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In highly regulated industries such as online gambling, trust in audits, regulators, and corporate disclosures is fundamental. When that trust fails, the consequences can be catastrophic. This is the central issue at the heart of the £53 million acquisition of UK-based online betting firm In Touch Games (ITG) by Skywind Group, owned by Playtech founder and billionaire Teddy Sagi. What began as a bold acquisition in 2022 has since evolved into a complex legal battle involving allegations of fraud, misleading audits, regulatory breaches, whistleblower claims, and the near-total collapse of the acquired business.

Teddy Sagi: Wealth, Risk, and Controversy

Teddy Sagi is one of the most influential figures in the global gambling technology sector. Born in Israel, he founded Playtech in 1999, building it into a dominant provider of gambling software used by operators worldwide. Over the years, Sagi diversified his wealth into fintech, cybersecurity, and real estate, becoming a billionaire with properties across Europe, Israel, and the United States.

Sagi is also no stranger to controversy. Earlier in his life, he served a prison sentence for bribery and fraud, a fact that continues to follow him in media narratives. Despite this, he rebuilt his career and fortune, developing a reputation for aggressive deal-making and a willingness to take large risks—traits that would later define the ITG acquisition.

In Touch Games and Its Regulatory Background

In Touch Games was a UK-licensed online gambling operator running multiple casino brands aimed at British customers. While the company generated significant revenue, it also attracted sustained attention from the UK Gambling Commission. The regulator fined ITG £2.2 million in 2019 for anti-money laundering and social responsibility failures, citing serious weaknesses in customer protection.

In 2021, ITG was fined again, this time £3.4 million, for further breaches related to money laundering controls, marketing practices, and player safety. Alongside the fine, the Commission issued a formal warning and placed ITG under closer supervision. As a result, ITG was required to undergo a comprehensive third-party audit to assess whether its compliance failures had been adequately addressed.

The 2021 Audit and Apparent Regulatory Clearance

The mandated audit was conducted in March 2021 by professional services firm RSM UK. According to records at the time, ITG passed the audit, satisfying the Gambling Commission that the company had improved its systems and controls. This outcome allowed ITG to continue operating and gave the appearance that the business was back on a compliant footing.

This audit would later become the foundation of Skywind’s acquisition decision. According to Skywind, the audit created a misleading impression that ITG was compliant and stable, masking serious misconduct allegedly occurring behind the scenes.

A Deal Born Without Due Diligence

In 2022, Skywind Group agreed to purchase ITG for £53 million. According to testimony, the deal was proposed during a meeting at Sagi’s Knightsbridge residence and carried an unusually short acceptance period of ten days. Most strikingly, the deal allegedly required no due diligence—a highly unusual approach for a gambling business acquisition, particularly one with a history of regulatory penalties.

Despite these red flags, the deal proceeded, and Skywind completed the acquisition in June 2022. At the time, the business appeared to be licensed, audited, and operational, giving Skywind confidence that the risks were manageable.

Immediate Problems After the Acquisition

The optimism did not last long. In January 2023, just six months after Skywind took ownership, the UK Gambling Commission fined ITG £6.1 million for serious anti-money laundering and responsible gambling failures. Crucially, the breaches cited by the regulator dated back to March 2022—before Skywind had even agreed to buy the company, but after the supposedly clean 2021 audit.

For Skywind, this raised alarming questions about what the audit had failed to detect and whether the company had been misled about ITG’s true compliance status.

The Whistleblower and Regulatory Raid

The situation escalated further in August 2023, when a whistleblower contacted the Gambling Commission alleging fraud related to the 2021 audit. According to the whistleblower, ITG staff had fabricated or manipulated key documents to appear compliant during the audit process.

Following these allegations, the Gambling Commission conducted a raid on ITG’s offices. Investigators reportedly found evidence suggesting that customer driver’s licenses may have been forged or altered by staff to demonstrate compliance with identity verification requirements. The whistleblower also alleged falsification of payslips, financial documents, and other compliance records.

Surrender of the Gambling License and Business Collapse

In the wake of the raid and mounting regulatory pressure, ITG voluntarily surrendered its UK gambling license. Without a license, the company’s ability to operate in the UK market effectively ended overnight. Skywind subsequently reassessed the value of the business, concluding that it was essentially worthless.

A company purchased for £53 million had, within a year, been reduced to a shell with no operating license and no meaningful commercial future in its core market.

Allegations of Intimidation and Internal Conflict

The whistleblower also claimed that when concerns were raised internally, he was physically threatened by ITG founder Simon Wilson. Wilson has denied the allegation and countered that the whistleblower and Wilson’s estranged wife were acting together against him, possibly motivated by personal relationships.

These conflicting accounts have added a highly personal and contentious dimension to the legal dispute, complicating an already complex case involving regulatory compliance and corporate governance.

The Legal Battle: Fraud or Buyer’s Responsibility?

Skywind’s legal position is that it was induced to purchase ITG based on a fraudulent audit and false representations of compliance. On this basis, Skywind argues that ITG’s former owners, Simon and Yu-Lin Wilson, should be held liable for the losses suffered.

Wilson’s defense is that Skywind voluntarily surrendered the gambling license and that the business could have continued operating. He argues that the acquisition was made hastily and enthusiastically, and that Skywind is now attempting to shift responsibility for its own decisions.

The court will ultimately have to decide whether fraud occurred, whether the audit was materially misleading, and whether Skywind’s reliance on it was reasonable.

A Case Study in Regulatory Risk

Regardless of the legal outcome, the case highlights the dangers inherent in acquisitions within heavily regulated industries. Gambling regulation in the UK is among the strictest in the world, and failure to comply can erase a company’s value almost instantly.

If Skywind’s allegations are proven, the case would illustrate how superficial compliance and manipulated audits can undermine regulatory systems. If they are not, it will stand as a warning about the dangers of neglecting due diligence, even for experienced industry players.

When a High-Risk Bet Goes Too Far

The acquisition of In Touch Games was intended to be a strategic expansion for Skywind and Teddy Sagi. Instead, it has become a cautionary tale about speed, trust, and the limits of regulatory assurances. Whether the loss ultimately stems from fraud, mismanagement, or reckless decision-making, the £53 million deal underscores a simple truth: in industries built on risk, some bets carry consequences far beyond what even a billionaire can afford to ignore.