The gambling operator 888 made a deal to acquire all non-US assets of William Hill in 2022. This deal could prove to be disastrous for the former business. The acquisition not only reduced 888’s revenue but also made it more difficult for the company to deal with William Hill’s regulatory violations.
According to reports, the Gambling Commission of the United Kingdom is set to fine the British gambling brand a maximum $18 million. The maximum fine could be as high as $24 million, according to some of the most pessimistic estimates.
This fine is part of an investigation into William Hill’s business. The UKGC required that the company violate the anti-money laundering and social responsibility protocols. William Hill is not the first to be accused of violating the rules. The company was previously fined for other violations.
William Hill’s failures nearly cost it its license for 2022. 888 and Caesars were forced to make quick amendments to their agreement. After a regulatory complaint, the British operator was hit with another $100,000 fine.
888 Facing Many Troubles
When it comes to imposing fines, the UKGC is not known for being lenient. Entain was presented with a $20 million fine by the regulator in 2022. This is the largest fine any UKGC licensee has ever received. However, 888 should be cautious as William Hill’s subsidiary could surpass this record.
Sources claim that 888 has already begun to pay the fine. The parent company is not entirely innocent. It was recently found guilty for violating the AML and know your customer rules in Gibraltar. 888 was able to keep its license despite this because it cooperated with the investigation and was committed to transparency.
After its shareholders approved the $2.37billion deal, 888 bought William Hill. Despite the expected setbacks, the holding was not ready for the consequences it now faces.
For the past few months, 888’s business has seen a steady decline. The operator was also found guilty of illegally selling its betting products in Austria. Local customers now want their money back from this operator. This situation could lead to 888 and Flutter losing millions of dollars.