Former GVC CEO Kenny Alexander is fighting for control of betting company 888. Photo: David Rose.
Probably only Kenny Alexander. knows what prompted him to change his mind as he ran home shortly after 10 p.m. on May 7, 2021.
A few minutes ago, “King Kenny” picked up the driver's takeaway car from the Marmaris Kebab store in Perth, Scotland. after a three-hour binge, the court would later hear him.
But between abandoning the car and racing home, the former FTSE 100 chief's “moment of madness” gave way to remorse.
“You're looking for me” , – Alexander told the officers from Tayside. The police drove up to his house and saw that he was standing outside.
The gambling mogul subsequently admitted to stealing the car without a permit during a hearing in the Perth Sheriff's Court. He also admitted to driving over the alcohol limit and without insurance. He was fined £1,000 and banned from driving for a year.
The fiasco came almost a year after Alexander stepped down as GVC CEO in July 2020.
In his 13 years at the helm, the straight-laced Scot has turned Aim's bookmaker's fish into cattle. A FTSE 100 giant with a stable network of gaming brands including Ladbrokes, Coral, Bwin and Partypoker.
But his exit was clouded. GVC, now called Entain, faced investigations for running illegal gambling operations in Turkey between 2011 and 2017. The investigation is only now coming to a head, and Entain bosses are preparing for a “significant financial penalty” under a deferred prosecution agreement for the time being. ends with Crown Prosecution. Analysts have calculated that it could be around £230 million.
'King Kenny' turned GVC into a betting giant with a stable network of brands including Coral, Bwin and Ladbrokes. Photo: Daniel LIAL/AFP
After the barbecue disaster, 54-year-old Alexander could hardly have dreamed that just two years later he would be able to make an outstanding return to the industry. A long retirement is on the cards as King Kenny focuses on horse racing and other hobbies – he owns a purebred honeysuckle and previously had a penchant for no-limit poker. Alexander fights for control of 888, the London bookmaker that owns William Hill's non-US operations. It includes the largest bookmaker portfolio in the UK.
The trio, along with former Entain boss Shai Segev, acquired a 6.6% stake in 888 under the banner of FS Gaming Investments. After initial resistance from the 888 board, they appear to be getting closer to taking control, according to City sources.
Jonathan Mendelsohn, former New Labor member and Chairman of the Board of 888, famously flew to New York to meet with FS Gaming on Monday and Tuesday last week.
Other big investors, such as Abdn, are believed to support plans to bring Alexander as chief executive officer, Morana as chief financial officer and Feldman to the board of directors.
GVC's growth story was partly based on Alexander orchestrating a series of well-thought-out deals. But, as one former consultant notes, success was also based on “treading where others were too afraid to tread” by entering international markets where the legality of gambling was the subject of fierce debate in the industry.
However, it is the prospect of King Kenny's return that is causing most concern on the boards of some of the UK's other major gambling companies. It's hard to tell if it's because they're afraid of a more capable rival or sincerely believe his return will be bad for the industry.
“We're trying our best to get our image off the floor. Then we'll get it,” says one senior industry source.
“It's like J.R. Ewing coming back to the ranch with a big smile and blowing off the windmill they've attached to the roof.” .
Mr. Alexander enjoys horse racing and owns a thoroughbred horse, Honeysuckle. Photo: Michael Steele/Getty Images
FS Gaming replies: “Kenny Alexander is the best in the world at delivering the best results for shareholders. in the gambling industry.
They add that “personal attacks” are inappropriate. And the 888 shareholders “deserve better” given the assets the company owns.
From a purely business point of view, few can argue with the skill of Alexander. He took over GVC when the company's market value was only £26m.
The £1bn purchase of Bwin in 2016 catapulted GVC into the big leagues. A year later, rumors of an unsuccessful William Hill attack followed. And in December 2017, it merged with Ladbrokes Coral, bringing the business into the London Blue Chip Index.
Roberta Ciaccia, an analyst at Investec, recently said, “Kenny Alexander is the man behind GVC's transformation from small fish to industry giant Entrain, and Entain is no different from the 888.”
But GVC's growth was also the result of an exit to new markets around the world. Some of them belonged to the so-called “gray markets” – jurisdictions where opinions on the legality of placing bets are divided.
“You can argue in any case whether the potential return of Kenny is good or bad,” says one industry source.
He was a trailblazer in his early years, but later at GVC, especially after the Ladbrokes Coral merger, Alexander softened and became more conservative, they add.
However, the timing of Alexander's resurrection is of particular concern to some competitors in the industry .
Earlier this year, the government announced a long-overdue change to betting laws — changes that many saw as “good for the gambling industry.” . For example, more stringent proposals, such as providing pay slips to the bookmaker before placing a bet to prove availability, were avoided or dropped.
Government proposals are subject to discussion. They could still be tightened or even revised under a Conservative or Labor administration.
Rival bosses fear that the return of “King Kenny” to the fold could cheer up the anti-gambling lobby. And as for the future of gambling in the UK, all bets are out.
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