Evoke Sale Looms Amidst Tax Hikes & Debt
Evoke (formerly 888 Holdings) announces strategic review that could lead to company sale following UK gambling tax hikes and mounting debt from William Hill acquisition.
Key Takeaways:
- Evoke shares rose 12.8% after announcing potential sale, but stock value has halved since August
- UK gambling tax increase from 15% to 25% could add £135 million to operating costs by 2027
- William Hill retail acquisition for £2.2 billion in 2021 left company with substantial debt
Financial Pressure Forces Evoke to Consider Sale
The FTSE250 company Evoke, previously known as 888 Holdings, has launched a strategic review that could result in selling the entire group or specific business units across its key markets in the UK, Italy, Spain, Romania, and Denmark.
This announcement provided temporary relief for the company’s stock, which rose by 12.8% on the London Stock Exchange. However, this positive movement comes after Evoke’s share value has decreased by approximately 50% since August when rumors of gambling tax increases first emerged.
Morgan Stanley and Rothschild & Co have been appointed as joint financial advisers to guide the review process.
Tax Hikes Accelerate Financial Troubles
The UK’s recent Autumn Budget, which increased iGaming taxes from 15% to 25%, has intensified Evoke’s financial challenges. The company was among the first major UK betting operators to express strong opposition to Chancellor Reeves’ tax increases.
Evoke warned that these higher taxes could add approximately £135 million (US$179.95m) to operating costs by 2027. CEO Per Widerström described the tax changes as “counter-productive and highly damaging” to employment in the sector.
William Hill Acquisition: The Root Cause
While the tax increase has exacerbated Evoke’s situation, the company’s financial difficulties stem primarily from former 888 CEO Itai Pazner’s decision to acquire William Hill’s retail operations from Caesars Entertainment.
In September 2021, Pazner paid £2.2 billion (US$2.92 billion) for 1,300 UK William Hill betting shops—a price many analysts considered excessive, especially in an era when digital gaming platforms have largely superseded traditional high street bookmakers.
This acquisition burdened 888 Holdings with substantial debt and ultimately led to Pazner’s departure in early 2023. The company later rebranded as Evoke in an attempt to distance itself from past management decisions.
Dramatic Valuation Decline
The financial impact on the company has been severe. Once valued at approximately £1.7 billion (US$2.27bn), Evoke’s current market capitalization has plummeted to just £94.3 million (US$125.69m).
This represents a dramatic fall for a company that owns prominent brands including Mr Green, 888casino, 888sports, 888poker, and William Hill—once considered the crown jewel of British betting.
When approached by iGamingFuture for additional information, the company responded: “We have nothing, absolutely nothing, to add.”
The outcome of this strategic review will likely have significant implications for the UK betting landscape and the broader iGaming industry.