Evoke, the parent company of well-known brands such as William Hill, 888, and Mr Green, disclosed a 7% decline in revenue for the third quarter of 2026, prompting a call for the government to refrain from further gambling tax increases in next week’s autumn budget.
For the three months ending on September 30, 2026, Evoke's group revenue reached £406 million. If the approximate 270 betting shops that have closed over the past year are excluded, the revenue decrease narrows to 2%, when adjusted for constant exchange rates. The company noted that favorable early-season football outcomes for bettors impacted growth by one to two percentage points, resulting in stable revenue on an underlying basis.
Chief Executive Per Widerström remarked, "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 stated, "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."
Last year, the government did not raise taxes on betting shops. While duties on online gaming and betting were increased in the past budget, machine games tax and the duty on bets placed at shops remained unchanged. Evoke has indicated that the closure of shops is partially a strategy to manage the rising tax burden associated with online gaming.
The company’s focus on profitability and cash generation was underscored in the recent update, although it did not disclose any specific figures regarding profit, earnings, or cash.
Evoke also shared that its acquisition by Bally’s Intralot is moving forward as planned. Both companies’ shareholders have approved the deal, and most necessary regulatory approvals have been secured. The transaction is expected to complete by late Q4 2026 or early Q1 2027.
Widerström emphasized, "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 the changes announced in last November’s budget. The remote gaming duty, affecting online games of chance, surged from 21% to 40% on April 1, 2026. A new 25% rate for remote betting will come into effect on April 1, 2027, while the rate for remote bets on UK horse racing will remain at 15%. Evoke has estimated that these changes could escalate its duty expenses by approximately £125 million to £135 million annually once fully implemented. To mitigate this, the company plans to achieve around half of these savings through supplier deals, reduced marketing expenditures, and operational cutbacks.
Prior to these tax adjustments, Evoke warned of potential closures between 120 and 200 William Hill shops, which threatened up to 1,500 jobs. By March, Evoke confirmed plans to close around 200 UK shops permanently, roughly 15% of its retail presence, with the process beginning in May. This figure later increased to 270 shops during their 2025 results announcement, where pre-tax losses also deepened to £549.1 million from £220.9 million in 2024. While specific job losses have not been disclosed, closures are expected to impact hundreds of employees.
The ramifications of these tax rises extend beyond Evoke. Recently, the leaders of Britain’s six largest gambling firms revealed that over 600 betting shops have shuttered their doors, resulting in 10,250 online and retail jobs lost or threatened since the 2025 budget. They have appealed to the chancellor to maintain the machine games duty at its current rate during the upcoming budget and to delay the planned betting duty increase until the implications of existing taxes can be adequately assessed.
Evoke began reassessing its options, including a potential sale, back in December, shortly after the tax hikes necessitated a withdrawal of its medium-term outlook. In June, the company agreed to an all-share deal in which shareholders would receive 0.537 new Bally’s Intralot shares for each Evoke share, setting the company’s value at 52 pence a share, approximately £243.1 million.
The situation has been influenced heavily by debt. Following its £2 billion acquisition of William Hill's non-US operations from Caesars Entertainment in 2022, Evoke’s debt stood around £1.86 billion at the end of the previous year. Bally’s Intralot is securing about £889 million in financing from TPG Credit, Oaktree, and OHA to facilitate the deal and refinance Evoke’s obligations.
Despite reaching out for a follow-up, Evoke declined to provide additional comments on the announcement.
