888 to Keep Its Gibraltar License in Spite of Compliance Breaches
An outcome where 888 parts with its license is highly unlikely, the Gibraltar Gambling Commissioner says
The Gibraltar Gambling Commissioner, Gibraltar’s official gambling regulator, is taking action against 888 Holdings, which breached local regulations. While failings were recorded, 888 will likely keep its license, the authority noted.
888 Faces Trouble in Gibraltar
The commissioner will soon begin reviewing and discussing the outcome of the internal investigation of 888 Holdings’ business, the regulator announced. The gambling company, which is licensed in Gibraltar, was found guilty of incompliance with the jurisdiction’s anti-money laundering (AML) and know-your-customer (KYC) protocols.
The gambling authority said that it is still too early to discuss what punitive action 888 will receive. However, as of now, an outcome where 888 loses its license is “highly unlikely,” the Gambling Commissioner added.
In addition, the authority praised 888’s commitment when it comes to resolving the case at hand and said that this would also be taken into account when deciding on a proper regulatory outcome. For reference, 888 Holdings promised that all customer accounts related to the case have been suspended while the internal investigation is carried out. The company vowed to maintain full transparency until the issue has been resolved.
More Woes for the Already Troubled Company
888 Holdings is currently experiencing some hurdles. Not only was the company forced to suspend its VIP activities amid the scandal, but it also had to part ways with Itai Pazner, its chief executive officer. Pazner left the company with an immediate effect and was replaced by Lord Mendelsohn who will temporarily serve as a replacement until a suitable successor has been found.
To make matters worse, 888 recorded extremely disappointing Q4 financial results in the wake of the William Hill acquisition and parted ways with its chief financial officer, Yariv Dafna.
As for the company’s VIP accounts, it turned out that many of the aforementioned compliance failings were in large part related to VIP accounts from the Middle East. Although this may undermine the company’s image, 888 Holdings was somewhat relieved that its regulatory hurdlers were more or less contained in a single region.
Since Gibraltar is a British territory, some expect the UKGC to intervene and launch its own investigation into 888’s business. However, the UK regulator is yet to announce any such action. If it does, 888, which was slapped with a $12.6 million fine in early 2022, risks even more trouble.
Although Fiona doesn't have a long-spanning background within the gambling industry, she is an incredibly skilled journalist who has built a strong interest in the constantly growing iGaming network. The team at GamblingNews.com is glad to have her on our roster to help deliver the best stories as soon as they hit. Aside from writing, she loves to dabble in online casino games such as slots and roulette, both for her own enjoyment and also as research to better improve her understanding of the industry.
