Kenny Alexander hopes to return to the top of the gaming industry. Photo: David Rose. William Hill, owned by gambling magnate “King Kenny” Alexander, has been effectively locked down by watchdogs due to its bribery connections.
The controversial former boss of the FTSE 100-listed gambling operator, Antein and his deputies did a daring attempt to come back, seeking to take the top positions at 888. They bought a stake in a London bookmaker and began negotiations with its executive chairman, a former New Labor political strategist. Lord Mendelssohn.
But in an unscheduled stock market update on Friday, 888 announced a halt to discussions following a warning from the Gambling Commission. Regulators have indicated that the appointment of Mr. Alexander and his allies compromised her licenses due to their association with the long-running Entain bribery scandal. of William Hill bookmakers fell over 25% on Friday afternoon.
888 shares plummeted – pence per share
The Gambling Commission pointed to an ongoing investigation into allegations of bribery. and illegal gambling in Entain's Turkish business between 2011 and 2017, when Mr. Alexander and his allies were at the helm.
Entain is currently finalizing a deferred prosecution agreement, a form of deal guilty plea to the Crown Prosecution Service, which she says could result in a “significant financial penalty” estimated at £230m.
888 said in a statement that the Gambling Commission warned that an investment by Mr. Alexander's company, FS Gaming, and a subsequent proposal to appoint him and his allies, Lee Feldman and Stephen Moran, to positions on the board of directors prompted an ongoing review of the company's license.< /p>
The company stated, “As a result of the Gambling Commission's initiation of a license review, and in combination with publicly available information and board due diligence, the Board has concluded that the appointments proposed by FS Gaming do not have a reasonable prospect of being approved by the Commission at this time.”< /p>
The company said it had sought clarification from FS Gaming regarding the concerns, “but the most basic guarantees regarding these concerns have not been forthcoming.”
This meant that any attempt to place Mr Alexander and his allies in top positions “could put the group's licenses to operate in the UK at immediate and significant risk”, with the commission having the power to strip operators of their licenses if the “relevant persons” associated with them are considered “ineligible.”
“Therefore, the board has unanimously decided to cease discussions,” the statement said.
Lord Mendelsohn added: “We will fully cooperate with the Gambling Commission’s review .
“As a Council, we have spent a lot of time reviewing FS Gaming's proposal. However, after extensive regulatory due diligence, including close interaction with the commission, the board of directors had no choice but to stop discussions, as it simply could not expose licenses in our largest market to significant risk.”
Mr. Alexander's hopes of returning to the top of the gaming industry were confirmed last month when it was revealed that FS Gaming increased its share of 6.6% to 888.
He hoped to become 888's chief executive, with fellow Entain veterans Mr. Feldman and Mr. Morana taking over as chairman and chief financial officer, respectively.
However, the prospect of Mr. Alexander's return has raised eyebrows among some rivals, given the ongoing negotiations between prosecutors and Entain.
He stepped down as CEO of Entain, formerly known as GVC, in July 2020 after 13 years at the helm.
In that time, the outspoken Scot has transformed , quoted by Aim, as a blue chip giant with a stable of gaming brands including Ladbrokes, Coral, Bwin and Partypoker.
A year after leaving Entain, however, he came into the spotlight after it was revealed that he stole the driver's takeaway car from a kebab shop in Perth, Scotland, and took it for a walk after a drinking marathon.
He later confessed. seizing a car without permission during a Perth Sheriff's Court hearing, driving under the alcohol limit, and driving without insurance. He was fined £1,000 and banned from driving for a year, but never received a criminal record.
Entain is also fighting an investigation by HM Revenue & Customs in alleged illegal gambling activities related to the company's operations in Turkey between 2011 and 2017.
The investigation is only now reaching a climax, and Entain bosses are preparing for a “significant financial penalty” under a deferred agreement on The prosecution is now being completed with the Crown Prosecution Service. Analysts have estimated that it could be around £230 million.
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