The UK Gambling Commission has concluded its review of 888 Holdings‘ license without imposing any regulatory action against the operator. The review was initiated following concerns over a proposed management takeover by former Entain CEO Kenny Alexander through FS Gaming, an investment vehicle.
Despite these initial concerns, the Commission has decided not to take any further action against 888 Holdings. The review, now concluded, was first announced in July of last year.
According to 888 Holdings, the Commission has cleared them of any regulatory action. The company stated: “The Commission has concluded the license review without imposing any license conditions, financial penalties or other remedies on the group after being satisfied that the risk to the licensing objectives under the Gambling Act that led to the review have been appropriately managed and adequately mitigated.”
The review was prompted by FS Gaming’s acquisition of a 6.57% stake in 888 Holdings, with plans for a management change involving Alexander as CEO, Lee Feldman as chair, and Stephen Morana as chief financial officer. This raised concerns over a potential change in corporate control that would require regulatory approval.
However, 888 Holdings terminated discussions with FS Gaming, citing the lack of approval prospects for the proposed management appointments. This move was prompted by the risk of losing its UK licenses if the appointments were not approved by the Commission.
Former Entain CEO Kenny Alexander
In a statement released by the Commission to iGB, they confirmed: “We understand from 888 Holdings the management proposals put forward by the new shareholders are no longer being pursued and have not been for some time.”
The Commission’s decision was based on wider assurances provided by 888 Holdings regarding the individuals involved in the management of the operator. Additionally, the settlement of HMRC’s investigation into GVC, now Entain, could have further alleviated concerns related to the proposed management changes.
The case primarily revolved around HMRC’s investigation into GVC’s former Turkish business, which resulted in a financial penalty and disgorgement of profits totaling £585 million ($739 million). This settlement, along with the resolution of the Turkey case, may have contributed to the Commission’s decision not to take regulatory action against 888 Holdings.
Looking ahead, 888 Holdings continues to navigate challenges in the industry, including a decline in revenue and organizational restructuring. The operator reported an 8% decline in revenue for 2023 and announced redundancies as part of changes to its organizational structure.
Furthermore, 888 Holdings has initiated a strategic review of its US B2C operations, considering partial or full sale options. This move follows the end of its partnership with Authentic Brands Group (ABG), allowing it to run sportsbooks and online casinos under the Sports Illustrated brand.
Original article: https://www.yogonet.com/international/noticias/2024/03/27/71452-888-holdings-avoids-ukgc-regulatory-action-after-management-takeover-scare
