƪŝĐėƎƖƢëŝĐļŝİɆŨįɆƢķėɆƪŝĐėƎŒLjļŝİɆƋėƎįŨƎśëŝĉėɆŨįɆƢķėɆEƎŨƪƋșɆ
©ėƋëƎëƢėŒLjɆĐļƖĉŒŨƖėĐɆļƢėśƖɆëƎėɆĐėǘŝėĐɆļŝɆŝŨƢėɆǧɆëŝĐɆĐļƖĉŒŨƖėĐɆļŝɆŝŨƢėɆǩș
¶ŨƢëŒɆėëƎŝļŝİƖɆƋėƎɆƖķëƎė
ÕėļİķƢėĐɆëǁėƎëİėɆŝƪśĈėƎɆŨįɆƖķëƎėƖɆȩśļŒŒļŨŝƖȪ 2021 2020
Shares for basic earnings per share 585.7 583.7
Potentially dilutive share options and contingently issuable shares 5.4 6.2
Shares for diluted earnings per share 591.1 589.9
¶ŨƢëŒɆƋƎŨǘƢ
2021
£m
2020
£m
ƎŨǘƢɆëƢƢƎļĈƪƢëĈŒėɆƢŨɆƖķëƎėķŨŒĐėƎƖɆ 249.3 57.8
– from continuing operations
264.2 92.2
– from discontinued operations
(14.9) (34.4)
ȩEëļŝƖȪȦŒŨƖƖėƖɆëƎļƖļŝİɆįƎŨśɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖ
(62.0) 61.8
(Gains)/losses arising from foreign exchange debt instruments
(56.2) 42.9
ƖƖŨĉļëƢėĐɆƢëLJɆĉķëƎİėɆŨŝɆİëļŝƖɆëƎļƖļŝİɆįƎŨśɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖɆëŝĐɆįŨƎėļİŝɆėLJĉķëŝİėɆĐėĈƢɆļŝƖƢƎƪśėŝƢƖ
9.9 –
Separately disclosed items net of tax (note 6)
170.9 193.8
ĐŌƪƖƢėĐɆƋƎŨǘƢɆëƢƢƎļĈƪƢëĈŒėɆƢŨɆƖķëƎėķŨŒĐėƎƖ 311.9 356.3
– from continuing operations 317.5 370.7
– from discontinued operations (5.6) (14.4)
,ëƎŝļŝİƖɆƋėƎɆƖķëƎėɆȩƋėŝĉėȪ
Standard earnings
ƋėƎɆƖķëƎė
ĐŌƪƖƢėĐɆėëƎŝļŝİƖɆ
ƋėƎɆƖķëƎė
2021 2020 2021 2020
Basic earnings per share
– from continuing operations 45.1 15.8 54.3 63.5
– from discontinued operations
(2.5) (5.9) (1.0) (2.5)
DƎŨśɆƋƎŨǘƢɆįŨƎɆƢķėɆƋėƎļŨĐ 42.6 9.9 53.3 61.0
Diluted earnings per share
– from continuing operations
44.7 15.6 53.8 62.8
– from discontinued operations (2.5) (5.8) (1.0) (2.4)
DƎŨśɆƋƎŨǘƢɆįŨƎɆƢķėɆƋėƎļŨĐ
42.2 9.8 52.8 60.4
The earnings per share presented above is inclusive of the performance from the US joint venture BetMGM. Adjusting for the removal of
the BetMGM performance would result in a basic adjusted earnings per share of 81.9p (2020: 73.9p) and a diluted adjusted earnings per
share of 81.1p (2020: 73.1p) from continuing operations.
pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued
for the year ended 31 December 2021
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Financial statements
ǤǦɆEŨŨĐǂļŒŒɆëŝĐɆļŝƢëŝİļĈŒėɆëƖƖėƢƖ
Goodwill
£m
Licences
£m
Software
£m
Customer
relationships
£m
Trade-marks &
brand names
£m
Total
£m
Cost
At 1 January 2020 3,238.8 15.7 595.9 935.9 1,925.7 6,712.0
Exchange adjustment 128.3 – 11.3 20.6 30.3 190.5
Additions – – 101.6 – – 101.6
$ļƖƋŨƖëŒƖɆëŝĐɆëƖƖėƢƖɆĉŒëƖƖļǘėĐɆëƖɆķėŒĐɆįŨƎɆƖëŒė (14.9) – (169.5) (7.9) (2.0) (194.3)
At 31 December 2020 3,352.2 15.7 539.3 948.6 1,954.0 6,809.8
Exchange adjustment (132.8) (0.3) (28.0) (22.5) (32.7) (216.3)
Additions – 12.8 96.7 – – 109.5
Additions from business combinations (note 32) 273.1 22.3 21.1 78.9 96.2 491.6
$ļƖƋŨƖëŒƖɆëŝĐɆëƖƖėƢƖɆĉŒëƖƖļǘėĐɆëƖɆķėŒĐɆįŨƎɆƖëŒė – (0.8) (8.2) – – (9.0)
¡ėĉŒëƖƖļǘĉëƢļŨŝ ––1.1––1.1
At 31 December 2021 3,492.5 49.7 622.0 1,005.0 2,017.5 7,186.7
Accumulated amortisation and impairment
At 1 January 2020 272.4 6.3 379.3 593.2 96.4 1,347.6
Exchange adjustment 18.7 – 6.0 17.4 6.8 48.9
Amortisation charge – 1.1 115.8 262.2 39.3 418.4
Disposals – – (169.1) (1.2) (1.3) (171.6)
At 31 December 2020 291.1 7.4 332.0 871.6 141.2 1,643.3
Exchange adjustment (15.6) (0.1) (22.3) (19.4) (8.6) (66.0)
Amortisation charge – 6.8 102.7 89.8 48.0 247.3
Impairment charge ––1.6––1.6
$ļƖƋŨƖëŒƖɆëŝĐɆëƖƖėƢƖɆĉŒëƖƖļǘėĐɆëƖɆķėŒĐɆįŨƎɆƖëŒė – (0.8) (8.2) – – (9.0)
At 31 December 2021 275.5 13.3 405.8 942.0 180.6 1,817.2
Net book value
At 31 December 2020 3,061.1 8.3 207.3 77.0 1,812.8 5,166.5
At 31 December 2021
3,217.0 36.4 216.2 63.0 1,836.9 5,369.5
At 31 December 2021, the Group had not entered into contractual commitments for the acquisition of any intangible assets (2020: £nil).
QŝĉŒƪĐėĐɆǂļƢķļŝɆƢƎëĐėȯśëƎŏƖɆʁɆĈƎëŝĐɆŝëśėƖɆëƎėɆɞǤȚǦǬǫșǧśɆȩǥǣǥǣțɆɞǤȚǦǬǫșǧśȪɆŨįɆļŝƢëŝİļĈŒėɆëƖƖėƢƖɆĉŨŝƖļĐėƎėĐɆƢŨɆķëǁėɆļŝĐėǘŝļƢėɆŒļǁėƖșɆ
¶ķėƖėɆëƖƖėƢƖɆƎėŒëƢėɆƢŨɆƢķėɆ½bɆdëĐĈƎŨŏėƖɆëŝĐɆŨƎëŒɆĈƎëŝĐƖɆǂķļĉķɆëƎėɆĉŨŝƖļĐėƎėĐɆƢŨɆķëǁėɆļŝĐėǘŝļƢėɆĐƪƎëĈļŒļƢLjɆƢķëƢɆĉëŝɆĈėɆĐėśŨŝƖƢƎëƢėĐȚɆ
ëŝĐɆƢķėļƎɆǁëŒƪėɆĉëŝɆĈėɆƎėëĐļŒLjɆśėëƖƪƎėĐșɆ¶ķėɆĈƎëŝĐƖɆŨƋėƎëƢėɆļŝɆŒŨŝİƖƢëŝĐļŝİɆëŝĐɆƋƎŨǘƢëĈŒėɆśëƎŏėƢɆƖėĉƢŨƎƖșɆ¶ķėɆEƎŨƪƋɆķëƖɆëɆƖƢƎŨŝİɆ
ƋŨƖļƢļŨŝɆļŝɆƢķėɆśëƎŏėƢɆëŝĐɆƢķėƎėɆëƎėɆĈëƎƎļėƎƖɆƢŨɆėŝƢƎLjɆĐƪėɆƢŨɆƢķėɆƎėƍƪļƎėśėŝƢɆƢŨɆĐėśŨŝƖƢƎëƢėɆƢķëƢɆƢķėɆëƋƋŒļĉëŝƢɆļƖɆëɆǘƢɆëŝĐɆƋƎŨƋėƎɆƋėƎƖŨŝɆ
with the “know-how” required to run such operations.
EŨŨĐǂļŒŒɆƎėǙėĉƢƖɆƢķėɆǁëŒƪėɆĈLjɆǂķļĉķɆĉŨŝƖļĐėƎëƢļŨŝɆėLJĉėėĐƖɆƢķėɆįëļƎɆǁëŒƪėɆŨįɆŝėƢɆëƖƖėƢƖɆëĉƍƪļƎėĐɆëƖɆƋëƎƢɆŨįɆëɆĈƪƖļŝėƖƖɆĉŨśĈļŝëƢļŨŝɆ
including the deferred tax liability arising on acquisitions.
Licences comprise the cost of acquired betting shop licences.
Software relates to the cost of acquired software, through purchase or business combination, and the capitalisation of internally
developed software. Additions of £96.7m (2020: £101.6m) include £46.0m of internally capitalised costs (2020: £31.1m).
Customer relationships, trade-marks and brand names relate to the fair value of customer lists, trade-marks and brand names acquired
as part of business combinations, primarily relating to the bwin, Ladbrokes Coral Group plc and Enlabs businesses.
An impairment charge of £1.6m (2020: £nil) has been made against assets relating to the disposed Betdaq business. See notes 6 and 14
for further details of the impairment charge.
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ǤǧɆQśƋëļƎśėŝƢɆƢėƖƢļŝİɆŨįɆİŨŨĐǂļŒŒɆëŝĐɆļŝĐėǘŝļƢėɆŒļįėɆļŝƢëŝİļĈŒėɆëƖƖėƢƖ
An impairment loss is recognised for any amount by which an asset’s carrying amount exceeds its recoverable amount. The recoverable
amount is the higher of an asset’s fair value less costs to sell and its value in use. For the purposes of assessing impairment, assets are
İƎŨƪƋėĐɆëƢɆƢķėɆŒŨǂėƖƢɆŒėǁėŒƖɆįŨƎɆǂķļĉķɆƢķėƎėɆëƎėɆƖėƋëƎëƢėŒLjɆļĐėŝƢļǘëĈŒėɆĉëƖķɆǙŨǂƖɆȩĉëƖķȯİėŝėƎëƢļŝİɆƪŝļƢƖȪș
ÕļƢķļŝɆ½bɆëŝĐɆ,ƪƎŨƋėëŝɆ¡ėƢëļŒȚɆƢķėɆĉëƖķɆİėŝėƎëƢļŝİɆƪŝļƢƖɆȩȹE½ƖȺȪɆëƎėɆİėŝėƎ댌LjɆëŝɆļŝĐļǁļĐƪëŒɆdļĉėŝƖėĐɆėƢƢļŝİɆ{įǘĉėɆȩȹd{ȺȪɆëŝĐɆ
ƢķėƎėįŨƎėȚɆļśƋëļƎśėŝƢɆļƖɆǘƎƖƢɆëƖƖėƖƖėĐɆëƢɆƢķļƖɆŒėǁėŒɆįŨƎɆŒļĉėŝĉėƖɆȩļŝƢëŝİļĈŒėƖȪɆëŝĐɆƋƎŨƋėƎƢLjȚɆƋŒëŝƢɆëŝĐɆėƍƪļƋśėŝƢȚɆǂļƢķɆëŝLjɆļśƋëļƎśėŝƢɆ
arising booked to licences and property, plant and equipment on a pro-rata basis. Since goodwill and brand names have not been
historically allocated to individual LBOs, a secondary assessment is then made to compare the carrying value of the segment against the
ƎėĉŨǁėƎëĈŒėɆëśŨƪŝƢɆǂļƢķɆëŝLjɆëĐĐļƢļŨŝëŒɆļśƋëļƎśėŝƢɆƢķėŝɆƢëŏėŝɆëİëļŝƖƢɆİŨŨĐǂļŒŒɆǘƎƖƢș
DŨƎɆ{ŝŒļŝėɆƢķėɆE½ɆļƖɆƢķėɆƎėŒėǁëŝƢɆİėŨİƎëƋķļĉëŒɆŒŨĉëƢļŨŝɆŨƎɆĈƪƖļŝėƖƖɆƪŝļƢȚɆįŨƎɆėLJëśƋŒėɆƪƖƢƎëŒļëȚɆ,ƪƎŨƋėëŝɆĐļİļƢëŒɆȩĐėǘŝėĐɆëƖɆǂėĈƖļƢėƖɆ
ķŨƖƢėĐɆĈLjɆƋƎŨƋƎļėƢëƎLjɆƋŒëƢįŨƎśƖɆĈëƖėĐɆļŝɆ,ƪƎŨƋėëŝɆĉŨŝƖƢļƢƪėŝƢɆĉŨƪŝƢƎļėƖȪȚɆ$ļİļƢëŒɆȩĐėǘŝėĐɆëƖɆǂėĈƖļƢėƖɆķŨƖƢėĐɆĈLjɆ,ŝƢëļŝɆƋƎŨƋƎļėƢëƎLjɆ
ƋŒëƢįŨƎśƖȪɆėƢĉșɆëŝĐɆëŝLjɆļśƋëļƎśėŝƢƖɆëƎėɆśëĐėɆǘƎƖƢŒLjɆƢŨɆİŨŨĐǂļŒŒȚɆŝėLJƢɆƢŨɆëŝLjɆĉëƋļƢëŒļƖėĐɆļŝƢëŝİļĈŒėɆëƖƖėƢɆëŝĐɆƢķėŝɆǘŝ댌LjɆƢŨɆƋƎŨƋėƎƢLjȚɆ
ƋŒëŝƢɆëŝĐɆėƍƪļƋśėŝƢșɆ¶ķėɆėLJƋėĉƢėĐɆĉëƖķɆǙŨǂƖɆİėŝėƎëƢėĐɆĈLjɆƢķėɆëƖƖėƢƖɆëƎėɆĐļƖĉŨƪŝƢėĐɆƪƖļŝİɆëƋƋƎŨƋƎļëƢėɆĐļƖĉŨƪŝƢɆƎëƢėƖɆƢķëƢɆƎėǙėĉƢɆƢķėɆ
time value of money and risks associated with the group of assets.
DŨƎɆĈŨƢķɆƢëŝİļĈŒėɆëŝĐɆļŝƢëŝİļĈŒėɆëƖƖėƢƖȚɆƢķėɆįƪƢƪƎėɆĉëƖķɆǙŨǂƖɆëƎėɆĈëƖėĐɆŨŝɆƢķėɆįŨƎėĉëƖƢƖɆëŝĐɆĈƪĐİėƢƖɆŨįɆƢķėɆE½ɆŨƎɆĈƪƖļŝėƖƖɆĐļƖĉŨƪŝƢėĐɆ
ƢŨɆƎėǙėĉƢɆƢļśėɆǁëŒƪėɆŨįɆśŨŝėLjșɆ¶ķėɆŏėLjɆëƖƖƪśƋƢļŨŝƖɆǂļƢķļŝɆƢķėɆ½bɆëŝĐɆ,ƪƎŨƋėëŝɆ¡ėƢëļŒɆĈƪĐİėƢƖɆëƎėɆ{¶ɆǂëİėƎƖɆȩĉƪƖƢŨśėƎɆǁļƖļƢƖɆëŝĐɆ
spend per visit), the average number of machines per shop, gross win per shop per week, salary increases, the potential impact of the
ƖķŨƋɆĉŒŨƖƪƎėƖɆëŝĐɆƢķėɆǘLJėĐɆĉŨƖƢƖɆŨįɆƢķėɆd{ƖșɆ¶ķėɆŏėLjɆëƖƖƪśƋƢļŨŝƖɆǂļƢķļŝɆƢķėɆĈƪĐİėƢƖɆįŨƎɆ{ŝŒļŝėɆëƎėɆƢķėɆŝƪśĈėƎɆŨįɆëĉƢļǁėɆĉƪƖƢŨśėƎƖȚɆŝėƢɆ
revenue per head, win percentage, marketing spend, revenue shares and operating costs.
¶ķėɆǁëŒƪėȯļŝȯƪƖėɆĉëŒĉƪŒëƢļŨŝƖɆƪƖėɆĉëƖķɆǙŨǂƖɆĈëƖėĐɆŨŝɆĐėƢëļŒėĐȚɆĈŨëƎĐɆëƋƋƎŨǁėĐȚɆǘŝëŝĉļëŒɆĈƪĐİėƢƖɆƋƎėƋëƎėĐɆĈLjɆśëŝëİėśėŝƢɆĉŨǁėƎļŝİɆ
a three-year period. These forecasts have been extrapolated over years 4 to 8 representing a declining growth curve from year 3 until
the long term forecast growth rate is reached. The growth rates used from years 4-8 range from 0% to 16%. From year 9 onwards long
term growth rates used are between 0% and 2.0% (2020: between 0% and 3.0%) and are based on the long term GDP growth rate of the
countries in which the relevant CGUs operate or the relevant outlook for the business. An 8-year horizon is considered appropriate based
ŨŝɆƢķėɆEƎŨƪƋȼƖɆķļƖƢŨƎLjɆŨįɆƪŝĐėƎŒLjļŝİɆƋƎŨǘƢɆëƖɆǂėŒŒɆëƖɆėŝƖƪƎļŝİɆƢķėƎėɆļƖɆëŝɆëƋƋƎŨƋƎļëƢėɆĐėĉŒļŝėɆƢŨɆŒŨŝİɆƢėƎśɆİƎŨǂƢķɆƎëƢėƖɆįƎŨśɆƢķŨƖėɆİƎŨǂƢķɆ
rates currently observed in our key markets. A 0% growth rate has been used for the UK Retail operating segment due to the ongoing
ƪŝĉėƎƢëļŝƢLjɆįŨŒŒŨǂļŝİɆŨǁļĐȯǤǬșɆŒŒɆŏėLjɆëƖƖƪśƋƢļŨŝƖɆƪƖėĐɆļŝɆƢķėɆǁëŒƪėȯļŝȯƪƖėɆĉëŒĉƪŒëƢļŨŝƖɆƎėǙėĉƢɆƢķėɆEƎŨƪƋȼƖɆƋëƖƢɆėLJƋėƎļėŝĉėɆƪŝŒėƖƖɆëɆ
relevant external source of information is available.
¶ķėɆĐļƖĉŨƪŝƢɆƎëƢėɆĉëŒĉƪŒëƢļŨŝɆļƖɆĈëƖėĐɆŨŝɆƢķėɆƖƋėĉļǘĉɆĉļƎĉƪśƖƢëŝĉėƖɆǂļƢķɆƎėįėƎėŝĉėɆƢŨɆƢķėɆÕɆëŝĐɆƎļƖŏɆįëĉƢŨƎƖɆėLJƋėĉƢėĐɆļŝɆƢķėɆļŝĐƪƖƢƎLjɆ
in which the Group operates.
The pre-tax discount rates used and the associated carrying value of goodwill by CGU is as follows:
EŨŨĐǂļŒŒ
2021
%
2020
%
2021
£m
2020
£m
Digital 10.9 9.1 2,121.5 2,101.1
UK Retail
10.9 9.1 76.4 76.4
Australia 11.7 10.6 331.2 349.5
European Retail 9.3 – 11.5 8.5 – 10.4 153.0 163.7
European Digital
10.9 – 11.5 9.9 – 10.4 332.0 355.2
Enlabs
12.7 n/a 187.7 –
All other segments 10.9 9.1 15.2 15.2
3,217.0 3,061.1
It is not practical or material to disclose the carrying value of individual licences by LBO.
Impairment recognised during the year
Impairments of intangible assets and property, plant and equipment are recognised as separately disclosed items within
operating expenses.
$ƪƎļŝİɆƢķėɆĉƪƎƎėŝƢɆLjėëƎȚɆƢķėɆEƎŨƪƋɆƎėĉŨƎĐėĐɆëɆŝŨŝȯĉëƖķɆļśƋëļƎśėŝƢɆĉķëƎİėɆŨįɆɞǦșǦśɆȩǥǣǥǣțɆɞǨșǣśȪɆŨŝɆĉėƎƢëļŝɆķėëĐɆŨįǘĉėɆŒŨĉëƢļŨŝƖɆǂķļĉķɆ
are now vacant (within the Retail segment), and against assets relating to the disposed Betdaq business (within All other segment).
Sensitivity analysis
ɆƎėĐƪĉƢļŨŝɆƢŨɆǣɼɆįŨƎɆƢķėɆƢėƎśļŝëŒɆİƎŨǂƢķɆƎëƢėɆëƋƋŒļėĐɆƢŨɆƢķėɆĉëƖķǙŨǂƖɆȩǂļƢķɆŨƢķėƎɆëƖƖƪśƋƢļŨŝƖɆƎėśëļŝļŝİɆĉŨŝƖƢëŝƢȪɆǂŨƪŒĐɆƎėƖƪŒƢɆļŝɆŝŨɆ
additional impairment to any CGU.
ɆǨɼɆĐėĉƎėëƖėɆļŝɆ댌ɆĉëƖķɆǙŨǂƖɆƪƖėĐɆļŝɆƢķėɆĐļƖĉŨƪŝƢėĐɆĉëƖķɆǙŨǂɆśŨĐėŒɆįŨƎɆƢķėɆǁëŒƪėɆļŝɆƪƖėɆĉëŒĉƪŒëƢļŨŝɆȩǂļƢķɆŨƢķėƎɆëƖƖƪśƋƢļŨŝƖɆƎėśëļŝļŝİɆ
constant) would result in no additional impairment to any CGU.
ɆǣșǨƋƋɆļŝĉƎėëƖėɆļŝɆĐļƖĉŨƪŝƢɆƎëƢėƖɆƪƖėĐɆļŝɆƢķėɆĐļƖĉŨƪŝƢėĐɆĉëƖķɆǙŨǂɆśŨĐėŒɆįŨƎɆƢķėɆǁëŒƪėɆļŝɆƪƖėɆĉëŒĉƪŒëƢļŨŝɆȩǂļƢķɆ댌ɆŨƢķėƎɆëƖƖƪśƋƢļŨŝƖɆ
remaining constant) would result in no additional impairment to any CGU.
No other reasonable change in assumptions to the CGUs would cause any additional impairment.
pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued
for the year ended 31 December 2021
Entain plc
|
Annual Report 2021
174
Financial statements
ǤǧɆQśƋëļƎśėŝƢɆƢėƖƢļŝİɆŨįɆİŨŨĐǂļŒŒɆëŝĐɆļŝĐėǘŝļƢėɆŒļįėɆļŝƢëŝİļĈŒėɆëƖƖėƢƖɆ(continued)
QśƋëļƎśėŝƢɆƢėƖƢļŝİɆëĉƎŨƖƖɆƢķėɆĈƪƖļŝėƖƖ
dļĉėŝĉėƖȦ
įƎëŝĉķļƖėėƖ ,ɆʁɆ©ŨįƢǂëƎė
Customer
ƎėŒëƢļŨŝƖķļƋƖ EŨŨĐǂļŒŒ Brand name
Digital
UK Retail
ROI
Eurobet
Digital
Eurobet
Retail
Belgium
Digital
Belgium
Retail
Australia
Enlabs
Digital Impairment review
UK Retail site by site Impairment review UK Retail – Impairment review
ROI Impairment reviewROI site by site Impairment review
Australia Impairment review
Enlabs Impairment review
Belgium Digital Impairment review
Belgium Digital Impairment review
Eurobet Retail Impairment review
Eurobet Digital Impairment review
Combined
$ļİļƢëŒȦ
UK Retail
Impairment
review
Eurobet
Impairment
review
Belgium
Impairment
review
175 Overview
|
Strategic report
|
Governance
|
Financial statements
Entain plc
|
Annual Report 2021
15 Property, plant and equipment
Land and
buildings
£m
Plant and
equipment
£m
Fixtures
ëŝĐɆǘƢƢļŝİƖɆ
£m
Leased
assets
£m
Total
£m
Cost
At 1 January 2020 29.6 78.6 237.5 439.8 785.5
Exchange adjustment – 2.4 3.7 3.5 9.6
Additions 13.9 13.0 31.6 70.9 129.4
$ļƖƋŨƖëŒƖɆëŝĐɆëƖƖėƢƖɆĉŒëƖƖļǘėĐɆëƖɆķėŒĐɆįŨƎɆƖëŒė (17.0) (4.6) (72.9) (2.8) (97.3)
¡ėĉŒëƖƖļǘĉëƢļŨŝ – – (18.1) 18.1 –
At 31 December 2020 26.5 89.4 181.8 529.5 827.2
Exchange adjustment (0.6) (2.7) (12.0) (5.6) (20.9)
Additions 14.9 16.8 38.1 52.0 121.8
Additions from business combinations (note 32) 0.2 2.0 0.2 0.9 3.3
$ļƖƋŨƖëŒƖɆëŝĐɆëƖƖėƢƖɆĉŒëƖƖļǘėĐɆëƖɆķėŒĐɆįŨƎɆƖëŒė (14.2) (1.9) (19.8) (4.5) (40.4)
¡ėĉŒëƖƖļǘĉëƢļŨŝ - (1.1) – – (1.1)
At 31 December 2021 26.8 102.5 188.3 572.3 889.9
Accumulated depreciation
At 1 January 2020 21.2 15.7 90.3 190.4 317.6
Exchange adjustment – 1.4 2.0 0.4 3.8
Depreciation charge 10.3 12.9 41.6 62.4 127.2
Impairment – – – 5.0 5.0
$ļƖƋŨƖëŒƖɆëŝĐɆëƖƖėƢƖɆĉŒëƖƖļǘėĐɆëƖɆķėŒĐɆįŨƎɆƖëŒė (17.0) (4.6) (72.9) (2.1) (96.6)
¡ėĉŒëƖƖļǘĉëƢļŨŝ – (7.1) 7.1 –
At 31 December 2020 14.5 25.4 53.9 263.2 357.0
Exchange adjustment (0.6) (2.1) (10.6) (2.0) (15.3)
Depreciation charge 11.6 16.9 28.7 62.5 119.7
Impairment – – – 1.7 1.7
$ļƖƋŨƖëŒƖɆëŝĐɆëƖƖėƢƖɆĉŒëƖƖļǘėĐɆëƖɆķėŒĐɆįŨƎɆƖëŒė (14.2) (1.9) (19.8) (4.5) (40.4)
At 31 December 2021 11.3 38.3 52.2 320.9 422.7
Net book value
At 31 December 2020 12.0 64.0 127.9 266.3 470.2
At 31 December 2021
15.5 64.2 136.1 251.4 467.2
At 31 December 2021, the Group had not entered into contractual commitments for the acquisition of any property, plant and equipment
(2020: £nil).
