888 Holdings’ operating licence in the UK has been placed under review over the company’s links to two former Entain (now known as GVC Holdings) executives who are currently the subject of a bribery investigation by HM Revenue & Customs (HMRC). The company revealed that it would no longer proceed with a proposal to appoint the leadership duo in question as chairman and CEO of 888.
888’s UK Licence Under Review
Back in June, FS Gaming Investments acquired a 6.6% stake in 888. The New York-based investment firm is run by Kenneth Alexander and Lee Feldman who previously served as CEO and chairman of GVC, respectively.
The pair would take on senior leadership roles in 888 as part of a proposal from FS Gaming but the Board of 888 has decided to end ongoing talks relating to the proposal after the UK Gambling Commission (UKGC) launched a review of 888’s operating licence. The review stems from Alexander and Feldman’s involvement in a bribery case connected to GVC’s former Turkish subsidiary, Headlong.
UKGC Warns of Licence Revocation
The British regulator warned the review could result in severe penalties for 888, including the revocation of its operating licences in the UK.
888 Executive Chair Lord Mendelsohn said they will fully cooperate with the Commission’s review in relation to FS Gaming’s investment and proposal. Mendelsohn further stated that the company was left with no choice but to terminate discussions with FS Gaming as it could not put its operations in its largest market at huge risk.