Evoke Under Tax Strain: William Hill Parent Prepares for Bally's Takeover

The gambling industry is closely watching Evoke plc, the heavyweight behind renowned brands such as William Hill, 888, and Mr Green. The company is currently undergoing a period of extreme transformation. While the planned takeover by Bally’s Intralot remains on track according to the current timeline, financial results for the first half of 2026 show significant cracks in the foundation. Massive pressure from increased duties in core markets like the UK has nearly exhausted pre-tax profits.

It is a tale of two realities. On one hand, management is pushing forward with the sale of the entire group to safeguard shareholder value. On the other hand, the operational business must grapple with a debt burden that is causing increasing concern among analysts. The strategic realignment, which began in late 2025 with a comprehensive review of sale options, is now entering its critical phase. The coming months will determine whether Evoke can turn the corner or if the tax burden will long-term diminish its attractiveness to investors.

Numbers and facts

The half-year report reveals the financial predicament. Revenue stood at €1,029.5 million, nearly matching the previous year's €1,029.8 million. However, the profit outlook is bleak. Pre-tax profit plummeted from €14.6 million in the same period last year to a meager €812,000. A primary cause is the rise in gaming duties, which increased by €53.4 million year-on-year. Of this, €34.8 million was attributed solely to the UK market.

The group's net debt rose to a substantial €2.19 billion. In the retail sector, Evoke took decisive action in response to the difficult situation. Following the closure of 70 shops at the end of 2025, another 200 William Hill stores were shut down this year. This reduced the shop estate to 1,024 locations. Despite these drastic measures, adjusted EBITDA in the retail division rose by 5 percent, highlighting the focus on more productive sites.

“The first half demonstrated the resilience of the business in a significantly more challenging operating environment following substantial increases in gaming duties introduced across some of our core markets, most notably in the UK.” - Per Widerström, Chief Executive Officer of Evoke

Background

The acquisition by Bally’s Intralot is valued at approximately €282.2 million (£243.3 million). The fact that a company with billion-euro revenues is changing hands for such a relatively small sum is due to the immense debt load and regulatory hurdles. Experts see a private equity buyout or a takeover by a major player like Bally’s as the only way to manage the complexity of the balance sheet. Deutsche Bank downgraded the stock earlier this year, citing the hike in UK Remote Gaming Duty from 21% to 40% as a massive blow.

Sean Wilkins, Evoke’s CFO, described the international performance in the first half as disappointing. Revenues were particularly weak in Spain and Romania. In contrast, there were bright spots in Italy, with a 21 percent revenue increase, and Denmark, with 13 percent growth. Management is currently refraining from issuing guidance for the end of 2026, as the pending acquisition overshadows all operational forecasts. The transaction is expected to close in the fourth quarter of 2026 or the first quarter of 2027.

Why it matters for German players

German customers of Evoke brands, especially 888slots and Mr Green, do not need to worry about their account balances in the short term. Both brands are listed on the official whitelist of the Joint Gambling Authority of the States (GGL). The financial restructuring at the group level does not change the strict German player protection rules. In Germany, the cross-provider deposit limit of €1,000 per month, monitored via the LUGAS system, remains in effect.

The stake limit of a maximum of €1 per spin on virtual slots also stays in place. Evoke is required to strictly implement these requirements of the Interstate Treaty on Gambling 2021 to avoid risking its German license. For players, the takeover by Bally’s represents long-term stability, as a financially strong new owner will support the brands. German licenses are valuable to international corporations despite high taxes because they offer legal certainty. As long as the brands are on the whitelist, the offering remains legal and safe.

What it means for GGL-licensed casinos

For the German market, the Evoke case illustrates how sensitive international corporations are to tax increases. German GGL-licensed casinos already operate under a heavy tax burden. If major players like Evoke falter, it could have long-term effects on the variety of brands available in Germany. The GGL will closely examine the ownership structure after the Bally’s takeover to ensure that reliability criteria continue to be met. Competitors might use Evoke’s phase of weakness to gain market share while Evoke focuses internally on consolidation and debt reduction.