Evoke, the parent company of William Hill, 888, and Mr Green, reported a 7% decrease in third-quarter revenue on Friday and called on the government to refrain from further raising gambling taxes in the impending autumn budget.
For the quarter ending September 30, 2026, the group's revenue was £406 million. Adjusting for approximately 270 betting shops closed over the past year and at constant exchange rates, revenue fell by 2%. The company's chief executive, Per Widerström, noted that favorable football results for punters at the beginning of the season reduced growth by one to two percentage points, resulting in revenues remaining largely flat on an underlying basis.
Widerström stated, "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 highlighted the closure of 270 shops as evidence of the impact of higher industry taxation on jobs and livelihoods, urging the UK government to consider the consequences of any further increases as it prepares for the upcoming autumn budget.
Despite rising concerns, the taxes on betting shops were retained at last year’s levels. The previous budget had raised duties for online gaming and betting, but left the machine games duty and in-shop bet duty unchanged. Evoke has indicated that it is closing shops in part to help counterbalance the elevated online tax obligations.
The company confirmed that its acquisition by Bally’s Intralot is progressing as planned, with shareholders from both entities approving the merger and most regulatory approvals obtained. Completion is anticipated by late fourth quarter 2026 or early first quarter 2027. Widerström added, "We remain focused on disciplined execution and operational efficiency as we progress towards completion of the acquisition."
The drive to close shops is rooted in tax changes from the budget last November. The remote gaming duty was raised from 21% to 40% on April 1, 2026, and a new 25% rate for remote betting will start on April 1, 2027, while remote bets on UK horse racing will stay at 15%. Evoke projects that these adjustments will inflate its duty costs by approximately £125 million to £135 million annually and expects to mitigate about half of this through savings from suppliers, reduced marketing expenses, store closures, and cost-cutting measures.
Prior to the tax adjustments, Evoke had indicated potential closures of 120 to 200 William Hill shops, risking up to 1,500 jobs. In March, the company notified staff of its intent to permanently close around 200 UK shops—about 15% of its retail footprint—with closures commencing in May. This number later increased to about 270, which coincided with pre-tax losses soaring to £549.1 million, more than doubling from £220.9 million in 2024. Even though the company has not disclosed exact job loss figures, the closures are expected to significantly affect numerous positions.
This trend isn't limited to Evoke. Recently, leaders of Britain's six major gambling firms reported over 600 betting shop closures and a cumulative loss of 10,250 online and retail jobs since the 2025 budget. They have requested the Chancellor to leave machine games duty unchanged in the October 28 budget and to postpone the betting duty hike set for April 2027 until the impacts of current changes can be fully evaluated.
Evoke began considering its options, including a potential sale, in December after the tax increases led it to retract its medium-term outlook. In June, the company reached an all-share agreement that allows shareholders to receive 0.537 new Bally’s Intralot shares for each Evoke share, which values the company at 52 pence per share, approximately translating to £243.1 million.
Evoke's significant debt, stemming from its £2 billion purchase of William Hill’s non-US operations from Caesars Entertainment in 2022, has heavily influenced its current situation, with a debt load of about £1.86 billion reported at the end of last year. Bally’s Intralot has secured about £889 million in financing from TPG Credit, Oaktree, and OHA to facilitate the acquisition and refinance Evoke's debt.
Evoke was contacted for further clarification regarding the announcement but declined to comment further.
