The owner of William, 888, has set aside more than £100m for potential legal action as bosses deal with regulatory pressure overseas.
British gambling companies have come under scrutiny in Austria after the country’s three highest courts found they had been operating illegally.
Casinos Austria, which is the state-backed gambling company, has had a monopoly since 2016 and judges ruled that other companies doing business there were violating the law and must return losses to players.
William Hill: British gambling companies are under scrutiny in Austria after the country’s three highest courts found they had been operating illegally
It now means that some gamblers across Europe are taking action to recover the money they lost on betting websites.
In total, 888 has allocated £116m to “ongoing legal and regulatory matters, primarily in Austria and Germany”, according to its recent annual report.
The provisions come at a trying time for the group. 888, owner of online brands such as 888 Poker and Mr Green, has been hit by compliance failures and management uncertainty over the past 18 months.
This came to a head in January last year when the company suspended the accounts of VIP clients in the Middle East over fears they violated money laundering policies.
The saga led CEO Itai Pazner to resign, leaving the company in limbo and shareholders anxious.
Priced at 84p, 888 shares have fallen almost 50 per cent over the past five years and have fallen 10 per cent since the start of this year alone.
The company also faces internal pressures. The UK is moving forward with regulatory changes, including limiting online betting. The measure is part of the
The government’s white paper on gambling was published last year.
In a desperate attempt to turn around 888’s fortunes, new CEO Per Widerstrom, an online gambling veteran, has promised to focus on key markets and reduce debt.
He will also change the company’s name to Evoke, which he says will better reflect the “mission of making life more interesting by delighting players with world-class betting and gaming experiences.”
Danni Hewson, an analyst at investment platform AJ Bell, said: “It’s nothing new for a gambling company to change its name to something softer and less aggressive in a bid to win over potential customers and try to leave behind the misbehavior”. her mind.
But 888, or Evoke, cannot escape the legal proceedings that still dog him in countries like Austria and Germany.’
888 said: ‘The group only operates when it has a justifiable legal basis for doing so. “Based on the extensive advice and opinion received, we have complete confidence in our legal and regulatory position.”
An 888 spokesperson added: “We remain fully confident in our position under EU law to offer these services to our Austrian players, along with many other competitors.”