888 Holdings Suffers Loss After UKGC Penalty
Global gaming giants 888 Holdings has been hit with the record £7.8 million ($10 million) fine by the United Kingdom Gambling Commission (UKGC).
888 casino have been accused and found guilty of failure to safely handle vulnerable customers and safeguard them from breaching the self-exclusion arrangements. Additionally, 888 also failed to recognise a potential problem gambler who stole £55,000 from his boss to gamble £1.3 million at 888 sites for over a year.
The UKGC issued a staggering fine to 888 and assigned an independent review of 888 Holding to make sure the company will ensure customer protection is being executed.
Having gone through a difficult period which also included a charge for tax provisions in Germany, 888 has issued a half-year financial report which confirms the company has slumped to a loss.
The H1 results show that 888 Holdings’ results suffered a pre-tax loss of $17.3 million, which still is considerably different from the $27.8 million profit recorded during the same period in 2016.
Exceptional costs VAT changes in Germany have been listed as main reasons for the downfall.
Not All is Bad
Despite the negative numbers 888 revealed that the company’s revenue rose 9% to $270 million in the six months to the end of June. The strong numbers come as a direct result of a strong momentum recorded in sports and poker, but also in the mobile division.
The sole pleasing outcome stands as a testament to 888Sports continued growth and in 888Casino’s core vertical.
The company expects that further regulation and the expansion of gaming duty on the casino, poker and bingo free bets in the UK which will take full effect in the second half of 2017, will increase the cost base for operating in the UK.
“At the same time, enhanced regulation in the UK around areas such as television advertising and bonuses will impact overall UK market growth.”, 888 Holding Chief Executive Itai Frieberger said.