Reaching an agreement to take over the non-US gambling assets of William Hill from the brand’s previous owner – Caesars Entertainment – might turn into a true nightmare for the new owner, 888 Holdings. Although the company has been experiencing enough trouble already, it could now be forced to pay one of the largest fines ever faced by a gambling operator as a result of its new subsidiary’s violations.
As Casino Guardian reported at the time, in 2022, 888 Holdings struck a deal with US gambling giant Caesars Entertainment over the non-US assets of sports betting operator William Hill. However, its decision to acquire the business might prove to be catastrophic for the company, which revenues have already been undermined by the takeover deal. Now, 888 Holdings would have to face the consequences of some regulation breaches on William Hills’ part.
According to media reports, some sources familiar with the situation shared that the UK Gambling Commission (UKGC) could hand out a fine worth £15 million on William Hill. The Daily Mail revealed that the amount could actually be a lot higher, saying it could possibly exceed £20 million. If true, the fine would be substantially bigger than the £17-million monetary penalty faced by Entain in 2022, which was at the time the largest fine ever imposed in the gambling industry.
Now, reports claim that 888 Holdings is preparing for the worst by setting money aside to cover the fine.
Potential Fine Adds Up to Ongoing Difficulties Faced by 888 Holdings
The news of the fine comes at a time when William Hill’s business is being investigated over alleged violations of the anti-money laundering (AML) and social responsibility (SR) protocols required by the UK Gambling Commission. This is not the first time when William Hill has violated the rules and regulations, with a number of fines being previously imposed on the company for various failures.
In fact, the regulatory breaches of the British betting operator almost cost its operating permit last year, which forced 888 Holdings and Caesars Entertainment to introduce quick amendments to their agreement. Several months later, the company faced another fine, worth more than £80,000 after a regulatory complaint.
Just to add up to the difficulties faced by the company, 888 Holdings was only recently found guilty of illegally offering its products and services in Austria. Currently, it is facing some enraged consumers seeking their money back, which could eventually result in millions of dollars in losses for the operator.
Reportedly, the newest fine would be a huge blow for the company, with 888 Holdings expected to drop off the FTS250 index by the end of the month. Since September 2021, the company’s share price has seen an 85% decline. Now, analysts are expecting to see the newest financial statement of the company that is expected to be released at the end of March. The company’s chief financial officer, Yariv Dafna, is set to step down from his role at around the same time.
According to sources with knowledge of the matter, 888 Holdings is already preparing to cover the monetary penalty.
- Author
Olivia Cole
