FS Gaming Investments has recently reduced its stake in 888 Holdings from 6.57% to 4.55%, representing approximately 2% of the total holding. This move follows the cancellation of a deal with Shay Segev and is part of a broader context involving HMRC investigations into Entain’s Turkish operations.
Background:
Acquisition of Stake: FS Gaming Investments initially acquired a 6.57% stake and voting rights in 888 Holdings in June.
HMRC Investigation: The backdrop to this story includes ongoing investigations by HMRC into Kenny Alexander and Lee Feldman’s involvement in Turkish operations during their tenure at Entain (formerly known as GVC).
HMRC’s Focus: HMRC’s investigation specifically centers on Entain’s former Turkish-facing business, including historical misconduct related to third-party suppliers and former employees. Alleged offences include violations of the Bribery Act 2010, notably section 7.
Entain’s Response: In its Q2 report, Entain revealed it had set aside £585 million to address the HMRC investigation. Chairman Barry Gibson emphasized that Entain, in its current form, differs significantly from the GVC of the past, highlighting changes in management, strategy, and standards.
888’s Licensing Review: 888 Holdings faced a license review by the UK Gambling Commission, prompting a pause in discussions to appoint Lee Feldman, Kenny Alexander, and Stephen Morana as Chair, CEO, and CFO, respectively. These talks were ultimately terminated.
FS Gaming’s Reduction in Stake:
FS Gaming’s decision to reduce its stake in 888 Holdings to 4.55% is seen as a direct response to 888’s suspension and subsequent termination of FS Gaming’s proposed 6% investment offer in July.
FS Gaming Investments’ reduction in its stake in 888 Holdings adds another layer of complexity to the ongoing developments in the gaming industry. The cancellation of the deal with Shay Segev and the broader HMRC investigations highlight the evolving landscape and scrutiny surrounding gambling companies. As these events unfold, the industry continues to adapt to regulatory changes and legal challenges.