FS Gaming Investments Targets Integration of William Hill

By John Isaac,
Editor at online-gambling.com

John Isaac Editor at online-gambling.com

John Isaac is an editor with many years of experience in the gambling industry. He writes expert articles on card games like blackjack and poker. In addition, he is also well aware of the US gambling laws and the Indian and Dutch gambling markets. You can rely on verified information and insightful details.

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Last updated: June 14, 2023

FS Gaming Investments, an investment group led by former GVC CEO Kenny Alexander, has announced its acquisition of a 6.57% stake in 888 Holdings, the parent company of William Hill. This marks Alexander’s first significant move since leaving GVC in 2020, which later became Entain Plc. FS Gaming Investments is supported by former GVC Chairman Lee Feldman and Shay Segev, who succeeded Alexander at GVC and played a key role in the company’s acquisition of Ladbrokes.

The decision to invest in 888 Holdings stems from the belief that the gaming company is undervalued. Factors contributing to this perception include the company’s substantial debt of nearly $2 billion and a series of compliance issues at William Hill. These compliance issues have resulted in 888 receiving substantial fines from the UK Gambling Commission. These problems came to light after the departure of former CEO Itai Pazner and Chief Financial Officer Yariv Dafna. Additionally, 888 Holdings faced compliance-related fines from Spain’s gaming regulator.

Takeover Potential: 888 Holdings Attracts Interest in Sportsbook Industry

888 Holdings made headlines last year when it acquired William Hill’s non-US assets for $765 million from Caesars Entertainment. The move was seen as a strategic play, offering 888 Holdings increased sports betting exposure and access to one of Europe’s most established sportsbook brands. However, the compliance failures and subsequent removal of 888 Holdings’ stock from the FTSE 350 Index have weighed heavily on the company’s shares, resulting in a 60% decline over the past year.

FS Gaming Investments’ investment opens the door for external investors to get involved and advocate for change within 888 Holdings. The investment group may push for more efficient integration of William Hill and could even seek board representation for Alexander and Feldman.

There is speculation that 888 Holdings could become a takeover target. Activist investors have the ability to drive various changes, including asset divestments or outright sales. Given its control of William Hill, the company could attract interest from European rivals and private equity firms if it decides to pursue a sale. The potential buyers have not been identified, but recent examples, such as Kindred Group Plc, suggest that activist investors can influence the sale of European sportsbook operators.

Commitment to Shareholder Value: 888 Holdings Engages Stakeholders

In response to the investment, 888 Holdings issued a statement expressing its belief in the value creation potential of its business and its commitment to delivering long-term shareholder value. The company looks forward to engaging with all shareholders and providing updates as it continues to focus on its strategic and operational priorities.

In summary, FS Gaming Investments, led by former GVC CEO Kenny Alexander, has acquired a 6.57% stake in 888 Holdings. The investment group views the company as undervalued and intends to push for more efficient integration of William Hill and potentially secure board representation. 888 Holdings could also become a takeover target as activist investors seek changes in the European sportsbook industry. The company remains committed to maximizing shareholder value and will keep shareholders informed about its strategic progress.