888 Holdings, a market leader in legal sports betting, announced Per Widerström as its new CEO, effective Oct. 16. The news should please regulators, who voiced concerns about the potential appointment of former GVC (now Entain) executive Kenny Alexander.
888 Holdings, which owns online sports betting sites and retail brands 888sport, William Hill, Mr. Green, and SI Sportsbook, has struggled with regulatory issues since the start of the year. With Per Widerström’s appointment, 888 hopes to finally put those problems in its rear-view mirror.
888's 2023 regulatory drama
In January, Itai Pazner resigned as 888's CEO amid a money laundering probe. The investigation revealed control lapses involving Middle Eastern VIP accounts and resulted in a $24 million fine. Non-Executive Chair, and member of the British House of Lords, Jonathan Mendelsohn has served as 888’s interim CEO since then.
Last month, FS Gaming took a 6.57% stake in the 888 Holdings. The stock jumped 14% on the news. Investors especially liked that FS Gaming was comprised of veteran gaming executives.
FS Gaming immediately proposed that its members Lee Feldman, Kenny Alexander and Stephen Morana become Chair, CEO and CFO of 888, respectively. All the proposed appointees previously held senior leadership positions at GVC Holdings Plc (now Entain plc).
Not everyone, however, saw this as a slam dunk. At least one analyst noted the elephant in the room. At the time, Goodbody analyst David Brohan wrote, “The one concern we would have with regards to Mr. Alexander’s possible appointment would be whether there are any possible risks from the ongoing HM Revenue & Customs (HMRC) Turkish investigation that could impact him personally.”
Brohan’s concern bore fruit, as regulators weighed in on the potential appointment of the former GVC (now Entain) executives. Rather than risk losing its UK license, 888 rejected FS Gaming’s leadership proposal and went with a safer bet.
888 Holdings finds a steady hand
Per Widerström has more than 17 years in the online gaming industry. He was the former CEO at Fortuna Entertainment Group, a leading betting and gaming business across Central and Eastern Europe.
In an apparent nod to regulators, Lord Mendelson noted that Widerström “not only understand the power and exciting potential of the business, but the Board is also very pleased with his strong record and reputation on governance and compliance.”
Widerström said, “I am delighted and honored to become the Group’s new CEO. Following 888’s combination with William Hill, the Group has a world-class portfolio of betting and gaming brands, an outstanding technology platform and an exceptional team. Together these attributes mean it is exceptionally well positioned to become a clear global industry leader.”
888 Holdings didn’t want to risk its UK license. It also wouldn’t want to introduce anything that might disrupt its North American expansion plans. 888 owns SI Sportsbook, which operates in Colorado, Michigan, and Virginia and Ontario. SI Sportsbook has plans to expand into Indiana, Iowa, and New Jersey.