QŝɆƢķėɆƋƎėĉėĐļŝİɆLjėëƎɆƢķėɆEƎŨƪƋɆƎėĉŒëƖƖļǘėĐɆĉėƎƢëļŝɆŒėëƖėĐɆëƖƖėƢƖɆƢķëƢɆǂėƎėɆƋƎėǁļŨƪƖŒLjɆķėŒĐɆǂļƢķļŝɆǘLJƢƪƎėƖɆëŝĐɆǘƢƢļŝİƖɆƢŨɆĈėɆƋƎėƖėŝƢėĐɆ
within Leased assets.
QŝĉŒƪĐėĐɆǂļƢķļŝɆǘLJƢƪƎėƖȚɆǘƢƢļŝİƖɆëŝĐɆėƍƪļƋśėŝƢɆëƎėɆëƖƖėƢƖɆļŝɆƢķėɆĉŨƪƎƖėɆŨįɆĉŨŝƖƢƎƪĉƢļŨŝɆǂķļĉķɆëƎėɆŝŨƢɆĈėļŝİɆĐėƋƎėĉļëƢėĐɆŨįɆɞǫșǦśɆ
(2020: £38.8m), relating predominantly to the new till system in UK Retail.
ŝɆļśƋëļƎśėŝƢɆĉķëƎİėɆŨįɆɞǤșǪśɆȩǥǣǥǣțɆɞǨșǣśȪɆķëƖɆĈėėŝɆśëĐėɆëİëļŝƖƢɆŨįǘĉėɆĈƪļŒĐļŝİƖɆļŝĉŒƪĐėĐɆǂļƢķļŝɆŒėëƖėĐɆëƖƖėƢƖɆļŝɆƢķėɆLjėëƎșɆ
See notes 6 and 14 for further details.
pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued
for the year ended 31 December 2021
Entain plc
|
Annual Report 2021
176
Financial statements
15 Property, plant and equipment (continued)
Analysis of leased assets:
Land and
buildings
£m
Plant and
equipment
£m
Total
£m
Cost
At 1 January 2020 433.4 6.4 439.8
Exchange adjustment 3.3 0.2 3.5
Additions 40.3 30.6 70.9
$ļƖƋŨƖëŒƖɆëŝĐɆëƖƖėƢƖɆĉŒëƖƖļǘėĐɆëƖɆķėŒĐɆįŨƎɆƖëŒė (0.8) (2.0) (2.8)
¡ėĉŒëƖƖļǘĉëƢļŨŝ – 18.1 18.1
At 31 December 2020 476.2 53.3 529.5
Exchange adjustment (5.5) (0.1) (5.6)
Additions 51.1 0.9 52.0
Additions from business combinations 0.9 – 0.9
$ļƖƋŨƖëŒƖɆëŝĐɆëƖƖėƢƖɆĉŒëƖƖļǘėĐɆëƖɆķėŒĐɆįŨƎɆƖëŒė (2.0) (2.5) (4.5)
At 31 December 2021 520.7 51.6 572.3
Accumulated depreciation
At 1 January 2020 188.2 2.2 190.4
Exchange adjustment 0.3 0.1 0.4
Depreciation charge 56.6 5.8 62.4
Impairment 5.0 – 5.0
$ļƖƋŨƖëŒƖɆëŝĐɆëƖƖėƢƖɆĉŒëƖƖļǘėĐɆëƖɆķėŒĐɆįŨƎɆƖëŒė (0.3) (1.8) (2.1)
¡ėĉŒëƖƖļǘĉëƢļŨŝ – 7.1 7.1
At 31 December 2020 249.8 13.4 263.2
Exchange adjustment (1.9) (0.1) (2.0)
Depreciation charge 52.2 10.3 62.5
Impairment 1.7 – 1.7
$ļƖƋŨƖëŒƖɆëŝĐɆëƖƖėƢƖɆĉŒëƖƖļǘėĐɆëƖɆķėŒĐɆįŨƎɆƖëŒė (2.0) (2.5) (4.5)
At 31 December 2021 299.8 21.1 320.9
Net book value
At 31 December 2020 226.4 39.9 266.3
At 31 December 2021
220.9 30.5 251.4
ǤǩɆQŝƢėƎėƖƢɆļŝɆŌŨļŝƢɆǁėŝƢƪƎė
Share of joint
venture’s net
assets
£m
Cost
At 1 January 2020 6.0
Additions 61.8
Exchange adjustment (1.0)
Share of loss after tax (60.6)
At 31 December 2020 6.2
Additions
164.4
Exchange adjustment 1.0
Share of loss after tax (161.9)
At 31 December 2021 9.7
The joint venture represents the Group’s investment in BetMGM set up in the US in which a 50% stake is held.
177
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ǤǩɆQŝƢėƎėƖƢɆļŝɆŌŨļŝƢɆǁėŝƢƪƎėɆ(continued)
©ƪśśëƎļƖėĐɆǘŝëŝĉļëŒɆļŝįŨƎśëƢļŨŝɆļŝɆƎėƖƋėĉƢɆŨįɆƢķėɆEƎŨƪƋȼƖɆŌŨļŝƢɆǁėŝƢƪƎėȼƖɆŝėƢɆëƖƖėƢƖɆļƖɆƖėƢɆŨƪƢɆĈėŒŨǂț
2021
£m
2020
£m
Non-current assets 103.5 42.2
Cash and cash equivalents 208.1 45.0
Other current assets
67.8 15.5
Current assets
275.9 60.5
Balances with customers (132.6) (16.2)
Other current liabilities (227.4) (67.1)
Current liabilities
(360.0) (83.3)
Non-current liabilities – (7.0)
Net assets
19.4 12.4
Group’s share of net assets 9.7 6.2
©ƪśśëƎļƖėĐɆƖƢëƢėśėŝƢɆŨįɆĉŨśƋƎėķėŝƖļǁėɆļŝĉŨśėɆ
2021
£m
2020
£m
Revenue 617.9 135.5
Depreciation and amortisation
(12.0) (3.5)
Other operating expenses
(929.7) (253.2)
Income tax – –
Loss for the year (323.8) (121.2)
Group’s share of loss (161.9) (60.6)
There are no contingent liabilities relating to the Group’s interest in the joint venture (2020: £nil).
The risks associated with the Group’s interest in joint ventures are aligned to the same risks the Group is exposed to on the basis that they
operate wholly within the betting and gaming market.
The Group has committed to further investment in BetMGM over the course of 2022, with $225.0m additional contributions expected
($450.0m split between both joint venture partners). This will take the Group’s total investment to $550m ($1.1bn across both joint
venture partners).
ǤǪɆQŝƢėƎėƖƢɆļŝɆëƖƖŨĉļëƢėƖɆëŝĐɆŨƢķėƎɆļŝǁėƖƢśėŝƢƖ
Share of
associates’
net assets
£m
Other
investments
£m
Total
£m
Cost
At 1 January 2020 19.0 10.9 29.9
Additions – 0.2 0.2
Revaluation loss – (1.7) (1.7)
©ķëƎėɆŨįɆƋƎŨǘƢɆëįƢėƎɆƢëLJ 0.4 – 0.4
Share of other comprehensive income 0.3 – 0.3
Foreign exchange (0.4) 0.7 0.3
At 31 December 2020 19.3 10.1 29.4
Revaluation loss
– (2.3) (2.3)
Arising on business combinations (note 32) – 2.9 2.9
Additions 25.6 3.8 29.4
Share of loss after tax (0.6) – (0.6)
Foreign exchange (0.1) (0.3) (0.4)
At 31 December 2021 44.2 14.2 58.4
pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued
for the year ended 31 December 2021
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178
Financial statements
ǤǪɆQŝƢėƎėƖƢɆļŝɆëƖƖŨĉļëƢėƖɆëŝĐɆŨƢķėƎɆļŝǁėƖƢśėŝƢƖɆ(continued)
Associates
©ƪśśëƎļƖėĐɆǘŝëŝĉļëŒɆļŝįŨƎśëƢļŨŝɆļŝɆƎėƖƋėĉƢɆŨįɆƢķėɆëƖƖŨĉļëƢėƖɆļƖɆƖėƢɆŨƪƢɆĈėŒŨǂț
2021
£m
2020
£m
Non-current assets 43.3 14.1
Current assets
132.9 106.5
Current liabilities (72.7) (51.5)
Net assets
103.5 69.1
Group’s share of net assets
44.2 19.3
Revenue for the year 193.5 197.2
ƎŨǘƢȦȩŒŨƖƖȪɆįŨƎɆƢķėɆLjėëƎ
0.3 (1.7)
Other comprehensive (expense)/income (1.2) 1.3
Total comprehensive expense (0.9) (0.4)
Group’s share of total comprehensive (expense)/income
(0.6) 0.7
Further details of the Group’s associates are listed in note 34.
¶ķėɆǘŝëŝĉļëŒɆLjėëƎɆėŝĐɆŨįɆ©ƋŨƎƢƖɆQŝįŨƎśëƢļŨŝɆ©ėƎǁļĉėƖɆȩLŨŒĐļŝİƖȪɆdļśļƢėĐɆȩ©Q©ȪȚɆëŝɆëƖƖŨĉļëƢėɆŨįɆƢķėɆEƎŨƪƋȚɆļƖɆǦǤɆnëƎĉķșɆ¶ķėɆEƎŨƪƋɆķëƖɆ
included the results for SIS for the 12 months ended 31 December 2021.
QŝɆƢķėɆLjėëƎɆƢķėɆEƎŨƪƋɆëĉƍƪļƎėĐɆįŨƪƎɆŝėǂɆëƖƖŨĉļëƢėƖȜɆEƎëŝɆëƖļŝŨɆ$ļŝëŝƢɆ©ȚɆQŝǘŝļƢļɆëƖļŝŨɆ{ŨƖƢėŝĐėɆpÔȚɆdėëĐėƎĈėƢɆpÔɆëŝĐɆ$ƎëǂɆʁɆŨĐėɆ
Limited. All associates are private companies and there are no quoted market price available for their shares.
The risks associated with associate investments considered to be aligned to the same risks the Group is exposed to on the basis that they
operate wholly within the betting and gaming market.
{ƢķėƎɆļŝǁėƖƢśėŝƢƖɆŨįɆɞǤǧșǥśɆȩǥǣǥǣțɆɞǤǣșǤśȪɆĉŨŝƖļƖƢɆŨįɆļŝǁėƖƢśėŝƢƖɆǂķļĉķɆķëǁėɆŝŨɆǘLJėĐɆśëƢƪƎļƢLjɆĐëƢėɆŨƎɆĉŨƪƋŨŝɆƎëƢėș
ǤǫɆ¶ƎëĐėɆëŝĐɆŨƢķėƎɆƎėĉėļǁëĈŒėƖ
2021
£m
2020
£m
Trade receivables 22.5 12.8
Other receivables
461.6 385.8
Finance lease receivable 4.1 4.9
Prepayments
54.6 76.1
542.8 479.6
Trade and other receivables are presented on the Balance Sheet as follows:
2021
£m
2020
£m
Current 539.8 475.8
Non-current 3.0 3.8
Total
542.8 479.6
Trade receivables are non-interest bearing and are generally on 30-90 day terms. Trade receivables are reviewed for impairment on an
ŨŝİŨļŝİɆĈëƖļƖȚɆƢëŏļŝİɆëĉĉŨƪŝƢɆŨįɆƢķėɆëİėļŝİɆŨįɆŨƪƢƖƢëŝĐļŝİɆëśŨƪŝƢƖɆëŝĐɆƢķėɆĉƎėĐļƢɆƋƎŨǘŒėɆŨįɆĉƪƖƢŨśėƎƖșɆQśƋëļƎėĐɆƎėĉėļǁëĈŒėƖȚɆļŝĉŒƪĐļŝİɆ
all trade receivables that are a year old, are provided for in an allowance account. Impaired receivables are derecognised when they are
ëƖƖėƖƖėĐɆëƖɆļƎƎėĉŨǁėƎëĈŒėșɆ¶ķėɆėLJƋėĉƢėĐɆĉƎėĐļƢɆŒŨƖƖėƖɆëƎļƖļŝİɆįƎŨśɆƎėĉėļǁëĈŒėƖɆëƎėɆŝŨƢɆĉŨŝƖļĐėƎėĐɆƢŨɆĈėɆƖļİŝļǘĉëŝƢșɆ
The balance of other receivables consists of the receivable for Greek tax of €227.5m (2020: €145.0m), amounts receivable from payment
service providers of £130.8m (2020: £172.4m), and other smaller items such as regulatory deposits, security deposits, rent deposits and
ĈëŒëŝĉėƖɆĐƪėɆįƎŨśɆëįǘŒļëƢėƖɆëŝĐɆƋëƎƢŝėƎƖșɆ
Greek tax
In November, The Athens Administrative Court of Appeal ruled in favour of the Group on the 2010/11 Greek Tax Assessment, a ruling
which has subsequently been appealed by the Greek authorities. Following the ruling, the Group is now entitled to recover all amounts
paid under the 2010/11 Assessment plus interest and, as such, a receivable of €227.5m has been recorded.
Whilst the Group expects to be successful in defending the appeal by the Greek authorities, should the Greek Supreme Administrative
Court rule in favour of the Greek tax authorities, then the Group may become liable for the full 2010/11 Assessment plus interest.
ÕķļŒƖƢɆƢķėɆŨƪƢĉŨśėɆŨįɆƢķėɆëƋƋėëŒɆķėëƎļŝİȚɆǂķļĉķɆļƖɆŝŨƢɆėLJƋėĉƢėĐɆƪŝƢļŒɆǥǣǥǧȚɆƎėśëļŝƖɆƪŝĉėƎƢëļŝȚɆƢķėɆEƎŨƪƋɆƎėśëļŝƖɆĉŨŝǘĐėŝƢɆƢķëƢɆƢķėɆ
©ƪƋƎėśėɆŨƪƎƢɆǂļŒŒɆëŒƖŨɆǘŝĐɆļŝɆįëǁŨƪƎɆŨįɆƢķėɆEƎŨƪƋș
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Annual Report 2021
ǤǬɆëƖķɆëŝĐɆĉëƖķɆėƍƪļǁëŒėŝƢƖɆ
2021
£m
2020
£m
Cash and short-term deposits 487.1 706.7
ĐĐļƢļŨŝëŒɆƢŨɆƢķėɆĉëƖķɆĈëŒëŝĉėɆëĈŨǁėȚɆļŝɆƢķėɆƋƎļŨƎɆLjėëƎȚɆǂėƎėɆëśŨƪŝƢƖɆŨįɆɞǧǦșǤśɆļŝĉŒƪĐėĐɆǂļƢķļŝɆëƖƖėƢƖɆĉŒëƖƖļǘėĐɆëƖɆķėŒĐɆįŨƎɆƖëŒėș
ëƖķɆëŝĐɆĉëƖķɆėƍƪļǁëŒėŝƢƖɆļŝɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆƖƢëƢėśėŝƢɆŨįɆĉëƖķɆǙŨǂƖɆĉŨśƋƎļƖėƖɆĉëƖķɆëƢɆĈëŝŏɆǂļƢķɆëɆśëƢƪƎļƢLjɆŨįɆƢķƎėėɆśŨŝƢķƖɆŨƎɆŒėƖƖȚɆ
overdrafts net of short term investments and includes £69.4m (2020: £36.3m) restricted in respect of customer accounts.
ǥǣɆ¶ƎëĐėɆëŝĐɆŨƢķėƎɆƋëLjëĈŒėƖ
Current trade and other payables comprise:
2021
£m
2020
£m
Trade payables 66.7 47.1
Other payables 112.7 103.3
Social security and other taxes
208.1 229.7
Accruals
308.3 307.3
695.8 687.4
ǥǤɆƖƖėƢƖɆķėŒĐɆįŨƎɆƖëŒėɆëŝĐɆĐļƖĉŨŝƢļŝƪėĐɆŨƋėƎëƢļŨŝƖ
During the year the Group disposed of its interest in its spread betting business recognising a loss on disposal of £9.3m in 2021.
Inclusive of the loss on disposal, the results for the year for the discontinued operation were:
2021
£m
2020
£m
Revenue 11.0 13.8
Cost of sales (6.9) (7.6)
EƎŨƖƖɆƋƎŨǘƢ 4.1 6.2
Administrative costs (9.7) (20.6)
Operating loss (5.6) (14.4)
Separately disclosed items
(9.3) (21.3)
dŨƖƖɆĈėįŨƎėɆƢëLJ (14.9) (35.7)
Income tax credit
– 1.3
dŨƖƖɆįŨƎɆƢķėɆLjėëƎɆįƎŨśɆĐļƖĉŨŝƢļŝƪėĐɆŨƋėƎëƢļŨŝƖɆëįƢėƎɆƢëLJ (14.9) (34.4)
Separately disclosed items consist of £9.3m (2020: provision of £10.0m) relating to a loss on disposal (including tax), £nil (2020: £3.4m)
relating to amortisation of acquired intangibles, £nil (2020: £19.3m) relating to impairment and £nil (2020: £11.4m gain) relating to
movement in fair value of contingent consideration.
pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued
for the year ended 31 December 2021
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180
Financial statements
ǥǤɆƖƖėƢƖɆķėŒĐɆįŨƎɆƖëŒėɆëŝĐɆĐļƖĉŨŝƢļŝƪėĐɆŨƋėƎëƢļŨŝƖɆ(continued)
QƢėśƖɆĉŒëƖƖļǘėĐɆëƖɆķėŒĐȯįŨƎȯƖëŒėɆŨŝɆƢķėɆĈëŒëŝĉėɆƖķėėƢɆëƎėɆĐļƖĉŒŨƖėĐɆĈėŒŨǂț
2021
£m
2020
£m
Non-current assets
Property, plant and equipment – 0.7
Current assets
Trade and other receivables – 155.3
Cash and cash equivalents
– 43.1
– 198.4
ƖƖėƢƖɆĉŒëƖƖļǘėĐɆëƖɆķėŒĐɆįŨƎɆƖëŒė – 199.1
Current liabilities
Trade and other payables
– (12.7)
Balances with customers
– (155.0)
{ƢķėƎɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖ – (4.3)
dļëĈļŒļƢļėƖɆĉŒëƖƖļǘėĐɆëƖɆķėŒĐɆįŨƎɆƖëŒė
– (172.0)
22 Lease liabilities
2021
£m
2020
£m
Current
Lease liabilities
78.2 89.8
Non-current
Lease liabilities 215.5 248.2
Total lease liabilities 293.7 338.0
¶ķėɆEƎŨƪƋȼƖɆŒėëƖļŝİɆëĉƢļǁļƢLjɆĉŨŝƖļƖƢƖɆŨįɆŒėëƖėƖɆŨŝɆƋƎŨƋėƎƢLjȚɆĉëƎƖȚɆ©ėŒįɆ©ėƎǁļĉėɆėƢƢļŝİɆ¶ėƎśļŝëŒƖɆëŝĐɆŨįǘĉėɆėƍƪļƋśėŝƢșɆ¶ķėɆśëŌŨƎļƢLjɆŨįɆ
ƢķŨƖėɆƎėŒëƢėɆƢŨɆƢķėɆŒėëƖļŝİɆŨįɆd{ƖɆǂļƢķļŝɆƢķėɆ¡ėƢëļŒɆėƖƢëƢėƖɆëŝĐɆŨįǘĉėɆĈƪļŒĐļŝİƖșɆ
,ëĉķɆŒėëƖėɆļƖɆƎėǙėĉƢėĐɆŨŝɆƢķėɆĈëŒëŝĉėɆƖķėėƢɆëƖɆëɆƎļİķƢȯŨįȯƪƖėɆëƖƖėƢɆëŝĐɆëɆŒėëƖėɆŒļëĈļŒļƢLjșɆÔëƎļëĈŒėɆŒėëƖėɆƋëLjśėŝƢƖɆǂķļĉķɆĐŨɆŝŨƢɆĐėƋėŝĐɆŨŝɆ
an index or a rate (such as lease payments on gaming machines based on a percentage of revenue) are excluded from the measurement
ŨįɆƢķėɆŒėëƖėɆŒļëĈļŒļƢLjɆëŝĐɆëƖƖėƢșɆ¶ķėɆEƎŨƪƋɆĉŒëƖƖļǘėƖɆļƢƖɆƎļİķƢȯŨįȯƪƖėɆëƖƖėƢƖɆļŝɆëɆĉŨŝƖļƖƢėŝƢɆśëŝŝėƎɆƢŨɆļƢƖɆƋƎŨƋėƎƢLjȚɆƋŒëŝƢɆëŝĐɆėƍƪļƋśėŝƢɆȩƖėėɆ
note 15).
Leases of vehicles and IT equipment are generally limited to a new lease term of 3 to 5 years. Leases of property generally have a
lease term ranging from 5 years to 10 years, with some legacy leases extending out to 20 years and beyond. Most new leases of
property are now generally expected to be limited to no more than 10 years, with a break option after no more than 5 years, except in
special circumstances.
The maturity analysis of lease liabilities at 31 December 2021 is as follows:
Minimum lease payments due
ÕļƢķļŝɆ
1 year
£m
1-2 years
£m
2-5 years
£m
> 5 years
£m
Total
£m
2021
Net present value 78.2 52.4 103.6 59.5 293.7
2020
Net present value 89.8 67.6 108.5 72.1 338.0
The Group secures the use of its retail premises primarily through taking out leases for these premises. Typically, the leases are for a
duration between 5 and 10 years. In respect of the UK property portfolio there is commonly a right to negotiate replacement leases on
expiry, by virtue of the Landlord and Tenant Act 1954. Details of undiscounted amounts payable under leases are set out in note 25.
Certain lease payments are not recognised as a liability. This arises when the Group continues to pay rents and occupy properties
after the lease has expired. Payments made under such leases are expensed on a straight-line basis. In addition, certain variable lease
payments and irrecoverable VAT are not permitted to be recognised as lease liabilities and are expensed as incurred.
¶ķėɆƪƖėɆŨįɆėLJƢėŝƖļŨŝɆëŝĐɆƢėƎśļŝëƢļŨŝɆŨƋƢļŨŝƖɆİļǁėƖɆƢķėɆEƎŨƪƋɆëĐĐėĐɆǙėLJļĈļŒļƢLjɆļŝɆƢķėɆėǁėŝƢɆļƢɆķëƖɆļĐėŝƢļǘėĐɆśŨƎėɆƖƪļƢëĈŒėɆƋƎėśļƖėƖɆļŝɆ
terms of cost and/or location or determined that it is advantageous to remain in a location beyond the original lease term. An option is
ŨŝŒLjɆėLJėƎĉļƖėĐɆǂķėŝɆĉŨŝƖļƖƢėŝƢɆǂļƢķɆƢķėɆEƎŨƪƋȼƖɆƎėİļŨŝëŒɆśëƎŏėƢƖɆƖƢƎëƢėİLjɆëŝĐɆƢķėɆėĉŨŝŨśļĉɆĈėŝėǘƢƖɆŨįɆėLJėƎĉļƖļŝİɆƢķėɆŨƋƢļŨŝɆėLJĉėėĐƖɆƢķėɆ
expected overall cost.
181
Overview
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Annual Report 2021
22 Lease liabilities (continued)
Amounts paid for short term and low value leases not included within the lease liability are immaterial.
The Group incurs no expense in relation to variable lease payments (2020: £nil).
$ėƢëļŒƖɆŨįɆƢŨƢëŒɆĉëƖķɆŨƪƢǙŨǂɆƎėŒëƢļŝİɆƢŨɆŒėëƖėƖȚɆëƎėɆĐļƖĉŒŨƖėĐɆļŝɆƢķėɆŨŝƖŨŒļĐëƢėĐɆ©ƢëƢėśėŝƢɆŨįɆëƖķɆDŒŨǂƖș
Group as Lessor:
DļŝëŝĉėɆŒėëƖėɆƎėĉėļǁëĈŒėƖɆëƎėɆļŝĉŒƪĐėĐɆļŝɆƢķėɆƖƢëƢėśėŝƢɆŨįɆǘŝëŝĉļëŒɆƋŨƖļƢļŨŝɆǂļƢķļŝɆƢƎëĐėɆëŝĐɆŨƢķėƎɆƎėĉėļǁëĈŒėƖɆëŝĐɆëƎėɆëƖɆįŨŒŒŨǂƖț
2021
£m
2020
£m
Current 1.1 1.1
Non-current 3.0 3.8
The maturity analysis of lease receivables, including the undiscounted lease payments to be received are as follows:
Minimum lease payments due
ÕļƢķļŝɆ
1 year
£m
1-2 years
£m
2-5 years
£m
> 5 years
£m
Total
£m
2021
Lease payments receivable
1.2 1.7 0.7 1.1 4.7
Interest (0.1) (0.2) (0.1) (0.2) (0.6)
Present value of lease payments receivable 1.1 1.5 0.6 0.9 4.1
2020
Lease payments receivable 1.3 1.1 1.9 1.3 5.6
Interest (0.2) (0.1) (0.2) (0.2) (0.7)
Present value of lease payments receivable 1.1 1.0 1.7 1.1 4.9
Operating lease commitments – Group as lessor
ɆŝƪśĈėƎɆŨįɆƢķėɆƖƪĈŒėëƖėɆëİƎėėśėŝƢƖɆįŨƎɆƪŝƪƢļŒļƖėĐɆƖƋëĉėɆļŝɆƢķėɆ½bɆƖķŨƋɆėƖƢëƢėɆëƎėɆŝŨƢɆĉŒëƖƖļǘėĐɆëƖɆǘŝëŝĉėɆŒėëƖėƖɆǂļƢķļŝɆQD¡©ɆǤǩșɆ
These non-cancellable leases have remaining lease terms of between one and nine years. The future minimum rentals receivable under
these non-cancellable operating leases at 31 December are as follows:
2021
£m
2020
£m
Within one year 0.5 0.6
įƢėƎɆŨŝėɆLjėëƎɆĈƪƢɆŝŨƢɆśŨƎėɆƢķëŝɆǘǁėɆLjėëƎƖ
0.7 0.8
įƢėƎɆǘǁėɆLjėëƎƖ
0.1 0.3
1.3 1.7
ǥǦɆQŝƢėƎėƖƢɆĈėëƎļŝİɆŒŨëŝƖɆëŝĐɆĈŨƎƎŨǂļŝİƖ
2021
£m
2020
£m
Current
Euro denominated loans 7.2 2.8
USD denominated loans 8.1 5.9
Sterling denominated loans 105.8 5.4
121.1 14.1
Non-current
Euro denominated loans
945.1 1,011.0
USD denominated loans
810.7 563.6
Sterling denominated loans 405.5 511.1
2,161.3 2,085.7
As at 31 December 2021 there were £515.0m (2020: £480.0m) of committed bank facilities of which £nil (2020: £nil) were drawn down.
pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued
for the year ended 31 December 2021
Entain plc
|
Annual Report 2021
182
Financial statements
24 Provisions
Property
provisions
1
£m
Restructuring
provisions
2
£m
Litigation and
regulation
provisions
3
£m
Total
£m
At 1 January 2020 13.0 9.1 67.4 89.5
Provided 12.3 6.7 24.0 43.0
Utilised (8.9) (12.5) (40.0) (61.4)
Released (1.6) – (3.0) (4.6)
Exchange adjustment – – 2.4 2.4
At 31 December 2020 14.8 3.3 50.8 68.9
Provided 8.0 3.7 32.5 44.2
Utilised (9.4) (6.2) (34.3) (49.9)
Released (4.7) – (8.1) (12.8)
Exchange adjustment – – (3.2) (3.2)
¡ėĉŒëƖƖļǘĉëƢļŨŝ 0.4 – 2.3 2.7
At 31 December 2021 9.1 0.8 40.0 49.9
1. The Group is party to a number of leasehold property contracts. Provision has been made against the unavoidable non-rent costs on those leases where the property is now
ǁëĉëŝƢșɆƎŨǁļƖļŨŝƖɆķëǁėɆĈėėŝɆĈëƖėĐɆŨŝɆśëŝëİėśėŝƢȼƖɆĈėƖƢɆėƖƢļśëƢėɆŨįɆƢķėɆśļŝļśƪśɆįƪƢƪƎėɆĉëƖķɆǙŨǂƖɆƢŨɆƖėƢƢŒėɆƢķėɆEƎŨƪƋȼƖɆŨĈŒļİëƢļŨŝƖȚɆĉŨŝƖļĐėƎļŝİɆƢķėɆƎļƖŏƖɆëƖƖŨĉļëƢėĐɆǂļƢķɆ
each obligation, discounted at a risk-free interest rate of 1%. The periods of vacant property commitments range from 1 to 14 years (2020: 1 to 15 years). As a result of the
implementation of IFRS 16 the rental elements of certain property provisions are now included within lease liabilities.
