Evoke PLC on Wednesday said it will kick off a strategic review, which could include a sale of the company, after last month’s UK government budget which the gambling firm warned would lift yearly duty costs by up to £135 million.
Shares in the company were up 13% at 24.63 pence each in London on Wednesday morning. Shares are down 62% over the past 12 months, however.
Evoke said the review will look into a ‘range of potential alternatives to maximise shareholder value’. These include a sale of the whole group, or some assets.
‘The board has appointed Morgan Stanley & Co International PLC and Rothschild & Co as its joint financial advisers in connection with the strategic review. Shareholders are advised that there is no certainty that any transaction will materialise, nor as to the terms of any transaction,’ it added.
UK Chancellor Rachel Reeves set out gambling duty changes in her autumn budget in late-November.
From April next year, there will be an increase in remote gaming duty in the UK to 40% from 21% and abolition of bingo duty from its current 10%.
From April 2027, a new rate of general betting duty for remote betting will be introduced at 25%, excluding self-service betting terminals, spread betting, pool bets and horse racing, replacing the existing 15% general betting duty.
The UK government also announced a freeze in casino gaming duty bands in 2026 to 2027.
The changes to gambling duties are estimated to raise £1.1 billion for UK government coffers by 2029 to 2030.
evoke said it expects the tax measures to increase its duty cost by between £125 million and £135 million on an annualised basis, once fully implemented from April 2027. It expects a £80 million cost in 2026. Both estimates are before mitigation measures, which it expects to take away about 50% of the gross impact.
Evoke, which in addition to William Hill owns the 888 and Mr Green brands, noted that it paid £329 million in taxes and duties in the UK, equal to 60% of its UK profit.
‘We will begin immediately on executing our mitigation plans, which involve a significant reduction in investment into the UK, and, very regrettably, the likely need for thousands of jobs to be cut up and down the country,’ Evoke Chief Executive Officer Per Widerstrom said last month.
Widerstrom said the tax hikes are ‘highly damaging for the economy and consumers’.
‘As an industry, we have consistently warned of the significant impact on jobs, investment in the UK, and player protection that these changes would have, yet sadly the government has chosen not to listen,’ the CEO said.
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