888 Holdings CEO Steps Down Amid Compliance Issues


In a significant shift for the online casino industry, 888 Holdings bid farewell to its CEO, Itai Pazner, following an internal compliance shortfall related to VIP customers in the Middle East.
- 888 Holdings CEO Itai Pazner steps down abruptly after over 20 years at the company.
- Lord Mendelsohn steps in as interim executive chair while searching for Pazner’s successor.
- The company suspended VIP activities in specific dot.com markets due to AML and KYC best practices failures.
- Yariv Dafna, the CFO, initially set to step down on 31 March, will now remain until the end of 2023.
- This restructuring comes as 888 Holdings reports a 3% year-on-year decline in revenue for 2022.
- The impact of VIP account suspensions in the Middle East is expected to be less than 3% of group revenue.
- Shares in 888 Holdings have fallen by 15.99% following these announcements.
In a surprising turn of events for the online casino world, Itai Pazner, CEO of 888 Holdings, departed after more than two decades with the company. This unexpected change in leadership, coupled with the suspension of VIP activities in specific dot.com markets, marks a tumultuous period for the operator.
A Swift Departure for 888 Holdings CEO
Pazner’s departure, announced alongside the suspension of VIP activities, catches the industry off guard. Having been with 888 for over 20 years, his ascent to CEO in January 2019 was seen as a natural progression. Under his leadership, 888 not only acquired William Hill's non-US business in July 2022 but also embarked on ambitious expansion efforts across North America.
Lord Mendelsohn, stepping in as interim executive chair, has praised Pazner’s contributions, specifically highlighting the strides in building a robust business underpinned by powerful proprietary technology. While Mendelsohn has expressed gratitude towards Pazner’s efforts, especially in the early stages of the William Hill integration, the industry is left wondering about the catalyst for such an abrupt exit.
Compliance Concerns at the Heart of the Issue
The complexities leading to Pazner’s departure become more evident with the revelation of anti-money laundering (AML) and Know Your Customer (KYC) best practices not being sufficiently followed for Middle Eastern customers. This oversight has prompted an internal compliance review, immediately suspending VIP customer accounts in the Middle East region. While these suspensions currently represent less than 3% of group revenue, the broader implications on the company’s compliance culture and investor confidence are significant.
Broad Ramifications and a Look Ahead
The internal review and subsequent account suspensions come at a time when 888 Holdings was already grappling with financial challenges, including a reported 3% decline in year-on-year revenue for 2022. CFO Yariv Dafna’s decision to remain until the end of 2023, reversing an earlier announcement of his March departure, suggests stability is a top priority for the embattled operator.
Lord Mendelsohn has underscored the board’s commitment to rigorous compliance standards, emphasising that the company will not compromise its responsibilities. As 888 Holdings navigates these turbulent waters, the industry is watching closely to see how these changes will generally influence the company’s trajectory and UK online casinos.
Stakeholders are understandably apprehensive with shares plunging nearly 16% after these announcements. The path forward for 888 Holdings will require strategic leadership and a renewed focus on compliance to rebuild trust and ensure a sustainable future.
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Peter Wilson is the Editor-in-Chief at GamblingAuthority. He has more than nine years of experience from the iGaming industry and is a valuable resource for everything related to online casinos.
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