Evoke, the parent company of renowned gambling brands like William Hill, 888, and Mr Green, disclosed a 7% decline in their revenue for the third quarter, prompting a call to the government to refrain from imposing further increases in gambling taxes during the upcoming autumn budget.
For the three months ending September 30, 2026, group revenue stood at £406 million. When excluding the approximately 270 betting shops that have shuttered over the last year and considering constant exchange rates, revenue only fell by 2%. The company noted that favorable football results for punters at the start of the season reduced growth by one to two percentage points, which resulted in revenue remaining relatively unchanged on an underlying basis.
Chief Executive Per Widerström highlighted, “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 pointed out that the closures of 270 shops throughout the past year reflect the tangible effects of elevated industry taxation on jobs and livelihoods. Widerström urged the UK government to contemplate any further tax hikes before the forthcoming autumn budget.
Notably, the tax rates on betting shops did not increase in the last budget. Although there was a rise in online gaming and betting duties, the machine games duty and the taxation of shop-based bets remained unchanged. To cope with the heightened online tax obligations, Evoke has indicated shop closures are necessary.
Turning to company developments, Evoke confirmed that its acquisition by Bally’s Intralot remains on track. Shareholders from both firms have approved the transaction, and most required regulatory approvals have been secured. The deal's completion is anticipated towards the end of the fourth quarter of 2026 or the beginning of the first quarter of 2027. “We remain focused on disciplined execution and operational efficiency as we progress towards completion of the acquisition,” said Widerström.
The closures of shops are a direct outcome of last November's budget, which significantly raised the remote gaming duty from 21% to 40% effective April 1, 2026. A new 25% rate for remote betting is scheduled to take effect on April 1, 2027, while remote bets on UK horse racing will still be taxed at 15%. Evoke projects that these adjustments will increase their annual duty costs by approximately £125 million to £135 million when fully implemented, though they expect to mitigate about half of this through savings from suppliers, reduced marketing expenses, and operating cost reductions.
Prior to the budget changes, the company had cautioned it might close between 120 and 200 William Hill outlets, risking up to 1,500 jobs. By March, the company disclosed plans to permanently close around 200 UK shops, representing about 15% of its retail operations, with these closures commencing in May. This number has since escalated.
Confirming the 270 closures alongside its 2025 results, Evoke also reported that pre-tax losses had surged to £549.1 million, a sharp increase from £220.9 million in 2024. Although the company has not specified the number of jobs at risk, the closures are likely to result in hundreds of job losses.
The impact of such closures extends beyond Evoke. Recently, executives from the six largest gambling companies in Britain mentioned that over 600 betting shops have shut down and more than 10,250 jobs in both online and retail sectors have been lost or placed at risk since the 2025 budget. They urged the chancellor to maintain the current machine games duty at the upcoming budget on October 28, and to delay the April 2027 betting duty increase until the effects of existing increases could be evaluated.
Evoke initiated a review of its strategic options, including the potential for a sale, in December, shortly after the tax hikes required it to retract its medium-term outlook. In June, an agreement was made for an all-share transaction, where shareholders will receive 0.537 new Bally’s Intralot shares for every Evoke share, valuing the company at 52 pence per share, or approximately £243.1 million.
The financial burdens have influenced this outcome, particularly due to Evoke's £2 billion acquisition of William Hill's non-U.S. business from Caesars Entertainment in 2022, which left the company with a debt load of around £1.86 billion at the end of the prior year. Bally’s Intralot has arranged about £889 million in financing from TPG Credit, Oaktree, and OHA to facilitate the deal and refinance Evoke's debt.
Evoke has not commented further when contacted for follow-up information on the acquisition announcement.
