The online gambling company 888 has suspended VIP customer accounts in the Middle East after an internal review found that best practices had not been followed in some areas, including anti-money laundering processes.
888 also announced that its chief executive, Itai Pazner, was leaving the company immediately after four years in the top job and more than 20 at the company.
Following an internal compliance review, the company said that certain best practices were not followed regarding know your client and anti-money laundering processes for 888 VIP customers in the Middle East. The board has taken the decision to suspend VIP customer accounts in the region, effective immediately, according to a statement issued by the stock exchange on Monday.
If the suspensions remain in place, the financial impact is less than 3% of group revenues, according to 888.
After the announcements, shares fell 24% and are down nearly 70% over the past year because of a slowdown in online gambling after the Pandemic and investor caution over its takeover of William Hill's European operation, which resulted in 888 taking on significant debt.
Lord Mendelsohn, chairperson of the 888, said: The board and I take the group's compliance responsibilities seriously. When we were alerted to issues with some VIP customers with 888 s VIP customers, the board took decisive actions. We will be uncompromising in our approach to compliance as we build a strong and sustainable business. Mendelsohn becomes executive chair of the company on an interim basis while the board searches for a permanent chief executive to replace Pazner.