Amaya CEO Resigns Amid Insider Trading Allegations

David Baazov has formally resigned from his position as Chief Executive Officer of Amaya. This decision follows a time of ambiguity during which he took an open-ended leave from his role due to allegations of insider trading. Rafi Ashkenazi, who held the position of temporary CEO, has now been designated as the permanent Chief Executive Officer. Baazov has also relinquished his role as Chairman of the Board.

Although Baazov maintains a substantial ownership interest in the company (approximately 18.5%), Amaya affirmed that he is no longer engaged in any leadership capacity. His intentions regarding his stake in the company remain uncertain.

This development comes after the prior statement that Baazov and Chief Financial Officer Daniel Sebag would not pursue re-election to the board. The accusations of insider trading, levied by Quebec’s securities regulator (AMF), are still unresolved. Baazov faces five charges connected to manipulating Amaya’s share value using confidential data.

The Canadian oversight organization, known as the AMF, has formally charged multiple individuals with illicit insider trading practices. The regulatory body claims that from December 2013 to June 2014, these parties utilized private data regarding Amaya’s stock for personal financial benefit. This allegation is directly connected to Amaya’s substantial $4.9 billion purchase of the Oldford Group in June 2014. The Oldford Group, at that juncture, held the position of parent corporation for prominent online poker platforms PokerStars and Full Tilt Poker.

Following these developments, David Baazov, Amaya’s Chief Executive, resigned from his role. He conveyed a sense of accomplishment in Amaya’s evolution into a thriving enterprise and promised ongoing backing for their strategic direction and leadership team. Amaya expressed gratitude to Baazov for his input, particularly during phases of accelerated expansion, and conveyed confidence in Rafi Ashkenazi to maintain the company’s strategic course.

Ashkenazi, who had become a part of Amaya in 2013 as the Chief Operating Officer of the Rational Group (supervising PokerStars and Full Tilt Poker), had been acting as temporary CEO since March and formally took on the position. Furthermore, Divyesh Gadhia moved from interim Chairman to permanent Chairman.

Amidst these transitions, Amaya announced robust financial outcomes. Their six-month report emphasized an 8% year-over-year revenue growth, reaching C$574.6 million (equivalent to approximately £340.9 million). Even more noteworthy was the 163% increase in earnings from ongoing operations, which reached C$7.8 million.