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888 has ended discussions with FS Gaming regarding a proposal that could have resulted in senior appointments to its board by FS Gaming.
FS Gaming led by Kenny Alexander, and other former Entain executives, bought a 6.6% stake of 888 in the month of June. The plan was to appoint Alexander CEO after Itai Pzner left 888 in January.
888 stated on Friday that when considering FS Gaming’s proposal, they “examined the potential risks associated with this”, including any historical misconduct involving employees relating the Turkish business.
888 said that the UK Gambling Commission “expressed their concern about the ongoing HMRC investigations into GVC’s activities, which covered the period when the individuals suggested to the board by FS Gaming held senior leadership positions at GVC and that they are in close communication with HMRC in regards to its ongoing investigation.”
The Gambling Commission demanded a review of the licence in light FS Group’s investment and proposal in 888. 888 stated that it had concluded “that the appointments proposed by FS Gaming do not have a reasonable chance of being approved at this time by the GBGC.”
888 has cut ties with FS Gaming.
Lord Mendelsohn said, “As a Board, we spent significant time considering FS Gaming’s proposal.” After a thorough regulatory due diligence, including working closely with the GBGC and engaging in a detailed discussion, the board was forced to end the discussions. It could not risk the licences of our largest market.
