The international sports betting and gambling company 888 Holdings Plc has weathered its license review by the UK Gambling Commission (UKGC) with no further regulatory action, the board announced March 22 in a corporate update.
The company announced, “The UKGC has concluded the license review without imposing any license conditions, financial penalties, or other remedies on the Group, having been satisfied that the risks to the licensing objectives under the Gambling Act, which led to the review, have been appropriately managed and adequately mitigated.”
The license review commenced last July when red flags were raised after FS Gaming invested in the British firm.
FS Gaming is an investment fund that includes Kenneth Alexander, former chief executive officer of GVC Holdings, former GVC Chairman Lee Feldman and Stephen Morana, who had come under scrutiny by HM Revenue & Customs (HMRC). GVC Holdings is now Entain.
When that group acquired a 6.57 percentage of the company and announced plans to increase its stake above 10 percent, UKGC launched its review. GVC (now Entain) ran afoul of the Bribery Act of 2010 regarding a subsidiary that it once owned in Turkey.
Entain settled with HMRC for £600 million in a Deferred Prosecution Agreement.
Once the license review began, 888 ended discussions with FS Gaming, not wanting to put its license in the U.K. at risk. Now that the review has begun, 888 would presumably be able to reopen discussions with Entain.
In addition, 888 has announced plans to rebrand to “Evoke Plc” as part of its “Value Creation Plan,” CDC Gaming Reports wrote March 26.
This name, said the company, would “better reflect the strength of the group’s multi-brand operating model and its vision and mission to make life more interesting by delighting players with world-class betting and gaming experiences.”
The new name would require approval by shareholders at the next annual general meeting.
The company also noted that it saw a 25 percent decline in earnings last year, but a rise in revenues up to $390.4 million.
Last year the company transitioned its leadership, saying goodbye to CEO Itai Pazner and welcoming new CEO Per Widerström and CFO Sean Wilkins.
That team came up with the new strategy intended to bring about stability and growth. Widerström declared, “It is incredibly exciting to announce our Value Creation Plan, our strategy for success, our new financial targets, and our new corporate identity. Today marks the beginning of an exciting new dawn for this business.”
The company is aiming for revenue growth of between five and nine percent and reducing debt. It is also seeking to rein in expenses, and has canceled its Sports Illustrated licensing deal and will concentrate on the markets where it gets its lion’s share of revenue from, which include the U.K., Italy, Spain and Denmark.
