The former owners of an online gambling business in the UK that has gone through a range of issues over the last few years were named defendants in a newly filed legal claim by Skywind, an online gambling business founded and owned by Teddy Sagi, a famous entrepreneur and billionaire.
Skywind’s claim is against the former owners of In Touch Games (ITG), Simon Wilson, an iGaming entrepreneur and his estranged wife, Yu-Lin, the Guardian reports. The plaintiff purchased the company, an online gambling business with nearly 5 million customers, for the price of £53 million ($68.5 million) back in June 2022.
The acquisition followed brief negotiations that started a couple of months earlier in the same year. Yet, Skywind conducted an extensive due diligence check prior to the purchase of ITG. The complex analysis of the company’s operations uncovered no evidence of fraud or other deficiencies, despite claims by whistleblowers circulating around the time of the takeover.
Multi-Million-Dollar Purchase Now Has “Nil or Nominal” Value
According to Skywind’s legal claim, ITG’s future had already been decided as the company was doomed to fail primarily because of intricate forgery. Early in 2023, ITG received a £6.1 million ($7.9 million) penalty from the UK gambling regulator, the Gambling Commission. The monetary sanction came after deficiencies related to responsible gambling and anti-money laundering from March 2022, shortly before the acquisition by Skywind.
After that, in August last year, the gambling watchdog notified Skywind that it uncovered ITG “knowingly altered” documents ahead of a 2021 audit that was conducted by RSM UK, a risk management and consultancy company.
To make matters worse, ITG’s offices were raided, and the Gambling Commission found evidence of forgery related to customers’ driver’s licenses. Subsequently, the online gambling operator’s license was suspended. Shortly after, ITG surrendered its license.
Describing the issues that led to the downfall of ITG, Skywind said that the company it purchased recently for £53 million ($68.5 million) now had a value that was “nil or nominal.” A spokesperson for Skywind explained: “We are now seeking to recover the balance of our losses sustained on this transaction from the remaining sellers who we say were involved in perpetrating this fraud.”
The Online Gambling Business’ Former Owners Deny Wrongdoing
ITG’s former owner, Wilson denied any claims about unlawful activity. He also rejected Skywind’s claims that the company didn’t have value, saying that ITG’s license surrender wasn’t necessary. Wilson claimed that Skywind continues to benefit from ITG brands, as well as customers that have been integrated into its operations.
Similarly, Wilson’s estranged life, Yu-Lin, also denied any claims about unlawful activities. She alleged that the downfall and loss in value in ITG was the result of poor management by Skywind. Additionally, Yu-Lin accused Skywind of ineffective communication with the gambling regulator. Just like her husband, she also claimed that ITG surrendered its license needlessly.