Skywind Games Seeks to Reverse £51 Million Acquisition of In Touch Games – iGaming Post

Skywind Holdings is currently seeking to annul its £51 million acquisition of In Touch Games (ITG), amidst serious allegations related to a contentious piece of software dubbed the “Super-User Code.” The lawsuit, filed in the High Court, raises significant concerns about the ethical integrity of the acquisition process and the conduct of ITG’s former owners.

### Background of the Acquisition

In June 2022, Skywind, a company spearheaded by billionaire Teddy Sagi, successfully completed the acquisition of ITG for approximately £50.8 million. ITG is recognized for its extensive operations within the online gaming sector and was anticipated to bolster Skywind’s portfolio amidst intense market competition. However, the acquisition has come under fire due to alleged fraudulent activities linked to software purportedly designed to manipulate and erase vital customer data.

### Allegations of Fraud

At the heart of Skywind’s lawsuit lies the so-called “Super-User Code,” allegedly introduced on July 16, 2021. Skywind contends that this code enabled select employees to erase customer document images, consequently obliterating all associated records. This purported deletion process hindered an audit performed by RSM, a respected auditing firm, and led to the destruction of critical evidence related to potential fraudulent misconduct.

Skywind’s legal submissions maintain that the code was specifically engineered to facilitate and obscure improper activities, particularly regarding the RSM audit. The company is now pursuing the annulment of a settlement agreement established in November 2023 and seeks damages amounting to £63.4 million.

### Internal Communications and Ethical Concerns

Court documents have revealed disconcerting internal communications among ITG’s former ownership, specifically Simon and Yu-Lin Wilson. In a revealing email dated January 23, 2022, Mrs. Wilson articulated her hesitance to sign documents arranged by what she referred to as “dishonest snakes and incompetent people.” Such correspondence calls into question the transparency and ethical standards upheld throughout the acquisition process.

Moreover, a telephone conversation between Mrs. Wilson and whistleblower Nicholas Burton allegedly included remarks suggesting awareness of potential legal ramifications. These exchanges hint at a troubling culture of fear and deceit within ITG, complicating the narrative surrounding the acquisition.

### Whistleblower Revelations

Nicholas Burton, formerly ITG’s corporate development manager, played a critical role in unraveling the alleged fraudulent activities. During a pre-audit review of customer files, Burton reportedly uncovered a host of forged documents, including bank statements and payslips. His findings pointed to a systematic effort to manipulate customer data, raising red flags about the integrity of ITG’s operations.

On February 4, 2022, Burton sent a whistleblower letter accusing ITG of engaging in fraudulent practices. However, he later retracted the letter following what he described as a coercive encounter with Simon Wilson.

### The Defense’s Position

In a robust response to Skywind’s allegations, Simon Wilson has categorically denied any wrongdoing. His defense characterizes the allegations as unfounded, asserting that no fraudulent acts occurred and that he was unaware of any data manipulation. Wilson argues that the deletion of customer images was a standard procedure intended to manage irrelevant or illegible documents.

Additionally, the defense contends that passing the RSM audit was not pivotal to ITG’s future health. They argue that the audit did not operate on a simple pass/fail basis, and that any document deletions were not directly advantageous to the company. This viewpoint seeks to undermine the basis of Skywind’s claims and reframe the narrative regarding the acquisition.

### Conclusion

As Skywind Holdings navigates this legal quagmire, the case underscores the importance of ethical conduct and integrity in the gambling industry. This situation not only highlights potential risks associated with acquisitions in this sector but also serves as a reminder for stakeholders to prioritize transparency to foster trust and compliance within the highly competitive marketplace.