Evoke, the owner of William Hill and 888, has confirmed it is engaged in discussions regarding a potential takeover by the Greek lottery and gaming group Bally's Intralot. The deal values the UK betting firm at approximately £225.3 million, based on a 50p-per-share approach.
Takeover Details and Strategic Context
Listed on the FTSE 250, Evoke disclosed that it is evaluating the proposal from Bally's Intralot, which is publicly traded on the Athens stock market. The Greek company has committed to making a firm offer or withdrawing by 5pm on May 18, setting a clear timeline for the negotiations.
This development follows Evoke's strategic review initiated late last year, effectively putting the company up for sale. The move comes as Evoke grapples with mounting debts and the financial strain from recent regulatory changes in the UK gambling sector.
Financial Pressures and Tax Increases
Evoke's challenges have been exacerbated by significant tax hikes announced in the 2025 autumn budget by Chancellor Rachel Reeves. The remote gaming duty was increased from 21% to 40% starting in April, with an additional online sports betting duty of 25% set to take effect from 2027, excluding horse racing.
In response, Evoke announced cost-cutting measures in January, including the closure of betting shops, to offset an expected annual duty cost increase of up to £135 million from 2027. The company's debt burden is substantial, with reports indicating it owes lenders around £1.8 billion, much of which originated from its £2 billion acquisition of William Hill's non-US operations in 2021.
Valuation and Market Position
The proposed takeover price of 50p per share represents a premium over Evoke's closing share price of 38.85p on Friday. However, this marks a significant decline from its valuation in recent years, reflecting the broader struggles within the UK betting industry amid regulatory tightening.
Bally's Intralot, formed through the merger of Greek lottery firm Intralot and US casino operator Bally's Corporation last year, is now positioning itself to expand its footprint in the European market. Notably, Bally's Corporation holds the front-of-shirt sponsorship for Nottingham Forest Football Club, highlighting its established presence in the sports and entertainment sectors.
As talks progress, stakeholders will be closely monitoring the outcome, which could reshape the competitive landscape of the UK gambling industry. The potential acquisition underscores the ongoing consolidation trend as firms navigate increased regulatory scrutiny and economic pressures.
