The Turkish business has been a source of controversy for the group, having sold it in December 2017 to Ropso Malta for no fee to avoid damaging its takeover of Ladbrokes Coral. It booked a €46 million loss on the sale after lenders baulked at GVC’s exposure to a country where internet betting is illegal.
It later emerged that one of Ropso’s investors, Ron Watts, co-owned a stud farm with Alexander, who is a keen horse-racing owner.
GVC said later that the connections between the men had been fully declared, with the business sold following a competitive process overseen by investment bank Houlihan Lokey.
Last week, Alexander announced his surprise departure from the group he had run for 13 years. Handing over the reins to chief operating officer Shay Segev, he said he wanted to spend more time with his family.
The company said: “Both the company and GVC are surprised by the decision to extend the investigation in this way and are disappointed by the lack of clarity provided by HMRC as to the scope of its investigation.”
GVC said it continued to co-operate with HMRC on the matter, having been asked to produce information in November.
The company added: “Prior to July 20, it had been understood that no GVC entity was a subject of HMRC’s investigation, following requests for clarity from HMRC as to the status of its investigation.
“However, HMRC yesterday informed the company that it was widening the scope of its investigation and is now examining “potential corporate offending” by an entity (or entities) within the GVC group which HMRC has not yet identified.”
The strong cashflows generated by the Turkish business were credited with enabling Alexander to fund the company’s expansion into regulated markets.
During his time at the helm, Alexander transformed GVC from a small AIM-listed company into a FTSE 100 business with 25,000 staff and some of the industry’s biggest brands.
His highest-profile deal came in 2018 with the acquisition of Ladbrokes Coral, which brought a significant High Street presence as well as online operations. GVC’s stable of brands also includes Sportingbet, Eurobet, PartyPoker and Foxy Bingo.
