William Hill owner 888 gets the biggest fine ever from the gambling watchdog
William Hill owner 888 is bracing for the largest fine ever imposed by Britain’s gambling watchdog in another setback for the company.
It has set aside £15 million to cover fines stemming from an investigation by regulators into its ‘social responsibility and anti-money laundering obligations’.
But industry sources told the Mail the figure could be even higher, higher than the Gambling Commission’s highest fine to date, the £17m fine paid by Paddy Power owner Flutter last year.
Probe: 888 has earmarked £15 million to cover fines stemming from an investigation by regulators into its ‘social responsibility and anti-money laundering obligations’
One said it could be ‘north of £20 million’. Such a fine would be a major blow to 888, which will be downgraded from the FTSE 250 this month after its share price has fallen 85 percent since September 2021.
William Hill bought 888 from Caesars Entertainment in a £2 billion deal last summer.
Some £250 million was knocked off the award, which 888 said reflected “the change in the macroeconomic and regulatory environment” and “compliance factors affecting the William Hill business,” including the investigation.
The commission declined to comment on a potential 888 fine, but the Mail understands a formal announcement is imminent.
Richard Williams, gambling and regulatory partner at Keystone Law, said: ‘It doesn’t look good that companies don’t learn from mistakes, even if alleged shortcomings are historical and related to shortcomings that occurred when the operator did not own the entity. .’
888, which owns online casino, poker and sports betting sites and more than 1,000 William Hill stores, is already grappling with other regulatory issues.
Last month, the boss made a shock departure after it launched an investigation into suspected money laundering of VIP client accounts in the Middle East.
Chief executive Itai Pazner left after more than two decades, including four years at the top.
888 said it suspended VIP client accounts normally reserved for the wealthiest and most lucrative gamblers after an internal review found best practices had not been followed in areas including anti-money laundering processes.
The VIP accounts generate significant revenue as high rollers are encouraged to wager large amounts.
Lord Mendelsohn, a Labor colleague and chairman of the group, has taken on day-to-day running until a permanent boss is found.
888 will announce its annual results at the end of the month. The industry is also awaiting the white paper on gambling, which has been delayed by nearly two years but could mean big changes for the industry, including affordability controls.
888 shares fell 0.9 percent, or 0.6p, to 69.65p.