Entain, the world’s largest online gambling company, has agreed to a £585 million settlement with HM Revenue and Customs (HMRC) to resolve a long-running investigation into its tax affairs.

The investigation, which began in 2014, focused on the company’s use of offshore structures to reduce its UK tax liabilities. Entain, which is based in the Isle of Man and is listed on the London Stock Exchange, has agreed to pay the full amount of tax due, plus interest and penalties.

The settlement is the largest ever reached between HMRC and a gambling company. It follows a similar agreement with William Hill in 2018, which saw the bookmaker pay £424 million in back taxes.

Entain said in a statement that it had “cooperated fully” with HMRC throughout the investigation and that it had “always sought to comply with all applicable laws and regulations”.

The settlement is a major victory for HMRC, which has been cracking down on tax avoidance by multinational companies in recent years. It is also a sign that the government is taking a tougher stance on companies that seek to reduce their tax liabilities by using offshore structures.

For Entain, the settlement will have a significant impact on its finances. The company said that it had taken a £585 million charge in its accounts for the year ended December 31, 2020, to cover the cost of the settlement.

The settlement is also likely to be seen as a warning to other companies that HMRC is serious about tackling tax avoidance. Companies that are found to be using offshore structures to reduce their UK tax liabilities could face similar penalties in the future.

Overall, Entain’s agreement to pay £585 million to HMRC is a significant victory for the government in its efforts to tackle tax avoidance. It is also likely to be seen as a warning to other companies that they should not use offshore structures to reduce their UK tax liabilities.