2. Restructuring provisions relate to redundancy costs provided in association with ongoing merger and acquisition activities.
3. Litigation and regulation provisions relate to estimates for potential liabilities which may arise in the Group as a result of customer claims and past practices. Whilst the nature
of legal claims means that the timing of settlement can be uncertain, we expect all claims to be settled in the next 1 to 2 years. Whilst the provisions are based on management’s
best estimate of the likely liability for obligations that exist at the year end date, the maximum potential exposure is not expected to be materially different to the provision made.
Of the total provisions at 31 December 2021, £43.5m (2020: £49.4m) is current and £6.4m (2020: £19.5m) is non-current.
Provisions expected to be settled in greater than 1 year are discounted at the risk free rate.
ǥǨɆDļŝëŝĉļëŒɆƎļƖŏɆśëŝëİėśėŝƢɆŨĈŌėĉƢļǁėƖɆëŝĐɆƋŨŒļĉļėƖ
¶ķėɆEƎŨƪƋȼƖɆƢƎėëƖƪƎLjɆįƪŝĉƢļŨŝɆƋƎŨǁļĐėƖɆëɆĉėŝƢƎëŒļƖėĐɆƖėƎǁļĉėɆįŨƎɆƢķėɆƋƎŨǁļƖļŨŝɆŨįɆǘŝëŝĉėɆëŝĐɆƢķėɆśëŝëİėśėŝƢɆëŝĐɆĉŨŝƢƎŨŒɆŨįɆŒļƍƪļĐļƢLjȚɆ
foreign exchange rates and interest rates. The function operates as a cost centre and manages the Group’s treasury exposures to reduce
risk in accordance with policies approved by the Board.
¶ķėɆEƎŨƪƋȼƖɆƋƎļŝĉļƋëŒɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖɆĉŨśƋƎļƖėɆĈëŝŏɆŒŨëŝƖȚɆŨǁėƎĐƎëįƢƖȚɆŒŨëŝɆŝŨƢėƖȚɆĈŨŝĐƖȚɆǘŝëŝĉļëŒɆİƪëƎëŝƢėėɆĉŨŝƢƎëĉƢƖȚɆëŝĐɆĉëƖķɆ
ëŝĐɆƖķŨƎƢȯƢėƎśɆĐėƋŨƖļƢƖȚɆƢŨİėƢķėƎɆǂļƢķɆĉėƎƢëļŝɆĐėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖșɆ¶ķėɆśëļŝɆƋƪƎƋŨƖėɆŨįɆƢķėƖėɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖɆļƖɆƢŨɆ
ƎëļƖėɆǘŝëŝĉėɆįŨƎɆƢķėɆEƎŨƪƋȼƖɆŨƋėƎëƢļŨŝƖșɆ¶ķėɆEƎŨƪƋɆķëƖɆǁëƎļŨƪƖɆŨƢķėƎɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖɆƖƪĉķɆëƖɆƢƎëĐėɆƎėĉėļǁëĈŒėƖȚɆƢƎëĐėɆƋëLjëĈŒėƖɆëŝĐɆ
accruals that arise directly from its operations. Details of derivatives are set out in note 26.
QƢɆļƖȚɆëŝĐɆķëƖɆĈėėŝɆƢķƎŨƪİķŨƪƢɆƢķėɆLjėëƎɆƪŝĐėƎɆƎėǁļėǂȚɆƢķėɆEƎŨƪƋȼƖɆƋŨŒļĉLjɆƢķëƢɆŝŨɆƢƎëĐļŝİɆļŝɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖɆƖķ댌ɆĈėɆƪŝĐėƎƢëŏėŝɆŨƢķėƎɆ
than betting and gaming transactions and for the purposes of currency trading as part of the discontinued Intertrader business (note 21).
Activity of this nature is only undertaken by the customer and is not speculative activity of the Group. The Group’s exposure to ante-post
ĈėƢƢļŝİɆëŝĐɆİëśļŝİɆƢƎëŝƖëĉƢļŨŝƖɆļƖɆŝŨƢɆƖļİŝļǘĉëŝƢș
¶ķėɆśëļŝɆǘŝëŝĉļëŒɆƎļƖŏƖɆįŨƎɆƢķėɆEƎŨƪƋɆëƎėɆėLJĉķëŝİėɆƎëƢėɆƎļƖŏȚɆļŝƢėƎėƖƢɆƎëƢėɆƎļƖŏȚɆĉƎėĐļƢɆƎļƖŏɆëŝĐɆŒļƍƪļĐļƢLjɆƎļƖŏșɆ¶ķėɆŨëƎĐɆƎėǁļėǂƖɆëŝĐɆëİƎėėƖɆ
policies for managing each of these risks and they are summarised below. The Group also monitors the market price risk arising from all
ǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖș
Interest rate risk
The Group is exposed to interest rate risk on certain of its interest-bearing loans and borrowings and on cash and cash equivalents.
¶ķėɆEƎŨƪƋȼƖɆƋŨŒļĉLjɆįŨƎɆƢķėɆLjėëƎɆėŝĐėĐɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤɆǂëƖɆƢŨɆśëļŝƢëļŝɆëɆśļŝļśƪśɆŨįɆǥǣșǣɼɆȩǥǣǥǣțɆǥǣșǣɼȪɆŨįɆƢŨƢëŒɆĈŨƎƎŨǂļŝİƖɆëƢɆǘLJėĐɆ
interest rates to reduce its sensitivity to movements in variable short-term interest rates. The Group anticipates revisiting this policy upon
ƢķėɆśëƢƪƎļƢLjɆŨįɆļƢƖɆǘLJėĐɆƢėƎśɆĈŨŝĐƖɆĐƪƎļŝİɆǥǣǥǥșɆƢɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤȚɆɞǨǣǣșǣśɆȩǥǣǥǣțɆɞǨǣǣșǣśȪɆŨƎɆǥǥșǣɼɆȩǥǣǥǣțɆǥǧșǣɼȪɆŨįɆƢķėɆEƎŨƪƋȼƖɆ
ĈŨƎƎŨǂļŝİƖɆǂėƎėɆëƢɆǘLJėĐɆƎëƢėƖɆėLJĉŒƪĐļŝİɆƢķŨƖėɆƎėŒëƢļŝİɆƢŨɆŒėëƖėƖș
QŝƢėƎėƖƢɆŨŝɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖɆëƢɆǙŨëƢļŝİɆƎëƢėƖɆļƖɆƎėƋƎļĉėĐɆëƢɆļŝƢėƎǁëŒƖɆŨįɆŒėƖƖɆƢķëŝɆƖļLJɆśŨŝƢķƖșɆQŝƢėƎėƖƢɆŨŝɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖɆëƢɆǘLJėĐɆ
ƎëƢėƖɆļƖɆǘLJėĐɆƪŝƢļŒɆƢķėɆśëƢƪƎļƢLjɆŨįɆƢķėɆļŝƖƢƎƪśėŝƢș
183 Overview
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Strategic report
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Governance
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Financial statements
Entain plc
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Annual Report 2021
ǥǨɆDļŝëŝĉļëŒɆƎļƖŏɆśëŝëİėśėŝƢɆŨĈŌėĉƢļǁėƖɆëŝĐɆƋŨŒļĉļėƖɆ(continued)
The table below demonstrates the sensitivity to reasonably possible changes in interest rates on income for the year when this movement
ļƖɆëƋƋŒļėĐɆƢŨɆƢķėɆĉëƎƎLjļŝİɆǁëŒƪėɆŨįɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖț
Effect on:
ƎŨǘƢɆĈėįŨƎėɆƢëLJ
2021 2020
25 basis points increase 3.8 4.2
Foreign currency risk
Given the multi-national nature of the business, the Group is exposed to foreign exchange gains and losses on its trading activities,
ƢķėɆŝėƢɆëƖƖėƢƖɆŨįɆļƢƖɆŨǁėƎƖėëƖɆƖƪĈƖļĐļëƎļėƖɆëŝĐɆļƢƖɆŝŨŝȯEɆĐėŝŨśļŝëƢėĐɆǘŝëŝĉļŝİɆįëĉļŒļƢļėƖșɆ¶ķėɆƋƎļśëƎLjɆĉƪƎƎėŝĉļėƖɆƢķëƢɆƢķėɆEƎŨƪƋɆļƖɆ
ėLJƋŨƖėĐɆƢŨɆǙƪĉƢƪëƢļŨŝƖɆļŝɆëƎėɆƢķėɆ,ƪƎŨȚɆƪƖƢƎëŒļëŝɆ$ŨŒŒëƎɆëŝĐɆ½©Ɇ$ŨŒŒëƎșɆ
ÕķļŒƖƢɆƢķėɆEƎŨƪƋɆĐŨėƖɆŝŨƢɆëĉƢļǁėŒLjɆķėĐİėɆƢķėɆįŨƎėļİŝɆėLJƋŨƖƪƎėɆŨŝɆļƢƖɆƢƎëĐļŝİɆĉëƖķǙŨǂƖȚɆļƢɆĉŨŝƢļŝƪŨƪƖŒLjɆśŨŝļƢŨƎƖɆėLJƋŨƖƪƎėƖɆƢŨɆļŝĐļǁļĐƪëŒɆ
ĉƪƎƎėŝĉļėƖȚɆƢëŏļŝİɆƎėśėĐļëƢļŝİɆëĉƢļŨŝƖɆëƖɆŝėĉėƖƖëƎLjɆƢŨɆśëŝëİėɆëŝLjɆƖļİŝļǘĉëŝƢɆƎļƖŏƖɆëƖɆƢķėLjɆëƎļƖėșɆQŝɆƢķėɆėǁėŝƢɆƢķëƢɆƢķėɆEƎŨƪƋɆëŝƢļĉļƋëƢėƖɆ
large transactions in currencies other than GBP, then forward exchange contracts are taken out to manage the potential foreign
exchange exposure.
The Group’s exposure to the translation of net assets on foreign currency subsidiaries into its reporting currency are partially offset by the
ŨƋƋŨƖļƢėɆėLJƋŨƖƪƎėɆŨŝɆƢķėɆEƎŨƪƋƖɆǘŝëŝĉļŝİɆįëĉļŒļƢļėƖɆƋƎŨǁļĐļŝİɆëɆŝëƢƪƎëŒɆėĉŨŝŨśļĉɆķėĐİėȚɆėǁėŝɆƢķŨƪİķɆƢķėɆEƎŨƪƋɆĐŨėƖɆŝŨƢɆëƋƋŒLjɆķėĐİėɆ
ëĉĉŨƪŝƢļŝİșɆ¶ķėɆEƎŨƪƋȼƖɆƋŨŒļĉLjɆŨŝɆĈŨƎƎŨǂļŝİƖɆļƖɆĈƎŨëĐŒLjɆëŒļİŝėĐɆƢŨɆƢķėɆƪŝĐėƎŒLjļŝİɆĉëƖķǙŨǂƖɆŨįɆƢķėɆĈƪƖļŝėƖƖșɆ
¶ķėɆEƎŨƪƋɆķëƖɆǘŝëŝĉļŝİɆįëĉļŒļƢļėƖɆļŝɆEȚɆ,ƪƎŨɆëŝĐɆ½©Ɇ$ŨŒŒëƎƖșɆƖɆƢķėɆEƎŨƪƋȼƖɆŨǁėƎƖėëƖɆƖƪĈƖļĐļëƎļėƖɆŒëƎİėŒLjɆƎėƋŨƎƢɆļŝɆ,ƪƎŨƖȚɆƢķėɆEƎŨƪƋɆķëƖɆ
ƢëŏėŝɆŨƪƢɆëɆƖǂëƋɆĉŨŝƢƎëĉƢɆƢŨɆķėĐİėɆƢķėɆ½©ɆĐŨŒŒëƎɆĐėĈƢɆļŝƢŨɆ,ƪƎŨƖɆļŝɆŨƎĐėƎɆƢŨɆëŒļİŝɆƢķėɆįŨƎėļİŝɆĉƪƎƎėŝĉLjɆėLJƋŨƖƪƎėɆŨŝɆƢķėɆEƎŨƪƋȼƖɆǘŝëŝĉļŝİɆ
facilities with that on the net assets of its subsidiaries.
ɆǨɼɆǂėëŏėŝļŝİɆļŝɆƢķėɆ,ƪƎŨɆǂŨƪŒĐɆƎėĐƪĉėɆEƎŨƪƋɆŨƋėƎëƢļŝİɆƋƎŨǘƢɆĈLjɆɞǥǬșǨśɆȩǥǣǥǣțɆɞǥǥșǣśȪɆëŝĐɆŝėƢɆëƖƖėƢƖɆĈLjɆɞǦșǤśɆȩǥǣǥǣțɆɞǪșǩśȪɆǂķėŝɆ
applied to the results of year in question.
ɆǨɼɆǂėëŏėŝļŝİɆļŝɆƢķėɆƪƖƢƎëŒļëŝɆ$ŨŒŒëƎɆǂŨƪŒĐɆƎėĐƪĉėɆEƎŨƪƋɆŨƋėƎëƢļŝİɆƋƎŨǘƢɆĈLjɆɞǨșǩśɆȩǥǣǥǣțɆɞǦșǬśȪɆëŝĐɆŝėƢɆëƖƖėƢƖɆĈLjɆɞǥǪșǬśɆ
(2020: £22.7m) when applied to the results of year in question.
Credit risk
¶ķėɆEƎŨƪƋɆļƖɆŝŨƢɆƖƪĈŌėĉƢɆƢŨɆƖļİŝļǘĉëŝƢɆĉŨŝĉėŝƢƎëƢļŨŝɆŨįɆĉƎėĐļƢɆƎļƖŏȚɆǂļƢķɆėLJƋŨƖƪƎėɆƖƋƎėëĐɆëĉƎŨƖƖɆëɆŒëƎİėɆŝƪśĈėƎɆŨįɆĉŨƪŝƢėƎƋëƎƢļėƖɆ
and customers.
Receivable balances are monitored on an ongoing basis. Any changes to credit terms are assessed and authorised by senior
management on an individual basis.
ÕļƢķɆƎėƖƋėĉƢɆƢŨɆĉƎėĐļƢɆƎļƖŏɆëƎļƖļŝİɆįƎŨśɆƢķėɆŨƢķėƎɆǘŝëŝĉļëŒɆëƖƖėƢƖɆŨįɆƢķėɆEƎŨƪƋȚɆǂķļĉķɆĉŨśƋƎļƖėɆĉëƖķɆëŝĐɆĉëƖķɆėƍƪļǁëŒėŝƢƖɆƢķėɆEƎŨƪƋȼƖɆ
exposure to credit risk arises from default of the counterparty, with a maximum exposure equal to the carrying amount of these
ļŝƖƢƎƪśėŝƢƖșɆƎėĐļƢɆƎļƖŏɆļŝɆƎėƖƋėĉƢɆŨįɆĉëƖķɆëŝĐɆĉëƖķɆėƍƪļǁëŒėŝƢƖɆļƖɆśëŝëİėĐɆĈLjɆƎėƖƢƎļĉƢļŝİɆƢķŨƖėɆƢƎëŝƖëĉƢļŨŝƖɆƢŨɆĈëŝŏƖɆƢķëƢɆķëǁėɆëɆĐėǘŝėĐɆ
minimum credit rating and by setting an exposure ceiling per bank.
Liquidity risk
¶ķėɆEƎŨƪƋȼƖɆŨĈŌėĉƢļǁėɆļƖɆƢŨɆśëļŝƢëļŝɆëɆĈëŒëŝĉėɆĈėƢǂėėŝɆĉŨŝƢļŝƪļƢLjɆŨįɆįƪŝĐļŝİɆëŝĐɆǙėLJļĈļŒļƢLjɆƢķƎŨƪİķɆƢķėɆƪƖėɆŨįɆĈŨƎƎŨǂļŝİƖɆǂļƢķɆëɆƎëŝİėɆŨįɆ
śëƢƪƎļƢļėƖșɆ¶ķėɆEƎŨƪƋȼƖɆƋŨŒļĉLjɆŨŝɆŒļƍƪļĐļƢLjɆļƖɆƢŨɆėŝƖƪƎėɆƢķëƢɆƢķėƎėɆëƎėɆƖƪįǘĉļėŝƢɆśėĐļƪśȯƢėƎśɆëŝĐɆŒŨŝİȯƢėƎśɆĉŨśśļƢƢėĐɆĈŨƎƎŨǂļŝİɆįëĉļŒļƢļėƖɆ
to meet the medium-term funding requirements. At 31 December 2021, there were undrawn committed borrowing facilities of £515.0m
(2020: £480.0m). Total committed facilities had an average maturity of 3.2 years (2020: 3.0 years).
¶ķėɆƢŨƢëŒɆİƎŨƖƖɆĉŨŝƢƎëĉƢƪëŒɆƪŝĐļƖĉŨƪŝƢėĐɆĉëƖķɆǙŨǂƖɆŨįɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖȚɆļŝĉŒƪĐļŝİɆļŝƢėƎėƖƢɆƋëLjśėŝƢƖȚɆį댌ɆĐƪėɆëƖɆįŨŒŒŨǂƖșɆëƖķɆǙŨǂƖɆļŝɆ
ƎėƖƋėĉƢɆŨįɆǘŝëŝĉļëŒɆİƪëƎëŝƢėėɆĉŨŝƢƎëĉƢƖɆƎėǙėĉƢɆƢķėɆƋƎŨĈëĈļŒļƢLjɆǂėļİķƢėĐɆĉëƖķɆǙŨǂƖș
2021
On demand
ŨƎɆǂļƢķļŝɆ
1 year
£m
1-2 years
£m
2-5 years
£m
> 5 years
£m
Total
£m
Interest bearing loans and borrowings 199.5 1,471.9 73.9 794.1 2,539.4
{ƢķėƎɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖ 37.9 0.4 90.6 1.4 130.3
Trade and other payables 487.7 – – – 487.7
Lease liabilities 87.8 59.7 115.9 67.1 330.5
Total 812.9 1,532.0 280.4 862.6 3,487.9
pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued
for the year ended 31 December 2021
Entain plc
|
Annual Report 2021
184
Financial statements
ǥǨɆDļŝëŝĉļëŒɆƎļƖŏɆśëŝëİėśėŝƢɆŨĈŌėĉƢļǁėƖɆëŝĐɆƋŨŒļĉļėƖɆ(continued)
2020
On demand
or within
1 year
£m
1-2 years
£m
2-5 years
£m
> 5 years
£m
Total
£m
Interest bearing loans and borrowings 74.6 643.4 1,575.0 – 2,293.0
{ƢķėƎɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖ 13.7 177.4 0.6 1.0 192.7
Trade and other payables 457.7–––457.7
Lease liabilities 99.5 79.6 124.6 81.2 384.9
Total 645.5 900.4 1,700.2 82.2 3,328.3
$ėƢëļŒƖɆŨįɆĐļƖĉŨƪŝƢėĐɆĉŨŝƢƎëĉƢƪëŒɆĉëƖķɆǙŨǂƖɆŨįɆŒėëƖļŝİɆŒļëĈļŒļƢļėƖɆëƎėɆƖėƢɆŨƪƢɆļŝɆŝŨƢėɆǥǥș
Capital risk management
The primary objective of the Group’s capital management is to ensure that it maintains a credit quality that enables the Group to raise
funds at an economic interest rate and to maintain healthy capital ratios in order to support its business and maximise shareholder value.
The Group manages its capital structure and makes adjustments to it in light of changes in economic conditions. To maintain or adjust the
capital structure, the Group may adjust the dividend payment to shareholders, adjust borrowings, return capital to shareholders or issue
new shares.
The Group monitors capital using a net debt to EBITDA ratio (before separately disclosed items). The ratio at 31 December 2021 was 2.4
times (2020: 2.1 times). See note 27 for further details.
The Group’s funding policy is to raise funds centrally to meet the Group’s anticipated requirements. These are planned so as to mature at
ĐļįįėƎėŝƢɆƖƢëİėƖɆļŝɆŨƎĐėƎɆƢŨɆƎėĐƪĉėɆƎėǘŝëŝĉļŝİɆƎļƖŏșɆ¶ķėɆŨëƎĐɆƎėǁļėǂƖɆƢķėɆEƎŨƪƋȼƖɆĉëƋļƢëŒɆƖƢƎƪĉƢƪƎėɆëŝĐɆŒļƍƪļĐļƢLjɆƋėƎļŨĐļĉ댌Ljș
ǥǩɆDļŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖɆëŝĐɆįëļƎɆǁëŒƪėɆĐļƖĉŒŨƖƪƎėƖ
¶ķėɆƢëĈŒėɆĈėŒŨǂɆëŝëŒLjƖėƖɆƢķėɆEƎŨƪƋȼƖɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖɆļŝƢŨɆƢķėļƎɆƎėŒėǁëŝƢɆĉëƢėİŨƎļėƖț
31 December 2021
Amortised
cost
£m
ƖƖėƢƖȦɆ
(liabilities)
ëƢɆįëļƎɆǁëŒƪėɆ
ƢķƎŨƪİķɆ
ƋƎŨǘƢɆëŝĐɆŒŨƖƖ
£m
Assets at
įëļƎɆǁëŒƪėɆ
ƢķƎŨƪİķɆŨƢķėƎɆ
ĉŨśƋƎėķėŝƖļǁėɆ
income
£m
Total
£m
Assets
Non-current:
Other investments 2.0 3.3 8.9 14.2
{ƢķėƎɆǘŝëŝĉļëŒɆëƖƖėƢƖ 0.3 – – 0.3
Current:
Trade and other receivables 484.1 – – 484.1
$ėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖ – 57.4 – 57.4
Cash and short-term investments (including customer funds) 487.1 – – 487.1
Total 973.5 60.7 8.9 1,043.1
Liabilities
Current:
Customer balances
(205.9) – – (205.9)
Interest bearing loans and borrowings (121.1) – – (121.1)
Trade and other payables (487.7) – – (487.7)
{ƢķėƎɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖ
1
– (36.1) – (36.1)
Lease liabilities (note 22) (78.2) – – (78.2)
Non-current:
Interest bearing loans and borrowings (2,161.3) – – (2,161.3)
{ƢķėƎɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖ
1
(2.6) (50.0) – (52.6)
Lease liabilities (note 22) (215.5) – – (215.5)
Total (3,272.3) (86.1) – (3,358.4)
pėƢɆǘŝëŝĉļëŒɆȩŒļëĈļŒļƢļėƖȪȦëƖƖėƢƖ (2,298.8) (25.4) 8.9 (2,315.3)
185
Overview
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Strategic report
|
Governance
|
Financial statements
Entain plc
|
Annual Report 2021
ǥǩɆDļŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖɆëŝĐɆįëļƎɆǁëŒƪėɆĐļƖĉŒŨƖƪƎėƖɆ(continued)
31 December 2020
Amortised
cost
£m
Assets/
(liabilities)
at fair value
through
ƋƎŨǘƢɆëŝĐɆŒŨƖƖ
£m
Assets at
fair value
through other
comprehensive
income
£m
Total
£m
Assets
Non-current:
Other investments 2.1 2.9 5.1 10.1
{ƢķėƎɆǘŝëŝĉļëŒɆëƖƖėƢƖ 4.4 – – 4.4
Current:
Trade and other receivables 268.2 – – 268.2
Cash and short-term investments (including customer funds) 706.7 – – 706.7
Total 981.4 2.9 5.1 989.4
Liabilities
Current:
Customer balances (241.1) – – (241.1)
Interest bearing loans and borrowings (14.1) – – (14.1)
Trade and other payables (457.7) – – (457.7)
$ėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖ – (26.1) (26.1)
{ƢķėƎɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖ
1
– (147.5) – (147.5)
Lease liabilities (note 22) (89.8) – – (89.8)
Non-current:
Interest bearing loans and borrowings (2,085.7) – – (2,085.7)
{ƢķėƎɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖ (2.2) (7.1) – (9.3)
Lease liabilities (note 22) (248.2) – – (248.2)
Total (3,138.8) (180.7) – (3,319.5)
pėƢɆǘŝëŝĉļëŒɆȩŒļëĈļŒļƢļėƖȪȦëƖƖėƢƖ (2,157.4) (177.8) 5.1 (2,330.1)
ǤșɆ {ƢķėƎɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖɆļŝĉŒƪĐėɆɞǪǣșǫśɆĐėįėƎƎėĐɆëŝĐɆĉŨŝƢļŝİėŝƢɆĉŨŝƖļĐėƎëƢļŨŝɆȩǥǣǥǣțɆɞǤǧǥșǤśȪȚɆɞǥșǩśɆŨįɆǘŝëŝĉļëŒɆİƪëƎëŝƢėėƖɆȩǥǣǥǣțɆɞǥșǥśȪɆëŝĐɆɞǤǨșǦśɆŨįɆëŝƢėȯƋŨƖƢɆŒļëĈļŒļƢļėƖɆ
(2020: £12.5m).
