On June 6, 2023, the investor group FS Gaming made an offer for a 6% stake in 888. However, the proposal has raised concerns due to an ongoing investigation by HMRC into Entain, a company linked to the proposed appointees for key positions at 888.
FS Gaming’s Proposal
Investor group FS Gaming presented a proposal to acquire a 6% stake in 888. They also suggested appointing their members, Lee Feldman, Kenny Alexander, and Stephen Morana, as Chair, CEO, and CFO of 888. Notably, all of these proposed appointees have previous affiliations with GVC Holdings, now known as Entain.
Entain’s HMRC Investigation
As of May 31, 2023, Entain found itself under investigation by HMRC due to its former Turkish-facing business. The company acknowledged historical misconduct involving third-party suppliers and former employees. The investigation encompassed various offenses, including violations of section 7 of the Bribery Act 2010.
888 Board’s Evaluation
The 888 Board thoroughly assessed the risks associated with FS Gaming’s proposal, taking into consideration the ongoing HMRC investigation involving Entain and its former Turkish operations. The potential impact on 888’s operations and reputation played a significant role in their deliberations.
Collaboration with the Gambling Commission (GC)
888 has been actively engaging with the Gambling Commission (GC) regarding FS Gaming’s proposal. The GC expressed concerns about the ongoing HMRC investigation and requested regular updates from 888 to fulfill its regulatory responsibilities.
GC Initiates Licence Review
Based on the information provided, the Gambling Commission informed FS Gaming on July 14, 2023, that it would initiate a review of the group’s operating licenses under Section 116 (2)(c)(ii) of the Gambling Act 2005. This decision reflects the GC’s commitment to ensuring the integrity of the gambling industry in Great Britain.
FS Gaming’s Cooperation
FS Gaming has confirmed its full cooperation with the Gambling Commission during the licence review process. This demonstrates their commitment to transparency and compliance with regulatory requirements.
888’s investment decision regarding FS Gaming’s proposal has been delayed due to concerns arising from Entain’s HMRC investigation. The involvement of individuals with ties to Entain has prompted a comprehensive evaluation by the 888 Board. The Gambling Commission has initiated a licence review to ensure the industry’s integrity. FS Gaming’s cooperation in this process underscores the importance of regulatory compliance in the gambling sector. The outcome of this review will have significant implications for both 888 and FS Gaming.