Evoke weighs sale or breakup as rising gambling duties deepen financial strain

UK gambling group Evoke has begun examining whether to sell parts of its business or pursue a complete breakup, after the steep rise in betting and gaming taxes announced in last month’s Budget triggered a sharp reassessment of its future direction.

The company, which owns William Hill, the 888 online casino brand, and Mr Green, confirmed it has initiated a strategic review and informed the City that it will evaluate “the consideration of a range of potential alternatives to maximise shareholder value, including, but not limited to a potential sale of the Group, or some of the Company’s assets and/or business units.”

Shares rose by as much as 14% following the announcement. Evoke said the decision follows its statement on November 26, 2026, when it warned that tax increases outlined by chancellor Rachel Reeves would result in an estimated £135 million ($180.7 million) annual cost.

Reeves’ measures included almost doubling the UK’s Remote Gaming Duty from 21% to 40% and raising the levy on remote betting from 15% to 25%, substantially increasing the company’s tax burden in stages from April 2026 to 2027.

The group has hired Morgan Stanley and Rothschild & Co to assess potential options. In its profit warning issued on the evening of the Budget, Evoke said the higher duties would add between £125 million ($167.3 million) and £135 million ($180.7 million) to its annual costs from 2027 if no mitigation steps were taken.

It suspended its financial targets and signaled that thousands of jobs could be at risk, as chief executive Per Widerström criticized the new policies as “counter-productive and highly damaging.”

Chief executive Per Widerström

Evoke generates around two-thirds of its revenue from the UK and is more exposed to domestic tax changes than its larger rivals, including Flutter and Entain, which have broader international operations. Its share price has fallen by more than half since August, when the government’s plans to increase taxes on the gambling sector were first reported.

The company’s market capitalization has dropped to £94.3 million ($126 million), sharply down from a peak of about £1.7 billion ($2.3 billion) in 2021. The review also comes just four years after the business, then operating as 888 Holdings, undertook a major expansion by purchasing William Hill’s portfolio of 1,400 betting shops for £2.2 billion ($3 billion) in a move into retail betting.

The group has since faced mounting financial pressures, reporting a pre-tax loss of £168.8 million ($226 million) in 2024. Analysts have raised concerns about its debt levels, with Berenberg’s Jack Cummings cautioning that the company’s “higher leverage position would come under scrutiny” as the tax increases take effect.