Fair value hierarchy
QD¡©ɆǤǦɆƎėƍƪļƎėƖɆǘŝëŝĉļëŒɆëƖƖėƢƖɆëŝĐɆŒļëĈļŒļƢļėƖɆƎėĉŨƎĐėĐɆëƢɆįëļƎɆǁëŒƪėɆƢŨɆĈėɆĉëƢėİŨƎļƖėĐɆļŝɆƢķƎėėɆŒėǁėŒƖɆëĉĉŨƎĐļŝİɆƢŨɆƢķėɆļŝƋƪƢƖɆƪƖėĐɆļŝɆƢķėɆ
calculation of their fair value:
– Level 1 – uses quoted prices as the input to fair value calculations
– Level 2 – uses inputs other than quoted prices, that are observable either directly or indirectly
– Level 3 – uses inputs that are not observable
¶ķėɆįŨŒŒŨǂļŝİɆƢëĈŒėƖɆļŒŒƪƖƢƎëƢėɆƢķėɆEƎŨƪƋȼƖɆǘŝëŝĉļëŒɆëƖƖėƢƖɆëŝĐɆŒļëĈļŒļƢļėƖɆśėëƖƪƎėĐɆëƢɆįëļƎɆǁëŒƪėɆëįƢėƎɆļŝļƢļëŒɆƎėĉŨİŝļƢļŨŝɆëƢɆǦǤɆ$ėĉėśĈėƎɆ
2021 and 31 December 2020:
2021
Level 1
£m
Level 2
£m
Level 3
£m
Total
£m
ƖƖėƢƖɆśėëƖƪƎėĐɆëƢɆįëļƎɆǁëŒƪė
$ėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖ – 57.4 – 57.4
Other investments – 2.2 10.0 12.2
– 59.6 10.0 69.6
dļëĈļŒļƢļėƖɆśėëƖƪƎėĐɆëƢɆįëļƎɆǁëŒƪėɆ
{ƢķėƎɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖɆ – – (86.1) (86.1)
pėƢɆëƖƖėƢƖȦȩŒļëĈļŒļƢļėƖȪɆśėëƖƪƎėĐɆëƢɆįëļƎɆǁëŒƪė – 59.6 (76.1) (16.5)
pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued
for the year ended 31 December 2021
Entain plc
|
Annual Report 2021
186
Financial statements
ǥǩɆDļŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖɆëŝĐɆįëļƎɆǁëŒƪėɆĐļƖĉŒŨƖƪƎėƖɆ(continued)
2020
Level 1
£m
Level 2
£m
Level 3
£m
Total
£m
Assets measured at fair value
Other investments – 2.9 5.1 8.0
Liabilities measured at fair value
$ėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖ – (26.1) – (26.1)
{ƢķėƎɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖɆ – – (154.6) (154.6)
Net liabilities measured at fair value – (23.2) (149.5) (172.7)
There have been no transfers of assets or liabilities recorded at fair value between the levels of the fair value hierarchy.
QŝĉŒƪĐėĐɆǂļƢķļŝɆŨƢķėƎɆǘŝëŝĉļëŒɆëƖƖėƢƖɆëŝĐɆĐėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖɆśėëƖƪƎėĐɆëƢɆįëļƎɆǁëŒƪėɆëƎėȜɆƢķėɆEƎŨƪƋɂƖɆĉƪƎƎėŝĉLjɆƖǂëƋƖɆķėŒĐɆ
against debt instruments as an asset of £57.4m (2020: liability of £26.1m), investments in Hui 10 and R&S Technology, designated as
fair value through other comprehensive income, of £5.1m (2020: £5.1m) and £3.8m (2020: £nil) respectively, an investment in Scout
Gaming of £1.1m (2020: £nil) and a convertible equity instrument with Visa Inc. for £2.2m (2020: £2.9m), both designated as fair value
ƢķƎŨƪİķɆƋƎŨǘƢɆëŝĐɆŒŨƖƖșɆ¶ķėɆįëļƎɆǁëŒƪėɆŨįɆƢķėɆļŝǁėƖƢśėŝƢƖɆëƢɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤɆëŝĐɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǣɆëƎėɆŝŨƢɆśëƢėƎļ댌LjɆĐļįįėƎėŝƢɆƢŨɆƢķėļƎɆ
original cost.
Contingent consideration
Contingent consideration arises through business combinations, the fair value for which is reassessed at each reporting date using
ƪƋĐëƢėĐɆļŝƋƪƢƖɆëŝĐɆëƖƖƪśƋƢļŨŝƖɆĈëƖėĐɆŨŝɆƢķėɆŒëƢėƖƢɆǘŝëŝĉļëŒɆįŨƎėĉëƖƢƖɆŨįɆėëĉķɆƎėƖƋėĉƢļǁėɆĈƪƖļŝėƖƖșɆƖɆëƢɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤɆĉŨŝƢļŝİėŝƢɆ
ĉŨŝƖļĐėƎëƢļŨŝɆļŝĉŒƪĐėĐɆǂļƢķļŝɆŨƢķėƎɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖɆǂëƖɆɞǪǣșǫśɆȩǥǣǥǣțɆɞǤǧǥșǤśȪɆëƎļƖļŝİɆįƎŨśɆƢķėɆķļƖƢŨƎļĉëŒɆƢƎëŝƖëĉƢļŨŝƖɆļŝǁŨŒǁļŝİɆƢķėɆ
Group’s operations in Africa, earn-out arrangements in Portugal and Australia (Neds) and amounts payable to Dusk Till Dawn in respect
of PartyPoker (2020: Dusk Till Dawn, Neds and Crystalbet). The valuation of the contingent consideration in relation to the Group’s
įƎļĉëŝɆĈƪƖļŝėƖƖɆļƖɆƖƪĈŌėĉƢɆƢŨɆėƖƢļśëƢļŨŝɆƪŝĉėƎƢëļŝƢLjɆëƖɆƢķėɆëśŨƪŝƢɆƋëLjëĈŒėɆļƖɆĈëƖėĐɆŨŝɆįƪƢƪƎėɆƋƎŨǘƢëĈļŒļƢLjșɆÕķļŒƖƢɆƢķėɆëśŨƪŝƢɆƎėĉŨƎĐėĐɆ
of £50m represents management’s best estimate of the likely payment based on internal forecasts, the maximum amount payable is
capped at $309.9m. The valuation of the remaining contingent consideration is based largely on historical trading performance and
therefore involves limited estimation uncertainty.
Ante-post
Ante-post liabilities are valued using methods and inputs that are not based upon observable market data. The principal assumptions
relate to anticipated gross win margins on unsettled bets. There are no reasonably probable changes to assumptions or inputs that would
ŒėëĐɆƢŨɆśëƢėƎļëŒɆĉķëŝİėƖɆļŝɆƢķėɆįëļƎɆǁëŒƪėɆĐėƢėƎśļŝėĐȚɆëŒƢķŨƪİķɆƢķėɆǘŝëŒɆǁëŒƪėɆǂļŒŒɆĈėɆĐėƢėƎśļŝėĐɆĈLjɆįƪƢƪƎėɆƖƋŨƎƢļŝİɆƎėƖƪŒƢƖșɆ
27 Net debt
The components of the Group’s net debt are as follows:
2021
£m
2020
£m
Current assets
Cash and short-term deposits 487.1 749.8
Current liabilities
Interest bearing loans and borrowings
(121.1) (14.1)
Non-current liabilities
Interest bearing loans and borrowings
(2,161.3) (2,085.7)
Accounting net debt
(1,795.3) (1,350.0)
Cash held on behalf of customers (205.9) (396.1)
DëļƎɆǁëŒƪėɆƖǂëƋƖɆķėŒĐɆëİëļŝƖƢɆĐėĈƢɆļŝƖƢƎƪśėŝƢƖɆȩĐėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆëƖƖėƢƖȪ
57.4 (26.1)
Deposits/ short-term investments 20.3 171.2
Balances held with payment service providers
130.8 172.4
ĐŌƪƖƢėĐɆŝėƢɆĐėĈƢ
(1,792.7) (1,428.6)
Lease liabilities
(293.7) (338.0)
Net debt including lease liabilities (2,086.4) (1,766.6)
Cash held on behalf of customers represents the outstanding balance due to customers in respect of their online gaming wallets.
QŝĉŒƪĐėĐɆǂļƢķļŝɆƢķļƖɆĈëŒëŝĉėɆļƖɆɞŝļŒɆȩǥǣǥǣțɆɞǤǨǨșǣśȪɆĉŒëƖƖļǘėĐɆëƖɆķėŒĐɆįŨƎɆƖëŒėșɆQŝĉŒƪĐėĐɆǂļƢķļŝɆĐėƋŨƖļƢƖɆļƖɆɞŝļŒɆȩǥǣǥǣțɆɞǤǧǬșǨśȪɆĉŒëƖƖļǘėĐɆ
as held for sale.
187
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Governance
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Financial statements
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Annual Report 2021
ǥǫɆ©ķëƎėɆĉëƋļƢëŒ
pƪśĈėƎɆŨįɆ
€0.01
ordinary
ƖķëƎėƖ
Total
€m
Total
£m
Authorised:
At 31 December 2020 and 31 December 2021
773,000,000 7.7 6.4
Issued and fully paid:
At 1 January 2020 582,331,946 5.9 4.8
Exercise of share options 2,745,701 – –
At 31 December 2020 585,077,647 5.9 4.8
Exercise of share options
1,472,572 – –
At 31 December 2021 586,550,219 5.9 4.8
The Company’s share capital consists entirely of ordinary shares, accordingly all shares rank pari passu in all respects.
See note 31 for further information on terms and amounts of shares reserved for issue under options.
ǥǬɆpŨƢėƖɆƢŨɆƢķėɆƖƢëƢėśėŝƢɆŨįɆĉëƖķɆǙŨǂƖ
ǥǬșǤɆ¡ėĉŨŝĉļŒļëƢļŨŝɆŨįɆƋƎŨǘƢȦȩŒŨƖƖȪɆƢŨɆŝėƢɆĉëƖķɆļŝǙŨǂɆįƎŨśɆŨƋėƎëƢļŝİɆëĉƢļǁļƢļėƖț
2021
£m
2020
£m
ƎŨǘƢɆĈėįŨƎėɆƢëLJɆįƎŨśɆĉŨŝƢļŝƪļŝİɆŨƋėƎëƢļŨŝƖ 393.2 174.7
pėƢɆǘŝëŝĉėɆȩļŝĉŨśėȪȦėLJƋėŝƖė (37.4) 184.2
ƎŨǘƢɆĈėįŨƎėɆƢëLJɆëŝĐɆŝėƢɆǘŝëŝĉėɆėLJƋėŝƖėɆįƎŨśɆĉŨŝƢļŝƪļŝİɆŨƋėƎëƢļŨŝƖ
355.8 358.9
dŨƖƖɆĈėįŨƎėɆƢëLJɆëŝĐɆŝėƢɆǘŝëŝĉėɆėLJƋėŝƖėɆįƎŨśɆĐļƖĉŨŝƢļŝƪėĐɆŨƋėƎëƢļŨŝƖ
(14.9) (35.7)
ƎŨǘƢɆĈėįŨƎėɆƢëLJɆëŝĐɆŝėƢɆǘŝëŝĉėɆėLJƋėŝƖėɆļŝĉŒƪĐļŝİɆĐļƖĉŨŝƢļŝƪėĐɆŨƋėƎëƢļŨŝƖ 340.9 323.2
Adjustments for:
Impairment 3.3 34.3
dŨƖƖȦȩƋƎŨǘƢȪɆŨŝɆĐļƖƋŨƖëŒ 7.3 (6.9)
Depreciation of property, plant and equipment 120.0 127.5
Amortisation of intangible assets 247.3 421.8
Share based payments charge 12.3 14.8
QŝĉƎėëƖėɆļŝɆŨƢķėƎɆǘŝëŝĉļëŒɆëƖƖėƢƖ – (2.3)
Increase in trade and other receivables
(73.7) (161.2)
QŝĉƎėëƖėɆļŝɆŨƢķėƎɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖ 3.5 25.2
Increase in trade and other payables 1.9 33.4
Decrease in provisions (18.5) (22.7)
Share of results from joint venture and associate 162.5 60.2
Other non-cash items (3.0) 17.5
Cash generated by operations
803.8 864.8
ǥǬșǥɆëƖķɆǙŨǂƖɆëƎļƖļŝİɆįƎŨśɆĐļƖĉŨŝƢļŝƪėĐɆŨƋėƎëƢļŨŝƖț
2021
£m
2020
£m
Cash (used in)/generated from operating activities (5.3) 20.8
Cash (used in)/ generated by investing activitiesȂ
(27.5) 0.1
ëƖķɆİėŝėƎëƢėĐɆįƎŨśɆǘŝëŝĉļŝİɆëĉƢļǁļƢļėƖ – –
pėƢɆĉëƖķɆȩŨƪƢǙŨǂȪȦļŝǙŨǂɆëƎļƖļŝİɆįƎŨśɆĐļƖĉŨŝƢļŝƪėĐɆŨƋėƎëƢļŨŝƖ
(32.8) 20.9
1. Included within cash used in investment activities is £23.3m of cash disposed with business.
pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued
for the year ended 31 December 2021
Entain plc
|
Annual Report 2021
188
Financial statements
ǥǬɆpŨƢėƖɆƢŨɆƢķėɆƖƢëƢėśėŝƢɆŨįɆĉëƖķɆǙŨǂƖɆ(continued)
ǥǬșǦɆ¡ėĉŨŝĉļŒļëƢļŨŝɆŨįɆśŨǁėśėŝƢƖɆŨįɆŒļëĈļŒļƢļėƖɆƢŨɆĉëƖķɆǙŨǂƖɆëƎļƖļŝİɆįƎŨśɆǘŝëŝĉļŝİɆëĉƢļǁļƢļėƖț
2021
£m
2020
£m
{ƢķėƎɆ
loans and
ĈŨƎƎŨǂļŝİƖ
Lease
liabilities Total
Other
loans and
borrowings
Lease
liabilities Total
Balance at 1 January 2,099.8 338.0 2,437.8 2,116.0 363.5 2,479.5
ķëŝİėƖɆįƎŨśɆǘŝëŝĉļŝİɆĉëƖķǙŨǂƖ
Proceeds from borrowings, net of issue costs
797.2 – 797.2 –––
Repayment of borrowings
(566.1) – (566.1) (43.5) – (43.5)
Repayment of lease liabilities
1
– (88.1) (88.1) – (86.2) (86.2)
¶ŨƢëŒɆĉķëŝİėƖɆįƎŨśɆǘŝëŝĉļŝİɆĉëƖķǙŨǂƖɆ
231.1 (88.1) 143.0 (43.5) (86.2) (129.7)
{ƢķėƎɆĉķëŝİėƖ
Interest expense 63.3 14.0 77.3 64.2 16.7 80.9
Interest paid
2
(61.4) (14.0) (75.4) (81.1) (16.7) (97.8)
New lease liabilities – 52.0 52.0 – 70.9 70.9
Finance fees
5.8 – 5.8 1.3 – 1.3
Remeasurement adjustments
– (5.5) (5.5) – (13.4) (13.4)
¶ŨƢëŒɆŨƢķėƎɆĉķëŝİėƖ
7.7 46.5 54.2 (15.6) 57.5 41.9
Arising through business combinations – 0.9 0.9 –––
The effect of changes in foreign exchange
(56.2) (3.6) (59.8) 42.9 3.2 46.1
Balance at 31 December 2,282.4 293.7 2,576.1 2,099.8 338.0 2,437.8
ǤșɆ QŝɆëĐĐļƢļŨŝɆƢŨɆƢķėɆëĈŨǁėȚɆƢķėɆEƎŨƪƋɆƎėĉėļǁėĐɆɞǣșǥśɆȩǥǣǥǣțɆɞǣșǦśȪɆļŝɆƎėƖƋėĉƢɆŨįɆŒėëƖėɆƎėĉėļǁëĈŒėƖɆƎėƖƪŒƢļŝİɆļŝɆëɆŝėƢɆƎėƋëLjśėŝƢɆŨįɆǘŝëŝĉėɆŒėëƖėƖɆŨįɆɞǫǪșǬśɆȩǥǣǥǣțɆɞǫǨșǬśȪș
ǥșɆ QŝɆëĐĐļƢļŨŝɆƢŨɆƢķėɆëĈŨǁėȚɆƢķėɆEƎŨƪƋɆƎėĉėļǁėĐɆɞǥșǤśɆȩǥǣǥǣțɆɞǥșǦśȪɆŨįɆļŝƢėƎėƖƢɆļŝĉŨśėɆƎėƖƪŒƢļŝİɆļŝɆëɆŝėƢɆǘŝëŝĉėɆėLJƋėŝƖėɆƋëļĐɆŨįɆɞǪǦșǦśɆȩǥǣǥǣțɆɞǬǨșǦśȪș
Non cash movements include amounts acquired as a result of business combinations and the amortisation of issue costs incurred in
respect of debt instruments.
ǦǣɆ¡ėƢļƎėśėŝƢɆĈėŝėǘƢɆƖĉķėśėƖɆ
$ėǘŝėĐɆĉŨŝƢƎļĈƪƢļŨŝɆƖĉķėśėƖ
During the year the Group charged contributions of £16.0m (2020: £13.4m) to the consolidated income statement in relation to the
ĐėǘŝėĐɆĉŨŝƢƎļĈƪƢļŨŝɆƋėŝƖļŨŝɆƖĉķėśėƖș
$ėǘŝėĐɆĈėŝėǘƢɆƋŒëŝƖ
Judgement is applied, based on legal, actuarial, and accounting guidance in IFRIC 14, regarding the amounts of net pension asset that is
recognised in the consolidated balance sheet.
¶ķėɆEƎŨƪƋɆķëƖɆƢǂŨɆĐėǘŝėĐɆĈėŝėǘƢɆƋŒëŝƖȚɆƢķėɆdëĐĈƎŨŏėƖɆėŝƖļŨŝɆŒëŝȚɆǂķļĉķɆļƖɆŝŨǂɆļŝɆëɆĈƪLjȯŨƪƢɆƋŨƖļƢļŨŝȚɆëŝĐɆƢķėɆEëŒëɆŨƎëŒɆėŝƖļŨŝɆ
ŒëŝɆǂķļĉķɆļƖɆëɆǘŝëŒɆƖëŒëƎLjɆƋėŝƖļŨŝɆƋŒëŝɆįŨƎɆ½bɆėśƋŒŨLjėėƖɆëŝĐɆĉŒŨƖėĐɆƢŨɆŝėǂɆėśƋŒŨLjėėƖɆëŝĐɆįƪƢƪƎėɆëĉĉƎƪëŒș
At retirement each member’s pension is related to their “career average earning” for the Gala Coral Pension Plan. The weighted average
ĐƪƎëƢļŨŝɆŨįɆƢķėɆėLJƋėĉƢėĐɆĈėŝėǘƢɆƋëLjśėŝƢƖɆįƎŨśɆƢķėɆŒëŝɆļƖɆëƎŨƪŝĐɆǤǫɆLjėëƎƖɆȩǥǣǥǣțɆǤǬɆLjėëƎƖȪɆįŨƎɆƢķėɆEëŒëɆŨƎëŒɆėŝƖļŨŝɆŒëŝș
The Plans’ assets are held separately from those of the Group. The Plans are approved by HMRC for tax purposes, and are managed by
independent Trustees. The Plans are subject to UK regulations, which require the Group and Trustees to agree a funding strategy and
contribution schedule at least every three years. Under the current contribution schedule in place, the Group does not pay contributions to
Gala Coral Pension Plan but are paying the administrative costs. As the Ladbrokes Pension Plan is in a buy-out position the Group has no
future funding obligations or ongoing administrative costs.
There is a risk to the Group that adverse circumstances, such as a disconnect between changes in asset investment values and required
įƪŝĐļŝİɆŨĈŒļİëƢļŨŝƖȚɆĉŨƪŒĐɆŒėëĐɆƢŨɆëɆƎėƍƪļƎėśėŝƢɆįŨƎɆƢķėɆEƎŨƪƋɆƢŨɆśëŏėɆëĐĐļƢļŨŝëŒɆĉŨŝƢƎļĈƪƢļŨŝƖɆƢŨɆįƪŝĐɆëŝLjɆĐėǘĉļƢɆƢķëƢɆëƎļƖėƖșɆƖɆëƢɆƢķėɆ
ĐëƢėɆŨįɆƖļİŝļŝİɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆŝŨɆƖƪĉķɆėǁėŝƢɆķëƖɆëƎļƖėŝș
The results of the latest formal actuarial valuation 30 June 2019 for the Gala Coral Pension Plan was updated to 31 December 2021 by
ëŝɆļŝĐėƋėŝĐėŝƢɆƍƪëŒļǘėĐɆëĉƢƪëƎLjɆļŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆQ©ɆǤǬɆȩ¡ėǁļƖėĐȪɆ,śƋŒŨLjėėɆėŝėǘƢƖșɆ¶ķėɆǁëŒƪėɆŨįɆƢķėɆĐėǘŝėĐɆĈėŝėǘƢɆŨĈŒļİëƢļŨŝɆëŝĐɆ
current service cost have been measured using the projected unit credit method, as required by IAS 19 (Revised). Actuarial gains and
losses are recognised immediately through other comprehensive income.
$ƪƎļŝİɆƢķėɆLjėëƎȚɆƢķėɆEƎŨƪƋɆǘŝëŒļƖėĐɆƢķėɆĈƪLjȯŨƪƢɆŨįɆƢķėɆdëĐĈƎŨŏėƖɆƋėŝƖļŨŝɆƖĉķėśėɆǂļƢķɆƢķėɆëƖƖėƢƖɆëŝĐɆŒļëĈļŒļƢļėƖɆŨįɆƢķėɆƖĉķėśėɆƋëƖƖėĐɆƢŨɆ
a third party. As the Group has extinguished its obligations to the IAS 19 liabilities, only the residual assets remaining in the scheme are
now recorded.
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ǦǣɆ¡ėƢļƎėśėŝƢɆĈėŝėǘƢɆƖĉķėśėƖɆ(continued)
The amounts recognised in the balance sheet are as follows:
2021
(Coral)
£m
2021
(Ladbrokes)
£m
2021
Total
£m
2020
(Coral)
£m
2020
(Ladbrokes)
£m
2020
Total
£m
Present value of funded obligations (430.5) – (430.5) (450.1) (385.1) (835.2)
Fair value of plan assets 518.6 7.0 525.6 506.9 392.5 899.4
Net asset
88.1 7.0 95.1 56.8 7.4 64.2
Disclosed in the balance sheet as: Retirement
ĈėŝėǘƢɆëƖƖėƢ
88.1 7.0 95.1 56.8 7.4 64.2
The Group has considered the appropriate accounting treatment in respect of the pension plan surplus, considering the current agreement
with the Trustees, and concluded the recognition of the surplus is appropriate. Whilst the trustees have discretionary rights over the use
of any surplus, the nature of the obligations in the plans that any surplus that exists once all liabilities have been settled are expected to
ĈėɆįŨƎɆƢķėɆĈėŝėǘƢɆŨįɆƢķėɆEƎŨƪƋș
The amounts recognised in the income statement are as follows:
2021
(Coral)
£m
2021
(Ladbrokes)
£m
2021
Total
£m
2020
(Coral)
£m
2020
(Ladbrokes)
£m
2020
Total
£m
Analysis of amounts charged to the Income Statement
Separately disclosed items
– 0.5 0.5 – 2.4 2.4
Other administrative expenses
0.6 – 0.6 (0.1) 1.2 1.1
Net interest on net asset (0.7) (0.1) (0.8) (1.2) (0.1) (1.3)
Total charge/(credit) recognised
in the Income Statement
(0.1) 0.4 0.3 (1.3) 3.5 2.2
The actual return on plan assets over the year was a £23.1m gain (2020: £111.0m).
The amounts recognised in the statement of comprehensive income are as follows:
2021
(Coral)
£m
2021
(Ladbrokes)
£m
2021
Total
£m
2020
(Coral)
£m
2020
(Ladbrokes)
£m
2020
Total
£m
Actual return on assets less interest on plan assets 21.4 (7.0) 14.4 54.6 40.3 94.9
ĉƢƪëƎļëŒɆİëļŝƖɆŨŝɆĐėǘŝėĐɆĈėŝėǘƢɆŨĈŒļİëƢļŨŝɆĐƪėɆƢŨɆ
changes in demographic assumptions
–––0.2 10.4 10.6
ĉƢƪëƎļëŒɆİëļŝƖȦȩŒŨƖƖėƖȪɆŨŝɆĐėǘŝėĐɆĈėŝėǘƢɆŨĈŒļİëƢļŨŝɆ
ĐƪėɆƢŨɆĉķëŝİėƖɆļŝɆǘŝëŝĉļëŒɆëƖƖƪśƋƢļŨŝƖ
15.4 6.1 21.5 (63.3) (52.5) (115.8)
,LJƋėƎļėŝĉėɆëĐŌƪƖƢśėŝƢƖɆŨŝɆĈėŝėǘƢɆŨĈŒļİëƢļŨŝ
(5.6) 0.9 (4.7) 4.1 6.0 10.1
Actuarial gains/(losses) recognised in the statement of
comprehensive income 31.2 – 31.2 (4.4) 4.2 (0.2)
ķëŝİėƖɆļŝɆƢķėɆƋƎėƖėŝƢɆǁëŒƪėɆŨįɆƢķėɆĐėǘŝėĐɆĈėŝėǘƢɆŨĈŒļİëƢļŨŝɆëƎėɆëƖɆįŨŒŒŨǂƖț
2021
(Coral)
£m
2021
(Ladbrokes)
£m
2021
Total
£m
2020
(Coral)
£m
2020
(Ladbrokes)
£m
2020
Total
£m
At 1 January (450.1) (385.1) (835.2) (396.0) (357.5) (753.5)
Interest on obligation (5.3) (2.6) (7.9) (7.8) (7.0) (14.8)
Actuarial gains due to changes
in demographic assumptions –––0.2 10.4 10.6
Actuarial gains/(losses) due to changes
ļŝɆǘŝëŝĉļëŒɆëƖƖƪśƋƢļŨŝƖ 15.4 6.1 21.5 (63.3) (52.5) (115.8)
Experience adjustments on obligations (5.6) 0.9 (4.7) 4.1 6.0 10.1
Scheme buy-out – 368.4 368.4 –––
ėŝėǘƢƖɆƋëļĐ 15.1 12.3 27.4 12.7 15.5 28.2
At 31 December (430.5) – (430.5) (450.1) (385.1) (835.2)
pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued
for the year ended 31 December 2021
Entain plc
|
Annual Report 2021
190
Financial statements
ǦǣɆ¡ėƢļƎėśėŝƢɆĈėŝėǘƢɆƖĉķėśėƖɆ(continued)
Changes in the fair value of plan assets are as follows:
2021
(Coral)
£m
2021
(Ladbrokes)
£m
2021
Total
£m
2020
(Coral)
£m
2020
(Ladbrokes)
£m
2020
Total
£m
At 1 January 506.9 392.5 899.4 455.9 364.2 820.1
Interest on plan assets 6.0 2.7 8.7 9.0 7.1 16.1
Administrative expenses
(0.6) (0.5) (1.1) 0.1 (3.6) (3.5)
Actual return less interest on plan assets 21.4 (7.0) 14.4 54.6 40.3 94.9
Scheme buy-out – (368.4) (368.4) –––
ėŝėǘƢƖɆƋëļĐ
(15.1) (12.3) (27.4) (12.7) (15.5) (28.2)
At 31 December
518.6 7.0 525.6 506.9 392.5 899.4
The Group does not expect to contribute to either plan in 2022. The Group will however continue to meet the administrative expenses of
the Gala Coral Pension Plan scheme.
