888 Holdings emerges unscathed following review by Gambling Commission

Lea Hogg March 22, 2024

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888 Holdings emerges unscathed following review by Gambling Commission

The UK Gambling Commission has finalized its review of 888 Holdings, opting for no regulatory intervention post concerns regarding a potential management takeover by FS Gaming, the investment entity associated with Kenny Alexander, former CEO of Entain.

Prelude to regulatory scrutiny?

In July of the preceding year, the Commission embarked on a review subsequent to FS Gaming’s acquisition of a 6.57 percent share in 888 Holdings. This event was succeeded by intentions for a trio of erstwhile Entain executives to helm 888 Holdings, with Kenny Alexander (photo above), poised as CEO, Lee Feldman as chair, and Stephen Morana as CFO. The prospective reshuffle of management incited a regulatory examination due to the implications of a shift in corporate control, which would necessitate the Commission’s endorsement.

Should the proposed appointments have materialized, FS Gaming’s interest in 888 would have escalated beyond 10%, invoking a need for regulatory consent. Nonetheless, 888 Holdings ceased negotiations with FS Gaming, attributing the decision to the improbability of obtaining regulatory approval and the ensuing jeopardy to its UK licences.

On 22 March, 888 Holdings disseminated a communiqué announcing the Gambling Commission’s termination of the license review, devoid of any impositions or stipulations. Corroborating this, the Commission acknowledged the discontinuation of the management alteration propositions and additional assurances from 888 Holdings, rendering further action unnecessary.

The Commission’s apprehensions were rooted in HMRC’s probe into GVC, which underwent a rebranding to Entain, and its antecedent operations in Turkey. Despite FS Gaming’s inability to furnish adequate reassurances concerning these issues, the situation has reached a resolution, with Entain conceding to substantial financial penalties and associated expenditures.

The case in Turkey, culminating in a ￡936.5 million deficit for Entain in 2023, encompassed potential transgressions under the Bribery Act 2010. Entain conceded to historical malpractices involving external suppliers and past employees, eliciting regulatory attention.

Board’s deliberation and outcome

888 Holdings’ directorate conducted a comprehensive evaluation of the risks pertinent to the HMRC investigation, including insights from historical dialogues between William Hill and GVC. The influence of the Turkish case’s settlement on the Gambling Commission’s resolution to conclude the review without further measures remains undisclosed.

To sum up, it seems that the culmination of this review accentuates the significance of adherence to regulatory mandates and the management of risks within the gambling sector. Despite initial trepidations concerning FS Gaming’s attempted acquisition, 888 Holdings has navigated the regulatory tempest successfully, maintaining its licenses without incurring any regulatory penalties.