Evoke considers a business sale due to rising gambling taxes in Britain

Evoke has issued a statement on the London Stock Exchange announcing that it is considering selling the entire business or certain parts of it. The decision comes after the UK government approved a significant tax increase for online gambling, sharply raising the financial burden on bookmakers and casinos.

Under the updated regulations, the tax rate for online casinos will increase from 21% to 40%, while the tax on sports betting will go up from 15% to 25%. For Evoke, this translates into potential additional yearly costs of up to £135 million.

Given these developments, the company has indicated that its existing business model could become financially unviable. As a result, management is actively evaluating a broad spectrum of strategic alternatives, which include splitting the company into independent units or divesting major assets.

Throughout this process, Evoke will be supported by Morgan Stanley and Rothschild & Co — globally recognized leaders in asset disposals and corporate restructuring.

Market reaction

The market reacted surprisingly positively: according to Reuters, Evoke’s shares rose by more than 10%. Investors saw the strategic review as an opportunity to optimize the company’s structure, reduce debt, and unlock asset value. The William Hill, 888, and Mr Green brands may also hold significant appeal for various categories of buyers, especially if offered separately.

No final decision yet

At the same time, Evoke representatives stressed that no decisions regarding a sale have been made at this stage. The company assures that it will consider all options, including retaining the business in a reduced or restructured form. It is worth noting that William Hill has been operating since 1934, making it one of the oldest gambling brands in the world.

In one of our earlier articles, we wrote about what could happen  if the UK raises the gambling duty to 40%. The market will likely undergo structural changes. Operators would tighten bonus policies, some might exit the market, and players could increasingly turn to offshore platforms — reducing the effectiveness of the reform. While the tax increase may initially boost revenue, in the long term, it could shrink the regulated sector and weaken consumer protection.