The major categories of plan assets as a percentage of total plan assets are as follows:
2021
(Coral)
%
2021
(Ladbrokes)
%
2020
(Coral)
%
2020
(Ladbrokes)
%
,ƍƪļƢļėƖɆëŝĐɆ$ļǁėƎƖļǘėĐɆEƎŨǂƢķɆDƪŝĐƖ 25.2 – 26.9 –
Insurance policy
––– 98.1
Liability Driven Investment
69.3 – 69.5 1.2
Private credit
5.1 – 3.2 –
Cash and cash equivalents
0.4 100.0 0.4 0.7
The Plan assets are held exclusively within instruments with quoted market prices in an active market with the exception of the holdings
in a private credit asset and in 2020 an insurance policy. At 31 December 2021 these represented c5.1% (2020: c.42.8%) of the Plan’s
total assets.
¶ķėɆŒëŝɆĐŨėƖɆŝŨƢɆļŝǁėƖƢɆĐļƎėĉƢŒLjɆļŝɆƋƎŨƋėƎƢLjɆŨĉĉƪƋļėĐɆĈLjɆƢķėɆEƎŨƪƋɆŨƎɆļŝɆǘŝëŝĉļëŒɆƖėĉƪƎļƢļėƖɆļƖƖƪėĐɆĈLjɆƢķėɆEƎŨƪƋșɆŒƢķŨƪİķȚɆëƖɆƢķėɆŒëŝɆ
holds pooled investment vehicles, there may at times be indirect employer related investment. At 31 December 2021 these represented
less than 0.1% (2020: 0.1%) of the Plan’s total assets.
The investment strategy is set by the Trustees of the Plans in consultation with the Group. For the Gala Coral Plan the current long-term
strategy is to invest in a low-risk matching bond portfolio with a relatively small investment in return seeking funds. With respect to the
Ladbrokes pension plan the majority of investment was previously held within an insurance policy that guarantees the payments of future
pension liabilities. The Ladbrokes Plan now holds only cash and cash equivalents.
Principal actuarial assumptions at the balance sheet date (expressed as weighted averages where appropriate):
2021
(Coral)
% p.a.
2021
(Ladbrokes)
% p.a.
2020
(Coral)
% p.a.
2020
(Ladbrokes)
% p.a.
Discount rate 1.8 ŝȦë 1.2 1.2
ƎļĉėɆļŝǙëƢļŨŝɆȩQȪ 2.3 ŝȦë 1.9 1.9
ƎļĉėɆļŝǙëƢļŨŝɆȩ¡QȪ 3.3 ŝȦë 2.9 2.9
Future pension increases – LPI 5% (CPI) 3.2 ŝȦë 2.9 2.9
– LPI 2.5% (CPI)
2.2 ŝȦë 2.1 2.1
Post-retirement mortality assumed for most members is based on the standard SAPS mortality table with the CMI 2018 projections
ǂķļĉķɆĉŨŝƖļĐėƎƖɆįƪƢƪƎėɆļśƋƎŨǁėśėŝƢƖȚɆëĐŌƪƖƢėĐɆƢŨɆƎėǙėĉƢɆƋŒëŝɆƖƋėĉļǘĉɆėLJƋėƎļėŝĉėșɆ
The assumption used implies that the expected lifetime of members for the two schemes is:
2021
(Coral)
2021
(Ladbrokes)
2020
(Coral)
2020
(Ladbrokes)
Male aged 65 for year ended 86.5 86.5 86.4 86.5
Female aged 65 for year ended
88.6 88.9 88.5 88.9
191
Overview
|
Strategic report
|
Governance
|
Financial statements
Entain plc
|
Annual Report 2021
ǦǣɆ¡ėƢļƎėśėŝƢɆĈėŝėǘƢɆƖĉķėśėƖɆ(continued)
Changes to the assumptions will impact the amounts recognised in the consolidated balance sheet and the consolidated statement of
ĉŨśƋƎėķėŝƖļǁėɆļŝĉŨśėɆļŝɆƎėƖƋėĉƢɆŨįɆƢķėɆŒëŝșɆDŨƎɆƢķėɆƖļİŝļǘĉëŝƢɆëƖƖƪśƋƢļŨŝƖȚɆƢķėɆįŨŒŒŨǂļŝİɆƖėŝƖļƢļǁļƢLjɆëŝëŒLjƖļƖɆƋƎŨǁļĐėƖɆëŝɆļŝĐļĉëƢļŨŝɆŨįɆ
ƢķėɆļśƋëĉƢɆŨŝɆƢķėɆĐėǘŝėĐɆĈėŝėǘƢɆŨĈŒļİëƢļŨŝɆįŨƎɆƢķėɆLjėëƎɆėŝĐėĐɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤț
2021
(Coral)
%
2021
(Ladbrokes)
%
2020
(Coral)
%
2020
(Ladbrokes)
%
– 0.5% p.a. decrease in the discount rate 9.8 – 10.3 9.1
ȱɆǣșǨɼɆƋșëșɆļŝĉƎėëƖėɆļŝɆƋƎļĉėɆļŝǙëƢļŨŝ
6.9 – 7.7 4.7
– One year increase in life expectancy
4.6 – 4.5 4.1
¶ķėƖėɆƖėŝƖļƢļǁļƢļėƖɆķëǁėɆĈėėŝɆĉëŒĉƪŒëƢėĐɆƢŨɆƖķŨǂɆƢķėɆśŨǁėśėŝƢɆļŝɆƢķėɆĐėǘŝėĐɆĈėŝėǘƢɆŨĈŒļİëƢļŨŝɆļŝɆļƖŨŒëƢļŨŝȚɆëŝĐɆëƖƖƪśļŝİɆŝŨɆŨƢķėƎɆ
changes in market conditions at the accounting date. This is unlikely in practice, for example, a change in discount rate is unlikely to occur
without any movement in the value of the assets held by the Plan.
ǦǤɆ©ķëƎėȯĈëƖėĐɆƋëLjśėŝƢƖ
The following options to purchase €0.01 Ordinary Shares in the Group were granted, exercised, forfeited or existing at the year end:
$ëƢėɆŨįɆİƎëŝƢ ,LJėƎĉļƖėɆƋƎļĉė
,LJļƖƢļŝİɆëƢɆ
1 January
2021
Granted
ļŝɆƢķėɆLjėëƎ
Cancelled
ŨƎɆįŨƎįėļƢėĐɆ
ļŝɆƢķėɆLjėëƎ
,LJėƎĉļƖėĐɆ
ļŝɆƢķėɆLjėëƎ
,LJļƖƢļŝİɆëƢɆ
31 December
2021
,LJėƎĉļƖëĈŒėɆëƢɆ
31 December
2021
Vesting
criteria
16 Dec 2016 422p 630,561 – – (176,423) 454,138 454,138 Note a
30 Mar 2017 422p 50,000 – – (50,000) – – Note a
28 Dec 2017 0p 335,645 – – (309,828) 25,817 25,817 Note b
19 Sep 2018 0p 1,100,321 – (224,632) (835,745) 39,944 39,944 Note c
26 Mar 2019 0p 2,375,286 – (318,566) – 2,056,720 – Note d
10 Jun 2020 0p 1,727,301 – (216,116) – 1,511,185 – Note e
24 Mar 2021 0p – 1,124,620 (2,295) – 1,122,325 – Note f
04 May 2021 1264p – 957,613 – – 957,613 – Note g
Total Schemes 6,219,114 2,082,233 (761,609) (1,371,996) 6,167,742 519,899
Note a: 2016 MIP Scheme – These equity settled awards were issued on completion of the acquisition of bwin.party. The options vest and became exercisable, subject to the
satisfaction of a performance condition, over 30 months, with one-ninth vesting six months after the date of grant and a further ninth vesting at each subsequent quarter.
The options lapse, if not exercised, on 2 February 2026. The performance condition is comparator total shareholder return (“TSR”) of the Group against the FTSE 250. Each
ninth of the shares will have its TSR condition reviewed from the date of grant until the relevant testing date. To the extent the TSR is not met at that time, it is tested again
the following quarter and, if necessary, at the end of the 30-month vesting period. In order to vest, the TSR of the Group must rank at median or above against the FTSE 250.
Note b: 2017 LTIP Scheme – These equity settled awards were awarded to certain Directors and employees and vest over a three-year period from the date of grant. The number of
awards to vest are conditional on both cumulative Earnings Per Share (“EPS”) exceeding 180 euro cents, with a pro-rata increase in the amount vesting between 180 cents
and 214 cents, and TSR performance conditions being met which are split with equal weighting.
Note c: 2018 LTIP Scheme – These equity settled awards were awarded to certain Directors and employees and vest over a three-year period from the date of grant. The number
of awards that vested was conditional on both cumulative 3 year Earnings Per Share (“EPS”) exceeding 191p, with a pro-rata increase in the amount vesting between 191p
and 224p, and TSR performance conditions being met which are split with equal weighting.
Note d: 2019 LTIP Scheme – These equity settled awards were awarded to certain Directors and employees and vest over a three-year period from the date of grant. The number
of awards that vested was conditional on both cumulative 3 year Earnings Per Share (“EPS”) exceeding 184p, with a pro-rata increase in the amount vesting between 184p
and 214p, and TSR performance conditions being met which are split with equal weighting.
Note e: 2020 LTIP Scheme – These equity settled awards were awarded to certain Directors and employees and vest over a three-year period from the date of grant. The number
of awards to vest are conditional on both cumulative 3 year Earnings Per Share (“EPS”) exceeding 267p, with a pro-rata increase in the amount vesting between 267p and
295p, and certain TSR performance conditions being met which are split with the weighting of one third based on EPS and two thirds relating to TSR conditions. There were
also a number of restricted share plan shares issued during 2020 against which service conditions apply.
Note f: 2021 LTIP Scheme – These equity settled awards were awarded to certain Directors and employees and vest over a three-year period from the date of grant. The number
of awards to vest are conditional on both cumulative 3 year Earnings Per Share (“EPS”) exceeding 255p, with a pro-rata increase in the amount vesting between 255p and
296p, and certain TSR performance conditions being met which are split with the weighting of one third based on EPS and two thirds relating to TSR conditions.
Note g: 2021 Employee Sharesave scheme – During 2021 the Group set up an Employee Sharesave scheme. Under this scheme employees of the Group are able to subscribe up to
a maximum of £100 a month in share purchases at a discount of 20% for a vesting period of three years. The shares will vest conditional upon continued employment at the
end of the three years.
The charge to share-based payments within the consolidated income statement in respect of these options in 2021 was £12.3m
(2020: £14.8m) which related entirely to equity settled options.
ÕėļİķƢėĐɆëǁėƎëİėɆėLJėƎĉļƖėɆƋƎļĉėɆŨįɆŨƋƢļŨŝƖ
The number and weighted average exercise prices of share options are as follows:
ÕėļİķƢėĐɆ
average
ėLJėƎĉļƖėɆƋƎļĉėɆ
31 December
2021
Number
ŨįɆŨƋƢļŨŝƖɆ
31 December
2021
Weighted
average
exercise price
31 December
2020
Number
of options
31 December
2020
Outstanding at the beginning of the year 52p 6,219,114 154p 9,236,748
Granted during the year 570p 2,082,233 0p 2,045,307
Exercised during the year 70p (1,371,996) 414p (2,745,701)
Cancelled or forfeited in the year 0p (761,609) 0p (2,317,240)
Outstanding at the end of the year 31p 6,167,742 52p 6,219,114
Exercisable at the end of the year 369p 519,899 295p 1,016,206
pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued
for the year ended 31 December 2021
Entain plc
|
Annual Report 2021
192
Financial statements
ǦǤɆ©ķëƎėȯĈëƖėĐɆƋëLjśėŝƢƖɆ(continued)
The options outstanding at 31 December 2021 have a weighted average contractual life of 1.2 years (31 December 2020: 1.3 years).
ÔëŒƪëƢļŨŝɆŨįɆŨƋƢļŨŝƖ
The fair value of services received in return for share options granted are measured by reference to the fair value of share options granted.
The Group engaged third-party valuation specialists to provide a fair value for the options.
All LTIP plans are valued using both a Black Scholes valuation model and Monte Carlo valuation for the cumulative EPS and TSR
conditions respectively.
Fair value of share options and assumptions:
$ëƢėɆŨįɆİƎëŝƢ
©ķëƎėɆƋƎļĉėɆëƢɆ
ĐëƢėɆŨįɆİƎëŝƢɆ
(£)
,LJėƎĉļƖėɆƋƎļĉėɆ
(£)
,LJƋėĉƢėĐɆ
volatility
%
,LJėƎĉļƖėɆ
multiple
,LJƋėĉƢėĐɆ
dividend yield
¡ļƖŏɆįƎėėɆƎëƢėɆ
%
Fair value at
measurement
date
(£)
Dec 16 6.48 4.22 28%-30% n/a n/a – 1.43 – 1.94
Dec 17 9.34 – 26.6% n/a n/a 0.40% 7.39 – 9.34
Sep 18 9.14 – 33.7% n/a n/a 1.00% 4.58 – 9.14
Mar 19 4.96 – 31.5% n/a n/a 0.70% 1.90 – 4.96
Jun 20 7.86 – 33.2% n/a n/a 0.30% 3.54 – 7.86
Mar 21 15.25 – 52.8% n/a 2.0% 0.01% 10.03 – 11.27
May-21 16.46 12.64 51.3% n/a 2.0% 0.02% 6.75
32 Business Combinations
ƪƖļŝėƖƖɆĉŨśĈļŝëƢļŨŝƖɆëƎėɆëĉĉŨƪŝƢėĐɆįŨƎɆƪƖļŝİɆƢķėɆëĉƍƪļƖļƢļŨŝɆśėƢķŨĐșɆQĐėŝƢļǘëĈŒėɆëƖƖėƢƖɆëŝĐɆŒļëĈļŒļƢļėƖɆëĉƍƪļƎėĐȚɆëŝĐɆĉŨŝƢļŝİėŝƢɆ
ŒļëĈļŒļƢļėƖɆëƖƖƪśėĐɆļŝɆëɆĈƪƖļŝėƖƖɆĉŨśĈļŝëƢļŨŝɆëƎėɆśėëƖƪƎėĐɆëƢɆƢķėļƎɆįëļƎɆǁëŒƪėƖɆëƢɆƢķėɆëĉƍƪļƖļƢļŨŝɆĐëƢėșɆ¶ķėɆļĐėŝƢļǘĉëƢļŨŝɆëŝĐɆǁëŒƪëƢļŨŝɆŨįɆ
intangible assets arising on business combinations is subject to a degree of judgement. We engaged independent third parties, including
$ƪįįɆʁɆķėŒƋƖɆƢŨɆëƖƖļƖƢɆǂļƢķɆƢķėɆļĐėŝƢļǘĉëƢļŨŝɆëŝĐɆǁëŒƪëƢļŨŝɆƋƎŨĉėƖƖșɆ$ƪįįɆʁɆķėŒƋƖɆķëǁėɆƪƢļŒļƖėĐɆëɆ¡ėŒļėįɆįƎŨśɆ¡ŨLjëŒƢLjɆnėƢķŨĐɆëŝĐɆƢķėɆ
Excess Earnings Method approach to determine the fair value of acquired intangibles. This was performed in accordance with the Group’s
ƋŨŒļĉļėƖșɆ¶ķėɆėLJĉėƖƖɆŨįɆƢķėɆĉŨƖƢɆŨįɆëĉƍƪļƖļƢļŨŝɆŨǁėƎɆƢķėɆįëļƎɆǁëŒƪėɆŨįɆƢķėɆEƎŨƪƋȼƖɆƖķëƎėɆŨįɆƢķėɆļĐėŝƢļǘëĈŒėɆëƖƖėƢƖɆëĉƍƪļƎėĐɆļƖɆƎėĉŨƎĐėĐɆëƖɆ
goodwill. Costs related to the acquisition are expensed as incurred, see note 6 for details.
Summary of acquisitions:
Enlabs
On 30 March, the Group acquired 95.9% of the share capital of Enlabs AB. The acquisition of the share capital resulted in control
being obtained and as a result Enlabs is consolidated as a subsidiary from this date forward. Enlabs operates predominantly via an
online platform across sports betting and gaming markets and provides the Entain Group with access to the regulated Baltic markets.
Consideration consisted of £304.5m for its 95.9% share in Enlabs with £14.2m recognised as a non-controlling interest within equity for
the 4.1% of remaining holding not acquired by the Group. During Q4 the Group acquired the remaining share capital of Enlabs AB leaving
a small non-controlling interest in one of the historic acquisitions performed by Enlabs prior to the Entain acquisition.
Bet.pt
On 31 March, the Group acquired 100% of the share capital of Entertainment Technologies Group Limited which owns the Bet.pt business,
an online sports betting and gaming business operating in Portugal. The acquisition of the Bet.pt brand provides the Group with access
to the regulated Portuguese market. In accordance with IFRS 3, as control has been obtained, the business has been consolidated from
this point forwards. Including relevant adjustments for the net debt acquired with the business and potential payments under contingent
arrangements, consideration amounted to £51.3m.
Impala
During the year, the Group established a 51% owned subsidiary GVC (Impala) Limited, subsequently renamed Impala Digital Limited,
(“Impala Digital”). On 29 March 2021, Impala Digital acquired the trade and assets of a B2B business operating in the African betting
and gaming market for $40m. This acquisition provides the Entain Group with a platform with which the Group can access the African
market. In accordance with IFRS 3, as the Entain Group exercises control, Impala Digital has been consolidated within the Group
ǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖșɆ
The shareholder agreement for Impala Digital provides an opportunity for the Group to purchase the remaining 49% of share capital.
ëƖėĐɆŨŝɆƢķėɆėLJƋėĉƢëƢļŨŝɆƢķëƢɆƢķėɆƖėĉŨŝĐɆĉŨśƋŒėƢļŨŝɆƎėƍƪļƎėśėŝƢƖɆǂļŒŒɆĈėɆśėƢȚɆëɆǘŝëŝĉļëŒɆŒļëĈļŒļƢLjɆķëƖɆĈėėŝɆƎėĉŨƎĐėĐɆëƢɆɞǨǣșǣśɆ
ëƢɆëĉƍƪļƖļƢļŨŝșɆ¶ķėɆėƖƢļśëƢėɆŨįɆƢķėɆǘŝëŝĉļëŒɆŒļëĈļŒļƢLjɆǂëƖɆĈëƖėĐɆŨŝɆįŨƎėĉëƖƢɆƎėƖƪŒƢƖɆëŝĐɆƢķėɆŒļŏėŒLjɆƋëLjśėŝƢɆĐƪėɆƪŝĐėƎɆƢķėɆƖėĉŨŝĐɆ
completion conditions with £50m still provided at the year end. The shareholder agreement contains a cap of $309.9m in relation to the
second purchase.
193
Overview
|
Strategic report
|
Governance
|
Financial statements
Entain plc
|
Annual Report 2021
32 Business Combinations (continued)
Finnplay
On 1 April 2021, the Group acquired 100% of the share capital of Finnplay Technologies Oy, the platform provider for the Ninja brand of
Enlabs for £10.3m. In accordance with IFRS 3, the business has been consolidated from this point forwards.
Unikrn
On 19 October 2021, the Group acquired the trade and assets of the Unikrn business for $72.2m. Unikrn provides the Group with a
platform and expertise to enter the esports market. In accordance with IFRS 3 the Unikrn businesses results are consolidated from the
point of acquisition.
Given the proximity of some of the acquisitions to the period end and as permitted by IFRS 3 “Business Combinations”, the fair value of
ƢķėɆëĉƍƪļƎėĐɆļĐėŝƢļǘëĈŒėɆëƖƖėƢƖɆëŝĐɆŒļëĈļŒļƢļėƖɆķëǁėɆĈėėŝɆƋƎėƖėŝƢėĐɆŨŝɆëɆƋƎŨǁļƖļŨŝëŒɆĈëƖļƖșɆDëļƎɆǁëŒƪėƖɆǂėƎėɆĐėƢėƎśļŝėĐɆŨŝɆƢķėɆĈëƖļƖɆŨįɆëŝɆ
initial assessment performed by an independent professional expert.
Details of the purchase consideration, the net assets acquired and goodwill are as follows:
Provisional
fair value
£m
Intangible assets (excluding goodwill) 218.5
Property, plant and equipment 3.3
Investments 2.9
Trade and other receivables 12.6
Cash and cash equivalents 22.3
Deferred tax asset 0.5
Deferred tax liability (32.7)
Trade and other payables (31.3)
Lease liabilities (0.9)
Total
195.2
Net assets acquired 195.2
Goodwill 273.1
Total net assets acquired 468.3
ŨŝƖļĐėƎëƢļŨŝț
Cash 436.5
Non-controlling interests 14.2
Deferred and contingent consideration 17.6
Total consideration 468.3
¶ķėɆëĉƍƪļƎėĐɆĈƪƖļŝėƖƖėƖɆĉŨŝƢƎļĈƪƢėĐɆƎėǁėŝƪėƖɆŨįɆɞǬǬșǧśɆëŝĐɆƋƎŨǘƢɆĈėįŨƎėɆƢëLJɆŨįɆɞǤǬșǬśș
LëĐɆƢķėɆëĉƍƪļƖļƢļŨŝƖɆŨĉĉƪƎƎėĐɆŨŝɆƢķėɆǘƎƖƢɆĐëLjɆŨįɆƢķėɆǘŝëŝĉļëŒɆLjėëƎɆƢķėɆƎėǁėŝƪėɆįŨƎɆƢķėɆEƎŨƪƋɆǂŨƪŒĐɆķëǁėɆĈėėŝɆɞǦȚǬǤǩșǤśɆǂļƢķɆëɆƋƎŨǘƢɆ
before tax of £401.1m.
Non-controlling interests have been stated at their fair value on acquisition, which has been determined by reference to the amount paid
for the Group’s controlling interest.
QŝĉŒƪĐėĐɆļŝɆƢķėɆǁëŒƪëƢļŨŝɆŨįɆİŨŨĐǂļŒŒɆļƖɆƢķėɆǁëŒƪėɆëƢƢƎļĈƪƢėĐɆƢŨɆëĉƍƪļƎėĐɆǂŨƎŏįŨƎĉėȚɆëŝĐɆƢķėɆĈėŝėǘƢɆŨįɆįƪƢƪƎėɆƢƎëĐļŝİɆƋŨƢėŝƢļëŒɆļŝĉŒƪĐļŝİɆ
synergies arising as part of the acquisition.
33 Commitments and contingencies
Contingent liabilities
Guarantees have been given in the ordinary course of business in respect of loans and derivative contracts granted to subsidiaries
amounting to £500.0 million (31 December 2020: £500.0 million).
pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued
for the year ended 31 December 2021
Entain plc
|
Annual Report 2021
194
Financial statements
33 Commitments and contingencies (continued)
HMRC investigation
On 28 November 2019, one of our UK subsidiaries, GVC Holdings (UK) Limited, received a production order from HM Revenue & Customs
ȩɁLn¡ɁȪɆƎėƍƪļƎļŝİɆļƢɆƢŨɆƋƎŨǁļĐėɆļŝįŨƎśëƢļŨŝɆƎėŒëƢļŝİɆƢŨɆƢķėɆİƎŨƪƋɂƖɆįŨƎśėƎɆ¶ƪƎŏļƖķɆįëĉļŝİɆŨŝŒļŝėɆİëśĈŒļŝİɆĈƪƖļŝėƖƖȚɆƖŨŒĐɆļŝɆǥǣǤǪșɆƢɆƢķëƢɆ
ƢļśėȚɆƢķėɆEƎŨƪƋɆƪŝĐėƎƖƢŨŨĐɆƢķëƢɆLn¡ɂƖɆļŝǁėƖƢļİëƢļŨŝɆǂëƖɆĐļƎėĉƢėĐɆëƢɆëɆŝƪśĈėƎɆŨįɆįŨƎśėƎɆƢķļƎĐɆƋëƎƢLjɆƖƪƋƋŒļėƎƖȚɆƎėŒëƢļŝİɆƢŨɆƢķėɆƋƎŨĉėƖƖļŝİɆ
of payments for online gambling in Turkey. On 21 July 2020, GVC Holdings Plc announced that HMRC was widening the scope of its
investigation and was examining potential corporate offending by the GVC group. It had previously been understood that no Group
ĉŨśƋëŝLjɆǂëƖɆëɆƖƪĈŌėĉƢɆŨįɆLn¡ɂƖɆļŝǁėƖƢļİëƢļŨŝșɆ¶ķƎŨƪİķɆŨŝİŨļŝİɆėŝİëİėśėŝƢɆǂļƢķɆLn¡ɆǂėɆƪŝĐėƎƖƢëŝĐɆƢķëƢɆƢķėɆEƎŨƪƋɆƎėśëļŝƖɆëɆ
corporate suspect and that the offences under investigation include, but are not limited to, offences under sections 1 and 7 of the Bribery
ĉƢɆǥǣǤǣșɆ¶ķėɆEƎŨƪƋɆĉŨŝƢļŝƪėƖɆƢŨɆĉŨȯŨƋėƎëƢėɆįƪŒŒLjɆǂļƢķɆLn¡ɂƖɆėŝƍƪļƎļėƖȚɆǂķļĉķɆëƎėɆŨŝİŨļŝİș
In addition to the items discussed above, the Group is subject to number of other potential litigation claims that arise as part of the normal
course of business and continue to arise in 2022. Provision has not been made against these claims as they are either not considered
ŒļŏėŒLjɆƢŨɆƎėƖƪŒƢɆļŝɆëŝɆėĉŨŝŨśļĉɆŨƪƢǙŨǂɆŨƎɆƢķėLjɆĐŨɆŝŨƢɆƎėƋƎėƖėŝƢɆëŝɆŨĈŒļİëƢļŨŝɆëƢɆƢķėɆLjėëƎɆėŝĐɆĐëƢėșɆŨŝƖļƖƢėŝƢɆǂļƢķɆëŝLjɆĉŒëļśƖɆŨįɆƢķļƖɆŝëƢƪƎėɆ
ƢķėƎėɆĉëŝɆĈėɆƪŝĉėƎƢëļŝƢLjɆǂļƢķɆƢķėɆǘŝëŒɆŨƪƢĉŨśėșɆ
For a discussion of the current position of the Group in relation to Greek tax, refer to note 18.
