Evoke, the parent company of William Hill, 888, and Mr Green, has reported a 7% decline in its third-quarter revenue, amounting to £406 million for the three months ending 30 September 2026. The company's leadership is cautioning the government against further gambling tax increases in the upcoming autumn budget. Excluding approximately 270 closed betting shops from the past year and adjusting for constant exchange rates, the revenue drop stands at 2%. The company noted that favorable football results for punters at the start of the season adversely impacted growth by one to two percentage points, resulting in nearly flat underlying revenue.
Chief Executive Per Widerström commented, "On an underlying basis, the business continues to show resilience and reflects our continued emphasis on profitability and cash generation following the substantial increases in gaming duties, particularly in the UK." He emphasized the significant effect of the shop closures on jobs and livelihoods, urging careful consideration from the UK government regarding any new tax increases.
Despite the focus on enhancing profitability and operational efficiency, the latest update did not include specific figures on profit, earnings, or cash. In addition, Evoke confirmed that its acquisition by Bally's Intralot remains on schedule, with shareholders from both companies having approved the transaction. Most regulatory approvals have been secured, and completion is anticipated either late in the fourth quarter of 2026 or early in the first quarter of 2027. Widerström added, "We remain focused on disciplined execution and operational efficiency as we progress towards completion of the acquisition."
The shop closures are a direct consequence of last November's budget alterations. The remote gaming duty for online games rose significantly from 21% to 40% on 1 April 2026, while a new 25% duty for remote betting will take effect on 1 April 2027, leaving UK horse racing remote bets at 15%. Evoke anticipates an increase in duty costs of approximately £125 million to £135 million annually once all changes are fully implemented. The company plans to offset about half of this increase through cost-cutting measures, including supplier savings and reduced marketing expenses, alongside store closures.
Prior to the budget adjustments, Evoke had warned of potential closures affecting between 120 and 200 William Hill outlets, endangering as many as 1,500 jobs. In March, the company informed employees about a permanent closure of around 200 UK shops, representing about 15% of its retail locations, with the number of closures later rising. Recently, it confirmed the total of about 270 shop shutdowns and reported that pre-tax losses surged over twofold to £549.1 million from £220.9 million in 2024. While Evoke hasn’t disclosed the exact number of jobs at risk, it is anticipated that the closures will lead to a significant job loss.
The crisis extends beyond Evoke. Executives from the six largest gambling companies in Britain noted last week that more than 600 betting shops have closed, with 10,250 online and retail jobs either already lost or threatened since the 2025 budget. They are appealing to the chancellor to leave machine games duty unchanged in the budget on 28 October and to postpone the betting duty increase set for April 2027 until the effects of prior tax increases can be properly assessed.
Evoke signaled a potential sale last December after the tax hikes prompted the withdrawal of its medium-term outlook. In June, it entered into an all-share agreement where shareholders receive 0.537 shares in the new Bally’s Intralot for each share of Evoke, which values the company at 52 pence per share, approximately £243.1 million.
The company’s substantial debt, stemming from a £2 billion acquisition of William Hill's non-US assets from Caesars Entertainment in 2022, left it with debt totaling around £1.86 billion by the end of last year. To facilitate the acquisition and refinance Evoke's debt, Bally's Intralot has arranged financing of about £889 million from TPG Credit, Oaktree, and OHA. Evoke opted not to provide further comments when contacted for additional information on the recent developments.
