Fraud allegations and physical threats taint major gaming deal

What can happen when deals go bad, by Anna Cooper of TheBusinessDesk.com

Hello Rainmakers,

Just wow.

Sometimes you see a story that seems to have all the elements of tension, drama, risk and high stakes.

But this seems to top the lot.

For good measure Anna Cooper’s story also seems to really drill home the point about doing proper due diligence before entering into any kind of sale and purchase agreement.

We hope you are enjoying these deep dive investigations into stories that concern the world of mergers and acquisitions. There’s plenty more to come, and we’re always on the lookout for tips about others we should follow up.

Enjoy.

FRAUD ALLEGATIONS AND PHYSICAL THREATS TAINT MAJOR GAMING DEAL

By Anna Cooper

An online gaming firm born in the Black Country finds itself embroiled in a high-stakes court battle involving serious allegations of fraud and physical threats. 

InTouch Games (ITG), once hailed as an industry leader, was acquired by billionaire Teddy Sagi's Skywind brand for £54.5 million. However, Skywind now claims that ITG's value was grossly inflated through concealed fraudulent activities, and really is worth nothing.

The saga of ITG's rise, controversial dealings, and subsequent legal troubles has revealed a web of deception, regulatory scrutiny, and corporate power plays.

Founded by CEO Simon Wilson and his now estranged wife and director Yu-Lin, ITG started out in 2001 as a slot machine and jukebox manufacturer and moved into online gaming by developing a successful mobile phone casino system in 2006.

It went on to evolve into a mobile casino firm with 11 brands and more than 500 staff across offices in the UK, Cyprus, Romania, Vietnam and Taiwan.

ITG scored a deal to sponsor West Bromwich Albion Football Club for the 2021/22 season with its most popular brand mFortune featuring on the back of the men’s first team away and third shirts that season.

Its activity attracted the attention of Sagi, but also the Gambling Commission - a gamble proven to be too risky to take. 

Trouble began back in 2017 for ITG when the Gambling Commission began to get its teeth into the firm as part of a widespread investigation into the way the industry combats problem gambling and money laundering.

After two years, it was slapped with a £2.2m fine for failing to implement effective safeguards to prevent money laundering and keep consumers safe from gambling harm.