Evoke enters takeover talks with Bally’s Intralot at $303 million valuation

Evoke, the London-listed gambling group that owns William Hill and 888, is in discussions with Bally’s Intralot regarding a potential takeover that would value the company at about £225 million ($303.88 million).

The proposal of 50p per share represents a premium of nearly 29% to Evoke’s closing price on Friday and sent the company’s shares up nearly 16% following the announcement. Evoke said the approach could involve an all-share combination with a partial cash alternative, adding there is “no certainty that an offer will be made or as to the terms on which any offer might be made”.

Under London takeover rules, Bally’s Intralot must confirm its intention to proceed or withdraw by 5 p.m. London time on May 18.

Offer emerges amid strategic review

Evoke disclosed the talks after earlier media reports and ongoing efforts to review its strategic direction. In December, the company appointed advisers, including Morgan Stanley and Rothschild, to assess options intended to “maximise shareholder value,” including a potential sale.

The group, formerly known as 888 Holdings, acquired William Hill’s retail estate of about 1,400 betting shops in a £2.2 billion deal four years ago. Since then, its share price has declined by about 90%, leaving the company with a market value of roughly £175 million and net debt of about £1.8 billion.

Evoke said earlier this year it would close about 200 William Hill locations starting in May as part of cost measures.

Tax changes pressure UK operators

Recent tax increases in the UK have affected operators with significant domestic exposure. Duty on online gaming rose from 21% to 40%, while online sports betting duty increased from 15% to 25% in April, excluding horse racing.

Chief executive Per Widerström said previously that the changes would cost the business up to £135 million annually. The company also withdrew its financial outlook in January while continuing its review of options.

Evoke has faced regulatory and operational challenges in recent years. In 2022, it agreed to pay a £9.4 million fine related to compliance failings. Earlier, in 2017, the UK Gambling Commission imposed a £7.8 million penalty after more than 7,000 self-excluded customers were able to access their accounts.

In 2023, the company removed its chief executive and suspended VIP accounts in the Middle East during an internal investigation tied to anti-money laundering controls.

Bally’s Intralot expands UK gaming presence

Bally’s Intralot, listed in Athens and active in 40 regulated jurisdictions, has been increasing its activity in the UK online gaming segment. The company became part of a wider corporate structure following a €2.7 billion transaction involving Intralot and has links to Bally’s Corporation, its majority shareholder after the acquisition of Bally’s International Interactive business.

Its portfolio includes online casino brand Jackpotjoy, along with land-based casinos and resorts in the United States and a casino operation in Newcastle.

The potential acquisition would combine Evoke’s UK retail and online assets with Bally’s Intralot’s international operations, subject to regulatory and shareholder approvals.