Evoke, the parent company of renowned betting brands William Hill and 888, has officially confirmed it is engaged in discussions regarding a potential takeover by the lottery and gaming conglomerate Bally's Intralot. The proposed deal values the UK-based betting group at a substantial £225.3 million, marking a significant development in the gambling industry.
Strategic Review and Financial Challenges
Late last year, Evoke initiated a strategic review, effectively putting itself up for sale as it grapples with mounting financial pressures. The company is contending with escalating debts, which are compounded by increased costs resulting from the betting tax hike announced in November 2025. This move has placed considerable strain on its operations and profitability.
Takeover Details and Share Price Impact
The FTSE 250-listed firm is considering an approach of 50p per share from Bally's Intralot, a Greek company listed on the Athens stock market. This offer represents a premium compared to Evoke's closing share price of 38.85p on Friday, although the company's valuation has dramatically collapsed in recent years. Bally's Intralot has committed to tabling a firm offer or withdrawing its interest by 5pm on 18 May, setting a clear timeline for the potential acquisition.
Debt Burden and Historical Context
Evoke's financial woes are underscored by its significant debt load, estimated to be around £1.8 billion owed to lenders. Much of this debt was accumulated during the 2021 acquisition of the non-US operations of William Hill for £2 billion, a move that has since contributed to its current precarious position. The company's struggles highlight the broader challenges facing the gambling sector amid regulatory changes.
Tax Increases and Mitigation Efforts
In response to the anticipated financial impact, Evoke announced plans in January to close betting shops and implement cost-cutting measures. These actions aim to mitigate an expected annual increase in duty costs of up to £135 million from 2027, driven by Chancellor Rachel Reeves' 2025 autumn budget. The budget introduced tax increases for online gambling firms, raising remote gaming duty from 21% to 40% from April and introducing a new 25% online sports betting duty, excluding horse racing, from 2027.
Executive Response and Industry Concerns
Per Widerstrom, chief executive of Evoke, expressed disappointment with the budget outcome, stating it dealt a significant blow to both the company and the wider regulated industry. He warned that these tax increases could negatively impact the industry's economic contribution and customer protection, potentially fueling growth in the illegal black market. Widerstrom emphasised the board's focus on maximising shareholder value through strategic options, including store closures and broader cost savings, with updates to be provided to shareholders in due course.
Background on Bally's Intralot
Bally's Intralot was formed through the merger of Greek lottery firm Intralot and US casino operator Bally's Corporation last year. Bally's Corporation is notably the front-of-shirt sponsor for Nottingham Forest Football Club, highlighting its presence in the sports and entertainment sectors. This potential takeover could reshape the competitive landscape of the global gambling market, bringing together diverse assets and expertise.
The discussions between Evoke and Bally's Intralot underscore the ongoing consolidation and adaptation within the gambling industry, as companies navigate financial headwinds and regulatory shifts. Stakeholders will be closely monitoring developments leading up to the May deadline for a firm offer.
