On January 30, Itai Prazner, Chief Executive Officer of 888 Holdings, a public company based in Gibraltar that owns several brands such as 888 sport, 888 casino and 888 poker, resigned effective immediately, and the company stopped VIP activities in the Middle East due to an internal investigation, according to company officials.
A drop in the company’s stock:
The company’s shares fell as much as 14.4% on the news, but then rallied slightly and are now 11% lower by 0815 GMT.
Since Prazner, who is 50 years old, has been at the helm of the company for almost 4 years, the company’s shares fell almost 40% throughout Pazner’s resignation.
During Prazner’s leadership, the company also supervised the acquisition of William Hill‘s global assets from U.S.-based owner Caesars Entertainment in 2021.
In light of Prazner’s resignation, the board decided to appoint Jonathan Mendelsohn, who has been non-executive chairman until now, as interim Chief Executive Officer until the board searches for someone who can take over the position in the long term.
The board, however, did not give an explanation for Prazner’s resignation.
Violation of anti-money laundering laws:
In an interview on Monday, company officials also said that “some anti-money laundering and Know Your Client processes were not followed for its VIP customers in the Middle East region.”
They added: “We estimate that the suspension of such activities will hit the group’s overall revenue by at least 3%.”
As earlier this month the company officially announced a 3% drop in revenue in 2022 due to the strengthening of online player security measures in the UK and the shutdown of its Dutch operations, this led to a 15% drop in online business revenue.
As a result, Yariv Dafna, the company’s chief financial officer, which was slated to leave, will now remain with the company for a full year, according to the 888 Holdings officials.
Headquartered in Gibraltar, 888 Holdings is a publicly traded betting and iGaming company and owns several globally recognized gambling brands and websites. It was founded and officially launched in 1996.
The company is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. Its 15 development offices are located around the world and the company employs more than 12,000 people worldwide.
Its main mission is to create an outstanding betting and gaming experience for players and they achieve this by continuing to create cutting-edge technology and innovative content-rich products.
One of the company’s latest additions is the Sl Sportsbook brand in the U.S., which the company co-owns with Authentic Brands Group.