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An attempt by activist investment group FS Gaming to take control of gambling company 888 Holdings PLC appears to have unraveled Friday amidst an alleged bribery scandal.
FS Gaming, made up of former Entain executives, built a 6.57% stake in 888 with the intention of installing a new leadership team.
The group placed Kenny Alexander, the former chief executive of GVC Holdings, now known as Entain, in a similar role at 888, while Stephen Morana, the former Betfair finance chief and a non-executive at Entain, was appointed finance director.
Entain is reportedly under investigation by HM Revenue & Customs (HMRC) for various offences that include bribery tied to the gambling group’s former Turkish subsidiaries. Entain sold its Turkish business in December 2017, shortly before buying Ladbrokes Coral for £3.6bn.
888 Holdings’ GB licence is also under review as a result of the matter.
888 said FS Gaming failed to provide “the most basic reassurances that addressed these concerns”, resulting in the regulator launching its review under Section 116 (2)(c)(ii) of the Gambling Act 2005 while noting that FS Gaming appointments had “no reasonable prospect of being approved”.
“While this engagement temporarily interrupted the very thorough search process to appoint a new CEO, the board is finalising its appointment and expects to make an announcement in the very near future,” 888 chairman Lord Mendelsohn added.
“The board remains firmly focused on delivering the group’s clear strategy to unlock shareholder value and I’m pleased to confirm that the business remains on track to deliver market expectations for 2023 adjusted EBITDA.”
From iGaming Business:
Among the potential offences under investigation are section 7 of the Bribery Act 2010. Entain noted historical misconduct involving former third party suppliers and former employees may have occurred.
- Gilbert Horowitz, Gambling911.com
