In 2020, news broke about an investigation by HMRC shortly after Kenny Alexander, the CEO, abruptly left the company.
Kenny Alexander, a prominent figure in the gambling industry, known as “King Kenny,” recently faced regulatory obstacles in his attempt to take over the board of 888, the owner of William Hill. This was due to his involvement in the bribery scandal at Entain.
Despite this setback, Mr. Alexander and his associates made a bold move to secure key positions at 888. They acquired a stake in the London-listed bookmaker and initiated talks with Lord Mendelsohn, the executive chairman and former New Labour spin doctor.
However, an unexpected update from 888 revealed that discussions had been terminated following a warning from the Gambling Commission. Regulatory authorities indicated that appointing Mr. Alexander and his allies would jeopardize the company’s licenses, given their connections to the ongoing bribery scandal at Entain.
In November 2019, HMRC officials demanded information about 888’s Turkish arm. The company had sold this division in December 2017 before merging with Ladbrokes Coral in a £4 billion deal.
Although the request from HMRC was not disclosed publicly until July 2020, when the FTSE 100 firm’s value dropped by almost £374 million, 888 shares have since increased in value by 48%. However, they experienced a 3% decline in early trading on Thursday.
In a communication to shareholders, 888 stated that it has conducted a thorough review of its anti-bribery policies and procedures since the investigation began. The company has taken decisive measures to significantly strengthen its overall compliance program and associated controls.
Entain, the parent company of 888, reported a 6% increase in earnings before taxes and other charges, reaching £499 million in the first half of this year compared to the same period in 2022. However, the company incurred a pre-tax loss of £448.1 million due to the funds set aside for the potential HMRC penalty.
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