888 investment put on hold as FS Gaming undergoes licence review
On June 6, 2023, the investor group FS Gaming offered a 6% stake in 888. However, the proposal has sparked concern due to Entain, the company currently under investigation by the HMRC. This has made 888 reconsider the group’s offer.
The investor group, consisting of Lee Feldman, Kenny Alexander, and Stephen Morana, proposed that they be appointed as Chair, CEO, and CFO of 888. It is worth noting that all proposed appointees previously held positions at GVC Holdings, now known as Entain.
On May 31, 2023, Entain faced an ongoing HMRC investigation regarding its former Turkish-facing business. The company also acknowledged past misconduct involving third-party suppliers and employees. Offenses under investigation include section 7 of the Bribery Act 2010.
The 888 Board carefully evaluated the investment proposal, taking into account all potential risks associated with it.
In light of the proposal, 888 has been working with the Gambling Commission (GC) to seek guidance on the matter. The GC has raised concerns about the ongoing HMRC investigation.
The GC has requested regular updates from 888 regarding any new developments related to FS Gaming and its proposal. This is to ensure that the GC can fulfill its responsibilities as the gambling regulator in Great Britain.
Based on the information received, the GC notified FS Gaming on July 14, 2023, that it will be initiating a review of the Group’s operating licenses under Section 116 (2)(c)(ii) of the Gambling Act 2005.
FS Gaming has confirmed its full cooperation with the GC during the license review process.