KPMG audit of Entain investigated by UK's accounting regulator

The U.K. auditing regulator said it was looking into KPMG LLP's work on British gambling company Entain Plc's accounts.

The Financial Reporting Council said the investigation was focused on an audit of the London-listed company's results ending in December 2022, according to a statement on Monday. 

There is no suggestion of wrongdoing by Entain itself in the FRC's statement. Entain shares fell 1.8% in London on Monday after the announcement.

Gambling operators have attracted increasing regulatory scrutiny in the U.K. in recent years, leading to significant fines. Entain agreed to pay a £615 million ($750 million) settlement in late 2023 in relation to a bribery investigation. It was previously fined £17 million ($20.7 million) by the Gambling Commission after failing to enforce player safety and anti-money-laundering measures.

"We will cooperate fully with the FRC to conclude this matter as quickly as possible," a spokesperson for KPMG told Bloomberg News.  

A representative for Entain declined to comment.