Gambling Commission Concludes 888 Review with No Action

The Gambling Commission has finished its evaluation of 888 and decided not to take any action.

The UK Gambling Commission has ended its probe into the online betting company 888 Holdings and has decided not to take any action. The investigation started when FS Gaming, with the backing of former Entain CEO Kenny Alexander, purchased a 6.57% share in 888. Once on board, Alexander, along with other ex-Entain leaders Lee Feldman and Stephen Morana, aimed to become top executives at 888. This move could have increased FS Gaming's influence in 888 to more than 10%, a change usually needing the Commission's approval for the company to keep its gambling license.

The Commission decided not to take any more steps because the appointments they wanted are no longer possible. By stopping discussions with FS Gaming, 888 made sure it didn't lose its UK licence. The Commission stopped its review after 888's leaders promised to address the concerns they had earlier.

Here are the key points of the concluded review:

• FS Gaming's influence on 888's management put 888's UK licence at risk.
• The UK Gambling Commission has ended its review with no penalties for 888.
• Former issues with GVC (formerly Entain) and its Turkish business were a significant concern.
• 888 is now making organizational changes, which includes redundancies.
• 888 is also reassessing its strategy in the US, potentially resulting in a sale of its American B2C operations.

Reasons for the Commission's Worries

The UK Gambling Commission had concerns after the tax authority investigated GVC, now known as Entain, for possible bribery in its past Turkish business. This led to Entain paying a large amount of money to settle the claims. During this time, the gaming company 888 planned to change its leaders but decided not to hire the ones supported by FS Gaming, which helped it avoid similar problems with the Commission.

Turkish Business Impact on GVC

Entain once owned a company called Headlong Limited but sold it to Ropso Malta for €150 million in 2017. They agreed not to take extra money later to make the sale easier and avoid trouble with rules. However, the UK tax office started looking into Entain's parent company, GVC, because of the sale, which made things difficult for both Entain and 888 Holdings as they had to rethink their strategies.

What Next for 888 Holdings?

The Gambling Commission's decision is good news for 888 as they prepare to improve their performance with Per Widerström as the new CEO. The company's revenue fell by 8% in 2023 to £1.71 billion, and now they plan to reorganize, including cutting jobs, to become more stable and successful.

Review of 888's US Operations

At the same time as dealing with its UK regulatory issues, the company 888 Holdings is looking into its options for the part of its business that deals with US customers directly. They are considering selling all or part of this segment. The company plans to keep working with other businesses as usual. They haven't set a deadline to finish this review but will share information when they report their annual earnings.

888 is ending its business arrangement with Authentic Brands Group and has agreed to pay as much as $50 million, split into two payments. By doing so, 888 will no longer manage any Sports Illustrated branded sports betting and online casino operations in the United States.

Impacts on Long-term Business Planning and Daily Activities

888 Holdings is at a critical point after ending the review by the Gambling Commission and reevaluating its business in the US. The company's UK branch is doing well and has not been fined, but now they're looking at whether to sell off or slowly leave the US market. What happens next for the company will be clearer once they report their yearly earnings and the new CEO shares his plans.

Knowing that the Gambling Commission's decision is based on firm assurances and internal changes at 888 is crucial for investors and stakeholders. Interested parties looking for detailed information on the UK Gambling Commission's licensing requirements can visit the official government website, which outlines all regulations and procedures for gambling operators in the UK. Find comprehensive details here: UK Gambling Commission.

Following UK gambling laws is crucial for gambling companies to keep running safely. 888 follows these rules closely, and the Gambling Commission checks to make sure they do. This keeps the business going in a way that is legal and good for the public.