34 Related party disclosures
Other than its associates and joint venture, the related parties of the Group are the Executive Directors, Non-Executive Directors and
members of the Executive Committee of the Group.
Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not
disclosed in this note. Transactions between the Group and its associates and joint venture and other related parties are disclosed below.
During the year, Group companies entered into the following transactions with related parties who are not members of the Group:
2021
£m
2020
£m
Equity investment
– Joint venture
1
164.4 61.8
Sundry expenditure
– Associates
2
59.3 56.6
1. Equity investment in BetMGM.
2. Payments in the normal course of business made to Sports Information Services (Holdings) Limited and bwin eK Neugersdorf.
Details of related party outstanding balances:
2021
£m
2020
£m
Other amounts outstanding
– Associates 0.1 0.1
¶ėƎśƖɆëŝĐɆĉŨŝĐļƢļŨŝƖɆŨįɆƢƎëŝƖëĉƢļŨŝƖɆǂļƢķɆƎėŒëƢėĐɆƋëƎƢļėƖ
Sales to, and purchases from, related parties are made at market prices and in the ordinary course of business. Outstanding balances
at 31 December 2021 are unsecured and settlement occurs in cash. For the year ended 31 December 2021, the Group has not raised
any provision (2020: £nil) for doubtful debts relating to amounts owed by related parties as the payment history has been good.
¶ķļƖɆëƖƖėƖƖśėŝƢɆļƖɆƪŝĐėƎƢëŏėŝɆėëĉķɆǘŝëŝĉļëŒɆLjėëƎɆƢķƎŨƪİķɆėLJëśļŝļŝİɆƢķėɆǘŝëŝĉļëŒɆƋŨƖļƢļŨŝɆŨįɆƢķėɆƎėŒëƢėĐɆƋëƎƢLjɆëŝĐɆƢķėɆśëƎŏėƢɆļŝɆǂķļĉķɆ
the related party operates.
¶ƎëŝƖëĉƢļŨŝƖɆǂļƢķɆ$ļƎėĉƢŨƎƖɆëŝĐɆŏėLjɆśëŝëİėśėŝƢɆƋėƎƖŨŝŝėŒɆŨįɆƢķėɆEƎŨƪƋ
For details of Directors’ remuneration please refer to the Directors’ remuneration table included on pages 134 to 140 of this report.
¶ķėɆƎėśƪŝėƎëƢļŨŝɆŨįɆŏėLjɆśëŝëİėśėŝƢɆƋėƎƖŨŝŝėŒɆļƖɆƖėƢɆŨƪƢɆĈėŒŨǂɆļŝɆëİİƎėİëƢėɆįŨƎɆėëĉķɆŨįɆƢķėɆĉëƢėİŨƎļėƖɆƖƋėĉļǘėĐɆļŝɆQ©ɆǥǧɆ¡ėŒëƢėĐɆ
Party Disclosures. Key management personnel comprise Executive Directors, Non-Executive Directors and members of the Executive
management team. Further information about the remuneration of individual Directors is provided in the Directors’ remuneration report.
2021
£m
2020
£m
©ķŨƎƢȯƢėƎśɆėśƋŒŨLjėėɆĈėŝėǘƢƖ 9.7 5.8
Share-based payments
5.2 7.3
Total compensation paid to key management personnel 14.9 13.1
ėƢėƎɆQƖŨŒëɆļƖɆëɆĐļƎėĉƢŨƎɆŨįɆ,ƪƎŨƋŨƎƢɆȩQŝƢėƎŝëƢļŨŝëŒȪɆLŨŒĐļŝİƖɆdļśļƢėĐɆëŝĐɆ,ƪƎŨƋŨƎƢɆDļǁėɆdļśļƢėĐȚɆëɆƋƎŨƋėƎƢLjɆǘƎśɆļŝɆEļĈƎëŒƢëƎɆǂķļĉķɆĉķëƎİėĐɆ
rental expenses of £2.6m to the Group during the year (2020: £2.5m).
195
Overview
|
Strategic report
|
Governance
|
Financial statements
Entain plc
|
Annual Report 2021
¶ķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆļŝĉŒƪĐėɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆŨįɆ,ŝƢëļŝɆƋŒĉɆëŝĐɆļƢƖɆƖƪĈƖļĐļëƎļėƖșɆ¶ķėɆĉŨśƋëŝļėƖɆŒļƖƢėĐɆĈėŒŨǂɆëƎėɆ
ƢķŨƖėɆǂķļĉķɆǂėƎėɆƋëƎƢɆŨįɆƢķėɆEƎŨƪƋɆëƢɆǦǤɆ$ėĉėśĈėƎɆëŝĐɆƢķėƎėįŨƎėɆƢķėɆƎėƖƪŒƢƖȚɆĉëƖķɆǙŨǂƖɆëŝĐɆĈëŒëŝĉėɆƖķėėƢƖɆŨįɆ댌ɆƖƪĈƖļĐļëƎļėƖɆŒļƖƢėĐɆëƎėɆ
ĉŨŝƖŨŒļĐëƢėĐɆļŝƢŨɆƢķėɆEƎŨƪƋɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖȚɆįƪƎƢķėƎśŨƎėɆƢķėɆƎėƖƪŒƢƖɆŨįɆŌŨļŝƢɆǁėŝƢƪƎėƖɆëŝĐɆëƖƖŨĉļëƢėƖɆëƎėɆëĉĉŨƪŝƢėĐɆįŨƎɆļŝɆëĉĉŨƎĐëŝĉėɆ
with the policy set out in note 4.
©ƪĈƖļĐļëƎļėƖɆĈëƖėĐɆļŝɆƢķėɆ½ŝļƢėĐɆbļŝİĐŨś
Registered address Company
% equity interest
2021 2020
3rd Floor
One New Change,
London,
United Kingdom,
EC4M 9AF
Arthur Prince (Turf Accountants) Limited
(5)
100.0 100.0
Bartletts Limited
(5)
100.0 100.0
Birchgree Limited
(4)(6)
100.0 100.0
Bloxhams Bookmakers Limited
(5)
100.0 100.0
Brickagent Limited
(5)
100.0 100.0
Cashcade Limited
(6)
100.0 100.0
CE Acquisition 1 Limited
(4)(6)
100.0 100.0
Chas Kendall (Turf Accountant) Limited
(5)
100.0 100.0
Choicebet Limited
(5)
100.0 100.0
C L Jennings (1995) Limited
(5)
100.0 100.0
Competition Management Services Co. Limited
(5)
97.5 97.5
Coral (Holdings) Limited
(4)(6)
100.0 100.0
Coral (Stoke) Limited
(5)
100.0 100.0
Coral Estates Limited
(6)
100.0 100.0
Coral Eurobet Limited
(6)
100.0 100.0
Coral Eurobet Holdings Limited
(4)(6)
100.0 100.0
Coral Group Limited
(4)(6)
100.0 100.0
Coral Group Trading Limited
(4)(6)
100.0 100.0
Coral Limited
(4)(6)
100.0 100.0
Coral Racing Limited
(4)(6)
100.0 100.0
Coral Stadia Limited
(4)(5)
100.0 100.0
E.F. Politt & Son Limited
(5)
100.0 100.0
Entain Services Limited
(5)
100.0 100.0
Forestal Land, Timber and Railways Company Limited (The)
(5)
100.0 100.0
Forster’s (Bookmakers) Limited
(5)
100.0 100.0
Gable House Estates Limited
(5)
100.0 100.0
Ganton House Investments Limited
(6)
100.0 100.0
Greatmark Limited
(5)
100.0 100.0
Electraworks Maple Limited
(5)
100.0 100.0
Entain Holdings (UK) Limited
(1)(2)(4)
100.0 100.0
Entain Marketing (UK) Limited
(4)
100.0 100.0
Hillford Estates Limited
(5)
97.5 97.5
Impala Digital Limited
(3)(4)
51.0 –
Hindwain Limited
(6)
100.0 100.0
Interactive Sports Limited
(6)
100.0 100.0
J G Leisure Limited
(5)
100.0 100.0
J. Ward Hill & Company
(5)
100.0 100.0
Jack Brown (Bookmaker) Limited
(6)
100.0 100.0
Jerusalem Development (Mamilla) Co. Limited
(5)
100.0 100.0
Jerusalem Development Corporation (Holdings) Limited
(4)(5)
100.0 100.0
Joe Jennings (1995) Limited
(5)
100.0 100.0
Joe Jennings Limited
(5)
100.0 100.0
Krullind Limited
(5)
100.0 100.0
Ladbroke & Co., Limited
(5)
100.0 100.0
Ladbroke (Rentals) Limited
(5)
100.0 100.0
Ladbroke City & County Land Company Limited
(4)(5)
100.0 100.0
34 Related party disclosures continued
pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued
for the year ended 31 December 2021
Entain plc
|
Annual Report 2021
196
Financial statements
Registered address Company
% equity interest
2021 2020
Ladbroke Coral Corporate Director Limited
(5)
100.0 100.0
Ladbroke Coral Corporate Secretaries Limited
(5)
100.0 100.0
Ladbroke Dormant Holding Company Limited
(4)(5)
100.0 100.0
Ladbroke Entertainments Limited
(6)
100.0 100.0
Ladbroke Group
(4)(5)
100.0 100.0
Ladbroke Group Homes Limited
(5)
100.0 100.0
Ladbroke Group International
(5)
100.0 100.0
Ladbroke Group Properties Limited
(4)(5)
100.0 100.0
Ladbroke Land Limited
(5)
100.0 100.0
Ladbroke Leasing (South East) Limited
(5)
100.0 100.0
Ladbroke Racing (South East) Limited
(5)
100.0 100.0
Ladbroke US Investments Limited
(4)(5)
100.0 100.0
Ladbrokes (CLJEA) Limited
(5)
100.0 100.0
Ladbrokes (CLJHC) Limited
(5)
100.0 100.0
Ladbrokes (CLJSW) Limited
(5)
100.0 100.0
Ladbrokes Betting & Gaming Limited
(2)(3)(4)
100.0 100.0
Ladbrokes Contact Centre Limited
(5)
100.0 100.0
dëĐĈƎŨŏėƖɆŨƎëŒɆEƎŨƪƋɆdļįėɆėŝėǘƢƖɆ¶ƎƪƖƢėėɆdļśļƢėĐ
(5)
100.0 100.0
Ladbrokes Coral Group Limited
(2)(4)
100.0 100.0
Ladbrokes CPCB Limited
(5)
100.0 100.0
Ladbrokes E-Gaming Limited
(5)
100.0 100.0
Ladbrokes Group Finance plc
(2)
100.0 100.0
Ladbrokes Group Holdings Limited
(4)(5)
100.0 100.0
Ladbrokes Investments Holdings Limited
(4)(5)
100.0 100.0
Ladbrokes IT & Shared Services Limited
(5)
100.0 100.0
Ladbrokes PT Limited
(5)
100.0 100.0
Ladbrokes Trustee Company Limited
(6)
100.0 100.0
Lightworld Limited
(4)(5)
100.0 100.0
London & Leeds Estates Limited
(5)
93.5 93.5
Margolis and Ridley Limited
(5)
100.0 100.0
New Angel Court Limited
(5)
100.0 100.0
Paddington Casino Limited
(5)
100.0 100.0
Reg.Boyle Limited
(5)
100.0 100.0
Reuben Page Limited
(4)(5)
100.0 100.0
Romford Stadium Limited
(5)
100.0 100.0
Rousset Capital Limited
(6)
100.0 100.0
Sabrinet Limited
(5)
100.0 100.0
Sponsio Limited
(4)(5)
100.0 100.0
Sporting Odds Limited
(2)(3)
100.0 100.0
Sportingbet (IT Services) Limited
(5)
100.0 100.0
Sportingbet (Management Services) Limited
(5)
100.0 100.0
Sportingbet (Product Services) Limited
(5)
100.0 100.0
Sportingbet Holdings Limited
(5)(6)
100.0 100.0
Sportingbet Limited
(5)(6)
100.0 100.0
Sports (Bookmakers) Limited
(5)
100.0 100.0
Techno Land Improvements Limited
(5)
100.0 100.0
Town and County Factors Limited
(5)
100.0 100.0
Travel Document Service
(4)(5)
100.0 100.0
Vegas Betting Limited
(5)
100.0 100.0
Ventmear Limited
(5)
100.0 100.0
34 Related party disclosures continued
197 Overview
|
Strategic report
|
Governance
|
Financial statements
Entain plc
|
Annual Report 2021
Registered address Company
% equity interest
2021 2020
35 Great St. Helen’s
London, United Kingdom
EC3A 6AP
Techno Limited 84.0 84.0
77A Andersonstown Road Ladbrokes (Northern Ireland) (Holdings) Limited
(4)(6)
100.0 100.0
Belfast Ladbrokes (Northern Ireland) Limited
(5)
100.0 100.0
BT11 9AH North West Bookmakers Limited
(2)(3)
100.0 100.0
Subsidiaries based overseas
Registered address Company
% equity interest
2021 2020
Belmont Chambers Creative Trend Limited 100.0 100.0
Road Town CTL Holdings International Limited
(4)
100.0 100.0
Tortola SRL Holdings International Limited
(4)
100.0 100.0
British Virgin Islands Sunrise Resources Limited 100.0 100.0
Jayla Place, Wickhams Cay 1, Road Town, Westman Holdings Limited 100.0 100.0
Tortola, British Virgin Islands
13/F, Gloucester Tower GVC Technology Consulting (Asia) Co Limited 100.0 100.0
The Landmark
15 Queen’s Road
Central Hong Kong, China
Inchalla, Alderney, GY9 3UL, Guernsey ElectraWorks (Alderney) Limited
100.0 100.0
1st Floor, Otter House Ladbroke (Ireland) Limited
(2)(3)(4)
100.0 100.0
Naas Road, Dublin 22
Ireland
25/28 North Wall Quay, Dublin 1, Fort Anne Limited
(1)
100.0 100.0
D01 H104, Ireland M.L.B. Limited 100.0 100.0
Menahem Begin Road Gala Interactive (Services) Limited 100.0 100.0
121 &125 GVC Impala R&D Limited
51.0 –
Tel Aviv, Jaffa, Israel Ladbrokes Israel Limited
(2)
100.0 100.0
Via Alessandro Marchetti No.105 Eurobet Holding SRL
(4)
100.0 100.0
Rome 00148, Italy Eurobet Italia SRL
(2)(3)
100.0 100.0
1st Floor, Liberation House Ladbroke (Channel Islands) Limited
(3)
100.0 100.0
Castle Street,
St. Helier, JE1 1GL, Jersey
461-473 Lutwyche Road Gaming Investments Pty Limited
(4)
100.0 100.0
Lutwyche Entain Australia Pty Ltd
(2)(3)
100.0 100.0
Queensland LB Australia Holdings Pty Limited
(4)
100.0 100.0
QLD 4030 Neds.com.au Pty Ltd 100.0 100.0
Australia Neds International Pty Ltd
(2)(3)
100.0 100.0
IFC 5, ST. HELIER, JE1 1ST, Jersey GVC Finance Limited
100.0 100.0
Maple Court Investments (Jersey) Limited
(5)
100.0 100.0
PartyGaming Finance Limited 100.0 100.0
Chaussée de Wavre 1100/3 Ladbroke Belgium S.A.
(4)
100.0 100.0
1160 Auderghem Pari Mutuel Management Services S.A. 100.0 100.0
Belgium Redsports.be SPRL 100.0 100.0
S.A. Derby N.V.
(2)(3)(4)
100.0 100.0
Tierce Ladbroke S.A.
(3)
100.0 100.0
29 Avenue Lavoisier, 1300 Wavre, Belgium Professional Gaming Services Sprl
100.0 100.0
6F Tower 3 Double Dragon Plaza EDSA InteractiveSports Asia Limited Inc.
100.0 100.0
Ext. cor. Macapagal Avenue, Pasay City, NCH Customer Support Services, Inc 100.0 100.0
Philippines
34 Related party disclosures continued
pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued
for the year ended 31 December 2021
Entain plc
|
Annual Report 2021
198
Financial statements
Registered address Company
% equity interest
2021 2020
24A 18th Street Ladbrokes (SA) (Pty) Limited 60.0 60.0
Menlo Park, Pretoria
0081, South Africa
Castello 82 4 IZQ, 28006, Madrid, Spain Ladbrokes Betting and Gaming Spain, S.A.
100.0 100.0
270 E. Park Street, Suite 1 Butte, Ladbrokes Holdco, Inc.
(4)
100.0 100.0
Montana 59701
608 Lander Street Stadium Technology Group, LLC
(3)
100.0 100.0
Reno Nevada 89509, United States
15 Agion Omologiton, Nicosia, 1080, Bellingrath Enterprises Limited 100.0 100.0
Cyprus
1565 Carling Avenue, Suite 400, Ottawa, Canada Limited 100.0 100.0
Ontario K1Z 8R1
19 Boulevard Malesherbes, 75008, Paris, B.E.S. S.A.S
100.0 100.0
France
ǥŝĐɆDŒŨŨƎȚɆ©ƢɆnëƎLjɂƖɆŨƪƎƢȚɆǥǣɆLļŒŒɆ©ƢƎėėƢȚɆ Cozy Games Management Limited
(5)
100.0 100.0
Douglas, IM1 1EU, Isle of Man
32 Athol Street, Douglas, IM1 1JB, Entain (IOM) Limited
(1)
100.0 100.0
Isle of Man
820 Bear Tavern Road, Trenton, bwin.party (USA) Inc 100.0 100.0
New Jersey, 08628, USA bwin.party entertainment (NJ) LLC 90.0 90.0
bwin.party services (NJ) Inc 100.0 100.0
701 S. Carson Street, Suite 200, Ladbrokes Subco LLC
100.0 100.0
Carson City, 89701, Nevada
Harborside Plaza 3, 210 Hudson Street, GVC Holdings (USA) Inc
100.0 100.0
Jersey City, New Jersey 07311
ǨǣɆ¡ëįǙėƖɆŒëĉėȚɆǦǥȯǣǤɆ©ļŝİëƋŨƎėɆdëŝĐ Cozy Games Pte Limited 100.0 100.0
Tower, Singapore (048623) Florent Pte Limited
100.0 100.0
ǨǨɆpļŏŨŒëɆÔëƋƢƖëƎŨǁɆŒǁĐȚɆ{įǘĉėɆëƎŏ GVC Services (Bulgaria) EOOD 100.0 100.0
Expo 2000, Building Phase 4, Floor 3,
dŨǒėŝėƢƖɆƎėëȚɆ©ŨǘëɆǤǧǣǪȚɆƪŒİëƎļë
5th Floor, Divyasree Omega, Block - B, IVY Comptech Private Limited
100.0 100.0
Hitec City Road, Kondapur, Hyderabad,
Andhra Pradesh, 500081, India
6th Floor, Divyashree omega, Block-B, IVY Foundation Limited 100.0 100.0
Plot No. 13/E, Survey no.13(part), IVY Global Shared Services Private Limited 100.0 100.0
Kondapur, Hyderabad, 500081, Andhra IVY Software Development Services Private Limited 100.0 100.0
Pradesh, India
85 St John Street, Valletta, VLT 1165, Entain Holdings (Malta) Limited
100.0 100.0
Malta Gaming VC Corporation Limited
100.0 99.0
bwin.gr Limited
(2)
100.0 99.0
Headlong 2 Limited
(1)
100.0 100.0
Scandic Bookmakers Limited 100.0 99.0
Spread Your Wings Bravo Limited
100.0 99.0
VistaBet Limited
(2)
100.0 100.0
68, Tower Road, Sliema, Entertainments Technologies Group Limited
(4)
100.0 –
SLM – 1606, Malta
ǁėŝļĐëɆĐėɆDƪėŝĉëƎƎëŒɆǧǧȚɆ,ĐļǘĉļŨ Winner Apuestas S.A. 100.0 100.0
Tribeca 1, modulo B, CP 28108,
Alcobendas, Madrid, Spain
Bertolt - Brecht - Allee 24, 01309, DSG Deutsche Sportwelt GmbH
100.0 100.0
Dresden, Germany
34 Related party disclosures continued
199 Overview
|
Strategic report
|
Governance
|
Financial statements
Entain plc
|
Annual Report 2021
Registered address Company
% equity interest
2021 2020
Schwanthalerstrasse 73, Entain (Germany) GmbH 100.0 –
80336 Munich, Germany
Box 3095, 350 33 Växjö, Sweden Webdollar Sweden AB 100.0 100.0
c/o Kilpatrick Townsend & Stockton bwin.party Games AB
100.0 100.0
Advokat KB, Box 5421, 114 84
Stockholm, Sweden
Calle Amador de los Ríos n°1, 6 planta, bwin Interactive Marketing Espana S.L. 100.0 100.0
28010 Madrid, Spain
c/o The Corporation Trust Company, GVC Finance LLC
(1)
100.0 100.0
1209 Orange Street, County of New
Castle, Wilmington, Delaware, 19801,
USA
Calle Josep Plá, número 2, planta 5ªD, Javari Marketing Consultancy Services S.L. 100.0 100.0
,ĐļǘĉļŨɆ¶ŨƎƎėɆ$ļëİŨŝëŒɆdļƢŨƎëŒȚɆǣǫǣǤǬȚ
Barcelona
Century House, 12 Victoria Street, Interactive Sports (C.I.) Limited 100.0 100.0
Alderney, GY9 3UF, Channel Islands
Emancipatie Boulevard Dominico F. GVC Services BV 100.0 100.0
“Don” Martina 29, Curaçao
Fruebjergvej 3, Copenhagen, 2100, Interactive Sports (Denmark) ApS 100.0 100.0
Denmark
dëİŨëƖɆëƎŏȚɆ,ĐļǘĉļŨɆǤǤȚɆļƖŨɆǣɆ©ƪŒȚɆ QŝǘėŒĐɆȱɆ©ėƎǁļĉŨƖɆĐėɆŨŝƖƪŒƢŨƎļëɆnëƎŏėƢļŝİɆ½ŝļƋėƖƖŨëŒɆd$ș 100.0 100.0
2740-244, Porto Salvo, Portugal
Av. Dos Combatentes, no. Gobet Entretenimento SA
(3)
100.0 –
43-5 A, 1600-042 Lisbon, Portugal Entain Operations Portugal SA 100.0 –
Marxergasse 1b, 1030 Vienna, Austria bwin.party services (Austria) GmbH 100.0 100.0
Websports Entertainment Marketing Services GmbH 100.0 100.0
Penthouse, Palazzo Spinola Business bwin (Deutschland) Limited 100.0 100.0
Centre, Number 46, St Christopher bwin Holdings (Malta) Limited
(1)
100.0 100.0
Street, Valletta, VLT 1464, Malta bwin.party services (Malta) Limited
100.0 100.0
bwin.party holding Malta Limited
100.0 100.0
bwin.party International Malta Limited 100.0 100.0
ElectraWorks (France) Limited 100.0 100.0
ElectraWorks (Kiel) Limited
100.0 100.0
ElectraWorks (Malta) PLC
100.0 100.0
ElectraWorks (Svenska) Limited 100.0 100.0
ElectraWorks Europe Ltd 100.0 100.0
Gamebookers (Deutschland) Limited
100.0 100.0
Ladbrokes (Deutschland) Limited
100.0 100.0
Martingale Europe Limited 100.0 100.0
Martingale Malta 2 Limited
100.0 100.0
Sportingbet (Deutschland) Limited 100.0 100.0
{ǘĉļŝëɆŝƎșǥǣǤȯǥǣǤǨȚɆėĐėǘĉļŨʀǦȚɆƎƪƢëɆǫȚɆ Gomifer S.A.
100.0 100.0
km. 17,500, Uruguay
Quay House, South Esplanade St, Peter Longfrie Limited
100.0 100.0
Port, Guernsey, GY1 4EJ, PO Box 132
Sea Meadow House, Blackburne Wavecrest Providers Limited
(5)
100.0 100.0
Highway, Road Town, Tortola, British
Virgin Islands, PO BOX 116
Suite 4, Constantia House, Steenberg Main Street 1013 Pty Limited 100.0 100.0
{įǘĉėɆëƎŏȚɆŨŝƖƢëŝƢļëȚɆǪǫǣǣȚɆ©ŨƪƢķ SBT Software Operations (SA) (Pty) 100.0 100.0
Africa
34 Related party disclosures continued
pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued
for the year ended 31 December 2021
Entain plc
|
Annual Report 2021
200
Financial statements
34 Related party disclosures continued
Registered address Company
% equity interest
2021 2020
Vake District, Kavtaradze Str., No 5, MARS LLC
(2)(3)
100.0 51.0
,ŝƢƎëŝĉėɆǥȚɆDŒŨŨƎɆǥȚɆ{įǘĉėɆ©ƋëĉėɆpŨɆǥȚ
Tbilisi, Georgia
Via Gaetano Previati 9, 20149, Milan, bwin European Markets Holding SpA
100.0 100.0
Italy bwin Italia S.R.L.
(3)
100.0 100.0
Rruga Dervish Hirna, Ada Tower, LevTech Shpk 51.0 –
nr.pasurie 6/55-N, 8160 Albania
Suite 6, Atlantic Suites, Europort Avenue, Balltree (International) Limited
(5)
100.0 100.0
Gibraltar Bingo Marketing Limited
100.0 100.0
bwin.party holdings Limited 100.0 100.0
bwin.party services (Gibraltar) Limited
100.0 100.0
Claymore Interactive Entertainment Holdings Limited
(5)
100.0 100.0
Coral Interactive (Gibraltar) Limited
(5)
100.0 100.0
ElectraGames Limited
100.0 100.0
ElectraWorks Limited
(2)(3)
100.0 100.0
Entain Holdings Limited
(5)
100.0 100.0
Gala Coral Interactive (Gibraltar) Limited
(4)(5)
100.0 100.0
Gala Interactive (Gibraltar) Limited
(4)(5)
100.0 100.0
Greyjoy Limited 100.0 100.0
Entain Corporate Services Limited
100.0 100.0
Entain Holdings (Gibraltar) Limited
(1)
100.0 100.0
Entain Operations Limited 100.0 100.0
EntainTrustees Limited 100.0 100.0
IGM Domain Name Services Limited 100.0 100.0
ISG (Gibraltar) Limited 100.0 100.0
ITL Holdings Limited 100.0 100.0
LC International Limited
(2)(3)(4)
100.0 100.0
PartyGaming IA Limited
(5)
100.0 100.0
Stora Gatan 46, Sigtuna Baltic Gaming AB 100.0 –
Kommun, 19330, Sweden Enlabs AB
(4)
100.0 –
Entraction AB 97.0 –
Kama Net AB
(3)
100.0 –
dļǙëŝĐɆEëśļŝİɆ 100.0 –
NLI AB 100.0 –
Score24 AB
(3)
100.0 –
120, The Strand, Unit 6. Triq BestBet Limited
(3)
100.0 –
Ix-Xatt, Gzira GZR, 1027, Elec Games C1 Limited
(3)
100.0 –
Malta Elec Games Holdings Limited
(4)
100.0 –
Elec Games Limited
(3)
100.0 –
Future Lead Generation Limited
(4)
100.0 –
dļǙëŝĐɆLŨŒĐļŝİƖɆdļśļƢėĐ
(4)
100.0 –
Ninja Global Limited
(3)
100.0 –
West African Gaming Limited
(5)
100.0 –
¡ŨLjëŒɆëƎŏɆ©ėƎǁļĉėĐɆ{įǘĉėȚ Scout Gaming AB
(3)
100.0 –
Frosundaviks alle 15, 16903
Solna, Sweden
Zalgurio g. 96-101, Vilnius, UAB Baltic Bet
(3)
100.0 –
Lithuania
Republic of Belarus, 220039, OOO Optibet
(3)
100.0 –
Minsk, 20 Chkalov Str.
