Online casino 888 boss steps down amid money laundering inquiry

THE chief executive of gambling company 888 has stepped down as it launched an internal investigation into failures to follow anti-money laundering rules.

The company has suspended VIP gaming accounts in the Middle East after it became aware that “certain best practices have not been followed” in regard to anti-money laundering policies, it said. Itai Pazner, the company’s chief executive of four years, has left the company with immediate effect, 888 said in a separate announcement.

Lord Mendelsohn, executive chairman at 888, said: “The board and I take the group’s compliance responsibilities incredibly seriously.

“When we were alerted to issues with some of 888’s VIP customers, the board took decisive actions. We will be uncompromis- ing in our approach to compliance as we build a strong and sustainable business.”

The suspended accounts in the region affect approximately 3pc of 888’s yearly revenues and do not affect any other regions of its business.

Lord Mendelsohn, a Labour peer, has taken on the role of executive chairman while the company begins its search for a new chief executive.

He was formerly a non-executive director. Shares in 888 plunged as much as 28pc to 74p yesterday as news of the investigation and Mr Pazner’s departure broke.

Lord Mendelsohn said Mr Pasner had “played a very important role in building a business with powerful proprietary technology” and had overseen “successful early stages” to the integration of high street betting brand William Hill.

888 bought William Hill’s business outside the US – including roughly 1,500 betting shops – last year in a £1.95bn deal. Recently it has been racing to cut the debt used to finance the deal as interest rates soar.

It said it had been left “more exposed to changes in interest rates” because of the structure of the deal.

Yariv Dafna, the business’s chief financial officer, had previously planned to leave the company at the end of March. However, Mr Dafna has now agreed to stay in post until the end of 2023.