William Hill-owner Evoke mulls sale after Budget raid
William Hill-owner Evoke is considering whether to sell itself or break up parts of its business in response to the government’s multibillion pound raid on gambling firms at last month’s Budget.
The betting giant, which also owns the 888 brands and Mr Green online casino, told investors that it had kicked off a strategic review of its assets which could include breaking up some of its flagship brands or a sale of the company in its entirety.
The gambling industry was one of the biggest losers of the November Budget, hit by a sharp rise in duties paid on its takings in order to raise north of £1bn a year by 2029.
General betting duty on sports bets was hiked from 15 per cent to 20 per cent for punts made online while duty on online gaming was increased from 21 per cent to 40 per cent.
Bets made at physical bookmakers and at horse racing events were exempted from the increase.
Evoke, whose origins are in online casinos before changing its name from 888 Group after its 2021 acquisition of William Hill, was among betting giants worst affected by the grab.
It pulled its official forecasts after the measures were confirmed, and told investors it would have to make thousands of job cuts, branding the decision “ill-thought through… and highly damaging”. It also warned it expected to pay extra duty costs of £135m a year.
The loss-making gambling giant remains heavily indebted after its £2.2bn acquisition of William Hill, a move that caught many investors off-guard and made it one of the UK’s largest betting firms.
Its share price has sunk 95 per cent since the ambitious takeover, falling out of the London Stock Exchange’s main indices.
Evoke told investors it had appointed Morgan Stanley and Rothschild to advise on the strategic review, which would “include the consideration of a range of potential alternatives to maximise shareholder value, including but not limited to a potential sale of the group”.
It added there was “no certainty” that a sale would take place, nor any indication of what a break-up or sale would comprise.
William Hill owner’s struggles predate Budget
The announcement follows a protracted lobbying campaign from much of the betting industry in the run-up to last month’s Budget.
Ladbrokes owner Entain and Flutter, which owns Paddy Power, both warned any hike to online betting duties would kill off investment plans, spark a cull of staff and drive customers onto the black market.
The founder of Betfred, a family-owned gambling company, also launched a bitter challenge to the heavily leaked plans, calling them the “biggest threat” his industry has seen in 57 years.
Evoke boss Per Widerstrom said the changes were “counter-productive” in a stinging set of remarks after they were confirmed, but Evoke’s financial battles predated the government’s tax grab.
Losses at the group tripled across last year, as it battled to rein in costs of a radical restructuring and was forced to refinance a ballooning debt pile at higher interest rates.
As well as the four-year collapse in its share price dating back to its William Hill acquisition, it ousted its chief executive after a 2023 investigation found the company had failed to meet anti-money-laundering regulations.
The previous year, the group agreed to a £9.4m fine for allowing customers to take on huge losses over the pandemic.