ƎėśļƖėɆǬǫȚɆ{įǘĉėɆǤ
{įǘĉėɆǤǦȚɆǦǬɆ$ǒķŨŝë Ninja Casino TOB 100.0 –
Makkeina Street, Kyiv,
01042, Ukraine
201
Overview
|
Strategic report
|
Governance
|
Financial statements
Entain plc
|
Annual Report 2021
Registered address Company
% equity interest
2021 2020
Setekles iela, 2B, Riga, LV- SIA Laimz
(3)
100.0 –
1050, Latvia SIA Optibet
(3)
100.0 –
Unioninkatu 24, Helsinki, Finnplay Technologies Oy
100.0 –
00130, Finland –
Lootsa tn 1a, Lasnamae Ninja Global OU
(5)
100.0 –
Linnaosa, 11415, Estonia Optiwin OU
(3)
100.0 –
1. Company that is directly owned by Entain PLC.
2. Company that forms part of the Group as at 31 December 2021 and which, principally affected the Group’s reported results for the year.
3. Trading entity engaged in activity associated with betting and gaming.
4. Holding company.
5. Dormant company.
ǩșɆ ŨśƋëŝLjɆǂķļĉķɆƢķėɆEƎŨƪƋɆėLJƋėĉƢƖɆƢŨɆėLJėśƋƢɆįƎŨśɆƢķėɆƎėƍƪļƎėśėŝƢƖɆŨįɆƢķėɆŨśƋëŝļėƖɆĉƢɆǥǣǣǩɆƎėŒëƢļŝİɆƢŨɆƢķėɆëƪĐļƢɆŨįɆļŝĐļǁļĐƪëŒɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆĈLjɆǁļƎƢƪėɆŨįɆƖėĉƢļŨŝɆǧǪǬșɆ
As a result, the Group guarantees all outstanding liabilities to which the subsidiary is subject.
Joint ventures
Registered address Company
% equity interest
2021 2020
Corporation Service Company,
251 Little Falls Drive,
Wilmington,
Delaware 19808
BetMGM, LLC 50.0 50.0
Associates
ŨƪŝƢƎLjɆŨįɆļŝĉŨƎƋŨƎëƢļŨŝ Company
% equity interest
2021 2020
China Asia Gaming Technologies (Beijing) Co., Ltd
(1)
49.0 49.0
Asia Gaming Technologies (Tianjin) Co., Ltd
(1)
49.0 49.0
Asia Gaming Technologies Limited 49.0 49.0
Germany bwin E.K. Neugersdorf
50.0 50.0
Belgium Gran Casino de Dinant SA
20.0 –
QŝǘŝļƢļɆëƖļŝŨɆ{ŨƖƢėŝĐėɆpÔ 20.0 –
Leaderbet NV 20.0 –
United Kingdom Draw & Code Limited
40.0 –
Games For Good Causes PLC
36.3 36.3
Lucky Choice Limited
(2)
66.6 66.6
Sports Information Services (Holdings) Limited 23.4 23.4
1. Subsidiary of Asia Gaming Technologies Limited.
ǥșɆ ,ŝƢëļŝɆdɆķŨŒĐɆǩǩșǩɼɆŨįɆƢķėɆėƍƪļƢLjɆŨįɆƢķėɆļŝǁėƖƢśėŝƢșɆ¶ķėɆëƖƖŨĉļëƢėɆļƖɆŝŨƢɆĉŨŝƖŨŒļĐëƢėĐɆļŝɆƢķėɆEƎŨƪƋɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆŨŝɆƢķėɆĈëƖļƖɆƢķëƢɆƢķėɆEƎŨƪƋɆĐŨėƖɆŝŨƢɆėLJėƎĉļƖėɆ
management control over the associate.
pŨƢėƖɆƢŨɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued
for the year ended 31 December 2021
34 Related party disclosures continued
Entain plc
|
Annual Report 2021
202
Financial statements
35 Non-controlling interests
During the year the Group acquired a non-controlling interest in Enlabs AB as a result of the acquisition disclosed in note 32.
Subsequently, the Group purchased the remaining non-controlling interests in Crystalbet (acquired in 2018) and Enlabs AB. Following the
purchase of the non-controlling interest in Enlabs AB and Crystalbet, the Group continues to hold non-controlling interests in Entraction
AB (a subsidiary of Enlabs AB) and Impala Digital Limited.
At 31 December 2020 non-controlling interests consisted principally of Crystalbet.
The total assets relating to subsidiaries with a non-controlling interest were £54.5m (2020: £42.4m) of which there were related liabilities
of £37.1m (2020: £25.3m).
¶ķėɆƋƎŨǘƢɆëƢƢƎļĈƪƢëĈŒėɆƢŨɆŝŨŝȯĉŨŝƢƎŨŒŒļŝİɆļŝƢėƎėƖƢƖɆǂëƖɆɞǤǤșǧśɆȩǥǣǥǣțɆɞǥǤșǩśȪșɆ
The balance of retained earnings attributable to non-controlling interest is disclosed in the table below:
Total
£m
As at January 2020 43.1
ƎŨǘƢɆëƢƢƎļĈƪƢëĈŒėɆƢŨɆŝŨŝȯĉŨŝƢƎŨŒŒļŝİɆļŝƢėƎėƖƢƖ 21.6
Payment of dividends (12.4)
As at 31 December 2020 52.3
ƎŨǘƢɆëƢƢƎļĈƪƢëĈŒėɆƢŨɆŝŨŝȯĉŨŝƢƎŨŒŒļŝİɆļŝƢėƎėƖƢƖ 11.4
Business combinations 14.2
Purchase of non-controlling interests (52.0)
Payment of dividends (24.5)
As at 31 December 2021 1.4
36 Subsequent Events
Given the more certain medium-term outlook, the Group has taken the decision to repay the £44m received under the Coronavirus Job
Retention Scheme (“furlough scheme”) in FY21. The scheme was a sensible and highly welcome policy intervention that helped us, as one
of the country’s largest retailers, to maintain the livelihoods of more than 14,000 retail colleagues on full pay. We have kept the situation
ƪŝĐėƎɆƎėǁļėǂɆƖļŝĉėɆǂėɆǘƎƖƢɆśëĐėɆƪƖėɆŨįɆƢķėɆƖĉķėśėɆëŝĐɆëƎėɆƋŒėëƖėĐɆƢŨɆĈėɆļŝɆëɆƋŨƖļƢļŨŝɆƢŨɆƎėƋëLjɆƢķėƖėɆśŨŝļėƖșɆ
Following the year end, the Group announced the acquisition of Deis Ltd ("Avid Gaming") for CAD300 million from Middlebrook
QŝǁėƖƢśėŝƢƖɆdļśļƢėĐșɆǁļĐɆEëśļŝİɆŨǂŝƖɆ©ƋŨƎƢƖɆQŝƢėƎëĉƢļŨŝȚɆëŝëĐëɂƖɆŒėëĐļŝİɆŨŝŒļŝėɆƖƋŨƎƢƖɆĈėƢƢļŝİɆĈƎëŝĐșɆQƢɆļƖɆķėëĐƍƪëƎƢėƎėĐɆļŝɆ`ėƎƖėLjɆ
ȩķëŝŝėŒɆQƖŒëŝĐƖȪȚɆǂļƢķɆŨįǘĉėƖɆļŝɆƢķėɆnŨķëǂŏɆ¶ėƎƎļƢŨƎLjɆŨįɆbëķŝëǂþțŏėɆëŝĐɆQƎėŒëŝĐș
203
Overview
|
Strategic report
|
Governance
|
Financial statements
Entain plc
|
Annual Report 2021
Note
2021
£m
2020
£m
Other operating income 14.6 12.2
Dividends received 192.5 –
Operating expense 5
(16.5) (11.5)
{ƋėƎëƢļŝİɆƋƎŨǘƢɆĈėįŨƎėɆƖėƋëƎëƢėŒLjɆĐļƖĉŒŨƖėĐɆļƢėśƖ
190.6 0.7
Separately disclosed items 6 (12.1) (31.2)
ƎŨǘƢȦȩŒŨƖƖȪɆĈėįŨƎėɆƢëLJɆëŝĐɆŝėƢɆǘŝëŝĉėɆėLJƋėŝƖė 178.5 (30.5)
Finance expense 7 (3.5) (2.8)
Finance income 7
14.4 22.9
EëļŝƖȦȩŒŨƖƖėƖȪɆëƎļƖļŝİɆįƎŨśɆĉķëŝİėɆļŝɆįëļƎɆǁëŒƪėɆŨįɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖ 7 77.4 (59.8)
Losses arising from foreign exchange on debt instruments 7
(0.1) (10.5)
ƎŨǘƢȦȩŒŨƖƖȪɆĈėįŨƎėɆƢëLJ
266.7 (80.7)
Income Tax 8
0.6 –
ƎŨǘƢȦȩŒŨƖƖȪɆįŨƎɆƢķėɆLjėëƎ
267.3 (80.7)
All items included above relate to continuing operations.
There were no other items of comprehensive income in the year.
¶ķėɆŝŨƢėƖɆŨŝɆƋëİėƖɆǥǣǪɆƢŨɆǥǤǤɆįŨƎśɆëŝɆļŝƢėİƎëŒɆƋëƎƢɆŨįɆƢķėƖėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖș
Company income statement
for the year ended 31 December 2021
Entain plc
|
Annual Report 2021
204
Financial statements
Note
2021
£m
2020
£m
Assets
Non-current assets
Investments 10
4,372.1 4,008.6
Trade and other receivables 11 650.9 –
Interest bearing loans and borrowings 13
6.8 6.7
5,029.8 4,015.3
Current assets
Trade and other receivables 11 97.5 1,013.6
$ėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆëƖƖėƢƖ
57.3 –
Interest bearing loans and borrowings 13
– 0.6
Cash and cash equivalents 0.3 2.9
155.1 1,017.1
Total assets
5,184.9 5,032.4
Liabilities
Current liabilities
Trade and other payables 12
(744.3) (875.3)
$ėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆŒļëĈļŒļƢLjɆ (7.5) (26.0)
(751.8) (901.3)
pėƢɆĉƪƎƎėŝƢɆȩŒļëĈļŒļƢļėƖȪȦëƖƖėƢƖ (596.7) 115.8
Non-current liabilities
Trade and other payables 12 (594.0) (566.9)
(594.0) (566.9)
Net assets 3,839.1 3,564.2
Shareholders’ equity
Called up share capital 15 4.8 4.8
Share premium account
1,207.3 1,206.6
Merger reserve 2,527.4 2,527.4
Retained earnings 99.6 (174.6)
¶ŨƢëŒɆƖķëƎėķŨŒĐėƎƖȼɆėƍƪļƢLj
3,839.1 3,564.2
½ŝĐėƎɆƢķėɆŨśƋëŝļėƖɆĉƢɆǥǣǣǩɆƖėĉƢļŨŝɆǧǬɆȩQƖŒėɆŨįɆnëŝȪȚɆƢķėɆ$ļƎėĉƢŨƎƖɆëƎėɆƖëƢļƖǘėĐɆƢķëƢɆƢķėɆŨśƋëŝLjɆƖëƢļƖǘėƖɆƢķėɆƖŨŒǁėŝĉLjɆƢėƖƢɆįŨƎɆ
distributions to be made.
¶ķėɆŝŨƢėƖɆŨŝɆƋëİėƖɆǥǣǪɆƢŨɆǥǤǤɆëƎėɆëŝɆļŝƢėİƎëŒɆƋëƎƢɆŨįɆƢķėƖėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖș
¶ķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆŨŝɆƋëİėƖɆǥǣǧɆƢŨɆǥǤǤɆǂėƎėɆëƋƋƎŨǁėĐɆĈLjɆƢķėɆŨëƎĐɆŨįɆ$ļƎėĉƢŨƎƖɆŨŝɆǦɆnëƎĉķɆǥǣǥǥɆëŝĐɆƖļİŝėĐɆŨŝɆļƢƖɆĈėķëŒįɆĈLj
J Nygaard-Andersen R Wood
ķļėįɆ,LJėĉƪƢļǁėɆ{įǘĉėƎɆ $ėƋƪƢLjɆķļėįɆ,LJėĉƪƢļǁėɆ{įǘĉėƎȦķļėįɆDļŝëŝĉļëŒɆ{įǘĉėƎ
Company balance sheet (Company number 4685V)
at 31 December 2021
205
Overview
|
Strategic report
|
Governance
|
Financial statements
Entain plc
|
Annual Report 2021
Called
up share
capital
£m
Share
premium
account
£m
Merger
Reserve
account
£m
Retained
earnings
£m
Total
£m
At January 2020 4.8 1,198.0 2,527.4 (106.0) 3,624.2
Loss for the year – – – (80.7) (80.7)
Total comprehensive expense – – – (80.7) (80.7)
Share options exercised – 8.6 – – 8.6
Share-based payments charge – – – 12.1 12.1
At 31 December 2020 4.8 1,206.6 2,527.4 (174.6) 3,564.2
ƎŨǘƢɆįŨƎɆƢķėɆLjėëƎ – – – 267.3 267.3
Total comprehensive expense – – – 267.3 267.3
Share options exercised – 0.7 – – 0.7
Share-based payments charge – – – 6.9 6.9
At 31 December 2021 4.8 1,207.3 2,527.4 99.6 3,839.1
¶ķėɆŝŨƢėƖɆŨŝɆƋëİėƖɆǥǣǪɆƢŨɆǥǤǤɆįŨƎśɆëŝɆļŝƢėİƎëŒɆƋëƎƢɆŨįɆƢķėƖėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖș
Company statement of changes in equity
for the year ended 31 December 2021
Entain plc
|
Annual Report 2021
206
Financial statements
ǤɆEėŝėƎëŒɆļŝįŨƎśëƢļŨŝ
,ŝƢëļŝɆdɆȩȹƢķėɆŨśƋëŝLjȺȪɆļƖɆëɆŒļśļƢėĐɆĉŨśƋëŝLjɆļŝĉŨƎƋŨƎëƢėĐɆëŝĐɆĐŨśļĉļŒėĐɆļŝɆƢķėɆQƖŒėɆŨįɆnëŝșɆ¶ķėɆëĐĐƎėƖƖɆŨįɆļƢƖɆƎėİļƖƢėƎėĐɆŨįǘĉėɆëŝĐɆ
principal place of business is disclosed in the Directors’ report.
¶ķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆŨįɆƢķėɆŨśƋëŝLjɆįŨƎɆƢķėɆLjėëƎɆėŝĐėĐɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤɆǂėƎėɆëƪƢķŨƎļƖėĐɆįŨƎɆļƖƖƪėɆļŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆëɆƎėƖŨŒƪƢļŨŝɆ
of the Directors on 3 March 2022.
¶ķėɆŨśƋëŝLjɆķëƖɆƢëŏėŝɆëĐǁëŝƢëİėɆŨįɆƢķėɆėLJėśƋƢļŨŝɆįƎŨśɆƋƎėƋëƎļŝİɆëɆĉëƖķɆǙŨǂɆƖƢëƢėśėŝƢɆƪŝĐėƎɆƋëƎëİƎëƋķɆǫȩİȪɆŨįɆƢķėɆĐļƖĉŒŨƖƪƎėɆ
exemptions from EU-adopted IFRS for qualifying entities included in Financial Reporting Standard 101 Reduced Disclosure Framework
ȩD¡©ɆǤǣǤȪșɆ¶ķėɆ,ŝƢëļŝɆdɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆįŨƎɆƢķėɆLjėëƎɆėŝĐėĐɆǦǤɆ$ėĉėśĈėƎɆǥǣǥǤɆĉŨŝƢëļŝɆëɆĉŨŝƖŨŒļĐëƢėĐɆƖƢëƢėśėŝƢɆŨįɆ
ĉëƖķɆǙŨǂƖș
The Company is exempt under paragraph 8(k) of the disclosure exemptions from EU-adopted IFRS included in FRS 101 for qualifying
entities from disclosing related party transactions with entities that form part of the Entain PLC group of which Entain PLC is the ultimate
parent undertaking.
¶ķėɆŨśƋëŝLjȼƖɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëƎėɆƋƎėƖėŝƢėĐɆļŝɆŨƪŝĐƖɆ©ƢėƎŒļŝİɆȩɞȪșɆŒŒɆǁëŒƪėƖɆëƎėɆļŝɆśļŒŒļŨŝƖɆȩɞśȪɆƎŨƪŝĐėĐɆƢŨɆŨŝėɆĐėĉļśëŒɆƋŒëĉėɆ
ėLJĉėƋƢɆǂķėƎėɆŨƢķėƎǂļƖėɆļŝĐļĉëƢėĐșɆ¶ķėɆŨśƋëŝLjȼƖɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëƎėɆļŝĐļǁļĐƪëŒɆėŝƢļƢLjɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖș
ǥɆëƖļƖɆŨįɆƋƎėƋëƎëƢļŨŝ
¶ķėƖėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆǂėƎėɆƋƎėƋëƎėĐɆļŝɆëĉĉŨƎĐëŝĉėɆǂļƢķɆD¡©ɆǤǣǤɆëŝĐɆQƖŒėɆŨįɆnëŝɆŨśƋëŝļėƖɆĉƢɆǥǣǣǩșɆ¶ķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆ
ëƎėɆƋƎėƋëƎėĐɆŨŝɆëɆİŨļŝİɆĉŨŝĉėƎŝɆĈëƖļƖɆƪŝĐėƎɆƢķėɆķļƖƢŨƎļĉëŒɆĉŨƖƢɆĉŨŝǁėŝƢļŨŝɆėLJĉėƋƢɆįŨƎɆĉėƎƢëļŝɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖɆśėëƖƪƎėĐɆëƢɆįëļƎɆǁëŒƪėșɆ
DŨƎɆĐėƢëļŒƖɆŨŝɆƢķėɆİŨļŝİɆĉŨŝĉėƎŝɆĉŨŝƖļĐėƎëƢļŨŝƖɆśëĐėȚɆƖėėɆŝŨƢėɆǥɆŨįɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖș
¶ķėɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖɆǂķļĉķɆįŨŒŒŨǂɆļŝɆŝŨƢėɆǦɆƖėƢɆŨƪƢɆƢķŨƖėɆƋŨŒļĉļėƖɆǂķļĉķɆëƋƋŒLjɆļŝɆƋƎėƋëƎļŝİɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆįŨƎɆƢķėɆLjėëƎɆėŝĐėĐɆ
31 December 2021 and have been applied consistently to all years presented.
The Company has taken advantage of the following disclosure exemptions under FRS 101 in respect of:
(a) IFRS 3 Business Combinations;
(b) the requirements of IFRS 7 Financial Instruments: Disclosures;
(c) IFRS 13 Fair Value Measurement;
(d) Share-based payments;
(e) Intra-Group-related party transactions;
(f) Related party transactions.
DŨƎɆĐėƢëļŒƖɆŨįɆëƪĐļƢɆįėėƖȚɆƖėėɆŝŨƢėɆǪɆŨįɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖș
¶ķėɆ$ļƎėĉƢŨƎƖɆķëǁėɆļĐėŝƢļǘėĐɆƢķëƢɆļƢɆļƖɆëƋƋƎŨƋƎļëƢėɆƢŨɆƋƎėƖėŝƢɆƢķėɆśëŌŨƎļƢLjɆŨįɆëśŨƪŝƢƖɆŨǂėĐɆĈLjɆŨƢķėƎɆEƎŨƪƋɆƪŝĐėƎƢëŏļŝİƖɆëƖɆŝŨŝȯĉƪƎƎėŝƢɆ
assets; this is on the basis that whilst all amounts due from Group companies are repayable on demand the expectation is that only
£97.5m will be settled within one year of the balance sheet date. In making this assessment in the current year, the Directors have
ļĐėŝƢļǘėĐɆƢķëƢɆƢķėɆśëŌŨƎļƢLjɆŨįɆƢķėɆɞǤȚǣǣǬșǫśɆëśŨƪŝƢɆƎėĉėļǁëĈŒėɆįƎŨśɆEƎŨƪƋɆĉŨśƋëŝļėƖɆļŝɆƢķėɆĉŨśƋëƎëƢļǁėɆƋėƎļŨĐɆƖķŨƪŒĐɆëŒƖŨɆķëǁėɆĈėėŝɆ
ƋƎėƖėŝƢėĐɆëƖɆŝŨŝȯĉƪƎƎėŝƢɆëƖƖėƢƖșɆ¶ķėɆ$ļƎėĉƢŨƎƖɆĉŨŝƖļĐėƎɆƢķëƢɆƢķėɆŏėLjɆśėƢƎļĉƖɆƢŨɆƢķėɆƪƖėƎƖɆŨįɆƢķėɆŨśƋëŝLjɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆëƎėɆƢŨƢëŒɆ
ëƖƖėƢƖɆëŝĐɆŝėƢɆëƖƖėƢƖɆëŝĐɆëƖɆƢķļƖɆĉķëŝİėɆķëƖɆŝŨɆļśƋëĉƢɆŨŝɆėļƢķėƎɆŨįɆƢķėƖėɆśėƢƎļĉƖȚɆëŝĐɆŝŨɆļśƋëĉƢɆŨŝɆƢķėɆŨśƋëŝLjȼƖɆƎėƋŨƎƢėĐɆƋƎŨǘƢɆŨƎɆ
ŒŨëŝɆĉŨǁėŝëŝƢƖȚɆƢķėɆ$ļƎėĉƢŨƎƖɆķëǁėɆĉŨŝĉŒƪĐėĐɆƢķëƢɆƢķėɆļśƋëĉƢɆŨŝɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆļƖɆŝŨƢɆśëƢėƎļëŒɆëŝĐɆƢķėƎėįŨƎėɆƢķėɆƋƎļŨƎɆLjėëƎɆ
balance has not been restated.
ǦɆ©ƪśśëƎLjɆŨįɆƖļİŝļǘĉëŝƢɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖɆ
Investments
Investments comprise interests in subsidiary companies and are held as non-current assets stated at cost less provision for impairment.
The Company assesses these investments for impairment wherever events or changes in circumstances indicate that the carrying value
of an investment may not be recoverable. If any such indication of impairment exists, the Company makes an estimate of the recoverable
amount. If the recoverable amount is less than the value of the investment, the investment is considered to be impaired and is written
down to its recoverable amount. An impairment loss is recognised immediately in the income statement.
ëƖķɆëŝĐɆĉëƖķɆėƍƪļǁëŒėŝƢƖ
Cash and short term deposits in the balance sheet consist of cash at banks and in hand, short-term deposits with an original maturity of
less than three months.
Financial assets
Financial assets are recognised when the Company becomes party to the contracts that give rise to them.
¶ķėɆŨśƋëŝLjɆĉŒëƖƖļǘėƖɆǘŝëŝĉļëŒɆëƖƖėƢƖɆëƢɆļŝĉėƋƢļŨŝɆëƖɆėļƢķėƎɆǘŝëŝĉļëŒɆëƖƖėƢƖɆëƢɆįëļƎɆǁëŒƪėɆŨƎɆŒŨëŝƖɆëŝĐɆƎėĉėļǁëĈŒėƖșɆDļŝëŝĉļëŒɆëƖƖėƢƖɆ
ëƢɆįëļƎɆǁëŒƪėɆƢķƎŨƪİķɆƋƎŨǘƢɆŨƎɆŒŨƖƖɆëƎėɆśėëƖƪƎėĐɆļŝļƢļ댌LjɆëƢɆįëļƎɆǁëŒƪėȚɆǂļƢķɆƢƎëŝƖëĉƢļŨŝɆĉŨƖƢƖɆƢëŏėŝɆĐļƎėĉƢŒLjɆƢŨɆļŝĉŨśėɆƖƢëƢėśėŝƢșɆ
Subsequently, the fair values are remeasured and gains and losses from changes therein are recognised in the income statement.
pŨƢėƖɆƢŨɆƢķėɆŨśƋëŝLjɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆ
for the year ended 31 December 2021
207
Overview
|
Strategic report
|
Governance
|
Financial statements
Entain plc
|
Annual Report 2021
ǦɆ©ƪśśëƎLjɆŨįɆƖļİŝļǘĉëŝƢɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖɆ(continued)
Financial assets (continued)
dŨëŝƖɆëŝĐɆƎėĉėļǁëĈŒėƖɆëƎėɆŝŨŝȯĐėƎļǁëƢļǁėɆǘŝëŝĉļëŒɆëƖƖėƢƖɆǂļƢķɆǘLJėĐɆŨƎɆĐėƢėƎśļŝëĈŒėɆƋëLjśėŝƢƖɆƢķëƢɆëƎėɆŝŨƢɆƍƪŨƢėĐɆļŝɆëŝɆëĉƢļǁėɆśëƎŏėƢșɆ
On initial recognition, loans and receivables are measured at fair value plus directly attributable transaction costs. Subsequently, such
assets are measured at amortised cost, using the effective interest (EIR) method, less any allowance for impairment.
