Evoke, the London-listed gambling company that owns William Hill and the 888 online casino brand, has entered takeover talks with US casino operator Bally's Intralot. The heavily indebted firm said in a stock market statement that it is discussing a possible offer at 50p a share, valuing the group at £225m.
The proposed price is almost a third higher than Evoke's closing price on Friday. The deal is expected to involve an all-share combination with Bally's, with a partial cash alternative, though Evoke cautioned that there is no certainty an offer will be made.
Evoke, formerly known as 888 Holdings, paid £2.2bn for William Hill's network of 1,400 bookmakers four years ago. Since then, its shares have fallen by 90%. The company has net debt of about £1.8bn and a market value of just £175m.
The company has faced increased duty on online gaming from 21% to 40%, and on online sports from 15% to 25%. Chief executive Per Widerström said these changes would cost the business up to £135m a year. Last month, Evoke announced plans to close about 200 William Hill betting shops from May, citing cost pressures from government tax rises.
Evoke has also experienced management issues, including the removal of its chief executive in 2023 and the suspension of VIP customer accounts in the Middle East amid an anti-money laundering investigation. The company previously paid a £9.4m fine in 2022 for failings that led to customers amassing huge losses during the pandemic.
Bally's, which sponsors Nottingham Forest Football Club, was bought by Greek company Intralot last year. It owns brands including Jackpotjoy and operates casinos in the US and Newcastle. Bally's must confirm whether it intends to make an offer by 5pm on 18 May, in line with City takeover rules.
