888 Clears Regulatory Hurdle: No Action from Gambling Commission After FS Gaming Talks

The Gambling Commission has opted not to take regulatory action against 888 Holdings following a licence review prompted by FS Gaming's attempted management takeover led by Kenny Alexander.

Initiated in July last year, the review ensued after FS Gaming, backed by former Entain CEO Kenny Alexander, acquired a stake in 888.

Plans for a management reshuffle, with Alexander slated to become CEO alongside other former Entain executives, raised concerns, prompting the investigation.

Despite FS Gaming's potential stake increase surpassing the 10% threshold for corporate control change, 888 terminated discussions due to regulatory uncertainty.

In a recent statement, 888 revealed that the Gambling Commission concluded its review without imposing any penalties, citing the satisfactory management of licensing objectives and mitigating risks.

The Commission echoed this sentiment, acknowledging the abandonment of management proposals by FS Gaming and providing assurances regarding 888's operational integrity.

The investigation stemmed from HMRC's probe into GVC, now Entain, and its former Turkish business, casting shadows of doubt over FS Gaming's suitability as an investor.

However, concerns over historic misconduct have diminished with the resolution of the HMRC case and Entain's financial settlement.

For 888, the Commission's decision marks a crucial milestone amid organizational restructuring and financial challenges.

Under the helm of new CEO Per Widerström, the operator seeks to navigate a path to recovery following a turbulent year characterized by revenue declines and strategic reviews.

In parallel, 888 embarks on a strategic review of its US B2C operations, potentially culminating in divestment.

The operator also terminates its partnership with Authentic Brands Group (ABG), signalling a shift in its brand strategy.

As 888 prepares to unveil its full-year results, shareholders await insights into the company's future trajectory amidst ongoing transformations in its global operations.