Evoke, the gambling company that owns 888 and William Hill, is in discussions regarding a potential takeover by Bally's Intralot, according to multiple reports. The proposed deal values Evoke at £225.3 million. Bally's Intralot has committed to table a firm offer for Evoke or withdraw by 5pm on 18 May.
Evoke initiated a strategic review late last year, effectively putting itself up for sale, as it grapples with escalating debts and increased costs from November's betting tax hike. In January, Evoke announced plans to close betting shops and implement cost-cutting measures to mitigate an anticipated annual increase in duty costs of up to £135 million from 2027.
We were very disappointed with the outcome of the UK Budget in November that dealt a significant blow to both Evoke and the wider regulated industry.
Evoke's valuation has collapsed in recent years and it owes lenders around £1.8 billion. Much of Evoke's debts were built up when 888 bought the non-US operations of William Hill for £2 billion in 2021.
The potential takeover price marks a premium to Evoke's closing share price on Friday of 38.85p a share. Bally's Intralot was formed by the tie-up between Greek lottery firm Intralot and US casino operator Bally's Corporation last year. Bally's Corporation is the front-of-shirt sponsorship for Nottingham Forest Football Club.
We continue to believe these tax increases will negatively impact the industry’s economic contribution, customer protection, and will ultimately serve to support further growth in the illegal black market.
Chancellor Rachel Reeves announced in the 2025 autumn budget tax increases for online gambling firms, raising remote gaming duty from 21% to 40% from April. A new 25% online sports betting duty, excluding horse racing, will be introduced from 2027.
Per Widerstrom, chief executive of Evoke, said in a statement: "We were very disappointed with the outcome of the UK Budget in November that dealt a significant blow to both Evoke and the wider regulated industry." He added: "We continue to believe these tax increases will negatively impact the industry's economic contribution, customer protection, and will ultimately serve to support further growth in the illegal black market."
As a result of these significant UK tax increases, the board is assessing its strategic options, with a resolute focus on maximising shareholder value.
Widerstrom said the board is assessing its strategic options, with a resolute focus on maximising shareholder value. "We have moved quickly and decisively to execute on our mitigation plans including the closure of retail stores that are no longer sustainable as well as broader cost savings, and we will update shareholders on our progress and updated strategic plan in due course," he said.
It remains unclear whether Bally's Intralot will proceed with a firm offer or withdraw by the deadline. The impact of the potential takeover on Evoke's existing debt of £1.8 billion is also uncertain. The UK government has not indicated whether it will reconsider the tax increases in light of industry opposition.
We have moved quickly and decisively to execute on our mitigation plans including the closure of retail stores that are no longer sustainable as well as broader cost savings, and we will update shareholders on our progress and updated strategic plan in due course.