888 Holdings Plc said Friday that FS Gaming’s purchase of a 6.6% stake in the UK gambling firm triggered a regulatory review of its license.
(Bloomberg) — 888 Holdings Plc said Friday that FS Gaming’s purchase of a 6.6% stake in the UK gambling firm triggered a regulatory review of its license.
Regulators told the company the review was due to FS Gaming’s investment and its proposal to shake up 888’s management with a new chairman, chief executive officer and chief financial officer, 888 said in a statement on Friday.
888 shares plunged as much as 26% following the announcement.
A Gambling Commission spokesman said the watchdog does not comment on individual operators or whether they’re under investigation.
As a result of the license review, which could result in suspensions or fines, 888 ended talks with FS Gaming on the proposed appointments, the company said. The proposed appointments, which included Kenny Alexander as CEO, have interests in FS Gaming and previously held senior leadership positions at GVC, which has been renamed Entain Plc.
A representative of FS Gaming did not immediately respond to a request for comment.
Entain has entered into deferred prosecution agreement negotiations with the Crown Prosecution Service into an ongoing investigation into possible offenses related to bribery at its Turkish business.
888 completed an internal investigation around possible money-laundering breaches in Middle Eastern VIP accounts in April. Its CEO stepped down in January.
888 Chair John Mendelsohn said in the statement the FS Gaming engagement temporarily interrupted its search for a new head but that it is now finalizing an imminent appointment.
(Corrects to reflect investigation around possible money-laundering breaches was completed in April.)
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