888 Holdings plc ( OTCPK:EIHDF ) is in crisis mode after the gambling company was hit with a money laundering scandal involving operations in the Middle East that led to the resignation of CEO Itai Pazner.
The 888 board disclosed that it has taken the decision to suspend VIP customer accounts in the Middle East due to KYC (Know Your Client) and AML (Anti-Money Laundering) processes for VIP customers not being followed properly in the region. 888 currently estimates that the impact is less than 3% of revenue should the suspensions remain in place.
888 Holdings fell 27% in London trading on Monday and dropped another 7.20% in early trading on Tuesday.
On Wall Street, Deutsche Bank slashed its price target to 105p from 150p in reaction to the development, but kept a Buy rating in place.
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888 Holdings plummets after being rocked up money laundering scandal, CEO resignation