Itai Pazner, Chief Executive Officer of British bookmaker 888 Holdings, is stepping down, effective immediately. The decision was announced in a regulatory statement on Monday, with the company further adding that it is set to suspend VIP activities in the Middle East pending an internal investigation.
The company’s shares tumbled as much as 14.4% on the news, before recovering a little to stand about 11% lower, reports Reuters. Pazner led the company for around four years, including overseeing the acquisition of bookmaker William Hill’s international assets from US-based casino giant Caesars Entertainment in 2021.
Pazner was appointed CEO of 888 in January 2019, having risen through the ranks during two decades at the group. As Chief Executive, he also oversaw expansion efforts across North America in both the US and Canada.
Non-Executive Chair Jonathan Mendelsohn will take over as executive chair on an interim basis while the board searches for a new CEO. “On behalf of the board I would like to thank Itai for his significant contributions to the business over more than 20 years, including the last four as CEO,” Mendelsohn said.
“Itai has played a very important role in building a business with powerful proprietary technology and has overseen successful early stages to the William Hill integration process,” added the new interim CEO. “We wish him well in his future endeavors.”
No reason was given for Pazner’s departure, which coincided with the operator announcing the suspension of VIP activities in certain markets. According to a separate statement, some anti-money laundering and Know Your Client processes were not followed for the company’s VIP customers in the Middle East, leading the bookmaker to stop such activities in the region. 888 estimates that the move will hit the group’s overall revenue by at least 3%.
“While further internal investigations are underway, the board has taken the decision to suspend VIP customer accounts in the region, effective immediately,” 888 Holdings said in a statement. “Based on the board’s current understanding, the process deficiencies identified are isolated to this region only.”
Jonathan Mendelsohn
“The board and I take the group’s compliance responsibilities incredibly seriously,” stated Mendelsohn. “When we were alerted to issues with some of 888’s VIP customers, the board took decisive actions. We will be uncompromising in our approach to compliance as we build a strong and sustainable business.”
Pazner’s departure follows a report earlier this month that the group’s revenue for 2022 dropped 3%, as tightened online player safety measures in the UK and the closure of its Dutch operations reduced revenue in its online business by 15%. The loss of its CEO could leave 888 in a precarious position as it looks to reassure wary investors with plans to cut its £1.8 billion ($2.2 billion) debt pile, largely resulting from the William Hill acquisition, notes Financial Times.
Following the financial report, finance chief Yariv Dafna announced he would be leaving the business at the end of March. However, 888 has now issued an update explaining Dafna will stay until the end of the year. The business also said that non-executive director Andria Vidler would be taking over as chair of the ESG committee, replacing Jon Mendelsohn as he takes on his new role as interim CEO.
According to a media report published by CTech last week, 888’s Tel Aviv office had laid off “dozens” of the site’s 590 employees, as it seeks to cut costs amid increased operating costs to manage a greater number of customers and increased regulatory and player protection requirements.
Original article: https://www.yogonet.com/international/news/2023/01/30/65891-888-ceo-itai-pazner-steps-down-company-to-cease-vip-activites-in-middle-east-amid-compliance-failures
