The future stability of online wagering conglomerate 888 Holdings, the proud owner of William Hill, has come under question as the validity of its UK operating license is subject to review by the powerful UK Gambling Commission (UKGC).
Investigation into 888 Prompted by Proposed Induction of Former GVC Executives
The trio – Lee Feldman, Kenny Alexander, and Stephen Morana – who held top-tier positions within GVC Holdings (currently Entain plc), are slated to step into significant roles as Chair, CEO, and CFO, respectively. Yet, concerns have surfaced concerning their associations with ongoing investigations into supposed bribery violations linked to Entain.
Entain has openly confessed to negotiating with the Crown Prosecution Service in regard to a postponed prosecution agreement. The probe encompasses a thorough examination of its past operations in Turkey along with potential impropriety involving prior third-party suppliers and employees. While 888 Holdings was asked for clarification on these matters, the explanations put forth by FS Gaming – the investment group lobbying for the proposed inductions – were deemed insufficient by the UKGC.
Consequently, the Commission has opted to initiate a review of 888 Holdings’ operational licenses in accordance with Section 116(2)(c)(ii) of the Gambling Act 2005. The outcome of this review might result in instantaneous suspension, revocation of licenses or the imposition of monetary penalties. The Commission made it clear that it reserves the right to veto any alterations in corporate control that might jeopardize the organization’s licenses.
888 Holdings Pledges to Fully Cooperate with UKGC Review
In light of the halted discussions, Lord Mendelsohn, Executive Chair of 888 Holdings, has conveyed his company’s dedication to fully cooperate with the ongoing review. Additionally, the Board of 888 Holdings is in the last stages of selecting a new CEO and anticipates making an announcement imminently. Despite the regulatory hurdles, Mendelsohn reassured stakeholders of the company’s unwavering concentration on its strategic objectives and projected market requirements for 2023.
The UKGC’s intervention has inflicted a substantial blow on 888 Holdings’ share value, marking a downward slide of more than 25%. Stakeholders and potential investors are keeping a close eye on the developments, with anticipation running high regarding the review’s findings and their potential implications.
FS Gaming, the investment group vouching for the new appointments, expressed surprise regarding the discussions’ discontinuation and declared its aim to persist in amplifying the value of its stake in 888 Holdings. The group had initially acquired a 6.6% ownership in 888 Holdings in early June. Yet, FS Gaming is not alone in seeing potential in 888 Holdings – activist investor HG Vora followed suit by increasing its stake in the company to 5.5% in the same month.
