888 Holdings stops talks with FS Gaming due to pending investigation
However, the company said it will soon appoint a new CEO.
Operator 888 Holdings has decided to terminate its discussions with FS Gaming, based on licensing concerns. The board came to this decision by unanimous vote.
Since beginning talks with FS Gaming after receiving its proposal, 888 Holdings opened a dialogue with the Gambling Commission (GC), which raised concerns regarding an HMRC investigation into members FS Gaming proposed to serve on the company’s board.
“The investigation specifically looked into activities covering the time the individuals proposed to the Board by FS Gaming were in senior leadership positions at GVC.”
Subsequently, the GC asked 888 Holdings for regular updates regarding FS Gaming’s proposal. The company said it “fully cooperated” with the regulator’s requests.
As a result, 888 concluded that continuing conversations with FS Gaming could potentially endanger the company’s licenses within larger markets.
Company Executive Chair Lord Mendelsohn elaborated further by saying, “As a Board, we devoted significant time to considering FS Gaming’s Proposal.
“However, following in-depth regulatory due diligence including engaging closely with the GBGC, the Board had no option but to terminate discussions as it simply could not put licenses in our largest market at significant risk.”
Mendelsohn went on to add that the Board is actively working to select a new CEO despite the recent delay.
He concluded by saying, “While this engagement temporarily interrupted the very thorough search process to appoint a new CEO, the Board is finalizing its appointment and expects to make an announcement in the very near future.
“The Board remains firmly focused on delivering the group’s clear strategy to unlock shareholder value and I’m pleased to confirm that the business remains on track to deliver market expectations for 2023 adjusted EBITDA.”
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