888: Share price tumbles after gambling boss quits amid money-laundering probe

Itai Pazner, the boss of gambling giant 888, is to step down “immediately” from the top of the business which he has led for four years – just weeks after the firm’s chief financial officer walked.

The firm announced the move to markets in a terse statement this morning.

It also announced it had launched an internal compliance investigation into its monitoring of so-called ‘VIP’ clients in the Middle East.

Shares were down more than 25 per cent in mid-morning trading.

“Following an internal compliance review, it has come to light that certain best practices have not been followed in regard to KYC (Know Your Client) and AML (Anti-Money Laundering) processes for 888 VIP customers in the Middle East region,” the firm said.

“The Board currently estimates that the impact is less than 3 per cent of Group revenues, should the suspensions remain in place.”

Pazner had been leading the integration of the firm’s business with William Hill’s European business which it bought for around £1.9bn last year.

He had been with the company for two decades.

Earlier this month chief financial officer Yariv Dafna “mutually agreed” with the business to step down amid challenging revenue numbers.

“Itai has played a very important role in building a business with powerful proprietary technology, and has overseen successful early stages to the William Hill integration process. We wish him well in his future endeavours,” chair Lord Mendelsohn said.

Mendelsohn himself will step in as interim chief executive until a successor is found.

Pazner had announced cost savings targets in November with plans to create ‘synergies’ from the deal saving as much as £150m.

Separately 888 confirmed trading was in line with expectations, but online revenues were down by 15 per cent year on year.

The firm said this was due to enhanced player protection measures in the UK and the closure of its Netherlands operation.