888 Avoids UK License Forfeiture Over FS Gaming Scheme

Last July, the UK Gambling Commission (UKGC) launched a review following FS Gaming's acquisition of a stake in 888, backed by former Entain CEO Kenny Alexander.

With plans for three former Entain executives to lead 888 after securing a 6.57% stake, the Commission began an investigation, anticipating:

• Kenny Alexander as the potential CEO

• Lee Feldman as the chair

• Stephen Morana as the chief financial officer

This setup suggested FS Gaming’s stake could exceed 10%, which would require UKGC approval for a change in corporate control.

However, anticipating possible rejection, 888 halted talks with FS Gaming — a move that protected its UK licenses. The company later confirmed that the Commission concluded its review with no penalties, conditions, or remedies.

The issue stemmed from an HMRC inquiry into Entain’s former Turkish operations, raising regulatory concerns for 888.
Key details included:

• Entain agreed to pay £585 million in penalties and profit disgorgement

• £20 million donated to charitable causes

• £10 million contributed to CPS and HMRC expenses

Although 888 didn’t confirm whether these outcomes influenced the UKGC’s decision, the resolution of the Turkey case caused Entain to record a £936.5 million loss in its 2023 financial report.

Further context included GVC’s past actions:

• Divestment of its Turkish subsidiary Headlong Limited in 2017

• HMRC’s investigation beginning in 2019

• Kenny Alexander’s abrupt resignation as CEO shortly after

Despite challenges, 888 remains focused on recovery under new CEO Per Widerström, who is leading:

• An organizational restructuring and layoffs

• A strategic review of US B2C operations, including possible market exit

• The termination of its partnership with Authentic Brands Group, ending the Sports Illustrated venture

The company’s turnaround strategy aims to stabilize operations and restore growth amid a turbulent regulatory landscape.