Gambling company 888 Holdings tried to put a scandal with high-rolling Middle East punters and a record fine for historic failings over customer safety behind it today, as it reported a surge in annual profits that will put the spotlight back on a sector struck with controversy.
888 was rocked this year by revelations that it failed to follow rules to prevent money laundering on some VIP customer accounts in the region, prompting it to launch an internal investigation and suspend some accounts.
At the same time as the probe was announced in January, its chief executive, Itani Pazner, stepped down after a two-decade career at 888 and four years in the top job. It is still looking for a successor.
The Gibraltar-based company said today that the Middle East investigation was complete, with “robust policies and procedures implemented to reopen accounts and onboard new customers”, with “no further impact expected” and 40% to 50% of the affected revenue to be recovered, leaving it down by £25 million to £30 million in 2023.
888, which owns the William Hill brand outside the US, also said its multi-million pound settlement with UK regulators over failing to identify problem gamblers was not expected to have any further impact.
It paid the record £19 million fine for a series of problems, including allowing people to lose tens of thousands of pounds straight after opening accounts. The failings pre-dated 888’s deal in 2022 to buy William Hill for almost £2 billion, and involved people taking up online gambling during Covid lockdowns.
Updating investors on the eve of the Grand National, the biggest day of the year for bookies, 888 said that it was “in a far stronger position from a compliance perspective,” pointing to “significant remedial actions”.
It now has a “chief risk officer” responsible for “higher standards in compliance and safer gambling”. Harinder Gill took the job in August, joining from fin-tech company Revolut after roles at major banks BNY Mellon and Barclays.
888’s 2022 revenue rose almost three-to £1.2 billion and adjusted earnings hit £218 million, up 82%. Its shares jumped 10p to 72p today, up 16% on the session. That trimmed their drop over the last year to around 70%.