Financial liabilities
DļŝëŝĉļëŒɆŒļëĈļŒļƢļėƖɆĉŨśƋƎļƖėɆƋƎėĐŨśļŝëŝƢŒLjɆëśŨƪŝƢƖɆĐƪėɆƢŨɆŨƢķėƎɆEƎŨƪƋɆĉŨśƋëŝļėƖșɆ{ŝɆļŝļƢļëŒɆƎėĉŨİŝļƢļŨŝȚɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖɆëƎėɆ
śėëƖƪƎėĐɆëƢɆįëļƎɆǁëŒƪėɆƋŒƪƖɆƢƎëŝƖëĉƢļŨŝɆĉŨƖƢƖɆǂķėƎėɆƢķėLjɆëƎėɆŝŨƢɆĉëƢėİŨƎļƖėĐɆëƖɆǘŝëŝĉļëŒɆŒļëĈļŒļƢļėƖɆëƢɆįëļƎɆǁëŒƪėɆƢķƎŨƪİķɆƋƎŨǘƢɆŨƎɆŒŨƖƖșɆ
DļŝëŝĉļëŒɆŒļëĈļŒļƢļėƖɆëƢɆįëļƎɆǁëŒƪėɆƢķƎŨƪİķɆƋƎŨǘƢɆŨƎɆŒŨƖƖɆëƎėɆśėëƖƪƎėĐɆļŝļƢļ댌LjɆëƢɆįëļƎɆǁëŒƪėȚɆǂļƢķɆƢƎëŝƖëĉƢļŨŝɆĉŨƖƢƖɆƢëŏėŝɆĐļƎėĉƢŒLjɆƢŨɆƢķėɆ
income statement. Subsequently, the fair values are remeasured and gains and losses from changes therein are recognised in the
income statement.
$ėƎėĉŨİŝļƢļŨŝɆŨįɆǘŝëŝĉļëŒɆëƖƖėƢƖɆëŝĐɆŒļëĈļŒļƢļėƖɆ
DļŝëŝĉļëŒɆëƖƖėƢƖɆëƎėɆĐėƎėĉŨİŝļƖėĐɆǂķėŝɆƢķėɆƎļİķƢɆƢŨɆƎėĉėļǁėɆĉëƖķɆǙŨǂƖɆįƎŨśɆƢķėɆëƖƖėƢƖɆķëƖɆėLJƋļƎėĐɆŨƎɆǂķėŝɆƢķėɆŨśƋëŝLjɆķëƖɆƢƎëŝƖįėƎƎėĐɆ
ļƢƖɆĉŨŝƢƎëĉƢƪëŒɆƎļİķƢɆƢŨɆƎėĉėļǁėɆƢķėɆĉëƖķɆǙŨǂƖɆįƎŨśɆƢķėɆǘŝëŝĉļëŒɆëƖƖėƢƖɆŨƎɆķëƖɆëƖƖƪśėĐɆëŝɆŨĈŒļİëƢļŨŝɆƢŨɆƋëLjɆƢķėɆƎėĉėļǁėĐɆĉëƖķɆǙŨǂƖɆļŝɆįƪŒŒɆ
without material delay to a third party, and either:
– Substantially all the risks and rewards of ownership have been transferred; or
– Substantially all the risks and rewards have neither been retained nor transferred but control is not retained.
Financial liabilities are derecognised when the obligation is discharged, cancelled or expires.
ƪƎƎėŝƢɆëŝĐɆĐėįėƎƎėĐɆļŝĉŨśėɆƢëLJ
The Company is tax resident in the United Kingdom.
The tax expense for the period comprises current and deferred tax. Tax is recognised in the income statement, except to the extent that
it relates to items recognised in other comprehensive income or directly in shareholders’ funds. In this case, the tax is also recognised in
other comprehensive income or directly in shareholders’ funds, respectively.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the
countries where the Company operates and generates taxable income. Management periodically evaluates positions taken in tax returns
with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the
basis of amounts expected to be paid to the tax authorities.
Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying
ëśŨƪŝƢƖɆļŝɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖșɆLŨǂėǁėƎȚɆĐėįėƎƎėĐɆƢëLJɆŒļëĈļŒļƢļėƖɆëƎėɆŝŨƢɆƎėĉŨİŝļƖėĐɆļįɆƢķėLjɆëƎļƖėɆįƎŨśɆƢķėɆļŝļƢļëŒɆƎėĉŨİŝļƢļŨŝɆŨįɆ
goodwill; or arise from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the
ƢƎëŝƖëĉƢļŨŝɆëįįėĉƢƖɆŝėļƢķėƎɆëĉĉŨƪŝƢļŝİɆŝŨƎɆƢëLJëĈŒėɆƋƎŨǘƢɆŨƎɆŒŨƖƖș
Deferred income tax is recognised using the tax rates (and laws) that have been enacted or substantially enacted by the balance sheet
date and are expected to apply then the related deferred income tax asset is realised or the deferred income tax liability is settled.
$ėįėƎƎėĐɆƢëLJɆëƖƖėƢƖɆëƎėɆŨŝŒLjɆƎėĉŨİŝļƖėĐɆƢŨɆƢķėɆėLJƢėŝƢɆļƢɆļƖɆƋƎŨĈëĈŒėɆƢķëƢɆƢķėƎėɆǂļŒŒɆĈėɆƖƪļƢëĈŒėɆƢëLJëĈŒėɆƋƎŨǘƢƖɆįƎŨśɆǂķļĉķɆƢķėLjɆĉëŝɆ
be recovered.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current
tax liabilities and when the deferred income taxes assets and liabilities relate to income taxes levied by the same taxation authority on
either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis. Deferred tax
balances are not discounted.
Foreign currency translation
Transactions in foreign currencies are initially recorded in Pounds Sterling (£) at the foreign currency rate ruling at the date of the
transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into Pounds Sterling (£) at the rates of
exchange ruling at the balance sheet date (the closing rate).
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date
of the initial transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rate at the
date when the fair value was determined.
Dividends
DļŝëŒɆĐļǁļĐėŝĐƖɆƋƎŨƋŨƖėĐɆĈLjɆƢķėɆŨëƎĐɆŨįɆ$ļƎėĉƢŨƎƖɆëŝĐɆƪŝƋëļĐɆëƢɆƢķėɆLjėëƎɆėŝĐɆëƎėɆŝŨƢɆƎėĉŨİŝļƖėĐɆļŝɆƢķėɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆƪŝƢļŒɆƢķėLjɆ
have been approved by shareholders at the Annual General Meeting. Interim dividends are recognised when paid.
pŨƢėƖɆƢŨɆƢķėɆŨśƋëŝLjɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued
for the year ended 31 December 2021
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Annual Report 2021
208
Financial statements
ǦɆ©ƪśśëƎLjɆŨįɆƖļİŝļǘĉëŝƢɆëĉĉŨƪŝƢļŝİɆƋŨŒļĉļėƖɆ(continued)
Equity instruments
Equity instruments issued by the Company are recorded at the proceeds received net of direct issue costs.
©ķëƎėȯĈëƖėĐɆƋëLjśėŝƢƖ
The cost of equity settled transactions with employees is measured by reference to the fair value at the date on which they are granted
ȩƖėėɆŝŨƢėɆǦǤɆŨįɆƢķėɆĉŨŝƖŨŒļĐëƢėĐɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆįŨƎɆįƪƎƢķėƎɆĐėƢëļŒƖȪș
The cost of equity settled transactions is recharged to the respective employing entities.
Separately disclosed items
¶ŨɆëƖƖļƖƢɆļŝɆƪŝĐėƎƖƢëŝĐļŝİɆļƢƖɆƪŝĐėƎŒLjļŝİɆƋėƎįŨƎśëŝĉėȚɆƢķėɆŨśƋëŝLjɆķëƖɆĐėǘŝėĐɆƢķėɆįŨŒŒŨǂļŝİɆļƢėśƖɆŨįɆƋƎėȯƢëLJɆļŝĉŨśėɆëŝĐɆėLJƋėŝƖėɆëƖɆ
ƖėƋëƎëƢėŒLjɆĐļƖĉŒŨƖėĐɆļƢėśƖɆëƖɆƢķėLjɆƎėǙėĉƢɆļƢėśƖɆǂķļĉķɆëƎėɆėLJĉėƋƢļŨŝëŒɆļŝɆŝëƢƪƎėɆŨƎɆƖļǒėș
The separate disclosure of these items allows a clearer understanding of the trading performance on a consistent and comparable
ĈëƖļƖȚɆƢŨİėƢķėƎɆǂļƢķɆëŝɆƪŝĐėƎƖƢëŝĐļŝİɆŨįɆƢķėɆėįįėĉƢɆŨįɆŝŨŝȯƎėĉƪƎƎļŝİɆŨƎɆŒëƎİėɆļŝĐļǁļĐƪëŒɆƢƎëŝƖëĉƢļŨŝƖɆƪƋŨŝɆƢķėɆŨǁėƎ댌ɆƋƎŨǘƢëĈļŒļƢLjɆŨįɆ
the Company.
¶ķėɆƖėƋëƎëƢėŒLjɆĐļƖĉŒŨƖėĐɆļƢėśƖɆķëǁėɆĈėėŝɆļŝĉŒƪĐėĐɆǂļƢķļŝɆƢķėɆëƋƋƎŨƋƎļëƢėɆĉŒëƖƖļǘĉëƢļŨŝƖɆļŝɆƢķėɆļŝĉŨśėɆƖƢëƢėśėŝƢșɆDƪƎƢķėƎɆĐėƢëļŒƖɆëƎėɆ
given in note 6.
DļŝëŝĉėɆėLJƋėŝƖėɆëŝĐɆļŝĉŨśė
DļŝëŝĉėɆėLJƋėŝƖėɆëŝĐɆļŝĉŨśėɆëƎļƖļŝİɆŨŝɆļŝƢėƎėƖƢɆĈėëƎļŝİɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖɆĉëƎƎļėĐɆëƢɆëśŨƎƢļƖėĐɆĉŨƖƢɆëƎėɆƎėĉŨİŝļƖėĐɆļŝɆƢķėɆļŝĉŨśėɆ
statement using the effective interest rate method. Finance expense includes the amortisation of fees that are an integral part of the
ėįįėĉƢļǁėɆǘŝëŝĉėɆĉŨƖƢɆŨįɆëɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢȚɆļŝĉŒƪĐļŝİɆļƖƖƪėɆĉŨƖƢƖȚɆëŝĐɆƢķėɆëśŨƎƢļƖëƢļŨŝɆŨįɆëŝLjɆŨƢķėƎɆĐļįįėƎėŝĉėƖɆĈėƢǂėėŝɆƢķėɆëśŨƪŝƢɆ
ļŝļƢļ댌LjɆƎėĉŨİŝļƖėĐɆëŝĐɆƢķėɆƎėĐėśƋƢļŨŝɆƋƎļĉėșɆŒŒɆǘŝëŝĉėɆėLJƋėŝƖėƖɆëƎėɆƎėĉŨİŝļƖėĐɆŨǁėƎɆƢķėɆëǁëļŒëĈļŒļƢLjɆƋėƎļŨĐș
ǧɆ`ƪĐİėśėŝƢƖɆëŝĐɆŏėLjɆƖŨƪƎĉėƖɆŨįɆėƖƢļśëƢļŨŝɆƪŝĉėƎƢëļŝƢLj
¶ķėɆƋƎėƋëƎëƢļŨŝɆŨįɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆƎėƍƪļƎėƖɆśëŝëİėśėŝƢɆƢŨɆśëŏėɆëƖƖƪśƋƢļŨŝƖȚɆėƖƢļśëƢėƖɆëŝĐɆŌƪĐİėśėŝƢƖɆƢķëƢɆëįįėĉƢɆƢķėɆëśŨƪŝƢƖɆ
reported as assets and liabilities as at the balance sheet date and the amounts reported as revenues and expenses during the year.
Use of available information and application of judgement are inherent in the formation of estimates. Actual results in the future may
differ from those reported. In this regard, management believes that the accounting policies where estimation is applied are those that
relate to:
Investment in subsidiaries
The carrying value of investments is calculated as the initial cost at recognition less any provisions for impairment. The values used in
any impairment review are based on the same principles and methods as described in the Group accounting policies and in note 14 of the
Consolidated Financial Statements.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the
period in which the estimate is revised.
ǨɆ{ƋėƎëƢļŝİɆƋƎŨǘƢɆĈėįŨƎėɆƖėƋëƎëƢėŒLjɆĐļƖĉŒŨƖėĐɆļƢėśƖ
This is stated after crediting/(charging):
2021
£m
2020
£m
Management fees 14.6 12.2
Audit fees
(0.6) (0.6)
6 Separately disclosed items
2021
£m
2020
£m
Integration costs – 0.2
Legal and onerous contract provisions 4.5 6.2
Movement in fair value of contingent consideration
2.3 19.5
Issue costs write off 5.3 5.3
12.1 31.2
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Annual Report 2021
ǪɆDļŝëŝĉėɆėLJƋėŝƖėɆëŝĐɆļŝĉŨśė
2021
£m
2020
£m
Loan interest income 5.9 7.0
Intercompany interest
8.5 15.9
Loan interest expense
(3.5) (2.8)
EëļŝƖȦȩŒŨƖƖėƖȪɆëƎļƖļŝİɆįƎŨśɆĉķëŝİėɆļŝɆįëļƎɆǁëŒƪėɆŨįɆǘŝëŝĉļëŒɆļŝƖƢƎƪśėŝƢƖ 77.4 (59.8)
Losses arising from foreign exchange on debt instruments (0.1) (10.5)
pėƢɆǘŝëŝĉėɆļŝĉŨśėȦȩėLJƋėŝƖėȪ
88.2 (50.2)
ǫɆQŝĉŨśėɆƢëLJ
The tax credit for the year presented is £0.6m (2020: £nil).
ɆƎėĉŨŝĉļŒļëƢļŨŝɆŨįɆļŝĉŨśėɆƢëLJɆëƋƋŒļĉëĈŒėɆƢŨɆƋƎŨǘƢɆȩǥǣǥǣțɆŒŨƖƖȪɆĈėįŨƎėɆƢëLJɆëƢɆƢķėɆ½bɆƖƢëƢƪƢŨƎLjɆļŝĉŨśėɆƢëLJɆƎëƢėɆƢŨɆƢķėɆļŝĉŨśėɆƢëLJɆįŨƎɆƢķėɆ
years ended 31 December 2021 and 31 December 2020 is as follows:
2021
£m
2020
£m
ƎŨǘƢȦȩŒŨƖƖȪɆĈėįŨƎėɆƢëLJ 266.7 (80.7)
Corporate tax credit thereon at 19.00% 50.7 (15.3)
Adjusted for the effects of:
– Non-taxable income (36.6) (4.3)
– Non-deductible expenses
1.5 6.8
– Group relief claimed
(15.6) –
– Tax losses carried forward
– 12.8
– Overseas tax credit
(0.6) –
Income tax credit
(0.6) –
There is no deferred tax present on the balance sheet for either periods presented.
9 Dividends
Please see note 11 of the Consolidated Financial Statements.
10 Investments
Total
£m
Cost and net book value
At 1 January 2020 3,950.9
Additions 57.7
At 31 December 2020 4,008.6
Cost and net book value
At 1 January 2021 4,008.6
Additions
363.5
At 31 December 2021 4,372.1
Subsidiaries and other related entities are listed in note 34 of the Consolidated Financial Statements.
Additions in the year predominantly relate to the acquisition of Enlabs.
pŨƢėƖɆƢŨɆƢķėɆŨśƋëŝLjɆǘŝëŝĉļëŒɆƖƢëƢėśėŝƢƖɆcontinued
for the year ended 31 December 2021
Entain plc
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Financial statements
ǤǤɆ¶ƎëĐėɆëŝĐɆŨƢķėƎɆƎėĉėļǁëĈŒėƖ
2021
£m
2020
£m
Amounts due from Group companies 742.6 1,009.8
Other debtors
3.3 1.6
Prepayments
2.5 2.2
748.4 1,013.6
śŨƪŝƢƖɆŨįɆɞǩǨǣșǬśɆȩǥǣǥǣțɆɞŝļŒȪɆëƎėɆŝŨƢɆėLJƋėĉƢėĐɆƢŨɆĈėɆĉ댌ėĐɆƪƋŨŝɆǂļƢķļŝɆƢķėɆŝėLJƢɆǤǥɆśŨŝƢķƖɆįŨŒŒŨǂļŝİɆƢķėɆëƋƋƎŨǁëŒɆŨįɆƢķėƖėɆǘŝëŝĉļëŒɆ
ƖƢëƢėśėŝƢƖɆëŝĐɆķëǁėɆƢķėƎėįŨƎėɆĈėėŝɆĉŒëƖƖļǘėĐɆëƖɆŝŨŝȯĉƪƎƎėŝƢɆëƖƖėƢƖɆǂļƢķļŝɆƢķėɆëŒëŝĉėɆ©ķėėƢș
Other amounts owed by other Group undertakings are included under amounts falling due within one year as they are repayable on
demand, unsecured, and accumulate interest in a range between 0% and 4% plus IBOR.
ǤǥɆ¶ƎëĐėɆëŝĐɆŨƢķėƎɆƋëLjëĈŒėƖ
2021
£m
2020
£m
Current
Amounts due to Group companies
739.5 872.8
Other payables
4.8 2.5
744.3 875.3
Non-Current
Amounts due to Group companies
594.0 566.9
Amounts owed to other Group undertakings are included under amounts falling due within one year as they are repayable on demand,
unsecured, and accumulate interest in a range between 0% and 4% plus IBOR.
ǤǦɆQŝƢėƎėƖƢɆĈėëƎļŝİɆŒŨëŝƖɆëŝĐɆĈŨƎƎŨǂļŝİƖ
2021
£m
2020
£m
Current
Euro denominated loans
– 2.1
USD denominated loans
– (0.1)
Sterling denominated loans
– (2.6)
– (0.6)
Non-current
Euro denominated loans – –
USD denominated loans – –
Sterling denominated loans (6.8) (6.7)
(6.8) (6.7)
As at 31 December 2021 there were £590.0m (2020: £535.0m) of committed bank facilities against which £51.0m (2020: £55.0m) has
been utilised for letters of credit. Of the remaining balance £nil (2020: £nil) was drawn down. Fees in the year relating to the undrawn
facility were £6.8m (2020: £6.7m).
ǤǧɆDļŝëŝĉļëŒɆƎļƖŏɆśëŝëİėśėŝƢɆŨĈŌėĉƢļǁėƖɆëŝĐɆƋŨŒļĉļėƖ
¶ķėɆǘŝëŝĉļëŒɆƎļƖŏɆśëŝëİėśėŝƢɆŨĈŌėĉƢļǁėƖɆëŝĐɆƋŨŒļĉļėƖɆëƋƋŒļėĐɆĈLjɆƢķėɆŨśƋëŝLjɆëƎėɆļŝɆŒļŝėɆǂļƢķɆƢķŨƖėɆŨįɆƢķėɆEƎŨƪƋɆëƖɆĐļƖĉŒŨƖėĐɆļŝɆŝŨƢėɆǥǨɆ
to the Consolidated Financial Statements.
ǤǨɆ댌ėĐɆƪƋɆƖķëƎėɆĉëƋļƢëŒ
Details of the share capital of the Company are given in note 28 of the Consolidated Financial Statements.
16 Related party transactions
The Company has taken advantage of the exemption under paragraph 8(k) of FRS 101 not to disclose transactions with fellow wholly-
owned subsidiaries. See note 34 of the Consolidated Financial Statements for disclosure of remuneration of key management personnel.
17 Subsequent Events
For details of subsequent events affecting the Company, see note 36 of the Consolidated Financial Statements.
211
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Glossary
$ėǘŝļƢļŨŝɆŨįɆƢėƎśƖ
$ėǘŝļƢļŨŝɆŨįɆƢėƎśƖ
AAMS Automated accounts management systems
ĐŌƪƖƢėĐɆįƪŒŒLjɆĐļŒƪƢėĐɆ,©ɆĉėŝƢƖ Fully diluted earnings per share based on adjusted PBT
ĐŌƪƖƢėĐɆ¶ ƎŨǘƢɆĈėįŨƎėɆėLJĉėƋƢļŨŝëŒɆļƢėśƖȚɆëśŨƎƢļƖëƢļŨŝɆëƖƖŨĉļëƢėĐɆǂļƢķɆëĉƍƪļƖļƢļŨŝȚɆĐļǁļĐėŝĐƖɆįƎŨśɆƋƎėǁļŨƪƖŒLjɆ
sold businesses
AR Augmented reality
ARC™ Advanced Responsibility and Care
™, the Group’s safer betting and gaming technology programme
B2B Business-to-business
B2C Business-to-consumer
BI Business intelligence
CAGR Compound annual growth rate
CGUs Cash-generating units
CMS Customer marketing services
Constant currency basis Each month in the prior period re-translated at the current periods exchange rate
Contribution ¡ėǁėŝƪėɆŒėƖƖɆĈėƢƢļŝİɆƢëLJėƖȚɆƋëLjśėŝƢɆƖėƎǁļĉėɆƋƎŨǁļĐėƎɆįėėƖȚɆƖŨįƢǂëƎėɆƎŨLjëŒƢļėƖȚɆëįǘŒļëƢėɆĉŨśśļƖƖļŨŝƖȚɆ
revenue share and marketing costs
Contribution margin Contribution as a percentage of NGR
CRM Customer relationship management
CS Customer services
DTR Disclosure and transparency rules
EPS Earnings per share
ESG Environmental, social and governance
GGY Gross gaming revenue
GHG Greenhouse gas
EÔɆȦɆEÔɆLŨŒĐļŝİƖɆd The Group’s former name before becoming Entain plc in December 2021
H2GC H2 Gambling Capital – independent providers of betting and gaming market data and estimates
IA Internal audit and risk management
IAS International Accounting Standards
IFRS International Financial Reporting Standards
IOT Internet of things
KPIs Key performance indicators
KYC bŝŨǂɆLjŨƪƎɆĉƪƖƢŨśėƎɆȱɆĉƪƖƢŨśėƎɆǁėƎļǘĉëƢļŨŝɆƢŨŨŒƖɆ
Ladbrokes Coral Ladbrokes Coral Group Plc
LTIP Long-term incentive plan
MIP Management incentive plan
Net debt ëƖķɆëŝĐɆĉëƖķɆėƍƪļǁëŒėŝƢƖɆȩļŝĉŒƪĐļŝİɆëśŨƪŝƢƖɆƎėĉŨƎĐėĐɆëƖɆëƖƖėƢƖɆļŝɆĐļƖƋŨƖëŒɆİƎŨƪƋƖɆĉŒëƖƖļǘėĐɆëƖɆ
held for sale), less customer liabilities less interest bearing loans and borrowings
Net Gaming Revenue (“NGR”) Revenue before deducting VAT
NGR YTD Net Gaming Revenue in the year to date
RET Research, education and treatment associated with responsible gambling
Revenue Net Gaming Revenue less VAT (imposed by certain EU jurisdictions on either sports or gaming
revenue)
Sports Gross Win Margin Sports wagers less payouts
Sports Gross Win Margin % Sports Gross Win Margin divided by Sports wagers
Sports Net Gaming Revenue
(“Sports NGR”)
Sports Gross Win Margin less free bets and promotional bonuses
Sports Wagers Gross bets placed by customers on sporting events
TCFD Taskforce for Climate-related Financial Disclosures
Underlying EBITDA Stated pre separately disclosed items
VR Virtual reality
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Financial statements
Company name
Entain plc
Company number
4685V
©ėĉƎėƢëƎLjɆëŝĐɆƎėİļƖƢėƎėĐɇŨįǘĉė
Emily Carey
Entain plc
Telephone: +350 200 78700
ǂǂǂșėŝƢëļŝİƎŨƪƋșĉŨś
½bɆLėëĐɆ{įǘĉė
One New Change
London
EC4M 9AF
Registrars
Link Asset Services
The Registry
34 Beckenham Road
Beckenham
BR3 4TU
www.linkgroup.eu/get-in-touch/
shareholders-in-uk-companies
Telephone: 0871 664 0300 from the UK or
+44 (0)371 664 0300 from outside the UK
,śëļŒțɆƖķëƎėķŨŒĐėƎėŝƍƪļƎļėƖʀŒļŝŏİƎŨƪƋșĉŨșƪŏ
Auditors
KPMG LLP
St Nicholas House
31 Park Row
Nottingham
NG1 6FQ
Legal advisors
DƎėƖķǘėŒĐƖɆƎƪĉŏķëƪƖɆ$ėƎļŝİėƎ
DQ Advocates
Principal UK Bankers
Barclays Bank PLC
The Royal Bank of Scotland plc
Future trading updates
ëŝĐɆǘŝëŝĉļëŒɆĉëŒėŝĐëƎ
7 April Q1 trading update
7 July Post close trading update
11 August Interim results
13 October Q3 trading update
Corporate information
Shareholder information
Annual General Meeting
The Company’s 2022 AGM will be held on
Friday 24 June at 10:00 at The Brewery,
52 Chiswell Street, London EC1Y 4SD.
Details of each resolution to be considered
at the meeting and voting instructions
will be provided in the Notice of Meeting
that will be available on the Company’s
website at ǂǂǂșėŝƢëļŝİƎŨƪƋșĉŨśșɆ
¶ķėɇǁŨƢļŝİɆƎėƖƪŒƢƖɆŨįɆƢķėɆǥǣǥǥɆEnɆǂļŒŒɆ
be available on the Company’s website
at ǂǂǂșėŝƢëļŝİƎŨƪƋșĉŨś shortly after
the meeting.
Communications
Information about the Company, including
ǘŝëŝĉļëŒɆƎėƖƪŒƢƖɆëŝĐɆĐėƢëļŒƖɆŨįɆƢķėɆĉƪƎƎėŝƢɆ
share price, is available on the website,
ǂǂǂșėŝƢëļŝİƎŨƪƋșĉŨśș
©ķëƎėķŨŒĐļŝİɆĉŨŝƢëĉƢƖ
For any queries regarding your
shareholding, please contact our
registrars Link Asset Services.
©ķëƎėɆįƎëƪĐɆǂëƎŝļŝİ
Fraudsters use persuasive and high-
pressure tactics to lure investors into scams.
They may offer to sell shares that turn out
to be worthless or non-existent, or to buy
ƖķëƎėƖɆëƢɆëŝɆļŝǙëƢėĐɆƋƎļĉėɆļŝɆƎėƢƪƎŝɆįŨƎɆëŝɆ
ƪƋįƎŨŝƢɆƋëLjśėŝƢșɆÕķļŒėɆķļİķɆƋƎŨǘƢƖɆëƎėɆ
promised, if you buy or sell shares in this
way you will probably lose your money.
Should you receive any unsolicited calls or
documents to this effect, you are advised
not to give out any personal details or to
hand over any money without ensuring that
the organisation is authorised by the UK
Financial Conduct Authority (“FCA”) and
undertaking further research.
If you are unsure or you think you have been
targeted, you should report the organisation
to the FCA. For further information, please
visit the FCA’s website at www.fca.org.uk,
ėśëļŒɆĉŨŝƖƪśėƎșƍƪėƎļėƖʀįĉëșŨƎİșƪŏɆŨƎɆĉ댌Ɇ
the FCA consumer helpline on 0800 111
6768 (freephone), 0300 500 8082 (from the
UK) or +44 20 7066 1000 (if calling from
outside the UK).
213 Overview
|
Strategic report
|
Governance
|
Financial statements
Entain plc
|
Annual Report 2021
Entain plc
Incorporated in the Isle of Man
under number 4685V
ǂǂǂșėŝƢëļŝİƎŨƪƋșĉŨś
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