Evoke, the parent company of William Hill, 888, and Mr Green, announced a 7% decline in its revenue for the third quarter, prompting a call to the government to refrain from increasing gambling taxes in the upcoming autumn budget.
For the three months ending September 30, 2026, Evoke reported total revenue of £406 million. When accounting for around 270 betting shops closed within the past year and considering constant exchange rates, the revenue drop adjusted to 2%. The company noted that favorable football results for punters early in the season had a negative impact on growth, reducing it by one to two percentage points, and overall, revenue remained stable when looking at underlying performance.
Per Widerström, the chief executive, emphasized, “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 further remarked on the significant repercussions of the tax hikes, stating, “The closure of 270 shops over the past year shows the real impact on jobs and livelihoods from higher industry taxation, and we urge the UK government to carefully consider any further increases ahead of its forthcoming autumn budget.”
Evoke clarified that while taxes on betting shops have not been raised, the last year’s budget imposed increases on duties for online gaming and betting while maintaining existing rates for machine games and in-shop betting. The company has indicated that the shop closures are partially a strategy to mitigate the increased financial burdens from the online tax increases.
In a separate but related development, Evoke confirmed that its takeover by Bally’s Intralot is progressing as planned. Shareholders from both entities have approved the acquisition, and they have received most necessary regulatory clearances, with finalization anticipated by late Q4 2026 or early Q1 2027. Widerström noted, “We remain focused on disciplined execution and operational efficiency as we progress towards completion of the acquisition.”
The closures of betting shops began following the tax changes introduced in the November budget, which saw remote gaming duty jump from 21% to 40% as of April 1, 2026, and a forthcoming 25% duty for remote betting starting April 1, 2027. The remote betting duty on UK horse racing remains at 15%. Evoke estimates these changes will inflate its tax obligations by approximately £125 million to £135 million annually, although they anticipate offsetting about half of this amount through supplier savings, reduced marketing, store closures, and cuts in operating costs.
Initially, prior to the budget, Evoke had anticipated having to close between 120 and 200 William Hill shops, which posed risks to about 1,500 jobs. In a March announcement to staff, the company confirmed it would permanently shut around 200 UK locations, representing about 15% of their retail presence, with the process beginning in May. This figure eventually increased to approximately 270 closures, resulting in a pre-tax loss that more than doubled to £549.1 million, up from £220.9 million in 2024. The company has not quantified the potential job losses, but the cuts are expected to affect hundreds of employees.
This trend of closures is not isolated to Evoke. Recently, leaders from the six largest gambling firms in Britain reported that over 600 betting shops have shut down, with roughly 10,250 jobs either lost or under threat since the 2025 budget. They appealed to the chancellor to maintain the existing machine games duty in the budget due on October 28 and to delay the betting duty increase planned for April 2027 until the impact of previous changes could be evaluated.
Evoke initiated an exploration of its strategic options—including a potential sale—in December, shortly after the tax hikes precipitated its withdrawal from a medium-term forecast. In June, the company entered into an all-share agreement, allowing shareholders to receive 0.537 new Bally’s Intralot shares for each Evoke share, valuing the company at around 52 pence per share, totaling about £243.1 million.
Debt levels have influenced this situation; Evoke's acquisition of William Hill's non-US operations in 2022 for approximately £2 billion left them with a debt of circa £1.86 billion by the end of last year. To facilitate the deal and refinance Evoke’s debt, Bally’s Intralot has secured about £889 million in financing from TPG Credit, Oaktree, and OHA.
An inquiry to Evoke sought further clarification on this announcement, but the company declined to provide any additional comments.
