Coral and Ladbrokes owner Entain has set aside £585m to cover potential fines relating to a probe by HMRC into alleged bribery at its former Turkish business.

Entain said it has made the provision as it continues negotiations with the Crown Prosecution Service (CPS) following a four-year investigation.

The company had previously warned it might face a “substantial financial penalty” because of conduct at its former subsidiary in Turkey.

Authorities started investigating the firm’s suppliers in 2019, and a year later started to look at the GVC Group, which subsequently rebranded as Entain.

Entain sold the Turkish subsidiary in 2017 before the investigation started.

Chairman Barry Gibson said: “We are pleased to be making good progress towards drawing a line under this historical issue, which relates to a business that was sold by a former management team of the group nearly six years ago.

“We have been working closely with the CPS throughout this process, and they have recognised our extensive co-operation.

“Following a complete overhaul of our business model, strategy and culture in the last few years, the Entain of today bears no resemblance to the GVC of yesterday.”