William Hill Online Dispute Settled

After a long week that threatened its online operations, William Hill Online released a laconic statement: "The group can now confirm that normal operations have resumed and that William Hill Online remains committed to its operation in Tel Aviv."

The Tel Aviv Office Walk-Out

Much of WHO's marketing and customer support are run from the Tel Aviv office.

Rumors, which have been denied by company management, had it that the Tel Aviv office will be closed down and relocated to either Britain or Gibraltar. The rumors prompted nearly 200 staff, including several top managers, to walk out in protest. Eyal Sanoff, the chief marketing officer in Israel, had resigned as well.

Walkouts have also taken place in WHO offices in Bulgaria and The Philippines. All three offices - Tel Aviv, Bulgaria and Manila - were once owned by Playtech's Teddy Sagi. Sagi and Sanoff are said to be close associates.

The William Hill Online venture is owned by William Hill (71 per cent) and Playtech (29 per cent).

A Tel Aviv Plot?

William Hill Online has come to suspect the Tel Aviv office had been plotting to set up a rival business. The bookmaker's chief executive Ralph Topping had grown suspicious following the Tel Aviv office refusal to comply with an internal audit, and upset over alleged payments for table-tennis coaching for managers.

"I'm absolutely furious but cannot comment further," he said.

The Aftermath

Mr. Topping arrived in Tel Aviv immediately after the walkout and has assisted in settling the dispute.

The company has sacked seven managers; severance is estimated at £2 million, including non-compete clauses. Mr. Topping has also installed Henry Birch, WHO's chief executive, and Jim Mullen, its chief operating officer, in Tel Aviv. They will manage the office for the next few months, in an attempt to change the business culture there.

Mr Topping has also met Playtech's chief executive Mor Weizer, though not with Mr. Sagi, who holds a 40 per cent share. The bookie has an option to buy out Playtech's stake in October 2013.

"I am very pleased that this issue is now behind William Hill Online," Weizer said after the meeting.