In July of last year, the Commission revealed plans to review the acquisition of a 6.57% stake in 888 by FS Gaming, an investment group led by former Entain CEO Kenny Alexander.
This development came after the announcement that a trio of former Entain executives was poised to assume leadership roles at 888, prompting the Commission to launch an investigation over concerns regarding the potential change in corporate control.
The proposed leadership changes would have positioned Alexander as CEO, with former Entain chair Lee Feldman stepping in as 888’s chair and Stephen Morana as chief financial officer.
This move would have increased FS Gaming’s ownership in 888 beyond 10%, necessitating approval from the Commission. Failure to obtain this could lead to the revocation of 888’s license.
However, 888 ultimately halted discussions with FS Gaming, citing that the proposed appointments had “no reasonable prospect of being approved” and could jeopardize its UK licenses.
In a positive turn of events, 888 announced on March 22 that the Commission decided not to take any action following the review.
The Commission was satisfied that the risks leading to the review had been “appropriately managed and adequately mitigated,” thus concluding the review without imposing any conditions, penalties, or remedies on 888.
The Commission’s concerns were primarily rooted in an HMRC investigation into GVC (now rebranded as Entain) and its former Turkish business.
This probe and its implications, including a substantial financial settlement by Entain, were part of the backdrop for the Commission’s review.
Despite these challenges, 888 did not indicate whether Entain’s settlement influenced the Commission’s decision.
Entain’s settlement related to its former Turkish operations, settling a case that involved potential breaches of the Bribery Act 2010.
The resolution of this matter included a significant financial penalty and contributions towards legal and investigation costs.
Looking ahead, 888 focuses on stabilizing its operations under new CEO Per Widerström, amidst reporting a revenue decline and impending organizational changes.
The company is also evaluating its strategy in the US, including a potential sale or withdrawal from its B2C operations, alongside concluding its partnership with Authentic Brands Group, signaling a strategic shift away from the Sports Illustrated brand collaboration.