William Hill owner Evoke shuts shops after budget tax hit

William Hill and 888 owner Evoke said it has moved “quickly and decisively” to offset recent budget changes to gambling taxes through shop closures and cost cuts as it continues to look at a possible sale of the group.

The company, which launched a strategic review in December after Chancellor Rachel Reeves announced tax hikes for online gambling firms, said it had taken action to mitigate the hit from the November budget, including shutting retail betting shops and group-wide cost savings.

Debt-laden Evoke said last year that changes to online gaming duties and a new online sports betting tax would see its duty costs rise by up to £135 million a year from 2027.

Evoke previously said it expects to offset around half of the impact of the tax increases through store closures and also measures including potential “changes to the customer proposition” and supplier savings.

It did not confirm on Tuesday how many sites had already been closed but reports ahead of the budget suggested the firm could shut up to 200 sites if gambling taxes were raised.

Per Widerstrom, chief executive of Evoke, said: “We were very disappointed with the outcome of the UK budget in November that dealt a significant blow to both Evoke and the wider regulated industry.

“We continue to believe these tax increases will negatively impact the industry’s economic contribution, customer protection, and will ultimately serve to support further growth in the illegal black market.

“As a result of these significant UK tax increases, the board is assessing its strategic options, with a resolute focus on maximising shareholder value.”

He added: “We have moved quickly and decisively to execute on our mitigation plans including the closure of retail stores that are no longer sustainable as well as broader cost savings, and we will update shareholders on our progress and updated strategic plan in due course.”

The group also said it would hold off from giving any financial guidance pending the review outcome.

In the budget, the Chancellor raised remote gaming duty from 21% to 40% from April next year.

There will also be a new online sports betting duty of 25%, which will cover all sports except horse racing, from 2027.

In an update on trading, Evoke said that fourth-quarter revenues were 4% lower on a constant currency basis compared with a year earlier, when trading was boosted by company-friendly sports results.

But it said the revenues of £464 million were 7% higher than the previous quarter.

Betting revenues were the hardest hit in the quarter, down 22% year-on-year, while gaming revenues lifted 9%.

Despite this, the firm said it expects to report a rise in full-year revenue of about 2% to £1.79 billion.

Shares in the firm fell more than 7% in afternoon trading on Tuesday.

Dan Coatsworth, head of markets at AJ Bell, said: “The writing has been on the wall for some time – Evoke is facing a break-up situation and the big question is which parts of the business will be sold.

“William Hill was once the big prize for the UK gambling sector, but now it is a thorn in Evoke’s side.

“It is expensive and cumbersome to have a big physical store estate, yet finding a buyer for William Hill won’t be straightforward given the tax pressures.

“Evoke may struggle to find someone to pay anything close to fair value, suggesting any asset sale could involve other parts of the group.”