UKGC May Impose a Record Fine on William Hill: Bad News for the New Owner 888

By John Isaac,
Editor at online-gambling.com

John Isaac Editor at online-gambling.com

John Isaac is an editor with many years of experience in the gambling industry. He writes expert articles on card games like blackjack and poker. In addition, he is also well aware of the US gambling laws and the Indian and Dutch gambling markets. You can rely on verified information and insightful details.

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Last updated: March 18, 2023

William Hill, one of the world’s largest bookmakers, is set to receive one of the biggest fines in history for alleged regulatory failings. 888, the new owner of William Hill’s non-US gambling assets, could face a nightmare scenario as the UK Gambling Commission (UKGC) reportedly considers imposing a fine of £15 million (US$17.81 million) on William Hill. The Daily Mail recently indicated that the fine could be even higher, possibly exceeding £20 million (US$23.75 million).

The alleged violations are related to “social responsibility and anti-money laundering obligations” and would set a new record for fines in the UK gambling industry, surpassing the £17 million (US$20.19 million) fine imposed on Entain last year. 888 is getting ready for the worst-case scenario and has already set aside funds to cover the fine. 888 UK Limited was already fined £9.4M by the UKGC in 2022 for failing to comply with social responsibility.

CEO Itai Pazner Quit the Position

This comes as a big problem for the bookmaker and 888 Holdings, which acquired William Hill last year during the summer from Caesars for £2 billion (US$2.37 billion) and included online casinos and over 1,000 retail sports betting points in its portfolio. 888 is already grappling with several issues that have been dragging the company down.

In January, 888 came under investigation for suspected money laundering of VIP customers from the Middle East. It was found that many of its betting whales had the ability to deposit and withdraw large sums of money without any issue. Following the scandal, CEO Itai Pazner decided to quit the position after more than two decades working there, and Lord Mendelsohn, 888’s chairman, took over until they find another person for the position.

Other Problems 888 Is Facing

Since September 2021, 888’s share price has fallen by 85%. It is likely to drop off the FTS250 index, a stock market index that contains 250 UK-based mid-market cap companies listed on the London Stock Exchange, this month. According to Austria’s Supreme Court, 888 is operating illegally in the country, along with Flutter. The court has stated that only Casinos Austria has the license to offer gambling services in Austria.

As a consequence, users who have suffered losses as a result of using 888 and Flutter’s services can now file claims to receive reimbursement. Reports indicate that since January, more than 2,500 users have already received over €75 million (US$79.31 million) in compensation from various operators. However, it appears that 888 and Flutter are still withholding around €34 million (US$35.95 million) in compensation as they continue to fight against Austria’s ruling.

888 is facing significant regulatory fines in both the UK and Austria, which could further impact the company’s finances and reputation. The alleged violations are related to “social responsibility and anti-money laundering obligations,” which are critical areas for any gambling operator. 888 has already set aside money to cover the potential William Hill fine, but it remains to be seen how the company will address its ongoing regulatory issues. As investors await the company’s fresh financial statement and the CFO’s departure, 888 must demonstrate a commitment to addressing its regulatory failings and restoring investor confidence.