888 Holdings terminates FS Gaming negotiations

888 Holdings (888), one of the biggest gambling companies in the world, and owner of William Hill’s non-US assets, has said in a new announcement that it has decided to terminate discussions with FS Gaming.

FS Gaming is a special investment vessel that was created by a number of gambling industry veterans, with all three people participating in the new venture having worked and held leadership positions at GVC Holdings Plc (GVC), which rebranded to Entain several years ago.

The "how we got here" was explained in detail by 888. Essentially, FS Gaming Investments LLC was created a few months ago and on June 6, 2023, the vessel pitched a proposal to the Board of 888. The proposal presented a plan in which Lee Feldman, Kenny Alexander, and Stephen Morana, all of whom are GVC veterans, would step in the roles of Chair, CEO, and CFO at 888 respectively.

The proposal and all subsequent discussions based on that have been terminated by 888 Holdings citing the fact that FS Gaming is unlikely to clear UK Gambling Commission regulatory approvals in the immediate future. The Board of 888 voted unanimously against the idea, concluding:

The Board concluded that the appointments proposed by FS Gaming have no reasonable prospect of being approved by the GBGC at this time and any actions by FS Gaming to effect a change of corporate control would likely put the Group's licenses to operate in the UK at immediate and significant risk.

FS Gaming did buy a 6.5% share in June and insisted that the trio be installed in the aforementioned positions within 888 Holdings. This triggered interest from the UKGC. In the official statement by 888, the company explains that it has been in communication with the regulator regarding FS Gaming’s proposal.

Presently, there is an ongoing investigation by the HM Revenue & Customs (HRMC) into various offenses by Entain plc, the company that succeeded GVC. The HRMC is looking into various historic shortcomings that include infringement of the Bribery Act 2010, and more.

The regulators cautioned that they weren’t sure about FS Gaming and 888 going forward with the proposal as the investigated offenses concerned a period during which the individuals that would have assumed leadership positions within 888 were in leadership positions at GVC.

Commenting on this decision, 888 Executive Chair Lord Mendelsohn said that the Board had no option but to terminate the proposal and further discussions with FS Gaming, citing the due diligence and regulatory communications as the reason why.

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